2017/18 Annual Report by Logan City Council

INNOVATIVE, DYNAMIC,

CITY OF THE FUTURE LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

ON THE COVER AND INSIDE COVER The theme for this year’s annual report is Council’s commitment to supporting its vision by investing in innovation for our existing community and future generations. The vision embodies our expectations and hopes for the future of our city as an innovative, dynamic city of the future—one that offers social, environmental and economic health now and for future generations. Images: An artist’s impression of the vision for Beenleigh

The essence of the City of Logan is its people, places, heart and spirit. The city is home to over 319,000 people from more than 217 different nationalities and cultures, creating a diverse, rich and multi-faceted community. 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 which makes Logan an innovative, dynamic, city of the future.

ACKNOWLEDGEMENT OF COUNTRY Logan City Council acknowledges the Traditional Custodians of the land, pays respect to Elders past, present and emerging and extends that respect to all Aboriginal and Torres Strait Islander peoples.

LOGAN CITY COUNCIL ANNUAL REPORT Produced by Logan City Council. None of the material in this publication may be reproduced without the permission of the Chief Executive Officer, Logan City Council. This annual report is printed on ecoStar 100% Recycled. This is an environmentally-responsible carbon neutral paper manufactured from 100% post-consumer recycled paper in a process chlorine-free environment under the ISO 14001 environmental management system.

1 2 3

CONTENTS OUR ANNUAL REPORT

Introduction 4 Our vision, purpose, goal and values

Acting Mayor’s message

Acting CEO’s message

Performance overview

Challenges in 2017/2018

Our city

The City of Logan in profile

OUR COUNCIL

4 5

Elected members

Elected Council’s responsibilities

How we engage our community

Organisational structure

Corporate governance

Internal Audit, risk management and business continuity planning

Working at Logan City Council

PERFORMANCE REPORTING 43 Our framework

Community financial report

Taking a holistic approach to sustainability

Road and Water Infrastructure Directorate summary

Community Services Directorate summary

Organisational Services Directorate summary

Innovation and City Transformation Directorate summary

Strategy and Sustainability Directorate summary

City of Logan’s priorities summary and performance scorecard

Priority Area: Quality lifestyles (QL)

Priority Area: Conveniently connected (CC)

Priority Area: Economic transformation (ET)

Priority Area: Image and identity (II)

Priority Area: Green and renewable (GR)

6 7

COMMERCIAL BUSINESS UNITS 107 Logan Water

108

Health, Environment and Waste Branch – Waste and recycling program

112

ADDITIONAL STATUTORY INFORMATION 121 Service charges

122

Tenders and expressions of interest

123

Community service obligations

123

Registers open for inspection

124

Financial sustainability

124

Code of Competitive Conduct for business activities

125

Administrative action complaint disclosures 2017/2018

126

National Competition Policy reforms

126

Local Government Finance Standard disclosures

127

Quality assurance

127

Beneficial Enterprises

128

FINANCIAL REPORTING

133

Annual financial statements

134

Report on the Current-Year Financial Sustainability Statement

176

Sustainability report

179

Long-term financial sustainability report

183

Note 1 – Financial Management Strategy

184

APPENDICES

186

Glossary of terms

188

Contact information

191

Legislative index

192

Global Reporting Initiative (GRI) Content Index

196

Index

198

Priority Area: Next generation governance (NG) 102

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

Barnaby Resch is responsible for taking samples from natural waterways throughout the city to monitor the protection or enhancement of aquatic ecosystem values, under four possible levels of ecosystem conditions

1 OUR ANNUAL REPORT

This introductory section of the Logan City Council 2017/2018 Annual Report outlines information about our organisation and the city, gives a summary of our operational and financial performance for the 2017/2018 financial year, introduces our Mayor and Chief Executive Officer and highlights the awards won by our staff.

OUR ANNUAL REPORT

INTRODUCTION This annual report details our performance during the 2017/2018 financial year in meeting the strategic priorities outlined in our Corporate Plan 2017–2022 and details our long-term financial planning. Logan City Council provides more than 90 programs and services to the community and this report details the challenges faced and achievements over the past year—providing an open and honest account of our performance and financial position to our stakeholders. This information is relevant to Logan residents and ratepayers, local business owners, potential investors, community groups, government agencies, funding bodies, as well as current and potential staff. The objectives of the annual report are to:

• demonstrate our commitment to accountable and transparent governance • promote the City of Logan and Logan City Council to potential investors to encourage economic development • build confidence and satisfaction in the partnerships that are being created with community groups, local authorities and industry leaders through key projects • recognise the significant achievements of our staff • promote our Council as an employer of choice to job candidates • comply with statutory requirements, in accordance with the Local Government Act 2009 and Local Government Regulation 2012.

• communicate our vision and commitments to the community • report on our performance in delivering the Corporate Plan’s priorities and other key achievements by our organisation • demonstrate our ability to lead with confidence and deliver on our promises

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Springwood is a major hub for commuters heading to Brisbane

OUR VISION, PURPOSE, GOALS AND VALUES OUR CITY VISION

OUR VALUES

Innovative, Dynamic, City of the Future.

At Logan City Council we value:

OUR ORGANISATION VISION Enabling Next Generation Government.

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

OUR GOAL To be an organisation where our staff pursue excellence in all that they do with high levels of job satisfaction.

Community First We work together to know our customers’ needs so we deliver what matters and what makes a difference. We make decisions with empathy and recognise that our community’s needs are at the core of every decision we make now and into the future.

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

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

Leadership We encourage leadership aligned to our values at all levels of the 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.

As a member of our Parks Branch, Keiko Power helps to maintain the gardens and lawns in the city’s 973 parks.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

OUR ANNUAL REPORT

ACTING MAYOR’S MESSAGE The past financial year has been one of outstanding achievement, as the City of Logan takes its first steps towards realising the vision of Logan as an Innovative, Dynamic, City of the Future. The vision our Council has for the city’s development reflects the hopes and aspirations of our residents who have told us they want to live in a well-planned, sustainable city with a strong local economy, with strong employment opportunities and local and global connections, while still retaining the character and diversity of neighbourhood communities. In order to achieve these goals Council first looked at how, as a progressive organisation, we could drive change and use innovation and technology—and all the resources at our disposal—to continually improve the quality and efficiency of our service delivery to a rapidly growing city. We then looked at how we could develop partnerships to drive change by consulting with the community and town planning experts and working with other tiers of government, national and internationally recognised experts and business. Using a strategic planning framework, Logan City Council is now in the process of building a world class city which will provide an enhanced quality of life for an estimated 500,000 residents within 20 years. As outlined in the Corporate Plan 2017—2022 Council’s strategic planning priorities have been encapsulated into five city outcomes: • Quality Lifestyles • Conveniently Connected • Economic Transformation • Image and Identity • Green and Renewable.

Using a strategic planning framework Logan City Council is now in the process of building a world class city...

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Each of these priorities is underwritten by an organisational priority of creating Next Generation Governance within our Council—where we embrace transformation and innovation to meet the needs of our customers and community—by embedding continuous improvement in the quality and efficiency of the services we deliver. We have already enjoyed some early successes. Our ongoing advocacy agenda has been instrumental in securing commitments by state and federal governments to upgrade the M1 motorway. We have now turned our attention to the upgrading of the Mount Lindesay Highway and securing commitments to upgrade this vital road transport link. We’ve made many advances using technology. We’re harnessing innovation to provide core services such as water, roads and waste management. We’re moving forward with our planning to integrate transport services and infrastructure, urban planning and design, economic transformation, jobs growth and improving access to community services; and we’re protecting and managing our environment. Logan is well on the way to realising the vision of being a city of the future.

Acting Mayor Cherie Dalley, City of Logan

ACTING CEO’S MESSAGE It has been a watershed year in many ways as the vision, captured in our Corporate Plan 2017—2022, comes to life. The bread and butter of Council business takes on a new dimension when planning for sustained and rapid population growth is taken into consideration. Council focused on 98 projects and KPIs in our 2017/2018 Operational Plan and I’m pleased to say we’re at the forefront of technology in how we are delivering many of our services. Logan is committed to being a carbon-neutral and green city. This year we took several large steps towards achieving this goal when we commissioned Australia’s first solar powered/Tesla Powerpack energised water chlorination system. Our Development Assessment processes are also among the most advanced in Australia with mobile office capabilities, online drainage plans, RiskSmart planning, the use of drones to improve decision making, electronic lodgement and real-time reporting. We’re also using laser measurement and GPS technology to provide a detailed assessment of the quality of our road and footpath network, to prioritise maintenance and repairs.

... we’re at the forefront of technology in how we are delivering many of our services. The completion of the Logan Metro Sports Grounds was also another milestone for the city and planning work is now advancing on the master plan for Cronulla Park in Underwood as a mixed use sport and recreation precinct.

Economic development has also been a priority with Council’s investment attraction activities simplified with a Queensland first Property Development Hub which provides a Property Report, Infrastructure Charges Estimator and the award-winning Environmental Offset Estimator—in addition to a free Flood Level Report—as well as the Planning Enquiry tool. The hub identifies zones, while property overlays help users find a site for a proposed activity. Council is also investing in new water infrastructure projects that will support the rapid population growth concentrated in our western and south-western suburbs. Our extensive road transport network is also being upgraded, with the expansion and extension of major connecting roads, replacement kerb and channel, new signalised intersections and an extension to our 1,220 km shared footpath and bikeway network. Our Council is intent that this growth will not be at the expense of the environment as we plan for new waste management and recycling options, create interconnected green spaces across the city and implement a carbon reduction strategy. We’ve developed a range of conservation incentives and are in the process of activating the Logan River Vision Implementation Plan and Albert River Vision Implementation Plan to support accessibility, ecological health, recreational value and economic benefit of our waterways. As you can see, we’re forging ahead using innovation and planning to meet the expectations of the community for service excellence in local government.

Silvio Trinca, Acting Chief Executive Officer, Logan City Council

Our long-established centres are also receiving attention with Council hosting a series of summits, that attracted international speakers and national attention as we worked with the community to explore the possibilities for revitalising the economic and place-making potential of key precincts to create multiple and vibrant city hearts. At the same time Council is also investing heavily in our community infrastructure. We’re installing an increasing number of monitored city safety cameras. We’re now implementing the Active Logan strategy to ensure that everyone in the community is active every day of the week.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

OUR ANNUAL REPORT

PERFORMANCE OVERVIEW DELIVERING ON OUR CORPORATE PLAN PRIORITIES

10 Projects / 4 KPIs

13 Projects / 3 KPIs

11 Projects / 2 KPIs

13 Projects

22 Projects / 2 KPIs

This annual report focuses on the six priorities outlined in Logan City Council’s Corporate Plan 2017—2022, which reflects the councillors’ collective vision for the city and how Council plans to deliver this vision to the community.

16 Projects / 2 KPIs

A total of 98 projects and KPIs were in Council’s 2017/2018 Operational Plan delivering on the six priorities outlined in Logan City Council’s Corporate Plan 2017—2022. The priorities are shown below:

2017/2018 PERFORMANCE HIGHLIGHTS

QUALITY

CONVENIENTLY

ECONOMIC

IMAGE AND

GREEN AND

NEXT GENERATION

LIFESTYLES

CONNECTED

TRANSFORMATION

IDENTITY

RENEWABLE

GOVERNANCE

(QL)

(CC)

(ET)

(II)

(GR)

(NG)

Performance scorecard definitions PROJECTS On track/completed: The project is meeting planned targets or all planned milestones have been achieved (project closure). Monitor: The project is behind schedule but will still be delivered this financial year. 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’.

Council’s performance in delivering on its 2017/2018 Operational Plan is as follows: (See page 43 for full details of our performance)

Completion Risk:

Monitor:

Below Target:

1 Undeliverable:

Not proceeding:

Undeliverable: The project will not be delivered this financial year. Not proceeding: A Council decision has been made to cancel the project.

KPIs Meeting/exceeding target: Performance for this indicator is meeting or exceeding the target level. Monitor: Performance is below the target level but is still within the acceptable performance variance. Below target: Performance is outside of the acceptable performance variance. Not proceeding: A Council decision has been made to discontinue the KPI.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Completed or on Track:

WHERE DID COUNCIL EARN ITS INCOME FROM IN 2017/2018? Rates

55%

FINANCIAL PERFORMANCE HIGHLIGHTS

Asset Donations

20%

Council reported an

operating surplus of $31.8m (last year

Contributions, Grants and Subsidies

14%

$31.3m) and an operating surplus ratio of 6.2 per cent (last year 6.5 per cent) against an industry standard of

Fees and User Charges

between zero and 10 per cent

for the 2017/2018 financial year.

Council’s total

Recoverable Works and Sales

asset value has

fallen by $77.2m over the past 12 months to $5.847b at 30 June 2018 (last year $5.924b).

$77.2m

Interest and Other

Council’s borrowings have continued to fall over the year, after the repayment last year of $47.4m. Council is experiencing a reduction in interest charges due to early repayment.

borrowings

$12.3m

Council remains in a sound financial position

ratio (total liabilities less current assets as a

at 30 June 2018 in terms of both short-term

percentage of operating revenue) of -19.6

liquidity and long-term sustainability:

per cent (last year -13.24 per cent) due to the early repayment of loans. The negative

3.52:1 (last year 3.71:1) working capital ratio

ratio indicates that Council has a large

Council has a

capacity to borrow if and as required.

(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 (i.e. debt as a percentage of community equity) percentage of 3.4 per cent (last year 3.6 per

5yr

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 decreased by $7.2m over the past five years; while capital expenditure over the same period amounted to $800m.

cent) and a negative net financial liabilities

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

OUR ANNUAL REPORT

CHALLENGES IN 2017/2018 ONE YEAR ON FROM EX-SEVERE TROPICAL CYCLONE DEBBIE The challenge

together and offered to help each other – first to prepare for the event, and then to respond and recover.

In March 2017 ex-Severe Tropical Cyclone Debbie caused some of the worst flooding in Logan’s history. The impacts were felt right across the city, and particularly along the Logan and Albert rivers. Residents and businesses were still recovering into 2017/2018 but we saw a great response from community groups, notfor-profit organisations, local businesses, charities and volunteer organisations to help each other get back on their feet.

What did we do about it? • Modified the Disaster Dashboard to include river height information for the Logan-Albert River and Oxley Creek • Enhanced the Logan Early Warning service to provide flood notifications for 14 locations across the City of Logan.

Ex-Severe Tropical Cyclone Debbie tested our local community’s resilience like nothing before. From the time the first weather warning sounded, people banded

(See page 63 for full stories).

Many parks were inundated by floodwaters from the Albert and Logan rivers in 2017

IMPROVING LIBRARY SERVICES The challenge

What did we do about it?

T FAC S A

For library customers, borrowing from Council’s libraries relied on outdated barcode scanning technology that was time-consuming for customers and staff. The equipment was nearing its end of life and replacement costs were high. Radio Frequency Identification or RFID technology was a more cost-effective option that made borrowing easier for customers and allowed library staff more time for face-to-face customer service and delivery of programs.

Council’s Libraries had

1,671,425 visitors and loaned out 1,922,584 items in 2017/2018.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

• In February Logan City Council libraries entered an exciting new era when (Radio Frequency Identification) RFID was installed in all nine libraries. RFID is a technology that makes borrowing quicker and easier for customers. Nearly 2 million items were borrowed from Logan City Council libraries in the past year. Before RFID every item was checked out individually, but now customers can conveniently borrow multiple items at once using an RFID selfserve kiosk (See page 105 for full story).

MAINTAINING OUR ROADS The challenge As the population increases and we build more infrastructure to connect the City of Logan, the need for quality road maintenance will always be a priority for the community. In 2017/2018 Logan attended to over 13,000 maintenance requests. Knowing where to conduct proactive and preventative maintenance on Council roads is an essential part of keeping our roads safe, and preventing severe damage to our roads from occurring.

What did we do about it? • We utilise lasers, high-definition cameras and computers fitted to a van to scan our roads to provide data on the roughness and texture of the road surface. This data is used to inform the scheduling and prioritisation of future maintenance and rehabilitation works providing improved services. (See page 65 for full story).

KEEPING OUR COMMUNITY SAFE The challenge In 2017 Council ran its annual Safe City Logan Community Survey. The survey showed that 83.9 per cent of our people feel safe when home alone, up from 74.6 per cent from the previous year. But Council’s commitment to keeping the community safe does not stop there. Crime and community safety are always a high priority for Council and the City of Logan and we need to be continually improving our safety programs to meet the safety needs of the community.

What did we do about it? • Council used the results from this survey to develop and deliver targeted community-based crime prevention and community safety activities. (See page 69 for full story).

ADVOCATING FOR THE CITY OF LOGAN The challenge Council’s capacity to raise capital to fund infrastructure is limited and accounts for only three per cent of the national taxation share. This limits the scope and scale of infrastructure we can deliver.

What did we do about it? • Council’s Advocacy Strategy 2017- 2019 provides Council with a framework for coordinating and delivering on our advocacy agenda. The strategy is a first for the City of Logan and lays the foundation for Council and the community to commence action today that will create long-lasting change into the future. (See page 105 for full story).

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

OUR ANNUAL REPORT

OUR CITY

OUR HISTORY

The City of Logan is becoming one of Queensland’s largest cities and is a major centre of economic development. Located in the heart of South East Queensland, between Brisbane and the Gold Coast, the city covers 957 square kilometres and has more than 319,000 residents – 6.4 per cent of Queensland’s population. The key economic drivers and employment sectors are construction, health and social services, retail trade and manufacturing. Transport and logistics, business and community services, property development, education, construction and agriculture are also significant drivers of the local economy. With the availability of good quality land and high-quality community infrastructure, the city is growing in a planned and sustainable way. Demographic forecasts indicate our Noosa Headsto 500,000 people within 20 years. population will increase

ogan City

ALIA

Given our location, young population and skilled, educated workforce, Logan is ideally placed to continue emerging as Coolum Beach a major city and economy in South East Queensland. Our city is proud to be home to a diverse multicultural population with residents from 217 different nationalities Mooloolaba living in 70 suburbs. The suburbs reflect residents’ diversity, offering lifestyle options ranging from apartment Caloundra living to leafy suburbs and rural-residential homesteads located in natural bushland. The city has developed a strong and vibrant community spirit, a reputation as a hub for a wide variety of sports and is becoming increasingly known for its diverse events, cultural activities, points of interest and restaurants. Caboolture

CITY OF LOGAN

AUSTRALIA

Renamed by Governor Darling in honour of Captain Logan, the river 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 as wharves and bridges were washed away in successive floods. After the penal settlement in Brisbane was closed in 1841, land in Logan was quickly acquired 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 regional sugar industry remains centred on the Rocky Point Sugar Mill. The post-war need for housing attracted enthusiastic young families and urban development boomed in the Rochedale South and Springwood areas from the late 1960s and in Browns Plains from the early 1970s. The Logan of today is a bustling modern city looking to the future, but there are still many reminders of the 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. 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.

Brisbane

The Logan local government area was created in 1979 and the City of Logan was declared in 1981.

Ipswich

CITY OF LOGAN

Warrill View

Beenleigh

Gold Coast Nerang

Boonah Beaudesert

The Logan region was originally inhabited by Aboriginal people who led self-sufficient and harmonious lives. Their first contact with Europeans occurred when the Commandant of the Moreton Bay Penal Settlement, Captain Patrick Logan, explored the Logan River in 1826, which he initially named the Darling River.

Surfers Paradise

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Tweed Heads

With local government amalgamations and redrawing of boundaries in 2008, the City of Logan expanded to include areas that were previously part of the Gold Coast City Council and Beaudesert Shire Council areas. Today the city is seen as South East Queensland’s economic powerhouse as all levels of government and the private sector collaborate to enrich and capitalise on the city’s growth.

THE CITY OF LOGAN IN PROFILE 319,652 residents comprising 217 nationalities and cultures 27.3% of residents were born overseas

Council divisions incorporating

115,393

rateable assessments

Median age:

major community venues/ events centres

21,126

$779 million

$13.488 billion 18 Council-

including $1.3 billion worth of water and wastewater assets and $2.9 billion worth of roads and drainage assets

3 indoor sports

owned community centres

6 cemeteries $5.8 billion,

1 Entertainment Logan City Council 2017/2018 budget:

with a gross regional product of

Assets worth

Gallery

businesses

$26.018 billion

116

1 Regional Centre

An economy worth

sporting facilities

centres

9 libraries

2,242 km

suburbs covering

of sealed roads

957

89 km of

square kilometres

2,633 ha

6 aquatic centres

unsealed roads

121

signalised intersections owned and operated by Council

973

of wetlands

parks

256,818 tonnes of waste

handled each year:

60,227 tonnes is diverted from landfill

2,100 km

over of wastewater mains

2,200 km

over of water mains

1,220 km of shared paths (footpaths and bikeways)

2,362 km of waterways

This data is current as at 30 June 2018.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

caption

Rebecca Martinago is one of the many friendly staff working at our gyms

2 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.

OUR COUNCIL

ELECTED MEMBERS Councillor Cherie Dalley ACTING MAYOR (DIVISION 8 AND REPRESENTING FOR DIVISION 6) Councillor Cherie Dalley was elected to Logan City Council in 1997. With her husband Stewart, she operated a commercial tiling business until 1999 and she is committed to helping small business people thrive in Logan. Cr Dalley is president of the Queensland Consumers’ Association and is heavily involved in community groups; she is a Legatee and Treasurer of the Logan Beaudesert Crime Stoppers Committee. She has previously chaired Council’s Finance Committee, and Planning and Development Committee, a role she held from 2008 to 2016. A divisional community consultation committee advises Cr Dalley on the small and large issues within Division 8. Cr Dalley says she finds the committee’s comments on policy matters invaluable, which helps her in making decisions that benefit the whole community. Cr Dalley is a Graduate Fellow of the Australian Institute of Company Directors and holds a Diploma of Local Government Administration from the Queensland University of Technology. Cr Dalley has three adult children and three grandchildren and has lived in Logan since 1980. Councillor Dalley was Chairperson of the City Deals Special Committee from 30 May 2017, until it was disbanded on 20 February 2018.

Councillor Lisa Bradley (DIVISION 1) Councillor Lisa Bradley was elected to Logan City Council in 2008 after working for 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. She has also been involved in quality improvement, education and research. Cr Bradley is a patron of a number of organisations and from a young age passionately volunteered in a number of clubs, charities and organisations. Cr Bradley is a member of the Australian Institute of Company Directors and was awarded a Company Directors Course Diploma in 2011. Councillor Bradley was Chairperson of the City Health, Environment and Waste Committee until her resignation from the Committee on 11 July 2017.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Councillor Russell Lutton (DIVISION 2) Chairperson City Planning and Economic Development Committee

Councillor Russell Lutton is the City’s longest-serving councillor after first being elected in 1985. Before becoming a fulltime 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 serving as Chair of the Town Planning and Environment Committee and the Development and Environment Committee.

Councillor Steve Swenson (DIVISION 3) Chairperson City Lifestyle and Community Committee

Councillor Steve Swenson was first elected to Logan City Council in 2012. Prior to this, he worked in the not-forprofit/community 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. Cr Swenson has a diploma in Leadership and Management and is also currently completing studies in business. As well as working hard to ensure the concerns of current residents are heard and acted upon, Cr Swenson is committed to making well-informed decisions for the community that build for the prosperous future and lifestyle of generations to come.

Councillor Laurie Koranski (DIVISION 4) Councillor Laurie Koranski was elected to Logan City Council in 2016. Her background in small business and community advocacy sparked her enthusiasm to run for Council. Cr Koranski is a supporter of the Cancer Council Queensland and has been an active member of a number of clubs, charities and business organisations. She has a Bachelor of Arts Degree and is a strong advocate for education and furthering opportunities for young women. Cr Koranski is passionate about building a caring and connected community.

Councillor Jon Raven (DIVISION 5) Chairperson City Centres Special Committee

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. He moved to Marsden from Brisbane in 2010 with his family. Cr Raven believes that community is what sets Logan apart from other cities. During the floods he saw first-hand how the people of Logan came together to help each other and he sees that same kindness and support between neighbours with their everyday challenges. He views his role as a councillor as one who helps local people and businesses to prosper. In his spare time, Cr Raven enjoys martial arts and spending time with his children.

Councillor Darren Power (DIVISION 10) Councillor Darren Power was first elected to Logan City Council in 1997. He started his working career as an apprentice 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 at Melbourne Airport. Before being elected as a councillor, he worked in Council’s Environmental Health Department for six years. Councillor Power was the Chairperson of the City Growth Committee from 30 May 2017, to 20 February 2018.

Councillor Trevina Schwarz

Councillor Laurie Smith

ACTING DEPUTY MAYOR, CITY TREASURER (DIVISION 11)

(DIVISION 7)

Chairperson City Treasury Committee

Chairperson City Image and Innovation Committee

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 nearly 30 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.

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. In the 2012–16 term, Cr Smith was Assistant Chairperson of Council’s Roads and Water Infrastructure Committee.

Councillor Jennie Breene (DIVISION 12)

Councillor Phil Pidgeon (DIVISION 9) Chairperson City Roads and Water Committee

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 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 Group. He is also the patron of many Logan-based organisations. Cr Pidgeon is also an avid fisherman and late night amateur astronomer and restores antique farm machinery in his rare spare time.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

Chairperson City Parks, Animals, Environment and Waste Committee

Councillor Jennie Breene was elected to Logan City Council in 2012. Prior to being elected, Cr Breene worked in her parents’ business. Her previous working experiences have 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 the services provided by Council. Cr Breene is a local resident and has lived in Beenleigh for the past 26 years. Note: Cr Stacey McIntosh (Division 6) was suspended on 21 May 2018 in accordance with Section 182A of the Local Government Act 2009. Mayor Luke Smith was suspended on 21 May 2018 in accordance with Section 182A of the Local Government Act 2009.

OUR COUNCIL

THE ELECTED COUNCIL’S RESPONSIBILITIES

DIVISION 5 — Cr Jon Raven Representing Berrinba, Loganlea, Marsden, and part of Crestmead and Waterford West.

DIVISION 8 — Cr Cherie Dalley Representing Browns Plains, Heritage Park, Regents

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.

Park and part of Park Ridge.

They are democratically elected and accountable to their communities for the decisions they make and the services they provide. Their role also includes other responsibilities such as providing high-quality leadership to the community, 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.

Browns Plains

Forestdale Hillcrest Boronia Heights

Div 7 Greenbank

Div 8 Park Ridge

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.

Park Ridge South

Munruben

*Cr Stacey McIntosh (Division 6) was suspended on 21 May 2018 in accordance with Section 182A of the Local Government Act 2009.

New Beith

Div 9

North Maclean Lyons

Stockleigh Silverbark Ridge

Div 11

*Mayor Luke Smith was suspended on 21 May 2018 in accordance with Section 182A of the Local Government Act 2009.

Monarch Glen Undullah

South Maclean Flagstone

Flinders Lakes

Riverbend

Glenlogan

Kagaru

Jimboomba

Cedar Grove

DIVISION 11 — Cr Trevina Schwarz Representing Cedar Grove, Cedar Vale,

DIVISION 7 — Cr Laurie Smith

Flagstone, Flinders Lakes, Glenlogan, Lyons,

Representing Boronia Heights,

Monarch Glen, New Beith, Riverbend,

Forestdale, Hillcrest and parts

Silverbark Ridge, Woodhill, parts of Greenbank,

of Greenbank, Munruben, North

Jimboomba, Kagaru, North Maclean, South

Maclean, Park Ridge and Park

Maclean, Undullah, Veresdale and Veresdale

Ridge South.

Scrub.

Regents Park Heritage Park

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Cedar Vale Woodhill

Veresdale

Veresdale Scrub

DIVISION 2 — Cr Russell Lutton Representing Logan Central, Woodridge and part of Kingston and Underwood.

DIVISION 1 — Cr Lisa Bradley

Rochedale South Underwood

DIVISION 3 — Cr Steve Swenson Shailer Park

Kingston

Representing Slacks Creek Cornubia

Meadowbrook

Div 5

Marsden

Tanah Merah

Loganlea

Crestmead

Daisy Hill, Springwood and Underwood.

Daisy Hill

Slacks Creek

Logan Central

Berrinba

Springwood

Representing Priestdale, Rochedale South and part of

Div 1

Div 3

Woodridge

Div 2

Priestdale

Div 10

Loganholme, Springwood, Tanah

Carbrook

Div 6

Eagleby

Edens Landing

Waterford

Div 12 Mount Warren Park

Bahrs Scrub

Buccan Chambers Flat

Representing Carbrook, Cornubia, Shailer Park and parts of Daisy Hill

Beenleigh

Holmview

Windaroo Belivah Bannockburn

Merah and Underwood.

DIVISION 10 — Cr Darren Power

Bethania Loganholme

Waterford West

Logan Reserve

and part of Daisy Hill, Kingston,

and Loganholme.

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

DIVISION 6 — Cr Cherie Dalley

Logan Village

Wolffdene

Bethania, Edens Landing, Holmview, Meadowbrook, Waterford and part of Loganholme.

Div 4 Yarrabilba

Cedar Creek

DIVISION 4 — Cr Laurie Koranski Representing Bahrs Scrub, Bannockburn, Belivah, Buccan, Kairabah, Logan Village, Mundoolun, Windaroo,

Kairabah

Wolffdene, Yarrabilba and parts of Cedar Creek, Jimboomba and Mt Warren Park and Tamborine.

Tamborine

DIVISION 9 — Cr Phil Pidgeon Mundoolun

A/MAYOR — Cherie Dalley

Representing Chambers Flat, Logan Reserve, Stockleigh and parts of Crestmead, Munruben, North Maclean,

Representing the whole of the City of

South Maclean, Park Ridge, Park Ridge South and

Logan. Representing Division 8 and

Waterford West.

Division 6.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

OUR COUNCIL

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 actions undertaken during the year relating to the various codes.

Public Sector Ethics Act implementation statement During the year, we undertook the following actions to fulfil our obligations under the Public Sector Ethics Act 1994: • The code was made available upon request to all staff and the public online, and internally via our electronic

• We provided all new permanent staff, consultants, contractors, agency staff, volunteers and work experience students with online training and access to a copy of the Code of Conduct • No external inspections of the code were requested

document management system

during 2017/2018.

Councillor Code of Conduct disclosures 2017/2018 We are required to disclose figures relating to councillor conduct complaints received and actioned in accordance with the Local Government Act 2009: 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.

Cr Schwarz was subject to an order of inappropriate conduct due to communicating with a fellow Councillor in an unacceptable manner. An order was made “that should there be any repeat of your conduct, it will be referred to the Regional Conduct Review Panel as misconduct under s.181(2)(b) of the LG Act.” In addition, the councillor was advised to review the Councillor Code of Conduct, in particular section 3.0 of the Councillor Code of Conduct. Cr Koranski was subject to an order of inappropriate conduct due to non-compliance with a local government procedure. An order was made “that should there be any repeat of your conduct, it will be referred to the Regional Conduct Review Panel as misconduct under s.181(2)(b) of the LG Act.” In addition, the councillor was advised to review the Councillor Code of Conduct, in particular section 3.0 of the Councillor Code of Conduct.

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 1section 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 2017/2018 ANNUAL REPORT

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 2015 Local Government Remuneration and Discipline Tribunal Report, remuneration paid to councillors between July 2017 and June 2018 is detailed below.

TOTAL

LOGAN CITY COUNCIL SUPERANNUATION

Full Year

$218,813.54

$19,614.25

Full Year

$132,850.96

$15,942.12

Russell Bruce

Full Year

$132,850.96

$15,942.12

Swenson

Stephen Frederick

Full Year

$132,850.96

$15,942.12

Koranski

Laurie Anne

Full Year

$132,850.96

$12,620.86

Raven

Jon Smyth

Full Year

$132,850.96

$12,620.86

McIntosh

Stacey Lee

Full Year

$132,850.96

$12,620.86

Smith

Laurence William

Full Year

$132,850.96

$15,942.12

Dalley

Cherie Marie

8 and Deputy Mayor

Full Year

$151,605.75

$18,192.64

Pidgeon

Phillip Wayne

Full Year

$132,850.96

$12,620.86

Power

Darren Ross

Full Year

$132,850.96

$15,942.12

Schwarz

Trevina Dale

Full Year

$132,850.96

$13,643.16

Breene

Jennifer Rachael

Full Year

$132,850.96

$12,620.86

SURNAME

GIVEN NAMES

DIVISION

Smith

Timothy Luke

Mayor

Bradley

Lisa Catherine

Lutton

PERIOD COVERED

Mayor Luke Smith and Cr McIntosh were suspended in accordance with S182A of the Local Government Act 2009 (‘Act’) on 21 May 2018. Mayor Smith and Cr McIntosh are entitled to receive remuneration whilst suspended in accordance with S182D of the Act. Cr Dalley assumed the role of Acting Mayor on 17 April 2018. Cr Schwarz was appointed Acting Deputy Mayor on 5 June 2018.

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 councillor’s role and makes arrangements for reimbursing expenses for our councillors’: • conferences and seminar attendances, including travel and accommodation • training and professional development

• civic-related expenses • daily meals and refreshments • facilities, including office accommodation, equipment, stationery and executive support • publications and newspapers • safety equipment and uniforms • vehicles, including fuel and tolls • insurance cover • superannuation. See page 130 for more information on Council’s Expenses Reimbursement Policy.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

OUR COUNCIL

Council considers that some facilities are necessary for Councillors to undertake their role as a local government Councillor, those provided by Council include:

Office accommodation, both at Logan City Council Administration Centre and a Councillor office at Beenleigh, and executive and administrative support, and reasonable call and data costs associated with Council smart phones for Council business only.

Expenses by Councillor COUNCILLOR

STATIONERY

Cr Luke Smith (Mayor)

CAR & TRAVEL EXPENSES

MOBILE DEVICE, IT EQUIPMENT

INCIDENTIAL

TOTAL

$6,418

$2,617

$1,495

$10,531

Cr Lisa Bradley

$161

$2,552

$1,350

$4,063

Cr Russell Lutton

$282

$3,322

$41

$163

$3,808

Cr Steve Swenson

$3,904

Cr Laurie Koranski

$614

$4,216

$106

$4,936

Cr Jon Raven

$189

$4,034

$4,223

Cr Stacey McIntosh

$286

$5,183

$500

$5,969

Cr Laurie Smith

$221

$3,778

$3,999

$2,326

$82

$2,408

Cr Phil Pidgeon

$87

$7,023

$100

$7,210

Cr Darren Power

$248

$3,660

$600

$4,508

$78

$6,548

$1,950

$109

$8,685

$536

$2,123

$136

$2,795

$2,703

$55,087

$6,658

$2,591

$67,039

Cr Cherie Dalley (Deputy Mayor)

Cr Trevina Schwarz Cr Jennie Breene Total

Incidential costs include meal, travel costs, professional membership fees and council branded uniforms.

Civic allowance

Expenses not available by Councillor/Division The following expenses are not available by Divisional breakdown EXPENSE

TOTAL

Insurance

$84,654

Postage

$84,588

Training and development

$35,953

Office equipment

$23,630

Meals

$10,956

Travel

$5,498

Promotional items

$4,243

Printing & Stationery

$33,977

Reference material

$3,737

Uniforms

$1,391

Notes: • • •

Travel includes local and interstate travel Training and development includes conferences Office equipment includes furniture and fixtures, computers, printers and minor equipment.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

CIVIC ALLOWANCE Cr Luke Smith (Mayor)

$ $1,504

Cr Lisa Bradley

$201

Cr Russell Lutton

$316

Cr Steve Swenson

$399

Cr Laurie Koranski

$1,238

Cr Jon Raven

$674

Cr Stacey McIntosh

$1,083

Cr Laurie Smith

$1,067

Cr Cherie Dalley (Deputy Mayor)

$650

Cr Phil Pidgeon

$624

Cr Darren Power

$309

Cr Trevina Schwarz

$420

Cr Jennie Breene

$1,493

Total

$9,980

The civic allowance is provided in acknowledgement of civic related expenses incurred by councillors in their day-to-day civic duties and Council business.

ATTENDANCE AT COMMITTEE AND COUNCIL MEETINGS 2017/2018 Councillors must attend at least 75 per cent of the duration of each meeting to have attendance recorded. IN

City Infrastructure

City Lifestyle and Customer Services

Innovation and City Transformation

City Treasury

City Growth

City Centres Special Committee

City Health, Environment and Waste

DE*

City Deals Special Committee

City Parks, Local Laws and Animal Care

City Creative Industries Advisory

City Image

Ordinary Council

SCN

Special Council

COMMITTEE AND COUNCIL MEETINGS

1 JULY 2017 TO 20 FEBRUARY 2018

Number of Meetings

CE DE* CC 3

SCN

TOTAL

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 City Deals Special Committee was adopted on 30 May 2017 and was disbanded on 20 February 2018. Councillor Dalley was the chair of the City Deals Special Committee for this period.

City Roads and Water

City Parks, Animals, Environment and Waste

City Centres Special

City Lifestyle and Community

City Planning and Economic Development

City Treasury

City Image and Innovation

Ordinary Council

21 FEBRUARY 2018 TO 30 JUNE 2018

COMMITTEE AND COUNCIL MEETINGS RO

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

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

OUR COUNCIL

HOW WE ENGAGE OUR COMMUNITY ‘HAVE YOUR SAY’ ONLINE

LOGAN ECO FORUM

The voice of the community is important to Logan City Council. Last year, Council launched its new online engagement platform to provide residents with many more options to submit meaningful feedback and engage in Council decision making processes.

The Logan Eco Forum was Logan City Council’s inaugural event which provided a unique opportunity for the broader community to engage and participate in environmental education, networking and environmental awareness capacity building through a face-to-face setting. The purpose of the event was to explore the many ways we can connect to nature, how this benefits us as individuals and as a community and to showcase Council’s environmental initiatives.

Have Your Say is Council’s online hub for community and stakeholder engagement and encourages the community to contribute both publicly and privately to Council engagement projects. Options for engagement include leaving comments, dropping pins on a map, sharing and voting on ideas, engaging in discussion forums and completing surveys. Have Your Say complements in-person engagement. It provides an accessible resource where Council can display project information and gain community insights. The site is translatable into more than 100 different languages and, since its launch, has grown by more than 100 registrations a month.

Council captured the voice of approximately 100 community members at the Eco Forum which included an open panel discussion session to allow collaboration and feedback. Community discussion was captured using the skills of a graphic recording artist and on storyboards around the venue. Outcomes from the Logan Eco Forum have guided the development of the 2018/2019 budget, to ensure spending of the Environmental Levy aligns with community expectations.

LISTEN 2 CONNECT Engagement Projects 78

Online Engagements 85

60 50 31

2014/2015

2015/2016

2016/2017

2017/2018

Logan City Council recognises the importance of engaging meaningfully with community stakeholders, regardless of their ages. People aged under 25 represent over one third of the City of Logan Community and their voices need to be heard. The Listen 2 Connect community engagement guideline was endorsed by Council’s Executive Leadership Team (ELT) in March 2018 to enable meaningful engagement with children, youth and young adults in the City of Logan. The Listen 2 Connect guideline is based on the results of a multifaceted engagement strategy, receiving insights from nearly 300 service providers, parents, carers, children, youth and young adults. The results provided insight into how our younger generation want to and can be involved in decision making processes and on what topics. Community partners involved in the creation of this resource include the Logan Together Backbone Team and Salvation Army’s; Communities for Children Facilitating Partner.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

One third of Logan’s population is aged under 25 years.

ALBERT RIVER VISION Following on from the highly successful 50 year Logan River Vision, developed in 2016, Council has now adopted the Albert River Vision 2017—2067. During an eight week engagement period in 2017, feedback was sought from the community on whether the themes identified in the Logan River Vision could be applied to the Albert River Vision. These themes were River Health, River Destinations and River Play. The response was overwhelmingly positive with many residents keen to see these same themes applied in a way that supported a more natural, recreation focused future for their Albert River. An analysis of the feedback from the engagement identified three main areas that our community wanted us to focus on when finalising the vision. They include: • keep it natural (reduce weeds and have less development) • clean up the river and its banks (litter removal) • increase access to the river (for recreational activities such as kayaking and fishing). The Albert River is an important resource that provides many benefits for residents and visitors. It’s a place of spiritual significance and a natural resource for drinking and irrigation. It provides areas for leisure and recreational activities as well as a key wildlife corridor from the mountains to its junction with the Logan River. Council has already committed $300,000 of the 2018/19 budget to implement the adopted Albert River Vision 2017—2067 and the Albert River Vision Implementation Plan 2018/2019. The Albert River Vision will continue to provide a basis for Council to promote the community’s vision and priorities to neighbouring councils, state and federal government as well as the private sector.

SOCIAL MEDIA STUDY OF COMMUNITY PARTICIPATION IN SMART URBAN PLANNING The City of Logan announced in June 2018 that it is one of only two councils in Australia to be chosen to participate in a ground-breaking study on social media interaction between ratepayers and local government. The University of Sydney’s School of Architecture, with the support of the Australian Government through the Smart Cities and Suburbs Program, is launching a new research project called Participatory Local Government: Enabling Community Participation for Logan and Canada Bay. The aim of the project is to produce a digital platform that allows local governments to capture and analyse conversations on social media. Currently there are no easily accessible means for local governments and industry to access and conduct analysis of online conversations. Findings from the research will be used to develop new algorithms and tools to capture the diversity of citizens’ voices. The $50 million Smart Cities and Suburbs Program is supporting the delivery of innovative smart city projects that improve the liveability, productivity and sustainability of cities and towns across Australia.

Logan City Council is one of only two councils in Australia chosen to participate in a study of social media interactions between ratepayers and local government.

THE

The Albert River at Windaroo is an important community resource

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

OUR COUNCIL

ORGANISATIONAL STRUCTURE Logan City Council has law-making and executive statutory roles under the Local Government Act 2009. It is responsible for making and enforcing laws, adopting and implementing policy and regulation to ensure the effective management of the city.

Audit Committee

Councillors do not have the authority to make Council decisions in an individual capacity.

Council • Mayor • Councillors • Standing Committees

Internal Audit

Chief Executive Officer Executive Leadership Team

Office of the CEO

Road and Water Infrastructure Directorate (See page 62)

Community Services Directorate (See page 66)

Organisational Services Directorate (See page 72)

Innovation and City Transformation Directorate (See page 75)

Strategy and Sustainability Directorate (See page 80)

Director of Road and Water Infrastructure

Director of Community Services

Director of Organisational Services

Director of Innovation and City Transformation

Director of Strategy and Sustainability • Economic Development and Strategy

• Road Infrastructure Planning • Road Construction and Maintenance • Road Infrastructure Delivery • Water Operations • Water Business • Water Infrastructure • Disaster Management1

• City Standards and Animal Care

• Administration

• Strategic Projects

• Finance

• Community Services

• Corporate Governance

• Information Services

• Customer Experience and Community Engagement

• People and Culture

• Marketing and Events

• Plant Fleet Services

• Media

• Libraries and Creative Industries

• City Futures

• Advocacy2

• Health, Environment and Waste • Development Assessment

• Parks • Sport, Leisure and Facilities

Quality Lifestyles Conveniently Connected Community Outcomes

Economic Transformation Green and Renewable Image and Identity

1 2

Disaster Management is a Program that reports directly to the Road and Water Infrastructure Directorate Advocacy is a Program that reports directly to the Innovation and City Transformation Directorate

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

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 (Corporate Plan 2017—2022) produced through a comprehensive and inclusive process, which is owned by all parts of the organisation, including elected members.

Clarity exists about roles and responsibilities in the organisation.

Outcomes

• We established a bold new long-term vision for the city (Innovative, Dynamic, City of the Future) and a new set of corporate priorities. All staff briefing sessions were facilitated across the organisation to communicate the new strategic direction for the city and the organisation. • Council has measured culture regularly since 2003 using the organisation-wide Organisational Culture Inventory (OCI) and Organisational Effectiveness Inventory (OEI). The last survey was conducted in late 2016 and the data informed the development of Council’s 2018-2021 People Plan, with the next measure due in 2019.

Each staff member has a position description, 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. • We provided comprehensive induction training to all new staff and councillors. • We provided Code of Conduct training to councillors and staff. • We conducted our annual achievement planning and review process with all staff, which provided an opportunity for a meaningful two-way conversation between staff and supervisors on their role and performance over the past year, as well as planning for development and planned achievements for the following 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.

Active performance management systems are in place whereby elected members and staff are openly accountable for their performance. Independent reviews of processes and decision making and appropriate public consultation are 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 organisationwide risk management framework and international standards. • We progressed 2017/2018 as our Year of Safety rolling out the new “From Now On… This is Safety” initiative, with over 80 sessions held for all Council staff.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

Outcomes • We continued our requirement that all branches have business plans and develop performance measures 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 to 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.

OUR COUNCIL

ORGANISATIONAL LEADERSHIP TEAM Logan City Council’s executive team, known as the Executive Leadership Team (ELT), is made up of the CEO and five Directors. The ELT 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 ELT meets weekly and on other occasions as required.

Silvio Trinca

Tony Goodhew

CEO - LOGAN CITY COUNCIL (ACTING): JOINED COUNCIL IN 2008

DIRECTOR – ROAD AND WATER INFRASTRUCTURE (ACTING): JOINED COUNCIL IN 2006

Silvio Trinca brings a wealth of experience in local government and proven capability across a breadth of performance-driven leadership roles. For more than a decade he managed Executive Engineering and Technical Services and was the Deputy CEO at the City of Canning in Western Australia, before he was appointed Director of Road and Water Infrastructure at Logan City Council in 2008. 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 successfully led the strategic asset management functions across the organisation. Silvio was appointed Acting Chief Executive Officer in February 2018 and has leveraged his vast corporate governance experience and people skills to ensure the City of Logan continues to achieve excellent outcomes for its community. He has qualifications of Bachelor of Engineering, 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.

Tony Goodhew is currently the Director, Road and Water Infrastructure (Acting). He joined Council as the Water Infrastructure Manager in 2006 after working in a similar role at Ipswich City Council for 13 years. Tony has held other roles within local and state government since 1992, with a primary focus on water infrastructure. Tony’s directorate is responsible for the planning, design and construction of road, stormwater, water supply and wastewater infrastructure, as well as Council’s disaster management capabilities. Tony holds a degree in Civil Engineering with Honours and a Graduate Diploma in Municipal Engineering and is a Member of the Institution of Engineers Australia, the Australian Water Association and a Registered Professional Engineer, Queensland.

Nick McGuire DIRECTOR – COMMUNITY SERVICES (ACTING): JOINED COUNCIL IN 2008 Nick returned to Logan City Council in 2017 after working for external consultancy firm AEC Group Pty Ltd. Prior to working at AEC, Nick was the Economic Development Manager for Logan City Council for three years and has 23 years local government experience. Nick’s directorate is responsible for the planning, development and delivery of community facilities and venues, policies and programs that will enhance the quality of life for Logan residents. Nick has a strong focus on working with the community to build capacity, that in turn leads to a strong and resilient community. He holds a Bachelor of Business, majoring in Marketing and Business Management through Griffith University.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Robert Strachan

Warren van Wyk

DIRECTOR – ORGANISATIONAL SERVICES: JOINED COUNCIL IN 2013

DIRECTOR – INNOVATION AND CITY TRANSFORMATION (ACTING): JOINED COUNCIL IN 2008

Robert joined Council as Finance Manager and previously spent more than 20 years in the Queensland Government with the last six years as the Director for Finance and Performance at the Metropolitan South Institute of TAFE. In this role he managed a range of diverse teams. Robert’s directorate is responsible for delivering the services necessary to support Council business units and city services including: property management, finance, fleet services, legislative requirements, procurement, human resourcing and records management. Robert has a strong focus on financial management, corporate governance and providing quality support services to the community and Council. Robert holds a Bachelor of Commerce and a Master of Business Administration. He is a member and fellow of CPA Australia and a graduate member of the Australian Institute of Company Directors.

David Hansen DIRECTOR – STRATEGY AND SUSTAINABILITY: JOINED COUNCIL IN 2015 David’s directorate is responsible for the delivery of development assessment and regulatory services, planning and infrastructure policy, economic development and investment attraction, waste services, natural environment and environmental health services. David joined Council as Development Assessment Manager after previously working for 18 years as a town planner in the private sector, consulting throughout Queensland for a range of private and public sector clients on a diverse portfolio of projects.

Warren oversees media, city futures, marketing and events, strategic projects, information services and advocacy for Logan City Council. This recently formed directorate leads the city’s innovation agenda through strong collaboration, partnerships and creative thinking. Prior to joining Logan City Council, Warren worked in several local government authorities both in South East Queensland and South Africa. Including his time at Council, he has accumulated more than 20 years’ experience in local government. Warren enjoys working in a progressive and leading local government with an inspiring vision, clear strategic direction and an engaging culture. His career demonstrates inspirational and dynamic leadership at both senior and executive levels. Warren holds a Bachelor of Arts with majors in Industrial Psychology (honours) and International Politics from the University of South Africa. Warren takes personal development and growth seriously, including completing the Australia New Zealand School of Government/Australian Centre of Excellence in Local Government Program and the Local Government Managers Association (LGMA) Executive Management in Queensland Program. He is a graduate member of the Australian Institute of Company Directors (AICD). Warren has also participated in the LGMA (Qld) International Managers Exchange Program.

David holds a Bachelor of Regional and Town Planning and is a Registered Planner and Fellow of the Planning Institute of Australia.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

OUR COUNCIL

SENIOR CONTRACT POSITIONS 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 directors) are engaged under fixed-term, performance-based contracts. From time to time, Council engages appropriatelyqualified 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 payable for senior contract positions during the year: EMPLOYEE

REMUNERATION

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

$500,000 – $600,000

Five senior contract positions, each with a total remuneration package in the range of

$300,000 – $400,000

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

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

INTERNAL AUDIT, RISK MANAGEMENT AND BUSINESS CONTINUITY PLANNING INTERNAL AUDIT AND RISK MANAGEMENT INTERNAL AUDIT Council’s Audit Committee is a committee established in accordance with the Local Government Act 2009. 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 2017/2018 are detailed below. The change in membership is a result of the Queensland Local Government elections.

of either Cr Schwarz or Cr Raven) from 6 April 2016 • Director of Organisational Services • Director of Community Services. As best practice, the Chief Executive Officer is invited to all Audit Committees as a non-member. The Corporate Governance Manager, Internal Audit Officer and 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. During 2017/2018 the internal audit function was outsourced and performed by Price Waterhouse Coopers (PwC) as part of an overall strategy towards continuous improvement, benchmarking and best practice.

Membership: • Len Scanlan* (External Independent Representative) • Councillor Trevina Schwarz (Audit Committee and City Treasury Chairperson) from 6 April 2016 • Councillor Jon Raven (City Treasury Committee) from 6 April 2016 • Councillor Laurie Smith (proxy member in the absence

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

*Len Scanlan was Queensland’s Auditor General from 1997 to 2004. He currently serves as an external representative on Audit Committees of neighbouring Councils in South East Queensland and is a member of the Electoral Commission of New South Wales. Len’s membership as an independent external representative brings a broad range of experience and enhances the ability to review issues without preconception or bias.

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

Right to Information

OBJECTIVE The objective was to review the end-to-end RTI process, with a view to considering the appropriateness of control design, and assessing the operating effectiveness of processes and key controls in place regarding the Right To Information Act 2009 and compliance with these obligations/responsibilities, specifically the: • receipt and logging of applications • assessment and dissemination of RTI applications • collation of requested information • assessment and release of information in response to RTI applications.

Overall, the reviews noted sound control procedures with any risk areas of concern being addressed by management. 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 audit recommendations is pursued through the audit issues monitoring process, which involves the internal auditors and Internal Audit Officer from Council 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.

Contract Management Practices

The objective was to assess the processes and key controls in place for Council’s management and monitoring of contract performance for the Road Infrastructure, Construction and Maintenance and Parks branches.

Development Assessment Application and Approvals

The objective was to assess the design and operating effectiveness of Council’s processes and key controls in place for development assessment applications and approvals, focusing on the receipt, fee payment, assessment and approval processes, directed by the requirements of planning reform, effective from 1 July 2017.

In developing its annual Internal Audit Plan, Council had a forward-looking threeyear plan that was revisited each year and was flexible throughout the year to the changing needs and risks as they arose within Council.

Financial Internal Controls Framework

The objective was to assess the adequacy and effectiveness of the Financial Internal Controls Framework established by Finance Branch for the identification and self-audit of risks and controls across key financial processes. This will include consideration of the use of data analytics and continuous controls monitoring by management in the framework.

RESPONSIBILITY FOR CORRECTIVE ACTION

Local Government Rating Practices

Responsibility for implementing the audit recommendations ultimately rests with management and this is reflected in our Internal Audit Policy.

The objective was to assess the design and operating effectiveness of Council’s processes and key controls in place for the setting, identification of rateable dwellings and ongoing monitoring of information, for key revenue streams being: • general rate Income • water service and water consumption income • income from sewerage services.

Fraud Risk Assessment

The objective of this Internal Audit was to review and update the Fraud Risk Assessment, conducted on behalf of Council in March 2016. Additionally, for the top 10 risk areas identified as part of the Fraud Risk Assessment, Internal Audit facilitated workshops and reassessed the risk rating, based on the management-identified controls.

Cybersecurity

The objective was to review Council’s policies and procedures in place for cybersecurity practices, focusing on process to manage network security (i.e. vulnerability and penetration testing practices).

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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 international standard ISO 31000:2018 (or any subsequent successors) as our risk management methodology. This standard describes the main elements of the risk management process.

Risk analysis

Risk evaluation

Risk treatment

The Council-Wide Risk Management Framework Version 6.0 was adopted by the Health, Safety and Risk Management Committee on 8 May 2017. The framework promotes a consistent approach to optimise opportunities and mitigates potential loss. The framework supports Council’s Policy—Risk Management (adopted 30 May 2017) 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 are published 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.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Monitor and review

Risk identification

Risk assessment

Communication and consultation

Establish the context

Council considers that it has a mature approach to risk management. 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.

The driver for business continuity is supported by the Business Continuity Management Directive. The aim of this directive is to resume normal business operations 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 preventive and responsive recovery strategies will be developed, implemented and maintained. 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 seven plans (Master Plan, Office of the CEO Recovery Plan and five Directorate Recovery Plans) assist staff to:

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.

MANAGE

PREPARE

BUSINESS CONTINUITY PLANNING

BUSINESS CONTINUITY

• manage a disruption/crisis • recover critical business functions • resume normal business operations.

RESUME

RECOVER

• prepare for a disruption/crisis

As part of the process, managers review their sections of the plans and the Risk Management and Insurance Program updates 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 updating of our business continuity plans are an integrated part of our annual strategic planning and review process.

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WORKING AT LOGAN CITY COUNCIL FROM NOW ON … THIS IS SAFETY

Team Top Health

Background

Team Top Health is an initiative to provide a healthy and fun workplace that is now in its 15th year and is well established as part of Council’s culture. The vision of the program is to create better health outcomes for individuals and teams, while contributing to corporate values.

Council’s ELT is committed to supporting the new Safety Management System (SMS) and to continuing to build our health and safety culture. A whole-of-Council education and awareness program—designed to engage and empower our employees to make a difference in their workplaces—was initiated this financial year. The first step in the program called From Now On…This Is Safety, required all staff to participate in an interactive session exploring key health and safety concepts, encouraging them to think about health and safety differently. The benefits from participating in this program include improved awareness of our employees to consider safety: • as a normal part of how we go about our work • as beneficial to the workforce as a whole • when deciding on personal action that may impact themselves or others. The program also empowers workers to change the way they think and look at the work they do and find improvements and creates a readiness and appetite for the roll-out of the new Safety Management System.

Over the years Team Top Health has introduced initiatives including workplace massages, Quit Smoking program, fresh fruit in the workplace, Weight Watchers@Work, subsidised Bridge to Brisbane registrations, Kids @ Work Day, and lunchtime walking groups. At the annual Health Expo, Team Top Health coordinated the provision of personal health assessments including: skin checks, vison screening, hearing assessments, health checks, and reflexology, along with neck and shoulder massages, meditation sessions, and nutrition information sessions. This year Council branches were invited to attend the expo to showcase areas in Council where health and wellbeing were promoted. Activities such as dragon boat racing, bike rides, bush walks, volleyball and soccer challenges also made up the Team Top Health calendar. Mental health was also covered with RUOK activities, meditation, and lunch time sessions covering topics such as resilience.

Bush walking through Karawatha Forest Park

The Indigenous Games, part of the Team Top Health initiative

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

EMPLOYEE EXCELLENCE AWARDS AND OUTSTANDING SERVICES TO COUNCIL AWARDS (OSCA) The 14th Annual Employee Excellence Awards were held on 20 June 2018. The awards were introduced as a way of encouraging staff to find better ways of doing things in the workplace, increasing team cohesion and recognising the work that our staff do for our community outside of the workplace. The awards are held annually and have grown in popularity, with an increasing number of submissions. As an organisation we value excellence. Fundamental to achieving excellence is fostering enquiry, innovation and creativityâ&#x20AC;&#x201D;with a focus on continual improvement. These awards acknowledge those who have excelled.

Customer Service Innovation Award PLACE

NOMINATION TITLE

TEAM MEMBER/S

Winner

As Constructed Plans Online

Eddie Denman, Greg Bird, Alison Anderton, Lesli Masters, Cliff Robertson, Ranya Hanna, Dwayne Parkes, Matthew Maguire, Larissa Ryan, Shafiq Ahmed, Chris O'Rourke, Russell Rapisarda

Runner Up

Logan Early Warning System

Margaretta Burton, Laura Cooper

Corporation Innovation Award PLACE

NOMINATION TITLE

TEAM MEMBER/S

Winner

Logan Development Projection Model (LDPM)

Chris Maddox, Sherry She

Runner Up

The Single Source of Truth Knowledge Management Project

Kylie Green, Michael Boyd, Theresa Stephenson, Deborah Torrie, Darryl Ellis, Mathew Johns, Scott Macfarlane, Mingyu He

Runner Up

Natural Areas Levels of Service

Lee Halkias

Teamwork Award PLACE

NOMINATION TITLE

TEAM MEMBER/S

Winner

Combination valve saves space, time and money

Mark Considine, Sam Perera, Che Caldwell, Enrico Olympia, Khee Tan, James Luu, Mark Cygan, David Fell, David Parker, Andre Stock, Cesario Tungol, Tommy Fogarty, Ed McLauchlan, Denver Pollock, Steve Young, Murray Evans, Rajindar Singh

Runner Up

Working Together to Deliver Council Grant Forums

Julie Dillon, Chelsi Foskett, Trevor Kanapi, Karen Tattersall, Doug Ferguson, Alex Bereznai, Ashleigh Van Homrigh

Collaboration/Engagement Award PLACE

NOMINATION TITLE

TEAM MEMBER/S

Winner

City of Logan App

Kate Ryan, Kareen Duncan, Gina Narayan, Michael Boyd, Michael Davies, Victoria Fraser, Dina Wirawan, Ben Travaini, Mathew Johns, Margaretta Burton, David Adamson, Helene Windels, Chris O'Rourke, Cliff Robertson, Anh Hamilton, Cody Duschka, Larissa Ryan, Darryl Ellis, Marielle D'Cruze, Ranya Hanna, Brett Lee, Wendy Barling, Claudia Feiloivao

Runner Up

RCM Safety Forum

Julia Cooper, Lee Busby, Rachel Johnson

Runner Up

Speaking their Language

Laura Cooper

Sustainability Award PLACE

NOMINATION TITLE

TEAM MEMBER/S

Winner

Off-grid power solution for water chlorination

Che Caldwell, Marlon Pritchard, Steve Kapernick, Chris PipeMartin, Natasha Georgius, Phillip Wetherell

Runner Up

Reservoir Overflow Frog Flap

William Hutchings, Gillian Hughes

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Safety Award PLACE

NOMINATION TITLE

TEAM MEMBER/S

Winner

Safe Work method statement Working on or adjacent to a road competency video

Greg Kelly, Phil Peters, Julia Cooper

Runner Up

Sewer Pump Station Handrail Project

William Hutchings, Colin Barton, Michael Haywood, Lester Bridgham, Scott Smith

Dare to Try Award PLACE

NOMINATION TITLE

TEAM MEMBER/S

Winner

LARA the Chat Bot

Kylie Green, Michael Boyd, Mathew Johns, Darryl Ellis, Mingyu He

Winner

Building Social Capital Hubs

Erin Simpson, Keely Larsen, Elyse Morrison, Julie Shorter

PLACE

NOMINATION TITLE

TEAM MEMBER/S

Winner

Team Spirit Award

Ian Stephenson

Runner Up

Team Spirit Award

Johnny Pong

Winner

The Charitable Causes/Community Champion

Toni Pollard

OSCA Award

LEADERSHIP AND STAFF DEVELOPMENT

STAFF PARTICIPATION IN OUR ANNUAL LEADERSHIP DEVELOPMENT PROGRAM: FIVE-YEAR TREND

Great leaders develop an understanding about who they are and how they lead within an organisation. 22

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 11 years ago. The program is highly regarded throughout the organisation and is in popular demand. Approximately 13 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. The next program is scheduled to commence in late 2018.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

21 20 19

2012

2013

2014

2016

Leadership Development Program was not run in 2015 following a decision by Council to offer the program biennially rather than annually.

Other development and training opportunities Council is 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 (APR) process • access to high-quality corporate training courses through the Corporate Learning and Development Program • financial and study leave assistance for staff obtaining recognised qualifications through the Professional Development Incentive Scheme (Study Assistance) • branch-specific training and skill development • access to industry-leading speakers and seminars.

STAFF HEALTH, SAFETY AND WELLBEING Commonwealth Games 2018 The Gold Coast 2018 Commonwealth Games (GC2018) was held in April 2018 and was the largest sporting event in Australia this decade. The majority of sporting events were held on the Gold Coast, except for a few events held in Brisbane, Townsville and Cairns. An estimated 1.2 million ticketed spectators, 15,000 volunteers and between 30,000 - 50,000 contractors saw increased volumes of traffic on the road network and use of public transport. It was anticipated that over 6 million additional journeys were taken on the South East Queensland’s transport network to accommodate athletes, media, spectators.

Improving workplace health and safety Throughout 2017 and 2018 Council’s focus remained on the development of a contemporary Health and Safety Management System (SMS) for Logan City Council. The SMS commenced roll-out in February 2018 with the introduction of refined procedures and system documentation with the full implementation in mid-2018. To enhance the roll-out of the SMS a behavioural safety program titled “From Now On…This Is Safety” commenced in April with 1,556 staff completing the program. The strategy was designed to assist in embedding the SMS and was another step in our strategy to build and foster a robust safety culture.

Measuring workplace health and safety The measurable health and safety data, captured by the software Intelex has enabled the Health and Safety Program to highlight and track “at risk” activities within the business. The continuing emphasis on quality corrective actions will assist Logan City Council in the prevention of similar incidents or injuries taking place. ELT determined a set of health and safety performance metrics to assist in the enhancement of health and safety knowledge and develop the capability of staff to manage their health and safety responsibilities and demonstrate safety leadership.

Notifiable incidents During the course of 2017/2018, 10 notifiable workplace incidents were reported to Workplace Health and Safety Queensland (WHSQ). These notifiable incidents satisfied the mandatory reporting criteria of the Work Health and Safety Act 2011. There were no notices issued to Logan City Council by WHSQ during this reporting timeframe.

As Council staff utilise these networks to travel to and from Council sites, a range of flexible working options were made available during this time to help minimise the impact of the games on staff getting to and from work.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

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SNAPSHOT OF OUR PEOPLE

Staff gender comparision 2017/2018

Employee types

1312

Part-time

127

Temporary

Casual

Total

Councillors

Staff age profiles 2017/2018

15–24 25–34 35–44 45–54 55–64

5 year trend

47%

Years of Service 2017/2018

36%

65+

OUR VOLUNTEERS Residents wanting to make a voluntary contribution to the community are invited to participate in a range of Council organised programs. These include: • Home Library Service • Logan City Council Libraries • Logan Art Gallery • Mayes Cottage House Museum • Logan Entertainment Centre • In our parks through the Bushcare, Trailcare and Honorary Park Ranger programs

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

• Animal Management Centre (as foster carers and in-house volunteers) • State Emergency Service. All of our volunteers receive a briefing on Council’s expectations of them—and of their rights and responsibilities as volunteers—including health and safety requirements and Code of Conduct training. Each year we host the Logan Loves Volunteers breakfast to recognise the efforts of volunteers and to thank them for the tireless contributions they make to our community.

30+ years

6% 4% 2% 2%

25–30 years

13%

20–25 years

11%

15–20 years

26%

less than a year

139

449 456 358 320

5 year trend

53%

10–15 years

1755

Female

5–10 years

274

Male

1–5 years

Full-time

Logan City Council SES Award

Combining employment and innovation

During and following the devastating floods of ex-Severe Tropical Cyclone Debbie the volunteers of Logan City SES stood tall and did what they were trained to do. Not only were they responsible for dramatic rescues, but also for the coordination of clean-up operations.

Nestled in the backstreets of Kingston, in a quiet industrial area, a small army of volunteers works in a shed, stripping down pallets of assorted electronic waste saved from becoming landfill.

The efforts of these volunteers were recognised at the Logan Loves Volunteers Awards in April when the SES took out the coveted Davida Steel Award for the Volunteer Group of the Year 2018. The members were very happy to be recognised for their efforts helping to keep the community safe, not only during emergencies, but year round. Earlier in the year a number of SES members received Australia Day Awards from Queensland Fire and Emergency Services Commissioner, Katarina Carroll for their personal efforts during the flood. These included but not limited to the Commissioner’s Medal for Bravery presented to members Chris Holloway and Claire Browning and the Commissioner’s Medal for Valour to Local Controller and Disaster Management Officer, Jim Ferguson.

Further inside the shed, a scene resembling Santa’s workshop is in full swing, as a bank of 3D printers work quietly and methodically, churning out custom-designed parts for an array of innovative electronic devices being built on site and at local schools and universities. Welcome to Substation33, a unique social enterprise that recycles and repurposes e-waste—and turns lives around. The company is managed by YFS, a not for profit organisation, that assists high needs individuals and families in Logan achieve their goals. Substation33 prepares unemployed volunteers to go on to other employment and provides a foot in the door to permanent employment by helping people prove their reliability, develop their skills and confidence and their overall employability, regardless of education or disability. It’s all about helping people to become work-ready and find long term employment outcomes after volunteers start their working careers as trainees or through workfor-the-dole programs. Substation33 also works with local high schools, providing hi-tech learning opportunities for students learning a range of disciplines.

The Logan SES took out the coveted Davida Steel Award for the Volunteer Group of the Year 2018

Supplied with e-waste from Logan’s waste management and recycling centre, Substation33 does what the recycling industry calls “first break”, disassembling screws or clips enabling the extraction of as much value as possible from e-waste. Substation33 is now partnering research and development projects with the Logan City Council, state/ federal governments, and philanthropic partners, to develop innovative technologies. The city’s automated ‘Road Flooded’ solar powered warning system was created by a collaborative team including Council officers, Griffith University students and Substation33 personnel. Built at low cost from e-waste components by Substation33 personnel, the team won the National Award for Local Government in the Road Safety Category, which recognises innovative and resourceful solutions that make a difference in the community.

Local Controller and Disaster Management Officer, Jim Ferguson (front right) was awarded the QFES Commissioner’s Medal for Valour

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Logan’s Eco Champions The Logan River Branch of Native Plants Queensland—a not for profit organisation, which helped produce the publication Mangroves to Mountains—is one of many volunteer organisations dedicated to helping look after the environment.

Another native species champion is Bushcare Services of Bethania, which plants an average of 100,000 native species each year across South East Queensland. The company is certified under international quality accreditation for Environmental Management.

The group’s 30 members do much more than identify native species. They also propagate and grow them at their nursery near the Eagleby Wetlands, then provide them to the public at events such as the annual Logan Eco Action Festival (LEAF). The group is currently in the process of sourcing permits to grow threatened plant species to help ensure their survival.

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

AWARDS RECEIVED 2017/2018

NAME OF AWARD

PRESENTED BY

AWARD WON

COMMENTS

2017 AILA QLD Landscape Architecture Award

Australian Institute of Landscape Architects

Civic Landscape Architecture Award

For the Beenleigh Town Square redevelopment

2017 Excellence Awards

Institute of Public Works Engineering Australasia Queensland (IPWEAQ)

Road Safety Category

For Logan’s Flooded Road Smart Warning System (FRSWS)

GovHack 2017 International Red Carpet Awards

GovHack

Best Local Government Participation

For providing Best Local Government Participation across Australia and New Zealand

2017 ALIA QLD Landscape Architecture Award

Australian Institute of Landscape Architects

Small Projects Landscape Architecture Award

For the Tully Memorial Park Flood Markers Project

2017 National Landscape Architecture Award

Australian Institute of Landscape Architects

Small Projects Landscape Architecture Award

For the Tully Memorial Park Flood Markers Project

2017 Australian Marketing Institute Awards

Australian Marketing Institute

2017 Qld Marketing Team of the Year

For the top in-house marketing team across both public and private sectors

2017 Australian Marketing Institute Awards

Australian Marketing Institute

2017 Qld Creativity in Brand, Product or Service Marketing

For creativity in products and services marketing

2017 Australian Marketing Institute Awards

Australian Marketing Institute

2017 Qld Innovation in Product or Service Marketing

For the ImagiNation Children’s Festival

2017 Gallery and Museum Achievement

Museums and Galleries Queensland

Award of Excellence

For Engagement for Logan Art Gallery’s South Sea Islander exhibition by Sylvia Nakachi as part of the Torres Strait Islander exhibition and public program

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

NAME OF AWARD

PRESENTED BY

AWARD WON

COMMENTS

Best Practice Reporting

Australasian Reporting Awards (ARA)

Gold Award

Logan City Council 2016/2017 Annual Report

OZWATER18 Michael Flynn Award

Australian Water

Best Poster

Awarded to Troy Kasper, Logan City Council For the Poster Unearthing the Past to Chart the Future

Queensland Fire and Emergency Services Australia Day Achievement Awards 2018

Queensland Fire and Emergency Services (QFES)

Commissioner’s Medal for Valour

Awarded to Jim Ferguson, Logan State Emergency Service Controller, for rescuing the Gallo family

2018 Australian Institute of Landscape Architects Awards

Australian Institute of Landscape Architects

Park and Open Space Landscape Architecture Award

Awarded for Slacks Tracks, a project to lift the profile and safety of urban waterway corridors

2018 Australian Institute of Landscape Architects Awards

Australian Institute of Landscape Architects

Small Project Award of Excellence

For Wembley Link Pathway Public Art

Operator and Young Operator of the Year Awards 2018

qldwater Awards 2018

Operator of the Year (Civil/All Rounder Award)

Awarded to Bradley Milfull, Logan City Council Private Works (Water and Wastewater) Supervisor

2017 National Award for Local Government

Federal Government

“Highly commended - Boosting Productivity through Infrastructure”

For TIMS (Totally Independent Managed Supply)—Used in Water Operations

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

Surveying final levels on the new $2.1 million shared pedestrian and cycle pathway that connects Charles Avenue to Logan Gardens in Logan Central

3 PERFORMANCE REPORTING

This section explains how we manage our reporting within the organisation and introduces the five directorates 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 2017/2018 Operational Plan. It also highlights our financial performance for the year in a community financial report, and how we performed in being a sustainable organisation.

PERFORMANCE REPORTING

OUR FRAMEWORK Our strategic planning and performance management 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.

The industrial Estate at South West 1, Berrinba, features green corridors separating residential housing from large industrial complexes

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

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 2017—2022 came into effect on 1 July 2017. 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 the development of the five-year Corporate Plan. The diagram over the page represents the strategic planning and performance management framework used by Council and illustrates where the Corporate Plan fits within that framework. The illustration of the framework captures the vision in the Corporate Plan and demonstrates the strategic alignment between branch business, operational priorities, corporate plan priorities and the long-term vision for the city.

THE OPERATIONAL PLAN AND BUDGET

BRANCH BUSINESS PLANS

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.

Although all elements of the strategic planning and performance management framework are equally important, we believe that requiring each branch to have approved business plans has had a 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. Business plans are strongly aligned with our higher-level Corporate Plan and, in turn, provide strong planning direction to the annual operational plan and budget.

Strategic Alignment

Vision: Innovative, Dynamic, City of the Future

Enablers and drivers

What the city will look like in 25+ years

Corporate Plan 2017–2022

The strategic priorities for the city and organisation

Annual Operational Plan

Key projects that will be delivered and KPIs that will be monitored

Branch Business Plans

Projects and KPIs delivered and monitored by Council branches

Quarterly Performance Assessments and Annual Report

Monitor and Report Performance

• Long-term financial plan • Logan Planning Scheme • Total Asset and Services Management Plan

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

ASSET AND SERVICES MANAGEMENT PLANNING

MONTHLY

Council manages a wide variety of assets including roads, footpaths, stormwater pipes, water pipes, buildings and parks to deliver a range of services to the Logan community. To help ensure these assets are managed in the best way possible, Council has a strategy that helps guide improvements to how we manage assets throughout their lifecycle and ultimately help improve the way it can deliver services to the community. The management of an asset throughout its lifecycle involves a number of elements including planning, design, construction, operations and maintenance, renewal/replacements and new/upgrades, as shown in the diagram. Council also has a number of internal documents called Asset and Service Management Plans which are updated annually and include details on the number and types of assets managed, levels of service provided, how assets are currently managed throughout their lifecycle and budgets to manage the assets. Relevant information from these Asset and Service Management Plans is summarised and used to inform Council’s Total Asset and Service Management Plan, which is a key document developed as part of Council’s annual budgeting process.

• Branch reports • Corporate financials

JUL

• Quarter 4 Operational Plan, organisational report card

OCT

• Quarter 1 Operational Plan and organisational report card • Budget review 1 • Annual report • Commence annual branch business plan review

JAN

• Budget review 2 MAR

APR

JUN

Planning

New/upgrades

Design Asset management lifecycle

Renewals/ replacements

Construction Operations and maintenance

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

• Quarter 2 Operational Plan and organisational report card

• Finalise annual branch business plan review • Quarter 3 Operational Plan and organisational report card • Operational Plan adoption • Budget adoption

COMMUNITY FINANCIAL REPORT WHAT IS A COMMUNITY FINANCIAL REPORT?

WHAT IS FINANCIAL SUSTAINABILITY?

The Community Financial Report provides a plainlanguage explanation of our financial statements so that they can be easily understood by people with no financial background.

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.

Interpreting formally presented financial statements prepared in accordance with accounting standards, without adequate explanations, can be a difficult process for stakeholders. The Community Financial Report provides this link by highlighting our six key areas of performance and an analysis of corresponding financial sustainability.

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. 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 is presented on pages 54—56.

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

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

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

Net result + or – other equity changes = comprehensive income

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

PERFORMANCE REPORTING

INCOME STATEMENT The Income Statement displays the revenues recognised for the financial 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 - expenses).

Comparative trend analysis: Revenue and expenses. The presentation of a single set of data can be misleading but it 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.

levels. Council carefully monitors city expansion and plans for priority infrastructure needs. 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 Key Statement 4, the Statement of Changes in Equity.

Sourcing our revenue: where our money came from Council’s revenue components for 2017/2018 are shown below: 2017/2018 REVENUE SOURCES (%)

EXPENSES AGAINST REVENUE: FIVE-YEAR TREND ($M) 5 Revenue

Expenses

691.3 516.8 417.3

635.6

608.1

427.3

451.9

Net result 751.3

567.8

469.1

222.2 99.5

2013/2014

140.5

2014/2015

156.2

2015/2016

115.7

2016/2017

2017/2018

Logan’s population has increased from 292,900 in 2013 to 319,652 in the current financial year, which represents a 9.1 per cent increase over the five-year period. 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.

HOW THE FIGURES ARE INTERPRETED 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 Council’s long-term financial stability is maintained.

Rates ($418.3m)

Asset donations ($151.8m)

Contributions, grants and subsidies ($102.7m)

Fees and charges ($37.7m)

Recoverable works and sales ($20.8m)

Interest and other ($20.0m) Total revenue $751.3m

The revenue graph shows the various sources of Council’s revenue during the 2017/2018 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. Key revenue statistics include: • Council’s recurrent revenue increased by $27.7m (5.7 per cent) over the year due to increases in rates partly driven by a 2.6 per cent growth in assessments and the sale of developed property at a profit of $7.3m

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

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

• Grants and subsidies and developer contributions represented 34 per cent of Council’s total revenue. An amount of $16.6m (last year $18.1m) of total grants and subsidies were used for operational purposes while $86.1m (last year $75.5m) was used for capital

programs such as the correction of road black spots and other safety initiatives • Developers provided $151.8m (last year $132.6m) in completed assets as part of approved development applications. This represents an increase of 14 per cent on last year.

Key expenditure statistics include: • Council’s total operating costs amounted to $479.1m (last year $451.9m), an increase of $27.2m (6 per cent) over last year • Council spent $190.5m (last year $155.8m) on expanding and replacing city assets. Such

Total expenses: where the money was spent Council’s expense components for the 2017/2018 financial year are shown below:

expenditure is accumulated in capital projects and then recognised as Council assets on commissioning of the work • 33 per cent of Council’s operating cost was incurred for the purchasing of materials and services.

2017/2018 EXPENDITURE (%)

Materials and services expenditure is necessary to maintain asset service levels and for the achievement of community objectives portrayed in Council’s

3 2 2

Corporate Plan

• The value of assets administered by Council of $5,847m (last year $5,924m), means that Council has had to set aside $109.1m (last year $104.7m) in depreciation for the year. These funds are used for the improvement and replacement of Council’s

infrastructure and other assets. 22

Materials and services ($205.6m)

Revaluation expenses ($141.3m)

Employee costs ($134.6m)

Depreciation ($109.1m)

Borrowing costs ($12.8m)

Plant costs ($14.8m)

Other costs ($17.4m)

Total expenses $635.6m

Council incurred a revaluation expense of $141.3m due to a downward revaluation of water and sewerage assets and asset reworks of $15.1m that occur when Council upgrades or adds to existing infrastructure resulting in old assets having to be discarded. The asset revaluation expense was due to refinements to the Water and Sewerage revaluation model and is the portion in excess of the previous revaluation reserve. Although Council incurs both operational and capital expenditure, the expenditure graph details operational spending only, as capital spending is added to the carrying value of assets when incurred. The expense graph shows the various classifications of Council’s expenditure incurred during the 2017/2018 financial year.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

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 the 2017/2018 financial year, Council decreased the carrying value of its assets by $335.3m (last year + $204.4m) through revaluation. The Water and Sewerage valuation model has been changed to provide a better estimation of asset values. The reduction of $335.3m is partly allocated to asset revaluation surplus in equity ($194.0m) and partly to expense ($141.3m). The expense portion is a result of the whole revaluation water and sewerage reserve being exhausted. As part of Council’s 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.

PERFORMANCE REPORTING

STATEMENT OF FINANCIAL POSITION 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’s asset value has decreased by $77.2m (last year + $373.5m) over the year. The main change is in property, plant and equipment assets due to the $190.5m new and replacement assets, a $335.3m decrease in revaluations reported above, as well as $151.8m (last year $132.6m) in donated assets received from developers and a $122.3m (last year $119.3m) reduction in asset values due to depreciation and asset reworks incurred during the year. Council’s cash balance (including term deposits) has increased by $38.2m (last year $1.8m) over the year due to an excess in cash from operations over capital expenditure and loan repayments. Council repaid certain high-interest loans early and did not drawdown any new loans during the year. 2017/2018 NET WORTH

A significant part of Council’s activities are focused on the maintenance and upgrade of infrastructure assets including the provision of roads, drainage, water, sewerage, and waste services. Council undertakes ongoing preventative maintenance processes to maintain high asset service levels for community use.

What do our liabilities consist of? The bulk of Council’s liabilities are in the form of loans, which represent 64 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. Provisions include the setting aside of funds to rehabilitate landfill and quarry sites administered by Council, as well as for employee entitlements. The major components of Council’s liabilities are as follows: 2017/2018 LIABILITY TYPES (%)

Asset (what the community owns)

5,847

Less liabilities (what the community owes)

(294)

Community equity

5,553 9

What do our assets consist of? The bulk of Council’s assets are in the form of infrastructure assets such as roads and drainage, and water and sewerage, which collectively represent 73.6 per cent of Council’s total asset base. Total assets are made up as follows:

Loans ($188m)

Provisions ($27m)

0.1% 0.1% 0.1%

ASSETS AND LIABILITIES: FIVE-YEAR TREND $M

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

5,553.3

5,846.8

293.5

5,631.0 293

5,023.9

5,378.3

4,321.5

346.3

Other assets ($8m) Total assets $5,847m

Equity

354.4

Water and sewerage ($1,327m) Cash ($320m) Investment in subsidiary ($6m)

Liabilities

327.5

Roads and drainage ($2,977m) Property, plant and equipment ($1,140m)

Assets

5,924.0

4,649.0

5,204.4

Other ($4m)

Council has decreased borrowings by $7.2m over the five year period 2014 to 2018 mainly due to the early repayment of high interest loans in 2017.

5 1

Debtors ($67m) Inventory ($2m)

Creditors ($74m)

Total liabilities $293m

2017/2018 ASSET TYPES (%)

5,550.7

2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

Council’s net assets reduced by 1.4 per cent during the 2017/2018 financial year due to the changes in asset carrying values described above.

DEBT PER CAPITA: FIVE-YEAR TREND ($)

853 759

What is Council’s debt strategy?

804 639

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

590

Important measures of debt management are presented below. DEBT AND CAPITAL EXPENDITURE TRENDS The debt and capital expenditure graph reflects Council’s total outstanding debt and capital works expenditure program over the past five years. During the period 2014 to 2018 Council’s debt decreased from $195.7m to $188.4m, a decrease of $7.3m. During the same period Council spent $800.0m on building new community facilities and/or increasing our infrastructure services such as roads, water, sewerage and reticulation.

2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

PERCENTAGE OF ASSETS FUNDED BY DEBT 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 reduced to 3.22% (last year 3.39%) in the year due to continuing repayments. The large reduction last year was due to the early repayment of high-interest loans in the year. ASSETS FUNDED BY DEBT: FIVE-YEAR TREND (%)

Outstanding Debt 260.4 228.2

Capital Expenditure 4.91

248.1 200.7

150

2013/2014

151

2014/2015

152

2015/2016

4.84

4.47

188.4 190

3.39

157

2016/2017

2017/2018

OUTSTANDING DEBT AND CAPITAL EXPENDITURE: FIVE-YEAR TREND ($M) 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 reduced from $759 to $590 over the five year period. 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.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

2013/2014

2014/2015

2015/2016

2016/2017

3.22

2017/2018

PERCENTAGE 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 4–6 per cent in the past few years, but temporarily rose to 12.91 per cent in last year due to the early repayment of high-interest loans. In the current year the ratio has returned to a more normal percentage of 4.76%.

PERFORMANCE REPORTING

DEBT SERVICING RATIO: FIVE-YEAR TREND (%)

Council, on average over the past five years had 3.50 times the amount required in current assets to pay its short term liabilities. In 2017/2018, the ratio is 3.52:1, which is a decrease from 3:71:1 in 2016/2017.

12.91

4.73

5.04

WORKING CAPITAL RATIO

5.69

4.76 3.15

2013/2014

2014/2015

2015/2016

2016/2017

3.34

3.47

2014/2015

2015/2016

3.71

3.52

2017/2018

How healthy is Councilâ&#x20AC;&#x2122;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, which is a measurement of the ratio of short term assets and liabilities values. A result of better than a 1:1 ratio reflects a strong ability by an organisation to have sufficient funds to continue to maintain its cash flows and hence meet its commitments.

2013/2014

Public artwork at Logan City Council Central Administration Centre. Barry Fitzpatrick, Democracy, 2007 (detail), steel ballot boxes, epoxy paint, bitumen

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

2016/2017

2017/2018

STATEMENT OF CASH FLOWS

CASH AVAILABLE: FIVE-YEAR TREND ($M)

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.

319,700 281,545 242,709 210,059

2017/2018 CASH FLOWS ($M) 172,048

2017/2018 RESULTS Opening balance

$281.6m

Plus cash received

$605.5m

Less cash spent

(567.4m)

Cash available at year end

$319.7m

MAJOR SOURCES OF CASH RECEIVED AND SPENT ($M)

2015/2016

2016/2017

2017/2018

Our Corporate Plan identifies six priority focus areas: 2016/2017

$169.3m

$143.1m

Purchase of assets (net)

($106.8m)

($41.9m)

Repayment of debts and interest

($24.3m)

($62.4m)

Net cash received/ (spent)

$38.2m

$38.8m

New loans

2014/2015

Sustainability measures

2017/2018 Net cash received from trading

2013/2014

• Quality Lifestyles • Conveniently Connected • Economic Transformation • Image and Identity • Green and Renewable • Next Generation Governance.

Cash available While Council’s current cash balance is $319.7m, it is important to note that this amount is restricted for “specific purposes” such as future capital works. Council started the financial year with $281.5m as current cash balance and ended with $319.7m. The increase is due to a positive cash inflow from operations less capital expenditure and the repayment of loans. 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.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

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”. A lack of explanation and trend analysis can provide a misleading interpretation of our financial capital and infrastructure capital. We have therefore 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 is relevant in the determination of financial sustainability.

PERFORMANCE REPORTING

There are three legislated financial sustainability measures—an asset sustainability ratio, a net financial liabilities ratio—and an operating surplus ratio. However, Council believes that additional measures and trend analysis provide a better indication of Council’s financial sustainability and has added an interest cover ratio, a working capital ratio and an asset consumption ratio, and provided five year trends for each of the measures. An explanation is provided of each of the ratios below. 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 the roads, stormwater drainage, landfill, and water and sewerage 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 trend analysis and explanations in its community financial report. The key financial sustainability measures used by Council are described below.

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

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

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. 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 should be read in conjunction with Council's long term forecasts and financial planning. The following additional information should be considered: • The majority of Council PPE is comprised of infrastructure assets • 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. • Council’s 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 account of the stage of life and asset consumption factors including the condition of the asset to determine the rate of depreciation. • Council’s assets are “relatively new” and are well maintained. 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 five-year trend analysis over the periods 2014-2018 on the following page.

ASSET SUSTAINABILITY RATIO: FIVE-YEAR TREND 2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

Asset renewals

$76.2m

$63.8m

$71.8m

$76.3m

$84.7m

Depreciation

$91.6m

$91.9m

$83.1m

$88.3m

$91.6m

Ratio

83.20%

69.40%

86.40%

86.43%

92.47%

86.4%

83.2%

The ratio is based on buildings, infrastructure and facilities assets (i.e. plant and equipment assets are excluded).

92.4%

69.4%

2013/2014

2014/2015

2015/2016

2016/2017

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 in line with 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.

2017/2018

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.

13.15%

6.94%

2015/2016 2013/2014

2014/2015

2016/2017

2017/2018

-1.12%

-13.24%

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.

-19.57%

Council has provided a net financial liability trend below over the past five years and a forecasted ratio is also presented in Council’s annual report.

NET FINANCIAL LIABILITIES (ASSETS) RATIO: FIVE-YEAR TREND 2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

Current assets

$272.7m

$323.1m

$351.5m

$356.9m

$393.5m

Total liabilities

$327.5m

$354.4m

$346.3m

$292.9m

$293.5

$54.8m

$31.3m

($5.1m)

($64.0m)

($100.0m)

$416.8m

$450.2m

$460.7m

$483.2m

$510.9

13.2%

6.9%

(1.1%)

(13.2%)

(19.6%)

Net financial liabilities (assets) Operating revenues Ratio

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

The ratio indicates that Council is well placed to meet its financial obligations. While total liabilities exceeded current assets over the 2012/2013 to 2014/2015 period, this was as a result of short term borrowings transferred from Council’s previous water business, Allconnex Water (AW). In the past three years, a reduction in borrowings has resulted in current assets exceeding total liabilities resulting in a (desirable) negative ratio. Council has a long term financial plan in place that caters for short and long term cash commitments.

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”. The above comment endorses Council’s strategy to reduce high-interest rate borrowings and maintain low levels of 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.

6.9%

6.6%

6.5%

6.2%

2014/2015

2015/2016

2016/2017

2017/2018

2.1%

2013/2014

Council has provided an operating surplus/(deficit) trend below over the past five years and a forecasted ratio is also presented in Council’s annual report. OPERATING SURPLUS/DEFICIT RATIO: FIVE-YEAR TREND

Operating revenues Net result Ratio

2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

$416.8m

$450.2m

$460.7m

$483.2m

$510.9m

$8.9m

$31.1m

$30.6m

$31.3m

$31.8m

2.1%

6.9%

6.6%

6.5%

6.2%

Council incurred an operating surplus in the 2017/2018 financial year maintaining a positive trend that commenced in 2014.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Additional sustainability measures presented by Council INTEREST COVER RATIO

A low interest cover ratio may also mean a restriction on future borrowings and as such is an important sustainability measure. The ratio is calculated as operating revenue divided by net interest expense (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 (locked in) to funding the interest expense on current loan borrowings and leases. A low 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 2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

Interest expense

$10.7m

$12.0m

$13.2m

$12.9m

$10.9m

Interest revenue

$7.3m

$8.2m

$10.7m

$10.6m

$10.2m

Net interest expense (revenue)

$3.4m

$3.8m

$2.5m

$2.3m

$0.7m

$416.8m

$450.2m

$460.7m

$483.2m

$510.9m

122

118

180

215

729

Operating revenues Ratio

Council has experienced an improved interest cover ratio over the past few years indicating that Council has extensive facility for future borrowing to fund capital replacement and renewal. The 2017/2018 ratio indicates that Councilâ&#x20AC;&#x2122;s operating surplus is able to fund net interest expense 729 times over.

729

The current increase is due to reduced interest expense as a result of the early repayment of high-interest loans in 2017.

215 180

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

122

118

2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

PERFORMANCE REPORTING

WORKING CAPITAL RATIO

ASSET CONSUMPTION RATIO

The working capital ratio, which is 3.52:1, 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 average extent of asset service potential remaining in PPE assets at the reporting date, 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 2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

PPE WDV

$3,791m

$3,594m

$3,677m

$4,223m

$3,844m

PPE gross

$5,802m

$5,416m

$5,370m

$6,074m

$5,769m

65.3%

66.4%

68.5%

69.5%

66.6%

Ratio

Council’s asset consumption ration has been consistent at an average of 67.3% over the past five years. This indicates that Council is adequately replacing assets as they run out and undertaken sufficient maintenance works to maintain service delivery.

69.50%

66.6%

68.50%

66.40% 65.30%

2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

SUMMARY Council ended the 2017/2018 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.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

TAKING A HOLISTIC APPROACH TO SUSTAINABILITY With a drive to be an Innovative, Dynamic, City of the Future, we are managing our growth and operations responsibly in order to deliver long-term value for the City of Logan. Logan City Council seeks to be a sustainable organisation to promote quality of life and wellbeing for the community, which are key links to nurturing cohesive communities, ecological health, economic vitality, intergenerational equity, access to resources and the fair distribution of wealth.

delivering a product to maintain and enhance economic viability—in a way that promotes positive impacts on the environment and community. At the government level, sustainability is about setting policy directions to promote sustainable practices in the way we manage the city. At Council, we have developed a range of initiatives to embed sustainability in our strategic direction. These are grouped in three pillars of sustainability:

For our residents, sustainability is about changing behaviours, attitudes and values that lead to living and working in a way that maintains and improves existing social, economic and environmental resources. At the business level, sustainability is about producing and/or

• Environmental sustainability

ENVIRONMENTAL SUSTAINABILITY

• Prepared for Council endorsement and commenced

Environmental sustainability recognises the importance of the environment on the long-term sustainability of all communities. The interconnectivity between the health of the environment and the economic and social health of communities is profound. It is in this context that Council has delivered and promoted a range of environmental initiatives. We have: • Delivered an emissions profile report where data on Council’s emissions were collated and calculated using the principles outlined in the Carbon Offsetting Standard • Developed and adopted a Carbon Reduction Strategy and Action Plan outlining a series of actions to become a carbon-neutral city (See page 101) • Implemented a community and schools waterways monitoring program to educate stakeholders on the protection of the city’s waterways • Hosted the Logan Eco Enviro Forum (See page 101) • Developed a priority biodiversity corridors mapping and decision framework to inform a city-wide vision

• Economic sustainability • Social sustainability.

implementation of a Council endorsed Albert River Vision to identify opportunities to improve the accessibility, ecological health, recreational value and economic benefit of the asset • Developed a localised State of the Catchment Report, to benchmark the condition of Logan’s rivers and wetlands assets. The 2017 Healthy Land and Water Report Card was successfully launched in November 2017. The localised State of the Catchments Report was included in this report card launch • Developed the Council endorsed Logan River Vision Implementation Plan 2018-2022 that identifies key onground projects to improve the accessibility, ecological health and recreational value of the Logan River • Developed and implemented the Logan River Accessibility and Connectivity Concept Plan to improve accessibility and economic benefit of the asset • Adopted the City of Logan Biosecurity Plan 20172022 for the management of pest animals and plants in the city.

The 2017 Health Land and Water Report Card benchmarked the condition of Logan’s rivers and wetland assets. Boronia Bushland Reserve (pictured).

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

ECONOMIC SUSTAINABILITY Economic sustainability is the ability of a local economy to support a level of economic production indefinitely. It is the ability of a local economy to drive local jobs growth and increase job containment while enabling stakeholders to leverage and maintain a standard of living and quality of life and wellbeing. Economic transformation is a new priority outlined in our new Corporate Plan 2017-2022. In the 2017/2018 financial year we have: • Implemented projects and actions to improve the liveability of major city centres for Beenleigh, Springwood, Meadowbrook and Logan Central • Prepared a Park Ridge South General Planning

• Generated $70.8 million of investment through promotional activities, exceeding our target for the year • Generated 486 new or retained jobs provided in the City of Logan • Developed initiatives to increase international student participation in conjunction with local schools and tertiary institutions • Developed and implemented a marketing campaign for the online jobs portal to raise awareness of locally available jobs • Delivered 47 business relevant workshops • Implemented actions identified in the Industry

Layout to better manage development in emerging

Development and Investment Attraction Strategy

communities. The layout shows preliminary land uses

2016-2021

(including residential and precincts) and indicative transport network • Prepared a report that reviews the implementation for the Planning Scheme Evolution Framework and provides recommendations to improve the implementation process. The report recommends that an annual review of the planning scheme is undertaken and that the Evolution Framework now also includes amendments to the Local Government Infrastructure Plan • Delivered activity centre summits for unlocking the economic and city-making potential of our activity centres • Developed a robust and defendable methodology to establish the market value of trunk land to be acquired by Council for all networks • Amended the Local Government Infrastructure Plan (LGIP) with revised Desired Standards of Service (DSS) to facilitate the combination of trunk infrastructure planning standards and the new population model

• Prepared amendments to Logan’s Adopted Charges Resolution to establish the City of Logan as a competitive location for business investment and to establish economic development zones • Delivered initiatives and projects through the Springwood Implementation Fund to unlock the city-making CBD potential of the Springwood Activity Centre • Developed a long term Employment Lands Strategy for the City of Logan to attract investment and provide a framework for community, businesses and investors in the city • Established Invest Logan with quarterly reports provided to shareholders • Council endorsed a Tourism Destination Management Plan for the City of Logan • Implemented a review of depreciation methodologies for other infrastructure assets, which will take into account the stage-of-life and asset consumption factors. See page 54 for more information about Council’s asset sustainability.

Village Square, Browns Plains is one of many thriving retail /commercial precincts with a mix of local businesses and national retailers

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

SOCIAL SUSTAINABILITY Social sustainability is focused on ensuring that our community has access to the services and resources it needs to ensure an adequate level of quality of life and personal wellbeing. Council facilitates access to a range of initiatives and resources to work towards achieving long term social sustainability. To support the City of Logan’s social sustainability we have: • Delivered Phase 1 of the development of a new Community Infrastructure Strategy (CIS) to help plan and coordinate the delivery of future community infrastructure and service delivery across the city • Delivered the KRANK School Holiday Program to provide opportunities for young people to participate in affordable, healthy and fun activities that connect them with each other and their community • Delivered the Live Well Logan Program to provide opportunities for residents to participate in affordable and accessible physical activities and health and wellbeing programs • Implemented the Access and Inclusion Plan 2017/2018: An Action Plan for People with Disability, to improve accessibility for people living with disability • Implemented the Reconciliation Action Plan (RAP) 2015-2017 and investigate continuing actions for moving to the next phase of the RAP to achieve Council’s vision for reconciliation and to increase respect and understanding

• Prepared an action plan based on the results of the annual Safe City Logan community survey, to gauge community perceptions on important crime and safety topics in Logan • Delivered training, advice, support and resources on projects that affect the future of the city and residents, to gain community input on Council decisions • Implemented a solution for Council to increase online community membership and online engagement. The software is providing a seamless approach to managing the online reference group with membership numbers increasing at a consistent rate • Developed and implemented the Community Engagement Strategy 2017-2021 for Council consideration • Prepared Community Engagement Guidelines for Children, Youth and Young Adults for public consultation. Titled Listen 2 Connect, the guideline was developed in partnership with community stakeholders • Deliver the First 5 Forever initiative to improve early literacy in children aged under five years (See page 68) • Developed the scope of the new Arts, Culture and Heritage Strategy 2018-2022 to improve community cohesion and the image of the city • Adopted the City of Logan Animal Care Strategy 2018-2022 for implementation.

• Implemented initiatives to deliver on the City of Logan Safe City Strategy and Action Plan 2016-2020 and to provide a safe and liveable community

Caddies Community Centre in Jimboomba provides a range of accessible activities and services for individuals, families, parents, children, youth, older people, cultural groups and people with disability INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

ROAD AND WATER INFRASTRUCTURE DIRECTORATE 2017/2018 SUMMARY The Road and Water Infrastructure Directorate combines the planning, design, construction and ongoing maintenance of road, drainage, bridges, footpaths, cyclepaths, water and wastewater infrastructure. Disaster management planning and response also sits under this directorate.

CORE SERVICES • Disaster management coordination • Specialist engineering advice • Infrastructure planning, design, construction and maintenance of roads, drainage, bridges, footpaths and cyclepaths

BRANCHES

• Land surveying, mapping and aerial photography

• Disaster Management*

• Road and drainage contract management

• Road Construction and Maintenance

• Transport planning

• Road Infrastructure Delivery

• Road safety coordination

• Road Infrastructure Planning

• Traffic operations

• Water Business

• Flood and stormwater planning

• Water Infrastructure

• Provision of a potable water supply

• Water Operations

• Collecting, treating and disposing of wastewater

*The Disaster Management Program does not sit within a Branch, but reports directly to the Director of Road and Water Infrastructure.

• Future planning, design and construction of new water and wastewater infrastructure • Management and maintenance of all water and wastewater network assets • Road asset management

Logan City Council maintains 89km of unsealed roads

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

LOOKING BACK:

Logan Early Warning

Disaster Dashboard

As part of Logan City Council’s ongoing commitment to assist members of the community, to plan, prepare and respond to disasters, Logan City Council teamed up with the Early Warning Network to provide residents and businesses of the City of Logan with free early warning alerts for potentially severe weather, bushfires and flood notifications.

The Disaster Dashboard provides critical information to residents and staff members during a significant disaster or emergency event. It was designed to be a single point of reference so that all important information would be readily available in the one place. The Disaster Dashboard is optimised for mobile devices as well as desktop computers using the following URL disaster. logan.qld.gov.au. The Disaster Dashboard provides realtime information through the use of internal and external data sources including road hazards, flood watch and traffic cameras, gauges, weather and fire warnings, power outages, an interactive map, streaming ABC radio, news, social media feeds, Google Translate and more. The Disaster Dashboard was heavily relied upon during ex-Severe Tropical Cyclone Debbie to provide a central point of truth for residents to access information. Residents were able to make informed decisions and develop an improved degree of self-reliance. Since the flood event, the Disaster Dashboard continues to be a valuable tool and source of information for the community.

The 24/7, 365 days per year Logan Early Warning service allows residents and businesses to plan, prepare for and respond to severe weather events before they happen. This service allows the community to become familiar with potential hazards and risks that may affect our city and encourages residents and business owners to take early action to minimise any potential damage that may occur during severe weather. We have also had Logan Early Warning promoted via the following channels: • local radio, including 4EB (multicultural station) and 101.1FM • local newspapers (print and digital) • Council’s Facebook page • letters to the community • the Our Logan magazine.

Disaster Dashboard Website

In 2017/2018 we also launched the Flood Notifications as an additional part of the service. Council now offers the community the opportunity to subscribe to receive flood notifications for a number of locations across the city. The flood notifications provide information on flood levels allowing the public to monitor local conditions, prepare homes, inform family members and respond accordingly. Residents and businesses can sign up to receive free notifications for any of the following telemetry locations: • Albert River flooding at Beenleigh • Albert River flooding at Tamborine • Albert River flooding at Wolffdene • Henderson Creek flooding at Cusack Lane

Logan Early Warning App

• Logan River flooding at Logan Village • Logan River flooding at Maclean Bridge • Logan River flooding at Parklands • Logan River flooding at Waterford • Logan River flooding at Kilmoylar Road • Oxley Creek flooding at Goodna Road • Quinzeh Creek flooding at Pineview Road • Schmidts Creek flooding at Bayes Road • Scrubby Creek flooding at Kurrajong Drive • Slacks Creek flooding at Loganlea Road.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

Chardon Bridge upgrade A vital link in the road network at Cedar Creek, Chardon Bridge was re-built in a joint project between Logan City Council, City of Gold Coast and the Australian Government. The $3.2 million replacement of the former timber bridge with a new two-lane reinforced concrete bridge was completed in October 2017. The previous timber bridge was extensively damaged by flooding associated with ex-Severe Tropical Cyclone Debbie resulting in immediate and permanent closure.

$3.2 million spent on a crucial piece of infrastructure.

There were some challenges faced by the community as it was necessary to put in place a number of diversions while the bridge was closed. Chardon Bridge is a very popular and well-known bridge providing vital connections to main roads, a local primary school, the Cedar Creek Hall and nearby towns. Chardon Bridge provides an important safety link for what is a growing community in the Cedar Creek area.

T FAC S A

Fortunately the bridge was scheduled for replacement and a funding agreement between the partners was already in place before it was damaged. As well as replacing the bridge, road pavement rehabilitation works were also undertaken on the approaches to the bridge

and new road drainage, guard rails and signage were installed. The new bridge is approximately six metres higher than the previous structure to reduce flooding impacts during wet weather events with a two-metre wide pedestrian path on the north-eastern side of the bridge.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

The low lying Chardon Bridge was extensively damaged in April 2017 by flooding caused by ex-Severe Tropical Cyclone Debbie. It was replaced with a new two lane reinforced concrete bridge which reopened in October 2017.

High-tech road quality maintenance Logan City Council’s Road Maintenance crew will be using innovative technology to maintain our city roads. Surveying the condition of Logan City Council’s sealed road network will be quicker and more comprehensive than ever before thanks to the high-tech van equipped with lasers, computers, cameras and GPS to pinpoint where maintenance is required. High-definition cameras on the van provide clear vision of the road while laser scans provide data on the roughness and texture of the road surface. All this information is logged by computers with GPS data location which is downloaded at the depot. This data is used to inform the scheduling and prioritisation of future maintenance and rehabilitation works.

LOOK FORWARD What’s coming up in the next 12–18 months? • Planning for the identification of potential sites for the Logan South Wastewater Treatment Plant ‘B’ • Commencing construction works associated with the Flagstone to Cedar Grove Wastewater Conveyance Strategy • Construction of the Cedar Grove Wastewater Treatment Plant • Implementation of the Road Safety Strategy • Front-end investigations and scoping briefs for a three year rolling program of Cycle Network Infrastructure • Preparing an Integrated Local Transport Plan • Delivering Water Sensitive Urban Design (WSUD) Asset Management • Conducting the annual review of our Local Disaster Management Plan

Logan City Council is using innovative laser and GPS technology to survey the condition of our sealed roads network

• Upgrading disaster management systems and process • Implementing the Logan and Albert River Floodplain Management Plan

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

COMMUNITY SERVICES DIRECTORATE 2017/2018 SUMMARY The Community Services Directorate develops and delivers services, facilities and programs that are designed to enhance the quality of life for Logan residents. It achieves this by collaborating with key stakeholders across other levels of government, community agency partners and the broader City of Logan community.

• Social planning including identifying community needs, examining the social impacts of development, and design strategies to enhance and benefit the community • Community development initiatives, including providing advice and support to community groups and organisations to assist in implementing a variety of programs

BRANCHES

• Community-based safety and crime-prevention

• City Standards and Animal Care • Community Services

initiatives including the Logan Safety Camera Program • Customer service delivery via Council’s service centres

• Customer Experience and Community Engagement • Libraries and Creative Industries

and contact centre • Community engagement including forums, workshops, surveys, market and customer research

• Parks

• Library and creative industry services, including arts

• Sport, Leisure and Facilities

and public art programs, history and local heritage resources, community learning and support programs

CORE SERVICES • Animal care, including community education promoting responsible pet ownership, innovative holding and rehoming programs, animal public safety and nuisance response services • Graffiti removal services and preventive actions to deter graffiti and tagging • Amenity and safety response and regulation for public places and residential premises • Biosecurity services in pest, animal and weed management and vector (mosquito) control services

• Libraries, Logan Art Gallery and Mayes Cottage management • Facilities planning, construction, maintenance and management, including community venues, aquatic centres and sports facilities • Logan Entertainment Centre and Beenleigh Events Centre management • Planning, construction, management and maintenance of parks, natural areas, cemeteries and road reserve vegetation

• Community parking regulation response and enforcement

38% increase

in the sale of cats and dogs from our animal care rehoming program.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

T FAC S A

Our Animal Management Centre rehomes hundreds of pets each year

Be Pet Smart program delivered to

over 7,421 students.

LOOKING BACK: Football Roars into Logan Queensland’s only Hyundai A-League team, the Brisbane Roar Football Club, settled in at its new $9 million stateof-the-art training facility at Heritage Park’s Logan Metro Sports Park in March 2018. The new purpose-built training facility and administrative centre is the club’s first permanent home in its 12 year history. The field is of such quality that it is durable enough for everyday use as well as being used for home games played by Brisbane Roar academy teams competing in the National Premier Leagues Queensland. Brisbane Roar Coach John Aloisi said the move benefited the team’s performance and provided the stability the players needed. “The playing field is of the same dimensions and quality as Suncorp Stadium, where the team plays its fixtures,” he said.

dreamed of having a home and it’s wonderful to see our dream come to a reality,” Mr Pourre said. “We’ll work hard on and off the field to ensure our members, sponsors, fans and the community are proud of their club,” he said. “It’s important that we continue to work hard within the community to increase our contribution and grow our support more widely. “Eventually we hope to have our junior teams training here and further down the track establish a football training academy. “This is a city that loves sport and has produced sports stars across all codes, so I’m sure there’s plenty of undiscovered potential here. “With Football Queensland at Meakin Park and Football Brisbane our new neighbours here at Logan Metro Sports Park, the City of Logan is undeniably the home of football in Queensland,” Mr Pourre said.

“I now feel that I can ask more of our players because they’ve got the facilities and none of the distractions that come with training at different grounds.” Brisbane Roar’s Managing Director, David Pourre, said the club was thankful for Council’s support and looked forward to building stronger relationships with the community. “Brisbane Roar Football Club is humbled and privileged to be working with Logan City Council. We have always

LOGAN METRO

SPORTS PARK The new Home of Football in Queensland

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

The first five years last a lifetime In the first years of life a child’s brain grows at its fastest, so early positive experiences are essential to help shape them for lifelong learning. As the journey begins, foundations for learning, health and behaviour are laid down. As a community we all have a role to play with little people, especially in these first five years. The First 5 Forever initiative is a statewide call to action to support parents and carers as their child’s most important first teachers. First 5 Forever commenced in Logan in 2015 and programs can be accessed through all nine Logan City Council Libraries and across the City. The program is proudly funded and supported by the Queensland Government through the State Library of Queensland. Libraries are active connectors and play a vital role in supporting the community by providing free, quality services for everyone. Families can support their child’s development by introducing them to literacy sessions located in libraries and across the community. These early years family sessions include Story time, Toddler time, Sensory story time, and Science, Technology, Engineering, Arts and Maths (STEAM) story time. These are some of the session’s within the Logan First 5 Forever program, part of the broader statewide early literacy initiative. First 5 Forever programming is not just limited to providing early literacy sessions within library spaces. There have been approximately 100 partner organisations engaged with First 5 Forever during this year alone. This has fostered a broader reach to families and a more collaborative approach to ensure consistent key messages are being delivered to families. Through the implementation of innovative local approaches to engage with families, within and outside the traditional library setting, First 5 Forever reached over 65,000

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

participants across Logan and facilitated over 2,500 early literacy sessions. Logan City Council Libraries and Creative Industries branch is committed to making a difference in the community by providing programs and services that foster creativity, literacy and a love for learning. First 5 Forever focuses on supporting parents and carers and strengthening the literacy and language skills of all Logan children aged 0-5 across the City of Logan. When children are supported during the early years, the whole community benefits. Through the First 5 Forever initiative, Council is demonstrating its commitment to support families with young children to reach their full potential with stronger literacy and language skills, and to be able to actively participate in Logan’s vision of a smart city of the future.

More than 2,500 early childhood literacy sessions were held in Logan’s libraries last year

Logan City Council Libraries play a vital role in supporting child development and early literacy through the Logan First 5 Forever program

of our people feel safe when home alone,

up from 74.6% in 2016.*

84%

T FAC S A 82%

Council used the results from this survey to develop and deliver targeted community-based crime prevention and community safety activities. More than 70 different activities are delivered each year.

T FAC S A

Between September and October 2017, Council ran its annual Safe City Logan Community Survey. The results from this survey showed that Council’s work in the area of community safety and crime prevention is having a positive impact.

Community Safety Program - Making our community safer

of residents like living in their neighbourhood,

up from 72% in 2016.*

*From the 2017 Safe City Logan Community Survey

The Logan Safety Camera Program is one key initiative of Council’s approach to creating a safer City of Logan. The camera program commenced in 2001, with nine cameras installed in the Station Road, Logan Central precinct. Over the past 17 years the network of CCTV safety cameras has expanded to more than 130 cameras owned and operated by Council. In addition to this, Council also monitors more than 140 CCTV cameras from the city’s eight train stations, through a partnership with Queensland Rail. The Logan Safety Camera Program Monitoring Room, which was redeveloped in 2014, utilises state-of-the-art technology to livestream the CCTV safety cameras back to this facility, which is also monitored 24-hours-a-day, 7-days-a-week by two trained Monitoring Officers. The Logan District Police also have direct access to the live streams from the Council-owned cameras through a dedicated web link, allowing them to be more effective in keeping our neighbourhoods safe. During the 2017/2018 financial year, Logan became the first Council in Australia to roll out innovative rapid-deployment mobile safety cameras. These cameras use super-fast 4GX wireless technology and can be installed within 10 minutes in hard to monitor areas such as parks. Mobile cameras have proven to be an effective way of addressing “hot spot” community safety issues such as hooning and anti-social behaviour.

Logan’s Safety Camera Monitoring Room is able to alert and provide police with real time streaming from a network of more than 280 CCTV cameras throughout the city

Council recently received federal funding of $525,000 to install seven new safety cameras and purchase a mobile camera vehicle. Council’s Community Safety Program has received numerous awards and commendations for outstanding community safety achievements and has successfully secured millions of dollars in funding contributions from the state and federal government. The Logan Safety Camera Program has strict policies, standing orders and operating procedures to ensure integrity, confidentiality and the privacy of the community at all times.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

Parks - award winners Logan City Council has been actively creating awareness around waterways since a waterway summit was held in 2011. As a result of the summit, the banks of Slacks Creek were identified as a site of opportunity to begin the implementation of a healthier waterways project. In 2012, a study of the Slacks Creek corridor by E2 Design Lab provided an opportunity to engage councillors in developing a vision and securing funding to landscape and develop the shores of Slacks Creek between Queens Road and Timothy Park in the suburb of Slacks Creek. The development included a track, branded Slacks Track, signage and a prominent yellow theme—used on footbridges, an underpass, shelters, water stations and seating along the route.

The park has a deck that looks out over the creek and information signs along the route tell the story of Slacks Creek—its nature, its past and the significance of the creek—to satisfy the interest for people wandering along the waterway. A public art component of large yellow and white steel origami boats are installed throughout the park adjacent to the water. The park also has Logan’s first unfenced off leash area for dogs and a soon-to-be completed pump track. Other waterways are constantly being identified for branding and engaging community with the ultimate goal of ownership and an understanding and appreciation of our waterways.

An added feature is an automatic timing and tracking system to enable people wanting to time their run or walk between set points.

Timothy Park in the suburb of Slacks Creek features a significant public art component and distinctive colour scheme along its tracks that run along the banks of Slacks Creek

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

LOOK FORWARD What’s coming up in the next 12–18 months? Implementing the Active Logan Strategy • Progressing the development of the Kingston Butter Factory Innovation Hub and Outdoor Events Space • Commencing construction of a new PCYC at Cronulla Park • Commencing construction of a Multi-Sport Facility at Underwood Park • Completing construction of the Yarrabilba Sport and Community Hub • Completing construction of the redeveloped facilities at Waller Park BMX track • Completing the redevelopment of facilities at

• Engaging with our community by conducting the annual Safe City Logan community survey • Implementing the City of Logan Safe City Strategy and Action Plan • Implementing the Reconciliation Action Plan (RAP) • Implementing the Access and Inclusion Plan • Delivering Community Project Grants by offering community organisations funding assistance to deliver projects that respond to emerging community priorities • Delivering of the Live Well Logan Program, which is

Beenleigh Aquatic Centre and commencing the

based on affordable and accessible physical activities

operation of the indoor heated pool

and health and wellbeing program

• Upgrading public Wi-Fi for our library customers

• Continuing the KRANK School Holiday program

• Developing a Libraries Learning and Discovery

• Identifying and acquiring suitable land in south-west

Strategy • Delivering early years services and the First 5 Forever initiative to improve literacy in children under five • Delivering actions linked to Council’s Arts, Culture and Heritage Strategy • Delivering a Community Engagement Program, which will focus on building the profile and user base of Council’s Have Your Say online engagement platform • Drafting Council’s Engagement Guidelines for officers working in our culturally and linguistically diverse (CALD) communities will be updated in partnership with the CALD community • Improving online services via the Council website transformation and City of Logan App • Completing a city-wide Community Infrastructure Strategy • Enhancing the Logan Safety Camera Program

Logan to establish a satellite City Standards and Animal Care facility • Actioning the City of Logan Animal Care Strategy 2018-2022 • Implementing the City of Logan Biosecurity Plan 2018-2022 • Continuing to facilitate pedestrian and traffic safety through the use of Automated Number Plate Recognition parking enforcement • Implementing increased service levels of our bushland reserves • Expanding the city’s natural areas fire access lines • Delivering the 2018/2019 Parks Capital Infrastructure Program • Delivering the Parks $26.7 million operational and maintenance program across the city-wide park network

• Upgrading to the Logan Safety Camera Program Monitoring Room • Integrating Council’s corporate CCTV cameras into the Monitoring Room

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

ORGANISATIONAL SERVICES DIRECTORATE 2017/2018 SUMMARY The Organisational Services Directorate delivers services to support Council business units and city services including: property management, plant fleet services, finance, procurement, legislative requirements and human resourcing.

• Purchasing, tendering and contract management • Corporate property management, property acquisition and disposal • Corporate risk management and insurance • Financial management—including corporate

BRANCHES • Administration • Finance • Corporate Governance

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

• People and Culture

Information (RTI) and Information Privacy (IP)

• Plant Fleet Services

• Workforce management, including recruitment, training, workplace health and safety and workforce

CORE SERVICES • Managing and maintaining Council facilities and

planning • Plant and fleet management, purchasing and repairs

buildings

Plant fleet services maintains more than 1,200 items of plant and equipment that are managed through Council’s Strategic Asset Management and Maintenance System SAMMS

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

LOOKING BACK:

Logan youth explore career options at expo

Plant Fleet Services first to “go live” with SAMMS

Around 2000 students from 20 schools across the City of Logan explored their career options at the 2017 Ignite Youth Careers Expo.

In a move set to transform the management and maintenance of Council’s heavy plant, vehicles and equipment, Plant Fleet Services officially launched SAMMS. SAMMS—or Strategic Asset Management and Maintenance System—is a Council-wide project, which is introducing improved processes and technologies to achieve the best possible performance and efficiency from the city’s physical assets. These assets managed by Plant Fleet Services range from excavators and light vehicles to park shelters—requiring different levels of management and maintenance to meet performance requirements during their lifecycles. The SAMMS system changes decades-old manual work order and booking processes to provide a mobile, online and integrated management system to enable the branch’s 35 staff to manage 1,200 items of plant and equipment. It replaces up to 800 work orders manually generated each month, ranging from scheduled services of Council vehicles to emergency repairs of heavy plant on project sites. Under SAMMS, Plant Fleet Services has implemented a newly configured version of the TechnologyOne solution and a range of supporting business processes to introduce:

The annual event was held at the Logan Metro Indoor Sports Centre in July to help young people make better career choices by giving them an opportunity to consider further study, traineeships and jobs. The expo is an integral part of Council’s strategy to encourage residents to work close to where they live—as more than half of Logan’s workers currently communte to and from the city each day. Students who attended the expo had a chance to talk with educational institutions’ representatives, training providers and prospective employers. Hannah Shaw, a Year 10 student from Kimberley College, said the expo was a great event because it helped young people like her to start thinking about their future careers. “I’m considering nursing but obviously I’m young and I still have a bit of time, so I’m keeping my options open,” Ms Shaw said. The expo also featured interactive exhibits by Nine News and Beenleigh-based Brisbane Business and Hospitality Training, as well as presentations that provided information and inspiration to the students.

• mobile work orders • real time vehicle odometer readings • automated vehicle service notifications • a streamlined plant hire process • proactive maintenance scheduling • an efficient defect capture and repair process.

The annual Ignite Youth Careers Expo attracted more than 2,000 school leavers to the Logan Metro Sports Centre to look at a range of career and job prospects

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

Bursaries awarded to school leavers Eleven bursaries, valued at $3,000 each, were presented to school leavers studying in a range of fields, dominated by medical technology in 2018. Presenting the awards, Logan City Council Treasurer, Councillor Trevina Schwarz said the bursaries were designed to open up opportunities for talented students who may not have been able to attend university for financial reasons. “In the past we have had situations where the student’s income from part time work was the only source of income for the family,” she said.

LOOK FORWARD What’s coming up in the next 12–18 months? • Working towards Green Stamp Environmental Accreditation in compliance with environmental management and sustainability initiatives • Enhancing the delivery of prioritised planned maintenance for

“Many of the students we have here today have come from war-torn countries via overseas refugee camps. In the space of a few years they have dealt with the most appalling conditions and overcome incredible obstacles, such as language barriers and family responsibilities well beyond their years, to achieve outstanding academic results.” 2016 bursary recipient Lucy Hannell, who is studying a Bachelor of Law and Criminology, thanked the award sponsors for their contributions and said the award gave her the confidence to say “I’m ready to do this”. “This is an award that will help you become the person you are in a few years,” she told this year’s bursary winners. The bursaries are funded by Logan City Council and 10 local business partners.

plant fleet assets to support our transition to a next-generation government body • We are implementing smart geographic technologies in Council contractor vehicles to facilitate improved maintenance of park facilities to support healthy and active recreation opportunities for families • Delivering the People Plan 2018-2021 to ensure Council continues to attract, develop and retain a high performing and valued workforce. The key projects for delivery over the next 18 months include: –– Change Management and Change Leadership—implementing a framework and tools to support effective change management and developing change leadership skills to help ensure Council employees transition through changes well –– Leadership and Accountability—reviewing Council’s Leadership Framework, Leadership Development Programs and Performance Framework • Implementing and embedding the newly developed Safety Management System across Council operations to assist in building a robust and sustainable safety culture • Delivering the From Now On... This Is Safety program developed to challenge the way we approach health and safety across Council • Implementing a new certified agreement • Undertaking and finalising an assessment of future HR technology needs • Developing a Digital Payment Strategy for Council consideration to support Council’s Digital Strategy for becoming a Smart City • Deliver policies for engaging social enterprises, local businesses and innovation to support good procurement practices • Developing and implementing enhanced security practices to improve security in Council-owned assets for staff and customers • Implementing software to utilise electronic document signatures to support next generation governance • Improving processes for delivering best practice governance to

Since 1995, the Logan City Tertiary Bursaries Award has provided assistance to students whose financial resources are limited

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

support informed and transparent decision-making

INNOVATION AND CITY TRANSFORMATION DIRECTORATE 2017/2018 SUMMARY Through a collaborative approach, the Innovation and City Transformation Directorate aims to establish next generation government by setting out a new strategic direction that will transform the City of Logan into an Innovative, Dynamic, City of the Future.

• ICT/Desktop environment management and support • ICT procurement and asset management • Service desk • Corporate application support • ICT infrastructure and training

BRANCHES

• Community and corporate events

• Advocacy*

• Network and communications services

• City Futures

• ICT contracts and contract management

• Information Services

• Sponsorship and advertising

• Marketing and Events

• City image marketing

• Media

• Brand management and design

• Strategic Projects

• Services marketing

* The Advocacy Program does not sit within a branch, but reports directly to the Director of Innovation and City Transformation.

CORE SERVICES

• Internal communications • Digital marketing • Publishing • Media services

• Advocacy strategy and policy

• Corporate communication

• City of Choice coordination

• Corporate strategy

• Regional collaboration and participation

• Organisational planning

• Grants and subsidies coordination

• Project management advice and support

• Start-up and entrepreneurship business support

• Performance development and reporting

• Smart City technologies

• Asset management governance

• Internal Council collaboration support and

• Asset information management

coordination

Luke Jeppinen oversees Council’s IT infrastructure

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

LOOKING BACK:

CityStudio Logan

Fair Share4Logan Campaign

On 15 May 2018, Council endorsed a Licence Agreement with CityStudio Vancouver to introduce a CityStudio Logan co-creation model, in partnership with local high-schools and post-secondary education providers in the region.

Council launched the #FairShare4Logan campaign in the lead-up to the Queensland election in November 2017. It was a community driven campaign that sought to influence investment decisions of the major parties and political candidates. The City of Logan is growing at an unprecedented rate, creating opportunities for residents, visitors and businesses. To support this growth, investment from all levels of government is vital, particularly in delivering catalytic infrastructure to create the lifestyle and economic opportunities that our city deserves. Council worked with key stakeholders to develop a campaign that sought to ensure the City of Logan received its fair share of state government funding. The campaign focused on the following priorities: • Major roads • Public transport • Infrastructure for growing communities. Key funding commitments secured through the campaign period included a total of $556 million by major parties. These included: • $480 million of commitments to Mt Lindesay Hwy made up of $20m (ALP), $60m (LNP) and $400m (ONP) • $16m commitment (ALP) for business case for M1 and South East Busway upgrades • $60m commitment (ALP) to bring forward delivery of a high school in Yarrabilba. The campaign achieved a significant reach in the City of Logan and beyond including • 3,122 active users engaged with the website fairshare4logan.com.au

This responds to the Future Community theme outlined in the new City Futures Strategy and City Futures Implementation Plan, as a key action for delivery in 2018/2019. Logan City Council is one of CityStudio’s first global partners in Australia and is leading the way with this collaborative model to define and create solutions to city challenges. On 30 April 2018, Logan City Council hosted Mr Duane Elverum, Executive Director and Co-Founder of CityStudio Vancouver, in a series of workshops targeting key internal and external stakeholders. Mr Elverum presented on the CityStudio model and the opportunity for its adaption and introduction in Logan. CityStudio Logan will see Council staff, university students and community members co-create, design and launch projects on the ground to improve our city and enrich our neighbourhoods, making Logan more liveable and sustainable. The hub will be used as a site to convene stakeholders, define problems and create solutions, while improving student skills and retaining talent in Logan. Projects will be guided by Logan City Council’s Corporate Plan and City Futures Strategy and Implementation Plan. Projects will be conducted with partnering universities and schools. Experimental projects will be designed collaboratively, tested with the community and the results shared with stakeholders. CityStudio projects are experimental—some are turned into permanent solutions while others generate new experiments—all contributing towards developing and maintaining strong partnerships with our stakeholders.

FOR

Act now

- tell your Queensland election candidate it’s time for Logan’s fair share. www.fairshare4Logan.com.au

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Authorised by Jane Frawley, 150 Wembley Rd, Logan Central QLD 4114

TIME

N’S LOGA SHARE FAIR

IT’S

T FAC S A

• 311,489 users reached on Facebook.

Logan City Council is one of LOGAN

CityStudio’s first global partners in Australia.

GovHack

City of Logan App

GovHack is an international annual open data competition run simultaneously across multiple locations in Australia and New Zealand. The event aims to provide citizens with an opportunity to work with open government data and identify opportunities to create novel solutions to challenges.

The City of Logan App is a step-change improvement in the speed and convenience for how residents can access key Council services. It has strengthened Logan City Council’s position as an Innovative, Dynamic, City of the Future and provides a new and innovative way for Council to support residents in the following areas:

Its also an opportunity for furthering the collaboration between government, industry academia and citizens, by harnessing the social and economic potential of open government data. In September 2017 GovHack was hosted in 36 locations across every state in Australia and New Zealand, with more than 2,300 participants, and 379 projects being successfully submitted through the online portal “hackerspace”. Logan City Council, Redland City Council and Griffith University partnered and ran the 2017 GovHack event which won the award for “Best Local Government Participation Across Australia and New Zealand”. This award was presented by The Honourable Leeanne Enoch, then Minister for Innovation, Science and the Digital Economy and Minister for Small Business, at the 2017 national GovHack awards night.

• reporting—Enables users to report maintenance issues via their mobile devices (e.g. graffiti, litter, abandoned cars etc.) • information—Provides users easy access to a small selection of popular information they would typically seek via the website or customer service (e.g. find a park, sporting venue, events, available jobs etc) • notifications—In-App push notifications to users on important and relevant information based on their preferences (e.g. reminder to take the bin out, pay rates etc.). With the launch of the App residents are now able to get many of their questions answered automatically through the App and the integration capabilities with logging requests. The City of Logan App project was a logistical feat, which required the collaboration of members from a large number of branches across Council.

Logan City Council, Redland City Council and Griffith University partnered and ran the 2017 GovHack event which won the award for “Best Local Government Participation Across Australia and New Zealand”

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

2018/2019 Budget Breakfast

An iconic hub for innovation

Logan Acting Mayor Cherie Dalley and Treasurer Cr Trevina Schwarz hosted the 2018/2019 Budget Breakfast event which was attended by about 300 people. Financial journalist Michael Pascoe was the keynote speaker. Channel 9 News Anchor Andrew Lofthouse hosted. Logan’s Budget Breakfast is one of the biggest gatherings of local business operators, both big and small, each year. Past speakers have included former Prime Minister John Howard OM, AC.

After completing a city-wide feasibility study around the need for an innovation space in the City of Logan, Council commissioned plans for the Kingston Butter Factory (KBF) that included an innovation hub concept and an outdoor event venue masterplan. The next steps are to complete detailed designs and commence construction, with completion due by December 2019.

Budget Media Kit The Budget media strategy highlighted Council’s strong financial position with an innovation focus. This narrative aligned with Council’s corporate vision of being an Innovative, Dynamic, City of the Future. The budget committed significant funding to innovation and infrastructure, but also ensured the preservation of the city’s rich heritage. The centrepiece for the budget media kit, themed ‘Back to the Future’, would be the $12million redevelopment of the Kingston Butter Factory. A special edition of Council’s Our Logan magazine showcased budget highlights and also featured info graphics which clearly communicated to readers and residents where funds were being allocated. Content was consistent with the Budget Media Kit—a comprehensive overview containing 30 media releases and included comments by respective committee chairs and speeches by Acting Mayor Cr Cherie Dalley and Treasurer Cr Trevina Schwarz.

Council’s 2018/2019 Budget attracted significant media interest with 54 news items printed and broadcast over two weeks.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

The innovation hub at the KBF will give entrepreneurs and start-ups a forum and space to develop local ideas and make them into reality. It is envisioned to be a place where a concentration of local entrepreneurs, start-ups and stakeholders from all walks of life will attend, work, run programs and support growth and the development of enterprise and innovation Council anticipates the development will boost the local economy in the City of Logan by providing a facility that supports local community start-ups and provides an incubator to grow businesses. With capacity for up to 5,000 patrons, the outdoor events space will be the largest outdoor entertainment Council will be precinct in the city, making it a investing major drawcard for festival and concert promoters.

T FAC S A

A media briefing for local journalists was provided on the Friday, ahead of a press conference on the Monday, after the budget was endorsed at a full Council meeting. This proved successful with an array of media in attendance, including The Courier Mail, Channel 9, Channel 7, Albert & Logan News and Jimboomba Times. Stories and interviews with Cr Schwarz and Cr Dalley also resulted in coverage in The Sunday Mail, ABC 612 and 4BC. An analysis of media coverage produced for Council’s 2018/2019 Budget over the two-week period resulted in 54 news items. This coverage reached a cumulative audience of more than 2.2 million people.

On 25 June 2018, Council announced it would invest $6 million to redevelop the KBF as the city’s first purpose-built innovation hub, supporting innovation and entrepreneurship, while maintaining its rich pioneering heritage. The refurbishment will maintain the building’s historic facade while the interior will be modernised. An additional $6 million will turn the KBF’s exterior into a flexible, multipurpose major concert and events precinct of a scale currently lacking in the City of Logan.

$12 million

to redevelop the historic Kingston Butter Factory into an innovation hub.

An artist’s impression of the Kingston Butter Factory’s redevelopment.

ImagiNation Children’s Festival 2017

LOOK FORWARD What’s coming up in the next 12–18 months? • Detailed designs and commence construction of the Kingston Butter Factory (due for completion by December 2019) • Deliver on the City Futures

T FAC S A

Strategy Implementation Plan • Develop and implement an City of Logan Christmas Carols 2017

Events Strategy 2018-2022 • Deliver the 2018 Logan Listens: Residents’ Survey

Council run events

• Implement Phase One of the

delivered, which had a touch

Strategic Asset Management

point of over

75,000 participants.

and Maintenance System • Deliver the advocacy annual action plan • Create a media and internal news portal • Develop an external campaign for the City of Logan as an Innovative, Dynamic, City of the Future Eats and Beats pop-up food truck festival

• Website redevelopment

Logan Loves Seniors Expo 2017

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

STRATEGY AND SUSTAINABILITY DIRECTORATE 2017/2018 SUMMARY The Strategy and Sustainability Directorate delivers development assessment, land use and building investigation, planning and infrastructure policy, economic development, public health, environment and waste services.

BRANCHES • Economic Development and Strategy • Health, Environment and Waste • Development Assessment

investment attraction activities to support Council’s corporate priorities and the strategic vision for the City of Logan • Development assessment services, including building and plumbing, development application approvals and town planning advice • Environmental health, including food business licensing, public health inspections and immunisation • Natural environment, including waterways and catchment management, vegetation and biodiversity planning, community environmental education and

CORE SERVICES • To prepare and facilitate the implementation of planning, design, economic and infrastructure development, short and long-term policies and

carbon and energy management • Waste and recycling, including waste collection, recycling and operation of waste and recycling facilities

More than 60,000 tonnes of materials was diverted from Logan's landfills through a range of recycling and repurposing iniatives

Albert River

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

LOOKING BACK: Summits and Forums Beenleigh, Logan Village and Logan Central were the centres of focus for this year’s summits and forums. Comprehensive engagement strategies were tailored to these key activity centres with the goal of unlocking their economic and city-making potential. In the lead-up to the summit/forum events, a number of in-person and online engagement activities were coordinated to identify community priorities. Engagement activities involved: • a combination of focus groups with schools, businesses and land owners • PlaceScore surveys • vox pops • online surveys • online interactive ideas mapping. Council engaged industry leaders and developers to identify opportunities for action by government and the private sector. The Beenleigh Summit resulted in 18 key actions and 33 initiatives that will all be incorporated into an updated Beenleigh Implementation Plan. The Logan Village Forum resulted in 29 key actions and 45 initiatives that will now inform the Logan Village Implementation Plan.

Beenleigh and now Logan Central to be hubs for redevelopment An Economic Development Zone has been declared in Beenleigh with a series of new incentives being offered to encourage lifestyle and city-enhancing developments. The incentives are applicable to projects such as cinemas*, office spaces and mixed-use developments, designed to attract new businesses, support the growth of existing businesses and drive economic growth. Developers can access the recently launched city-wide $1.5 million Investment Attraction Incentives Fund, which seeks to incentivise new medium to large business looking to set up shop in the City of Logan, or take advantage of targeted initiatives—such as incentives to encourage the establishment of 3.5 to 5-Star branded hotels and serviced apartments. Following last year’s Beenleigh Summit, which gathered national and international experts together to formulate ideas to enhance rapid economic development, 18 priority actions and 33 initiatives have been announced. In addition to attracting a cinema development—which is exclusive to Beenleigh—some planned initiatives are listed below: • The establishment of an entertainment and food precinct, and activation of the centre with outdoor dining options, a big screen and public Wi-Fi for the Town Centre • Delivery of a container mobile office/retail space, start-

Beenleigh Summit

Building an innovative, dynamic CBD of the future

ups or info centre in the Beenleigh Town Square • Streetscape enhancements and street activation with lighting and public art • Smart parking options and wayfinding signage.

Logan Village Forum

Where history meets opportunity

These initiatives can be delivered in the short, medium and long term through collaborative efforts of Council, federal and state governments, local businesses and chambers of commerce, the community and the private sector. *The incentive available for cinema development is unique to Beenleigh The Beenleigh Summit resulted in 33 initiatives to support economic growth

Logan Central Summit The civic and cultural heart

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

Logan Recycling Market—the site for a $20million treasure hunt

through financial donations to the City of Logan Mayor’s Charity Trust.

The Logan Recycling Market is a success story that continues to grow in popularity and purpose.

The market relies on mainly word of mouth and rock bottom prices to fuel its popularity.

In 1995 it started out as a small venture, to save useful items from landfill and provide an income stream for local charities.

Items on sale at the market are selected by Council staff from items intended for disposal at Council’s waste and recycling facilities. Bicycles, electronics, homewares, toys and clothing are always in stock, as are the proverbial second hand lawn mower, books and knick-knacks.

It’s a gift that has kept giving. After 23 years of bespoke bargain hunting, repurposing and recycling, it has generated approximately $20 million in revenue. Over that period it has also made significant financial contributions to the Logan Mayoress Community Services Committee Inc and will continue to support the Logan community

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Held at the Browns Plains Waste and Recycling Facility in Heritage Park from Friday to Monday each week, the Recycling Market continues to grow in stature as hundreds of treasure hunters eagerly await its doors opening each week.

Drainage Plans Online Logan City Council is embracing innovation to deliver outstanding customer service. In an Australian first, residents now have the ability to download a free PDF copy of their “As Constructed” drainage plan for residential/commercial properties, sewer and water main services. Access to more than 1.2 million drainage records is immediate and available at any time, through an interactive web service that was launched in March 2017. Customers previously had to make a written application, pay a set fee of $51 per plan and wait up to five business days to be provided with a plan. The online service was recently extended to include stormwater road piping infrastructure “As Constructed” records. These records are also available free after Council waived a $100 per plan fee. Both types of plans are also available through Council libraries, which will provide residents with printed drainage plans, for free, on request. Since its introduction the site has received more than 30,000 hits.

LOOK FORWARD What’s coming up in the next 12–18 months? • Deliver Logan River trail interpretative signage • Conduct Logan Riverside Park rehabilitation • Construct Queens Road fishway - Scrubby Creek • Conduct riparian rehabilitation on Belivah and Windaroo Creek • Implement a conservation incentives program • Upgrade our wildlife movement solutions • Conduct our environmental events and activities program • Hold our 20th Anniversary Land for Wildlife event • Implement solar power at Logan Metro, Marsden Depot and Beenleigh Library • Deliver an emissions profile report to manage Council emissions • Promote the display of Eat Safe Logan star ratings • Promote Council’s community immunisation clinics • Review Council’s recyclables tendering processing contract • Deliver strategic trunk infrastructure to support and unlock development • Deliver mobility to our Development Assessment teams to improve services to residents and businesses • Create a Construction Taskforce to proactively reduce the temporary impacts of construction on the community

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

CITY OF LOGAN’S PRIORITIES SUMMARY AND PERFORMANCE SCORECARD OUR PERFORMANCE REPORTING PROCESS

Council’s priorities

FOR THE CITY

Our Corporate Plan identifies six priority areas:

Quality Lifestyle (QL) Conveniently Connected (CC)

Council’s strategy is outlined in the priorities listed in our annual Operational Plan, which details key projects and performance indicators (KPIs) that directly relate to the Corporate Plan priority areas (refer to our strategic planning and performance management framework on page 44 for more information). Performance against our 2017/2018 Operational Plan is measured against project milestones and targets, which were set at the beginning of the financial year. This ensures meaningful and tangible quarterly operational performance reporting to Council and the community.

Economic Transformation (ET) Image and Identity (II) Green and Renewable (GR)

FOR THE ORGANISATION

Next Generation Governance (NG)

Priorities for the city and organisation

Performance scorecard definitions

While the city vision is an aspirational statement that communicates the hopes and dreams for our city and is a long term goal of what we hope to achieve over the next 25 years or so, the Corporate Plan priorities are the areas Council will concentrate on over the next five years. The following areas highlight the Corporate Plan’s priorities, and how Council delivered on these in the 2017/2018 financial year.

PROJECTS

KEY Priority

The important areas that will inform Council planning for the next five years. Priorities will be high level and have a city-wide focus.

Priority Outcome

Describes what we hope to see if we are able to progress and deliver on commitments relating to the priority area.

Priority Focus Area

The targeted areas that will be given attention by the Council over the next five years. The annual Operational Plan will capture projects and Key Performance Indicators (KPIs) related to the priority focus areas.

On track/completed: The project is meeting planned targets or all planned milestones have been achieved (project closure) Monitor: The project is behind schedule but will still be delivered this financial year 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

KPIs Meeting/exceeding target: Performance for this indicator is meeting or exceeding the target level Monitor: Performance is below the target level but is still within the acceptable performance variance Below target: Performance is outside of the acceptable performance variance Not proceeding: A Council decision has been made to discontinue the KPI

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

PRIORITY: QUALITY LIFESTYLES Quality Lifestyles (QL) As a welcoming city with a vibrant community spirit, residents of the City of Logan have a strong sense of belonging and our people feel safe. We have the social infrastructure to meet the needs of our diverse community and diversity in lifestyles. We support residents to engage in community life and lead healthy and active lifestyles.

PRIORITY OUTCOMES QL1 - Residents are active and healthy and have access to the services they need QL2 - Neighbourhoods are welcoming, inclusive and safe

Deliver the KRANK School Holiday program to provide opportunities for young people to participate in affordable, healthy and fun activities that connect them with each other and the community • Target: June 2018

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2017/2018 OPERATIONAL PLAN PROJECTS ON TRACK/ COMPLETED Deliver Phase 1 of the development of a new Community Infrastructure Strategy (CIS) to help plan and coordinate the delivery of future community infrastructure and service delivery across the city • Target: June 2018 Develop the sports fields and complete the new clubhouse facilities at Logan Metro Sports Park to increase participation in physical activity and events • Target: June 2018 Commence construction for the redevelopment of facilities at Beenleigh Aquatic Centre to increase participation in physical activity • Target: June 2018 Commence construction for the redevelopment of facilities at Waller Park BMX to increase participation in physical activity • Target: June 2018 Commence construction to redevelop the facilities at Yarrabilba Sport and Community Hub, to increase participation in physical activity • Target: June 2018 Determine priority areas for connectivity and develop an action plan to deliver on the priority areas • Target: June 2018 Deliver the First 5 Forever initiative to improve the early literacy of children aged under five years

Deliver the Live Well Logan program to provide opportunities for residents to participate in affordable and accessible physical activities and health and wellbeing programs • Target: June 2018 Develop and implement the Animal Management Strategy 2018-2022 to promote public health outcomes and responsible animal ownership • Target: June 2018 Develop the scope of the new Arts, Culture and Heritage Strategy 2018-2022 to improve community cohesion and the image of the city • Target: June 2018 Implement the Access and Inclusion Plan 2017/2018: An action plan for people with disability, to improve accessibility for people living with disability • Target: June 2018 Implement the Reconciliation Action Plan (RAP) 20152017 and investigate continuing actions for moving to the next phase of the RAP to achieve Council’s vision for reconciliation and to increase respect and understanding • Target: December 2017 Implement the SafeRoads4Logan Road Safety Action Plan 2017-2021 to encourage safer transits for residents, businesses and visitors • Target: June 2018 Continue to implement initiatives to deliver on the City of Logan Safe City Strategy and Action Plan 2016-2020 and to provide a safe and liveable community • Target: June 2018 Prepare an Action Plan on the results of the annual Safe City Logan Community Survey to gauge community perceptions on important crime and safety topics in the City of Logan • Target: June 2018

• Target: June 2018

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

UNDELIVERABLE None

NOT PROCEEDING None

KPIs MEETING/ EXCEEDING TARGET Percentage of School Based Vaccination Program Logan City schools visited

HIGHLIGHTS SafeRoads4Logan Logan’s Road Safety program is a partnership between Council’s Traffic Section, Queensland Police Service (QPS - Road Policing and Forensic Branches) and the Department of Transport and Main Roads. The partnership aims to deliver practical community engagement, enforcement and education. Council maintains a very strong strategic and working relationship with the Department of Transport and Main Roads, Queensland Police Service, RACQ, Queensland Health as well as KidSafe Queensland and Rotary Youth Driver Aware Program.

• Target: 100% Logan City schools visited

MONITOR None

BELOW TARGET Percentage variance against budget in the delivery of Sport, Leisure and Facilities Capital Works • Target: +/- 10% 1

NOT PROCEEDING None

The Capital Delivery Program is on track with projects generally progressing according to schedule. Expenditure variance is result of the June invoices being slightly lower than expected.

High profile policing such as Fatality Free Friday contributed to increased awareness of school zone speed limits

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

On the engagement and education fronts, a massive effort by Council’s team has resulted in the delivery of an extensive range of initiatives in the 2017/2018 financial year including: school safety, crossing supervisor infrastructure, cycling safety, seniors’ education and drug and tobacco education. Successful community engagement generated by Fatality Free Friday and during Road Safety Week has been popular and positive. Ongoing enforcement has specifically focused on anti-social driving behaviour, speeding and impaired driving. Council continually provides the QPS with traffic intelligence to contribute to its focus on the Fatal Five targets. In Logan there has been a shift in strategy around motorcycle accidents, from targeting rider behaviour to targeting motor vehicle driver awareness, which has been identified as the primary cause of motorcycle accidents.

Creative City: Arts, Culture and Heritage Strategy 2018-2022

City of Logan ImagiNation Children’s Festival 2017

Council has finalised the new strategy that sets a vision—where creative industries are part of our everyday lives, valued for the distinctively Logan-centric story that can be told from our past and our present, while making a valuable contribution to our future creative economy. This strategy is a whole-of-Council document that re-states Council’s ongoing commitment to arts, culture and heritage preservation. It defines the key areas, strategies and actions to guide the management of existing sites while planning to provide for future growth and development. The strategy outlines areas where Council will work to develop more opportunities for the community and its arts, culture and heritage professionals to watch, enjoy and participate in creative activities—with the aim of enhancing quality lifestyle, creative industries and business across the region. The strategy is an integral part of developing the city as an emerging tourist destination.

After the success of the ImagiNation Children’s Festival in 2016, Logan City Council took the project lead to once again collaborate children’s activities across the city to create the festival in 2017.

The strategy was developed after extensive consultation with Logan’s community, local cultural practitioners and stakeholders. It was informed by undertaking online and face-to-face surveys, meetings, focus groups and individual interviews across the city which revealed the community’s concerns, ambitions and vision for the future of arts, culture and heritage. Feedback indicated that while there were plenty of opportunities for development, we need to foster connections, ensure access to new technologies, celebrate our achievements and get the message out about the innovative and creative work being undertaken in Logan.

The ImagiNation Children’s Festival provided a 14-day action-packed program of free or low-cost activities for residents and visitors to the city to enjoy across the September/October school holidays in 2017. Activities focused on the zero to 12 age group with some activities accommodating older children. Festival highlights included the launch at historical Mayes Cottage with free interactive games and give-aways which attracted 1,000 attendees. A children’s-focused Eats and Beats drew 5,000 attendees and the very popular Dirty Dinosaurs Mud Play sold out in record time. Local and international media reported the Mud Play event as a successful way to encourage children to spend more time outdoors.

Children’s Festival

Five key areas link to Logan City Council Corporate Plan 2017—2022, and are underpinned by input from community consultation: • Development • Engagement • Places and spaces • Partnerships • Communication. The strategy can be accessed through logan.qld.gov.au under cultural projects. The ImagiNation Festival provided a 14 day program of activities for children aged under 12

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

Seniors Story—Live Well Logan Logan seniors play a vital role in our community and a Council priority is to recognise and respect the significant contributions of older people to the city. Council provides a range of initiatives, activities and programs to encourage seniors to share their wealth of knowledge with the community and stay connected, active and healthy. Our Live Well Logan program provides free or low cost activities for all residents to ensure that everyone has the opportunity to participate in the recreational and community life of Logan. Due to growing demand a large number of our Live Well Logan activities are specifically targeted for our seniors to enjoy. The Adults and Seniors Cooking Club or our Meals for One initiative provides workshops to help seniors

The Live Well Logan program provided a range of social and wellbeing activities such as Communities Lunch and Chat, Community Gardens and Know Your Ancestry workshops.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

discover how to prepare delicious and nutritious meals, whilst sharing a meal with friends in the community. Bootcamp for seniors, Nia dance, yoga, Zumba gold and indoor bowls offer great ways to stay fit that are suitable for all ages and abilities. In the most recent Live Well Logan program, a dedicated Gentle Movement section enabled residents to join in the fun with their local community to build their health and wellbeing. Acknowledging the vibrant diversity of Logan’s seniors, the Live Well Logan program also provided a range of social and wellbeing activities such as Communities Lunch and Chat, Community Gardens and Know Your Ancestry workshops. There are lots of fun health and wellbeing activities for our seniors delivered through Council’s Live Well Logan program. logan.qld.gov.au/livewell

PRIORITY: CONVENIENTLY CONNECTED Conveniently Connected (CC) We manage growth using smart urban design, with the City of Logan interconnected by reliable and convenient transport network infrastructure across the city, and across regional boundaries. We have designed our urban form to ensure places, spaces and facilities within our neighbourhoods are accessible, conveniently located and meet the pace of the growing city.

PRIORITY OUTCOMES CC1 - Integrated transport networks allow people to move around the city easily and conveniently

Prepare a report that reviews the implementation for the Planning Scheme Evolution Framework and provide recommendations to improve the implementation process

CC2 - A city of smart design, with mixed density and mixed use development, co-located with hard and soft infrastructure1 that meets the pace of a growing city and the needs of residents, businesses and visitors

• Target: December 2017 Prepare a whole of Council long term infrastructure plan for Council consideration • Target: June 2018

Hard and soft infrastructure refers to hard physical network (e.g. roads, public transport, bridges, capital assets, water infrastructure). Soft infrastructure refers to services and institutions to maintain economic, health, cultural and social standards within a city (e.g. education, finance, health care, law enforcement, social services).

Develop a robust and defendable methodology to establish the market value of trunk land to be acquired by Council for all networks • Target: June 2018 Amend the planning scheme Local Government Infrastructure Plan (LGIP) with revised Desired Standards of Service (DSS) to facilitate the combination of trunk infrastructure planning standards and the new population model

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2017/2018 OPERATIONAL PLAN

• Target: June 2018

UNDELIVERABLE

PROJECTS

Develop an Integrated Local Transport Plan to establish Logan’s vision for all modes of transport

ON TRACK/ COMPLETED

• Target: June 20182

Complete investigations and scoping briefs suitable for detail design and delivery for a three-year rolling program of the Cycle Network Infrastructure

Ensure that trunk infrastructure is delivered in a timely manner in the right place at the right time to support and unlock development proposals

• Target: June 2018 Deliver an upgrade to the Flagstone Wastewater Treatment Plant, Jimboomba, to improve services to the Logan South region of the city • Target: June 2018 Implement specific projects and/or programs identified in the implementation plans for the Beenleigh, Springwood, Meadowbrook and Logan Central activity centres to improve the liveability of the centres and meet the needs of residents and businesses • Target: June 2018 Prepare for Council consideration, the Park Ridge South General Planning Layout to better manage development in emerging communities

• Target: June 20183 The revised public release date is likely to be December 2018 and was endorsed by the project steering panel. This project is to be included in Council’s 2018/2019 Operational Plan.

A decision from the state government regarding its assessment of a grant application delivered late into the financial year determined the future deliverables of this project. Council adopted the decision to include this project in Council’s 2018/2019 Operational Plan.

NOT PROCEEDING None

• Target: June 2018

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

KPIs MEETING/ EXCEEDING TARGET Percentage of the annual Road and Drainage Maintenance Program delivered on budget • Target: 100 percent Percentage of annual Road and Drainage Capital Program delivered on schedule • Target: 90 percent Deliver Activity Centre Summits to unlock the economic and city making potential of our activity centres • Target: two per annum Percentage of the annual Water Infrastructure Capital Works Program delivered on budget • Target: 90 percent

MONITOR None

The Round Mountain Reservoir, which provides water to Flagstone, Yarrabilba, North Maclean, Spring Mountain and Woodhill residents, uses an electro-chlorinator powered by 323 solar panels and a 95kWh capacity Tesla Powerpack to treat water 24 hours a day. This is the first commercial solar and battery system to be powered by Tesla Powerpack in Australia. Council’s Logan Water Infrastructure Alliance (Council, Downer, Cardno and WSP) planned and delivered the smart project which is already delivering benefits – saving $1.9 million in capital costs and almost $50,000 in operating costs per year. The main savings from the “off grid” power solution have been achieved by retaining the unsealed access road to the reservoir for 4WD salt deliveries, rather than having to upgrade it for commercial chemical trucks. Operating a system which produces chlorine for water treatment from salt and solar power is also more affordable than other conventional systems.

BELOW TARGET None

NOT PROCEEDING None

HIGHLIGHTS Logan uses cutting edge technology in Australian first Drinking water for one of Logan’s fastest growing areas is being purified using innovative solar energy and battery storage technology.

The City of Logan has decided to invest in smarter, environmentally-friendly solutions to deliver core services and build infrastructure that meet our needs now and well into the future. The Round Mountain Reservoir was brought into service in 2014 when residential growth in the south western suburbs was just beginning to accelerate. By chlorinating on demand, water stored in the network doesn’t age and stays at the highest possible quality. The new water chlorination system can treat up to 13 megalitres of water per day and it will benefit up to 200,000 people by the time the region is fully developed. The project has been described as a win for technology, the environment and residents.

The Round Mountain Reservoir uses solar power and Tesla Powerpack to provide “off grid” water treatment with reduced capital and operating costs

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Connecting our cycle network Council has invested in the development and activation of new and upgraded walking and cycle networks in the city. Scoping and design briefs have been developed for a three-year rolling program of Loganâ&#x20AC;&#x2122;s cycle network infrastructure. The project has achieved great outcomes in its design planning for the city including: PARK RIDGE/CREST ROAD CYCLEWAY INTERSECTION UPGRADE Detailed design has been completed for the Park Ridge Road and Crest Road Interchange Upgrade at Park Ridge. The project will see installation of 1.5m wide on-road cycle lanes at the interchange, including access to and from Park Ridge and Crest Roads to the Mount Lindesay Highway Service Roads (eastern and western). This will allow cyclists to safely navigate the interchange. The project also includes modification of the existing traffic islands and traffic signals to accommodate the cycle lanes. Construction works are anticipated to be complete by September 2019. COMPTON ROAD CYCLE ROUTE Detailed design has been completed for an off-road shared pedestrian / cycle path along Compton Road and Baker Street from Allgas Street to Logan Road at Underwood. The project involves the construction of a bridge adjacent Compton Road at the Slacks Creek culverts and boardwalk and bridge along Baker Street. Subject to final agreement of funding approvals, construction is anticipated to commence in 2018/2019.

The shared pedestrian/cycle pathway at Vanessa Bvd, Springwood

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

CROYDON ROAD CYCLE ROUTE, LOGAN CENTRAL AND WOODRIDGE Construction has been completed on an off-road shared pedestrian/cycle path along sections of Croydon Road, Defiance Road and Ewing Road, Logan Central and Woodridge. RESERVE RD CYCLEWAY, SLACKS CREEK (PART OF THE SLACKS CREEK CYCLE ROUTE) Detailed design has been completed for the Reserve Road Cycleway from Kingston Road to Lake Road. The project involves the installation of off-road shared pedestrian/cycle paths. Construction is expected to commence in the 2018/2019 financial year. LENORE CRESCENT CYCLEWAY, SPRINGWOOD Construction has commenced on the Lenore Crescent Cycleway project in Springwood with works expected to be completed in July 2018. The project involves the installation of off-road shared pedestrian/cycle paths on sections of Vanessa Boulevard, Cinderella Drive and Springwood Road as well as the installation of on-road cyclist facilities along Lenore Crescent, including raised speed platforms. Upgrades to the traffic signals at the Cinderella Drive and Vanessa Boulevard crossing are also being undertaken. CHAMBERS FLAT ROAD CYCLEWAY, MARSDEN AND WATERFORD WEST Detailed design has been completed for the Chambers Flat Road Cycleway from Kingston Road to Waratah Drive. The project involves the installation of a 2.5m wide off-road shared pedestrian/cycleway facilities along Chambers Flat Road. Construction is anticipated to commence in the 2018/2019 financial year.

The Timothy Park shared pathway follows the path of Slacks Creek

PERFORMANCE REPORTING

Park Ridge South and Chambers Flat land use plan

The development of the draft plan offers a mechanism to mitigate the risks of non-cohesive development and infrastructure patterns, as it requires developers to align their proposals with the broad framework provided by the amendments. Further detailed assessments of park, water, wastewater and stormwater infrastructure requirements for the future development of Park Ridge South and Chambers Flat must be undertaken by developers as part of development applications lodged within the area. However, the draft plan identifies indicative work that may be required to be undertaken as part of the development assessment process in the future.

The Park Ridge South and Chambers Flat area is currently home to approximately 4,100 people and 1,400 households. The draft Park Ridge South and Chambers Flat land use plan (the draft plan) presents the preferred future urban development, open space and indicative road network for the area, providing for growth of approximately 370 properties and accommodating around 1,000 new residents. The overarching objective for the draft plan is to provide for a healthy, vibrant community within a quality environment in the future. The Logan Planning Scheme 2015 currently identifies this area as an emerging community to accommodate urban purposes in the future. This identification protects the area from incompatible uses and allows for the timely delivery of infrastructure.

The draft plan identifies environmental management and conservation areas. These areas are constrained and have been based on the flood, waterway, wetland, biodiversity corridor and primary vegetation management areas identified in the overlays of the planning scheme. The draft Park Ridge South and Chambers Flat plan has been submitted to the state government for first state interest check as a planning scheme amendment. It is envisaged that the planning scheme amendment will be on public consultation in late 2018/early 2019.

The draft plan proposes three different low density residential precincts to provide for housing diversity in the area. To support the proposed housing in the area, it is envisaged that two small scale convenience centres will be required to meet daily needs of the existing and new communities.

Regents Park 4km Crestmead

Heritage Park

Boronia Heights

2km

Park Ridge

rs F

lat

3km

Park Ri dge Ro ad

Greenbank

1km Rosia Ro

Park Ridge South/ Chambers Flat is a preferred area for future urban development

Mount

Lindes ay Hig

hway

Koplick

Logan Reserve

Road

Grange

r Road

Park Ridge South

g Lo

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Chambers Flat Munruben

at R

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Logan Village

North Maclean

Stockleigh

LEGEND Park Ridge South and Chambers Flat Plan Boundary

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Existing and Local Government Infrastructure Plan (LGIP) Parks

Major Industrial, Retail and Commercial Areas

River

Major Road or Arterial

Existing School

Suburbs

Cadastre

PRIORITY: ECONOMIC TRANSFORMATION Economic Transformation (ET) As home to South East Queensland’s next CBD and with dynamic business districts and niche suburban economies, the City of Logan offers unlimited potential, with diverse economic hubs for innovation, agribusiness, investment and emerging industry that attract a highlyskilled local workforce.

PRIORITY OUTCOMES ET1 - We enjoy jobs growth and economic prosperity with local and global reach

Deliver projects identified in the implementation plans for the Beenleigh, Springwood, Meadowbrook and Logan Central activity centres to stimulate economic growth

ET2 - Investments, partnerships and innovation support economic growth in the city

• Target: June 2018 Deliver initiatives and projects through the Springwood Implementation Fund to unlock the city-making CBD potential of the Springwood Activity Centre

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2017/2018 OPERATIONAL PLAN

• Target: June 2018 Develop a long term Employment Lands Strategy for the City of Logan to attract investment and provide a framework for community, businesses and investors in the city

PROJECTS

• Target: June 2018 Establish Invest Logan and once operational, provide quarterly reports to the shareholders

ON TRACK/ COMPLETED

• Target: October 2017

Develop a Food Capability Guide to raise the profile of the area for major contracts

Prepare a feasibility study report for the implementation of innovation hubs across the city

• Target: June 2018 Develop initiatives to increase international student participation in conjunction with local schools and tertiary institutions

• Target: June 2018

UNDELIVERABLE

• Target: June 2018 Develop and implement a marketing campaign for the online jobs portal to raise awareness of locally available jobs

• None

NOT PROCEEDING Prepare for Council endorsement and commence implementation of a Council-endorsed economic vision for the City of Logan

• Target: June 2018 Achieve unconditional contracts on all remaining South West 1 and South West 2 industrial lots to increase local job opportunities

• Target: June 20181 Prepare a tender for the supply of trainees for Council’s Traineeship Program, which will include specific requirements within the tender to provide significant social outcomes

• Target: September 2017 Implement actions identified in the Industry Development and Investment Attraction Strategy 2016-2021

• Target: June 20182

• Target: June 2018 Prepare amendments to Logan’s Adopted Charges Resolution to establish the City of Logan as a competitive location for business investment and to establish economic development zones • Target: June 2018

After reviewing the intent of the project, preparation of an economic vision at this point is considered premature as Council’s existing economic development strategies span 2016 to 2021 and this new vision may encroach on existing endorsed strategies.

A decision has been made to leverage the LocalBuy Managed Service Provider (Comensura) arrangements to source Council trainees, creating a more efficient process for Council. Under the new arrangements, Council’s existing provider is still able to supply trainees.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

KPIs MEETING/EXCEEDING TARGET Investment generated through promotion • Target: $70 million Deliver a range of business relevant workshops • Target: 15 per annum

MONITOR Number of new or retained jobs • Target: 500 per annum

BELOW TARGET None

NOT PROCEEDING None

HIGHLIGHTS Deliver a range of business relevant workshops for businesses in the City of Logan to build capacity of the local economy In 2017/2018 the Logan Office of Economic Development delivered a range of support services and workshops to the small business community, funded through the Small Business Support Services service enhancement.

Council delivered 47 workshops in partnership with government stakeholders, organisations and presenters, delivered across Council sites to start-ups and microbusinesses. These included the popular Australian Taxation Office workshops and also topical workshops in conjunction with the Chamber of Commerce and Industry Queensland (CCIQ). More than 140 one-on-one mentoring sessions were conducted with start-up and micro-businesses. The Griffith Entrepreneurship Series continued in 2017/2018, with 10 events held across the year. A wide variety of topics were offered, including Digital Marketing, Diversity in Business, Identifying Online Markets and the Evolution of Business Planning. These events continued to attract healthy audiences and will continue into 2018/2019. Council also collaborated with Access Community Services to deliver quarterly workshops for migrant business intenders and various agencies to provide National Disability Insurance Scheme (NDIS) support to service providers. To celebrate Queensland Small Business Week 2018 (28 May – 1 June 2018), Council hosted workshops, seminars and mentoring sessions to provide small businesses with the tools and information to successfully grow their business. A program of 19 events was delivered during the week, attended by more than 300 participants. Topics included tax essentials, digital marketing, designing a business card, financial planning. The flagship event Logan Business Links brought multiple government agencies and business associations together to provide the audience with an overview of their services.

A Digital Scorecard Business Workshop was one of 47 events provided to assist local businesses

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Logan’s online jobs portal

Food Capability Guide

Loganjobs.com.au is Council’s online jobs portal linking Logan-based employers with local job seekers, school students and relevant government stakeholders and service providers. The site is free for both job seekers and Logan businesses and allows job seekers to set-up job alert notifications.

The Logan Food Capability Guide was launched at a producers’ lunch at the Beenleigh Rum Distillery in July 2017 to promote locally grown fresh produce and awardwinning products.

The project’s aim is to provide greater opportunities for City of Logan residents to be employed within the city—and for Logan employers to access local job seekers. The site is supported by a dedicated Facebook page that increases the reach of job postings and local opportunities. Loganjobs.com.au celebrated its first anniversary in May 2018, with a Resource Hub being added to the website to help local job seekers find professional support to search for work in Logan. The new Resource Hub lists a wide range of agencies, as well as training providers and recruitment agencies. It also provides hints and tips on how to write job applications and what to expect in an interview. Loganjobs.com.au was promoted at two key events throughout the year, the Logan Ignite Youth Careers Expo in July 2017, and the Workability Employment Market in March 2018. Representatives from the Logan Office of Economic Development hosted a trade table and provided demonstrations of the platform. A comprehensive marketing campaign was rolledout throughout the year to promote the awareness of Loganjobs. Activities included:

With 217 nationalities, the city’s food and beverage offering is abundant, diverse and authentic. We are globally connected and competitive, with many businesses supplying products into Asia and other international markets, with the result that many brands are recognised nationally and internationally. The guide highlights 16 of the city’s diverse and vibrant producers and ranges of products and promotes food growers, producers and manufacturers to commercial caterers, buyers and investors. Some of these companies were invited to participate in a Meet The Buyer event on the Gold Coast prior to the Gold Coast 2018 Commonwealth Games. The guide was also distributed to Brisbane Airport Corporation and the Star Entertainment Group, which is investing in the Queens Wharf development that will generate opportunities for local businesses—particularly around food and hospitality supplies. A digital version of the guide is also available on the food industry page of the Logan Office of Economic Development website. The guide was updated in June 2018.

• Facebook advertising • Spotify advertising • Digital advertising • Radio advertising • eDM to employers across Logan City Council • Coverage in the Our Logan magazine • Purchase of collateral and merchandise for events. By the end of 2017/2018, the Loganjobs website had more than 5,800 registered users. The dedicated Loganjobs Facebook page had grown to 3,600+ followers and regularly received more than 2,000 page views per month. Find out more: loganjobs.com.au or facebook.com/ loganjobs.com.au

Local FOOD CAPABILITY guide City of Logan South-East Queensland

Our Food Capability Guide promoted local producers to buyers, distributors and retailers

Skip the traffic. Live and work locally.

Find Jobs INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

PERFORMANCE REPORTING

PRIORITY: IMAGE AND IDENTITY Image and Identity (II) As an Innovative, Dynamic, City of the Future, we have a tapestry of cultures and events immersed within urban and rural landscapes. The City of Logan thrives on food precincts, creative arts, heritage trails, manufacturing and logistics, and retail and commercial districts. We are well known for the diverse cultures and lifestyles on offer to our residents, visitors and business. Our people have access to recreational and artistic pursuits and vast open green spaces. Our image and identity attracts families, visitors and city-shaping investment.

PRIORITY OUTCOMES II1 - We are an Innovative, Dynamic, City of the Future

Deliver a review of Council-managed mountain bike trails, walking track infrastructure and signage, with the goal of improving the quality of the infrastructure and increasing patronage

II2 - Acknowledged as the emerging destination in South East Queensland

• Target: June 2018

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2017/2018 OPERATIONAL PLAN

• Investigate the co-location of facilities and major centres to facilitate hubs of excellence across the city • Target: June 2018 Prepare a tourism destination management plan for Council consideration • Target: June 2018

PROJECTS

Develop a project plan for the roll-out of new major city entry signage, to clearly demonstrate the city boundaries to provide residents and visitors with a sense of arrival when they enter the City of Logan

ON TRACK/ COMPLETED Review and revise the “Visit Logan” website to assist in positioning the city as an Innovative, Dynamic, City of the Future • Target: June 2018 Prepare for and commence the implementation of a Council-endorsed Smart City Strategy to support the achievement of identified city transformation outcomes

• Target: June 2018

UNDELIVERABLE None

NOT PROCEEDING

• Target: June 2018

Develop a brand strategy to drive a new city image campaign and other promotional elements to attract families, visitors and investment to the city

Develop a parks heritage plan to identify and promote cultural and heritage values of parks throughout the city

• Target: June 20181

• Target: June 2018 Deliver an annual calendar of events to promote key locations or significant assets across the city • Target: June 2018 Develop a marketing and promotional campaign to highlight the City of Logan as a hub for sporting talent and activity • Target: June 2018 Develop a marketing and promotional campaign to promote our natural environment, green spaces and parks • Target: June 2018

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

A decision was made by Council at its meeting of 20 March 2018 to reassess readiness to introduce a new brand. At a subsequent meeting on 5 June 2018, Council determined that the project would not proceed in 2017/2018 but would be included in the 2018/2019 Operational Plan.

KPIs

City Futures Strategy

MEETING/EXCEEDING TARGET

In April, Council endorsed the City Futures Strategy and Implementation Plan.

City of Choice leadership team meets every two months • Target: Six meetings per annum

The plan was informed by:

Percentage of Parks annual Capital Works delivered on schedule • Target: 90 percent on schedule

• internal Council engagement • the consolidated

MONITOR

findings of an Unpacking Innovation event

None

City of Logan: Home of Civic Innovation

• feedback from a three BELOW TARGET

week public exhibition of the draft City Futures

None

Strategy.

NOT PROCEEDING

There was considerable online interest in the strategy with 551 visits to the webpage that hosted the public exhibition document and 173 subsequent downloads of the strategy.

None

HIGHLIGHTS Destination Management Plan The Logan Destination Management Plan 2018 – 2022 takes a holistic approach to the development of the city as an emerging destination. Not recognised as a traditional leisure destination, the city’s destination plan focuses on positioning that targets sports and cultural events. The destination management plan clearly identifies the need to build critical infrastructure including accommodation, sports facilities and a riverine centre to harness the natural attraction provided by the Albert and Logan rivers.

City Futures Strategy

LOGAN DESTINATION MANAGEMENT PLAN 2018 - 2022

visitlogan.com.au

The implementation of the five year plan will be a collaborative effort championed by the recently formed Tourism Advisory Group. Its members will be drawn from representatives of the local tourism industry, small business, chambers of commerce and Council. The advisory group, in consultation with Council, has identified priorities for the next two years. These include the preliminary work required to assess and identify several significant projects required to build the destination’s capability to deliver first-class visitor experiences. In addition to this, there are a significant number of opportunities in the pipeline—ranging from food trails to mountain bike hubs—and wayfinding.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

The City Futures Strategy 2018-2022 will set forth the goals and aspirations related to the innovation and Smart City agenda for the City of Logan. It will position the City of Logan as a leading Australian Smart City, strengthen Council’s ability to seek funding and support from other levels of government to implement innovative ideas and Smart City-related initiatives. The Implementation Plan is the roadmap that will direct Council in cultivating innovation across the City of Logan and will be the basis for seeking funding for future innovation projects.

City of Choice The Logan City of Choice initiative is helping the City of Logan grow and prosper. It is an initiative of Logan City Council, delivered in partnership with community, business and non-government sectors and the Queensland and Australian governments. The City of Choice Leadership Team supports outcomes where an independent team of community and thought leaders has the capacity to influence key government, business and philanthropic stakeholders beyond the traditional scope of local government. In 2017/2018, the City of Choice Leadership Team was refreshed and its focus renewed. The new team met for the first time on 23 March 2018 and identified three initial priorities: • social housing and place-making • education and employment pathways • the Australian Government’s proposed drug testing of welfare recipients.

PERFORMANCE REPORTING

Promoting our image and identity City of Logan: an Innovative, Dynamic, City of the Future Council stepped up its efforts this year to promote the City of Logan as a great place for residents, businesses and tourists. The online Park Finder was integrated into Council’s City mobile application making it easier for residents and visitors to find which of our 924 parks meet their needs (See page 77). Spring, summer, autumn and winter calendars of environmental events were developed and promoted to encourage residents to get out and about in our natural spaces.

Council sponsored the Griffith Sport Logan Fun Run which attracted 480 participants. The course traversed the most scenic areas of the Griffith University Logan Campus and Riverdale Park and was perfect for runners and walkers alike. The walks offer a 5km and 10km distance as well as a 1km Junior Dash for the kids. Beenleigh also hosted the BMX Southern Zone titles, which attracted riders from across South East Queensland who competed in 700 races in front of 2,000 spectators.

STEP IT UP LOGAN

Interpretive signage was developed and installed in parks and waterways to provide park visitors with information on flora and fauna. Promotions helped increase participation in the Conservation Incentives program by 80 per cent. Another successful Logan Eco Action Festival (LEAF) was held in May attracting more than 10,000 visitors.

2017 CITY OF LOGAN

Sports Awards

In order to consolidate the City of Logan’s positioning as a sporting hub and to nurture sporting talent, Council hosted the annual City of Logan Sports Awards in October 2017. This was followed by The Step It Up campaign which ran from October to December 2017. The campaign encouraged the Logan community to get up and get moving, generating greater interest and awareness in the many and varied opportunities to get active in Logan. The campaign reached over 150,000 people in the target area with 3,362 people clicking through to ways to get active in Logan. The Marketing and Events program secured a partnership with Sports Marketing Australia to attract sporting events to the City of Logan. Sports sponsorship and partnerships were secured with the Brisbane Bullets, Brisbane Roar, Australian Supercross Championships, Rugby 7s girls’ state championships, International Legends of League and the National Indoor Netball Junior Championships. The Brisbane Roar Football Club officially moved into the club’s state-of-the-art training facility at the Logan Metro Sports Fields in April. (See page 67).

Our city is well known for the quality of events that Council hosts year round

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

PRIORITY: GREEN AND RENEWABLE Green and Renewable (GR) We use responsible urban planning in the City of Logan to protect rural living, our natural environment and green spaces. Our hectares of parkland are surrounded by waterbodies and waterways that meander through the city. We enable investment and delivery of renewable technologies and prepare our city transition to a carbon conscious community. We value our environment, safeguarding our biodiversity, local wildlife, threatened species and green corridors.

PRIORITY OUTCOMES GR1 - A carbon neutral and green city GR2 - Our waterways and waterbodies are healthy GR3 - We employ sustainable waste management and recycling practices

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2017/2018 OPERATIONAL PLAN PROJECTS ON TRACK/COMPLETED Deliver an emission profile report to measure and track Council emissions • Target: August 2017 Prepare a carbon reduction strategy and action plan to reduce and offset carbon emissions for Council consideration • Target: January 2018 Implement a community and schools waterways monitoring program to educate stakeholders on the protection of Council waterways • Target: June 2018 Host a City of Logan EnviroForum to support community environmental awareness and participation • Target: November 2017 Investigate improvements to parks linkages (e.g. footpaths and bikeways) to create better connectivity between parks and pedestrian network infrastructure • Target: June 2018 Develop a priority biodiversity corridors mapping and decision framework to inform a city-wide vision • Target: September 2017

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

Prepare for Council endorsement and commence implementation of a Council-endorsed Albert River Vision to identify opportunities to improve the accessibility, ecological health, recreational value and economic benefit of the asset • Target: February 2018 Complete the recreational water quality sampling program 2017/2018 across the city’s rivers and creeks to monitor recreational values of key waterbodies • Target: June 2018 Develop a localised state of the catchment report to benchmark the condition of Logan rivers and wetlands assets • Target: December 2017 Develop the Logan River Vision Implementation Plan 2018-2022 that identifies key on-ground projects to improve the accessibility, ecological health and recreational value of the Logan River for endorsement by the ELT • Target: March 2018 Develop and implement the Logan River Accessibility and Connectivity Concept Plan to improve accessibility and economic benefit of the asset • Target: June 2018 Install location signage at Logan riverside parks on river edges (visible from the river) to improve accessibility • Target: June 2018 Prepare a project plan to facilitate the renewal of the waste and recycling collection and processing contracts for Council consideration • Target: December 2017

UNDELIVERABLE None

NOT PROCEEDING None

PERFORMANCE REPORTING

KPIs MEETING/ EXCEEDING TARGET

They are essential in opening up access to waterways for native fish and building a more sustainable and healthy fish population.

None

MONITOR None

BELOW TARGET None

NOT PROCEEDING None

HIGHLIGHTS A new way for fish to flourish Logan City Council’s drive to improve the quality of Slacks Creek has passed another milestone. A “fishway” designed to aid the passage of fish under Paradise Road at Slacks Creek has been completed. Council partnered with fish passage specialists Catchment Solutions to deliver the project with support from Reef Catchments and the federal government. Fishways use strategically-placed corridors that facilitate fish movements through man-made barriers.

The Slacks Creek Fishway under Paradise Rd is designed to protect native fish lifecycle dependent migrations

100

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

The fishway was an initiative of Council’s Slacks Creek Catchment Recovery Project, which aims to bring the public back to the Logan River tributary and turning its shores into a place where families can go. Catchment Solutions Fisheries Biologist, Matt Moore, said native fish were poor swimmers and could swim fast only in small bursts—so road crossings, causeways, weirs and culverts create barriers for the fish. “The shallow water and high velocity through the Paradise Road culverts and the drop off at the downstream side of the culvert apron have been preventing critical lifecycle dependent migrations upstream for many years, impacting native fish populations,” Mr Moore said. “We’ve opened up considerable habitat for native fish such as Australian Bass. “The fishway also provides passage for numerous other lesser known fish that form the basis of the food chain and are crucial for maintaining sustainable fish populations.” The fishway was funded by the Australian Government and Council’s Environmental Levy.

Logan Eco Forum The Logan Eco Forum was Logan City Council’s inaugural event which provided a unique opportunity for the broader community to engage and participate in environmental education, networking and environmental awareness capacity building through a face-to-face setting. The purpose of the event was to explore the many ways we can connect to nature, how this benefits us as individuals and as a community, and to showcase Council’s environmental initiatives. Council captured the voice of approximately 100 community members at the Eco Forum which included an open panel discussion session to allow collaboration and feedback. Community discussion was captured using the skills of a graphic recording artist and on story boards around the venue. Outcomes from the Logan Eco Forum have guided the development of the 2018/2019 budget, to ensure spending of the Environmental Levy aligns with community expectations.

and businesses in Logan having a solar photovoltaic system, representing 134 megawatts of installed capacity and about 35,500 individual systems. We aim to continue this work with the adoption of a carbon reduction strategy, which outlines a series of actions to become a carbon-neutral and green city by 2022. To achieve carbon neutrality, or to be carbon-neutral, means that the net emissions associated with an organisation’s activities are equal to zero. The National Carbon Offsets Standard (NCOS) provides a recognised and reputable benchmark for carbon neutrality certification. Council’s carbon neutrality will be evidenced by operations being NCOS certified 100 per cent carbon neutral through a robust, accurate and accountable analysis process. Carbon neutrality will be achieved through the following actions: • avoidance of the generation of carbon emissions • minimisation of carbon emissions through improved operating efficiencies and the utilisation of innovative technological solutions • embracing the use of innovative renewable energy technology • offsetting remaining carbon emissions. Council will demonstrate carbon neutrality certification with the following steps: • Establishing a carbon emissions profile • Avoiding and reducing carbon emissions where

Graphic recording of the engagement activities carried out at the Logan Eco Forum

possible • Carbon offsetting all remaining emissions • Having carbon emission accounting independently

Keeping Logan Green and Renewable The City of Logan covers an area of 957 square kilometres and is home to approximately 320,000 residents. With $5.8 billion worth of city assets, an annual budget of $779m and more than 1,400 staff providing 85 diverse services to the community, Council is a large and complex organisation.

audited • Publicly reporting on key information about the carbon neutrality claim.

With a population growth rate of two per cent per year Council’s operations will also continue to grow, which ultimately impacts on Council’s carbon emissions. To achieve Council’s vision of a carbon-neutral city an innovative, flexible and adaptive carbon reduction strategy and action plan is required. The City of Logan has already embraced renewable energy with approximately 29 per cent of all households

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

101

PERFORMANCE REPORTING

PRIORITY: NEXT GENERATION GOVERNANCE Next Generation Governance (NG) We embrace innovation and digital transformation to meet the needs of our customers and community. We embed continuous improvement to provide quality services and assets that add value to our community. Our strong civic leadership has forged strategic national and global partnerships to promote and deliver responsible governance of the City of Logan.

PRIORITY OUTCOMES NG1 - Our organisation uses innovation and technology to efficiently manage assets and deliver valuable services to our community and visitors NG2 - We engage our residents, businesses and visitors to inform decisions that affect the future of the city NG3 - We use responsible governance and establish strategic relationships in the management of assets and the delivery of services to the city NG4 - Our people deliver excellent service to customers and the community NG5 - We are building our resilience and recovery in the event of disasters

Implement next generation branch reporting for use by staff, councillors and customers to improve the availability of information to support good decisionmaking • Target: June 2018 Implement the endorsed realignment of services in Council’s Development Assessment Branch to support improved services to residents and businesses • Target: December 2017 Deliver training, advice, support and resources on projects that affect the future of the city and residents, to gain community input on Council decisions • Target: June 2018 Implement a solution for Council to increase online community membership and online engagement • Target: June 2018

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2017/2018 OPERATIONAL PLAN PROJECTS ON TRACK/COMPLETED Establish mobile self-service for Council service requests and payments • Target: June 2018 Deliver a review on the Logan City Council App to determine integration opportunities for parks • Target: June 2018 Implement Radio Frequency Identification technology at all nine library sites for improved customer service and automated manual handling • Target: March 2018 Deliver mobility to Building and Land Use Investigation Teams to improve development assessment services to residents and businesses • Target: April 2018

102

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Develop and implement the Community Engagement Strategy 2017-2021 for Council consideration • Target: June 2018 Prepare for public consultation, Community Engagement Guidelines for Children, Youth and Young Adults • Target: September 2017 Develop a three year Advocacy Strategy and implement a 12 month action plan focused on building relationships with the state and federal governments to influence policy and investment • Target: March 2018 Design and deliver a community campaign in the lead up to the state and federal elections to advocate for the identified priorities • Target: June 2018 Develop and finalise the City Biosecurity Plan 20172021 for Council consideration and implement actions to manage invasive pests, plants and animals across the city • Target: October 2017 Prepare the final draft of the People Plan 2017-2020 for ELT consideration • Target: March 2018

Implement recommendations and lessons identified from ex-Severe Tropical Cyclone Debbie debriefs to enhance operational capability • Target: June 2018 Introduce smart technologies to enhance disaster operations and recovery • Target: June 2018 Further develop and implement community engagement strategies to improve community resilience • Target: June 2018

UNDELIVERABLE Prepare a Council-wide digital strategy for Council consideration • Target: June 20181 Implement Phase One of the Strategic Asset Management and Maintenance Software (SAMMS) for nominated asset classes and associated supporting services to support our transition to a next-generation government body • Target: June 20182 Implement a new Certified Agreement to formalise employment conditions for the next three years • Target: June 20183 Finalise the Logan and Albert River Floodplain Management Study and Plan for Council consideration (Note 4 below) • Target: June 20184 No consultant has been engaged yet and due to a delay in preparing a Request For Quote (RFQ), a Council decision has been made to move this project to the next financial year (2018/2019) for delivery.

Preparation for the first foundational release for the Water SAMMS implementation is completed ready for implementation on 1 July 2018. Release planning is still occurring for future releases. This project has been included in the 2018/2019 Operation Plan.

Negotiations between Council and the Unions and their staff representatives were unable to reach an agreement and will continue into 2018. This project will be included in the 2018/2019 Operational Plan.

A technical analysis of the magnitude and behaviour of the major flood event in the Logan and Albert rivers following exSevere Tropical Cyclone Debbie was finalised in early May 2018.

The update to the Floods Study will be undertaken in 2018/2019 with the review of the Floodplain Management Study and finalisation of the implementation plan to be completed once the results of the revalidation are available.

NOT PROCEEDING Implement a new Business Papers Solution for committee and Council meetings to provide an innovative online meetings management solution • Target: June 20185 Project removed from the 2017/2018 Operational Plan by Council decision number 5 December, 2017

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

KPIs MEETING/EXCEEDING TARGET Percentage of internal referral advice delivered within timeframes • Target: 95% Coordinate delegations to Canberra • Target: two per annum

MONITOR None

BELOW TARGET None

NOT PROCEEDING None

Department Name

HIGHLIGHTS

TITLE OF DOCUMENT IN UPPERCASE LETTERS

Biosecurity Plan Logan City Council has for City of Logan Biosecurity Plan 2017- 2022 many years been active in managing pests, through public education, pest control activities and enforcing land protection legislation. These activities have kept pest prevalence to acceptable levels and in some cases completely eradicated pest incursions. The City of Logan continues to face pest management challenges from existing populations of pests and the ongoing threat of new pest plants and animals entering the city. The landscape of the Logan area is becoming increasingly urbanised, with rural land being converted to residential or other uses. This means that the incidence of impacts on agriculture are reducing while impacts on human health and social amenity are increasing. The value of our existing natural areas increases as safe havens for native species and as natural places for our community to enjoy. At the same time environmental areas face increased pressures from more intensive neighbouring land uses. This increases the need to actively manage pests encroaching on these spaces. The City of Logan Biosecurity Plan 2017-2022 commenced in January 2018 and was developed for all areas within the city, in consultation with internal and external stakeholders. The purpose of the plan is to fulfil the state’s biosecurity obligations on Council and to provide a strategic direction for the management of invasive species within the Logan local government area.

103

PERFORMANCE REPORTING

The plan applies to all land and waterways within the boundaries of the City of Logan local government area. Weeds and pest animals are recognised as a significant threat to Australia’s biodiversity, agricultural productivity and public health. The plan identifies strategic actions and success indicators and the stakeholders responsible for delivering the action, in order to manage biosecurity threats in the city. The City of Logan’s Biosecurity Plan has been developed in line with the principles of the Queensland Weed and Pest Animal Strategy. The six desired outcomes in the state strategy are: OUTCOME

OBJECTIVE

Prevention and early intervention

Establishment and spread of weeds and pest animals are prevented.

Monitoring and assessment

Reliable information is the basis for decision-making.

Awareness and education

Stakeholders are informed and knowledgeable, with the capability and capacity to take ownership of weed and pest animal management.

Effective management systems

Integrated systems for successfully managing and reducing/minimising the impacts of weeds and pest animals are developed and widely implemented through risk management.

Strategic planning framework and management

Strategic directions are developed and maintained, with an acceptable level of stakeholder ownership and are underwritten by risk management practices.

Commitment, roles and responsibilities

Management of weeds and pest animals is the shared responsibility of land managers, industry, the community and all levels of government. All stakeholders are committed to undertake coordinated management. The attributable cost of this management is borne by the land owner/manager and those who directly benefit from the management.

delivering services—to our community and in achieving the Corporate Plan’s goals and priority outcomes.

The People Plan 2018–2021 seeks to continue to build a workplace where people are engaged and supported to pursue excellence in all they do—where collaboration, creativity and innovation are the basis of how we work in

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

PLAN

The plan places ongoing priority value on the safety and wellbeing 2018 2021 of all those in our workplaces, as well as ensuring our staff have every opportunity to and are supported to achieve high levels of job satisfaction and engagement. VISION:

Our People Plan will position our people and organisation to deliver on our organisational purpose, through creating a culture of innovation and excellence among our staff.

Developed with input from our staff and key stakeholders, the plan is built around a number of key priorities, to ensure we have a diverse and inclusive workplace and a workforce where our people: • are engaged in what they do, committed to performing at their best and are empowered and accountable at all levels to deliver on Council’s Corporate Plan • develop and display their leadership potential at all levels through the organisation, in turn actively engaging in innovation and continuous improvement to deliver business reform • value the benefits of life-long learning and actively participate in continuing to develop their skills, competencies and capabilities • embrace and actively participate in organisational change • Place value on their safety and wellbeing each and every day. With our Corporate Plan in mind, our focus on delivering services and infrastructure to our community and the perspective of our people, five people priorities underpin for the People Plan 2018–2021. These are depicted below.

Safety and Wellbeing

People Plan Logan City Council developed its third People Plan, which describes how we will build and maintain the capability of our people to enable them to contribute to the aspirational goals and objectives in our Corporate Plan 2017–2022.

people

Change Management and Leadership

Workforce of the Future

People Plan 2018–2021

Great Place to Work

Leadership and Accountability

Radio Frequency Identification (RFID) In February, Logan City Council libraries entered an exciting new era when RFID was installed in all nine libraries. RFID is a technology that makes borrowing quicker and easier for customers. Nearly 2 million items were borrowed from Logan City Council libraries in the past year. Before RFID every item was checked out individually, but now customers can conveniently borrow multiple items at once using an RFID self-serve kiosk. Customers can also borrow using a digital version of their library card stored on their smartphone and can choose to either print or email themselves a receipt when borrowing. Prior to RFID, library staff checked in every single item being returned. RFID now automates this process, meaning less repetitive work for library staff and an opportunity for library staff to spend more time with customers, delivering high-value customer service including program delivery and point-of-need assistance. For Logan City Council libraries, RFID creates an improved library experience. RFID cleverly and efficiently uses technology to help library systems operate at their best while freeing up library staff to do what they do best, support and serve the community.

CITY OF LOGAN ADVOCACY STRATEGY

2017–2019

Blueprint for City Transformation

Council is directing its resources towards managing this rapid population growth to provide progressive lifestyle and economic opportunities for residents and investors. But we can’t do this alone. Council’s capacity to raise capital to fund infrastructure is limited and accounts for only three per cent of the national taxation share. This limits the scope and scale of infrastructure we can deliver. The state and federal governments, by comparison, are able to access and allocate significantly greater levels of funding to deliver vital infrastructure. For this reason, Council is advocating to state and federal governments to ensure that Logan gets its fair share. Securing financial investment by all tiers of government for hard and soft infrastructure is key to unlocking the city’s potential. Council’s advocacy priorities are focused on major roads, public transport and infrastructure for growing communities.

Radio Frequency Identification (RFID) was introduced in Council’s nine libraries to make member borrowing and the location of library assets faster and more efficient

A Blueprint for City Transformation – Advocacy Strategy The City of Logan has undergone dramatic change since being declared a city on 1 January 1981. In 36 years, the population has expanded rapidly. Many agricultural areas have evolved into vibrant urban communities and people from all over the world now call Logan home. Our city’s population growth has been coupled with strong economic growth. Looking ahead to the next 20 years, Logan will continue to be one of the fastest growing cities in the nation.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

These priorities are critical for our growing communities. They are representative of community needs and desires and align with Council’s focus on projects that will create a whole-of-city impact. Council’s Advocacy Strategy 2017— 2019 provides Council with a framework for coordinating and delivering on our advocacy agenda. The strategy is a first for the City of Logan and lays the foundation for Council and the community to commence action today that will create long-lasting change into the future. Council’s advocacy priorities, campaigns and activities are underpinned by our Corporate Plan priorities and corporate values, organisational vision and city vision. All advocacy activities align to Council’s commitment to: • Building key relationships with political, industry and community representatives • Influencing investment decisions for priority hard and soft infrastructure projects • Influencing policy development impacting the City of Logan. For more information about Council’s advocacy strategy and activities, check out Council’s dedicated advocacy website: fairshare4Logan.com.au

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Using drones water tower inspections are now conducted in safety from the ground

4 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 business units’ key achievements for the financial year and provides a summary of projects planned for the year ahead.

COMMERCIAL BUSINESS UNITS

LOGAN WATER Logan City Council owns, operates and maintains water and wastewater assets that currently have a replacement value of approximately $3.3b. This asset value is projected to grow to around $5b by 2036. Our continued investment in water and wastewater infrastructure reflects the needs of our City’s growing population.

OUR SERVICES As a Water Service Provider, Logan Water is responsible for providing safe, reliable and efficient drinking water supply and wastewater (sewerage) services to customers in the City of Logan.

LOOK FORWARD • 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 2017-2021

HIGHLIGHTS • We delivered a high level of service to the community, meeting most performance targets as agreed with Council in our 2017/2018 Annual Performance Plan • We maintained a strong focus on health and safety, resulting in improved safety performance • We undertook foundation work on our Digital Utility Strategy incorporating smart meters and intelligent networks • Logan Water commissioned an Australian-first sustainable solution for a solar powered salt water chlorination system for drinking water in a remote area at the Round Mountain Reservoir, achieving significant capital and ongoing operational cost savings • We maintained a continued focus on ensuring minimal environmental impacts as a result of our operations and service delivery including development approval for a state of the art wastewater treatment plant incorporating catchment based nutrient offsets • We invested $83.1m in water and wastewater infrastructure projects, including: –– Flagstone Temporary Wastewater Treatment Plant Upgrade $6.9m –– Slacks Creek Gravity Network Augmentation $12.8m –– Travis Road Reservoir $5.5m.

• We will continue to focus on health and safety including enhancement of supporting management systems • We will progress the Logan Water Digital Utility Strategy • We will begin construction on a state-of-theart wastewater treatment plant for our future Cedar Grove site, including a Membrane Bioreactor (MBR), wetland system and nutrient offset project • In consultation with the community, we will identify an appropriate site for a second Wastewater Treatment Plant in Logan’s South to meet the infrastructure needs of our growing city • We will continue detailed planning and commence delivery of infrastructure to service the Greater Flagstone and Yarrabilba Priority Development Areas, including catchment-based environmental projects to improve river health • We will deliver a record capital investment program of $111.5m to support our growing city, including: –– Cedar Grove Wastewater Treatment Plant (Stage 1 and Effluent Main) $49.9m –– Flagstone Central to Cedar Grove Wastewater Treatment Plant Conveyance System $22m –– Bahrs Scrub Wastewater Conveyance Project (Stages 2B and 3) $16.2m.

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

LOGAN WATER ANNUAL PERFORMANCE PLAN REPORT This is a summary of Logan Water’s performance against the 2017/2018 Key Performance Indicators for water and wastewater service delivery. NETSERV FOCUS AREA

PERFORMANCE AREA

2017/2018 TARGET

2017/2018 ACTUAL

Safety Focused

1. Lost Time Injury Frequency Rate (LTIFR) Combined

<10

Customer Service Excellence

2. Number of water quality complaints per 1,000 properties

3.12

3. Percentage compliance with drinking water quality aesthetic parameters (based on National Health and Medical Research Council (NHMRC) guidelines)

>95%

99.9%

4. Percentage compliance with drinking water quality health-related guidelines (based on NHMRC guidelines)

>99%

99.9%

5. Percentage compliance with NHMRC microbiological guidelines

>99%

99.8%

<75

85.931

7. Percentage of after‐hours wastewater urgent faults which are acknowledged within 30 minutes

>97%

100%

8. Percentage of after‐hours water supply urgent faults which are acknowledged within 30 minutes

>98%

100%

9. Percentage of standard fee items (water meter connections/disconnections etc.) completed within 10 working days of fees paid

>90%

94.7%

10. Average duration of an unplanned interruption—water supply (time for restoration)

<3 hrs

1.8 hrs

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

<3 hrs

4.1 hrs2

12. Percentage of all water events (including bursts and leaks) that are responded to within customer service standard time frame

≥90%

85.1%3

13. Percentage of all wastewater events (including mains breaks and chokes) incidents that are responded to within customer service standard time frame

≥90%

85.7%4

14. Percentage of Earnings Before Interest and Tax (EBIT) against budget (excluding capital adjustments)

>‐5%

8.71%

15. Percentage of total Operating Expenditure (OPEX)

< 10%

2.34%

16. Percentage of water purchase volume in Logan (Variance against Budgeted Water Purchases)

> ‐5%

0.79%

<50L

43.08L

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

Financial and Business Efficiency

17. Real losses (system water loss—litres per service connection per day)

12% of interruptions were caused by damage to water supply infrastructure by third parties.

A single after hours sewer blockage event in March 2018 resulted in the exceedance of this performance target.

Performance is slightly below target due to the calculation methodology including non-urgent events. The method of calculation is being reviewed.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

109

COMMERCIAL BUSINESS UNITS

NETSERV FOCUS AREA

PERFORMANCE AREA

2017/2018 TARGET

2017/2018 ACTUAL

Environmentally Responsible

18. Compliance with Department of Environment and Science (DES) licences (# of Infringement notices received)

19. Notifiable wastewater overflows reported to DES per 100km main

<0.5

0.515

20. Percentage notification of major incidents to DES (within 24 hours)

100%

0.87

22. Percentage of compliance with long term effluent standards. (Calculated average long term compliance for all wastewater treatment Plan (WWTP)

100%

65.4%6

23. Percentage of short-term wastewater compliance with DEHP licence standards

â&#x2030;Ľ95%

95.9%

24. Number of wastewater main breaks and chokes per 100km of main

<10

10.627

25. Number of water main breaks per 100km of main

<10

5.12

26. Number of wastewater property connection breaks and chokes per 1,000 properties

1.29

27. Number of dry weather wastewater overflows (to connected residential properties) per 1,000 properties

3.198

â&#x2030;Ľ90%

100%

21. Number of wastewater odour complaints per 1,000 properties

Deliver and Maintain Our Assets

28. Percentage of capital program delivered to budget Multiple overflows in December and February as a result of power loss associated with thunderstorm activity contributed to this KPI being slightly exceeded.

Beenleigh and Loganholme wastewater treatment plant performance has been impacted by wet weather and operational issues throughout the reporting period. As a result the long term performance target has not been met.

Increased development activity within the city, resulting in third party damage to infrastructure, has contributed to this target being slightly exceeded.

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

More than $83 million was invested in water and wastewater infrastructure projects during the year

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

111

COMMERCIAL BUSINESS UNITS

HEALTH, ENVIRONMENT AND WASTE BRANCH - WASTE AND RECYCLING PROGRAM PROGRAM PURPOSE

2017/2018 HIGHLIGHTS

To contribute to a clean, sustainable, prosperous and healthy city through the delivery of a reliable, connected, affordable and profitable waste and recycling service.

Waste service legislative issues

OUR SERVICES The following services and facilities were provided during 2017/2018: • Household waste and recyclables collection • Processing of recyclables collected at the kerbside • Browns Plains Waste and Recycling Facility • Logan Recycling Market • Transfer stations at Browns Plains, Carbrook, Greenbank, Logan Village and Beenleigh • Kerbside clean-up services • Maintenance of closed landfills • Public place bin servicing • Special event bin servicing • Community service obligations (household paint and chemical drop-off days, dead animal collection, coordination of Clean Up Australia Day)

KEY PERFORMANCE INDICATORS RESULT

BUDGET VARIATION

Revenue

$39.785m

$349,009 (1%) over budget target of $39.436m

Operating Expenditure

$30.342m

$755,559 (3%) over budget target of $29.587m

Net Profit After Tax

$7.087m

$193,048 (3%) over budget target of $6.894m

* See page 116 for the complete Waste and Recycling Program 2017/2018 performance plan report.

Section 7 of the Waste Reduction & Recycling Regulation 2011 provides local government the ‘head of power’ to designate areas in which the local government may collect waste and subsequently apply a waste utility charge to rates. Chapter 5A of the Environmental Protection Regulation 2008 provides councils with the ability to enforce compliance and maintain minimum standards in relation to the provision of waste services in their local government area. In September 2017, both of these provisions contained an expiry date of 1 July 2018. Without either of these provisions, Council’s ability to provide a waste collection service to its residents may have been compromised. Following discussions with the Local Government Association of Queensland (LGAQ), in September 2017 Council resolved that it would develop a local law to replace the expiring provisions of Chapter 5A and Section 7 to secure its ability to declare waste collection areas in the city. Subsequently, a draft local law was considered by Council on 5 December 2017 when Council resolved to make the relevant legislative instruments. Over the following months community engagement and a state interest check were conducted, which resulted in minor amendments to the draft. A report on finalisation of the local law was considered and approved by Council on 15 May 2018.

Waste Disposal Levy In early June 2018 the Department of Environment and Science (DES) announced that it was developing a new resource recovery and waste management strategy to set an overall direction for the state. The key element contained in the directions paper released for consultation was a proposal to introduce a new $70 per tonne waste levy, commencing in the first quarter of 2019. The levy is proposed to be applied to all waste streams, with the portion relating to domestic kerbside waste being reimbursed to Council through a cash advance from the state government. Council forwarded a submission on the directions paper in late June 2018. In preparation for the possible introduction of the levy in early 2019, urgent arrangements were made by Council’s

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Finance Branch to create an alternate set of commercial waste bin rates charges to be included in the 2018/2019 Revenue Statement to cover the levy, if necessary.

Future Waste Disposal Options On 20 March 2018 Council resolved to call for Expressions of Interest (EOI) in relation to: • Council’s future waste disposal options post-closure of the Browns Plains facility • A future waste infrastructure network options study. As at June 2018: • A Request for Quotation for Services and Project Brief was completed for a single consultancy to cover the following tasks: –– Waste Disposal, Expression of Interest, Technical Input –– Future Waste Transfer Stations Network Options Study.

Chinese restrictions on import of recyclables In early 2018 media reports began to appear about the People’s Republic of China restricting the importation of recyclable materials. As this decision had a possible impact on Logan’s recycling arrangements, Council began negotiations with its recyclables processing contractor about alternative arrangements.

Container Refund Scheme Refund Facility Feasibility The state government has announced that a Container Refund Scheme (CRS) will be introduced on 1 November 2018. Consumers will have the choice of returning used beverage containers back to Container Refund Points (where a refund payment will be made), to a container deposit point (where the refund will be given to the operator—likely to be community organisations such as schools, sporting clubs, etc.) or placing the containers in the yellow lid recycling bin at home. In September 2017 the Health, Environment and Waste Branch commissioned a report into the feasibility of establishing a container refund point at the Browns Plains Waste and Recycling Facility. The study considered the volume of containers to be handled, land area and infrastructure requirements, staff and traffic requirements and other issues. The resulting report was considered by Council in January 2018, where it resolved that future consideration be given to establishing a reverse vending machine at Council’s waste and recycling facilities.

Additional wheelie bin provision—medical assistance On 29 August 2017 Council resolved to amend its existing “Waste Services and Waste Management Utility Rate Charges” policy to provide additional waste or recycling bins at no charge to residents who have a medical condition.

Waste Contracts Renewal Project

Waste education

In October 2017 a project began to call tenders and award new contracts for municipal waste collection and recyclables processing—to commence when current contracts expire in July 2021. Activities on the project include the following:

Highlights of the 2017/2018 Waste Education Program were:

• Reference to commencement of the project was made in the September 2017 Health, Environment and Waste Branch report to Council • A legal services provider and a probity advisor were appointed in November 2017 • The collection contract tender assessment criteria and methodology were finalised in February 2018 • Consultation on collection services, both externally

• 180 classes and 4,741 students participated in the Watch out Waste program during the 2017/2018 financial year • 48 classes and 1,316 students from 19 schools participated in bus tours of the Browns Plains Waste and Recycling Facility • four weekend workshops, four presentations to community groups and four community groups (totalling 250 Logan residents) toured the Browns Plains Waste and Recycling facility during the year

with the waste industry—and internally with Council

• an information and training session was organised for

stakeholders—closed in May 2018. A review of the

school business service managers, facilities managers

submissions, which will inform development of service

and teachers to provide them with information and

specifications, was completed during June 2018

practical advice to encourage them to adopt and

• A full suite of draft recyclables processing tender

maintain a more sustainable approach to waste

documents including Brief to Tenderers and

management. Fourteen staff members from 10

Returnable Schedules, Service Specification and

schools participated in the workshop

General Conditions of Tender was finalised in June 2018.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

113

COMMERCIAL BUSINESS UNITS

• two online tutorials, detailing how to establish and maintain backyard compost bins and worm farms, were developed and uploaded to Council’s website • two workshops to promote minimising in-house waste were held at Council’s administration building in April. Approximately 25 staff, representing most of Council’s branches attended.

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

Deliver the Browns Plains Landfill capacity report to monitor the remaining life of the landfill. • Deliver two kerbside recyclables composition audits • Complete the tendering process for the recyclables processing contract due to commence in 2021

COMMUNITY SERVICE OBLIGATION

RESPONSIBLE BRANCH

Free tipping for community organisations

Community Services

$25,778

Clean Up Australia Day Campaign

Community Services

$3,288

Pensioner discounts for rated garbage and recyclables collection services

Corporate Finance

Total

LOOK FORWARD

ACTUAL $

• Complete the following components of the Waste Collection Contract Renewal Project: –– preparation of tender documents –– obtain Council approval of tender documents –– call tenders • Present a report for the Health, Environment

$327,782

and Waste Branch Manager considering the introduction of the Container Refund Scheme into Queensland and evaluating

$356,848

a reverse vending machine at the Browns Plains Waste and Recycling Facility • Prepare a Future Waste Infrastructure Network Options Study to assess current asset capacity and investigate future waste and recycling infrastructure needs to inform future waste planning • Extend the metal recycling bin area at the Beenleigh Waste and Recycling Facility to further increase scrap metal recycling capacity • Implement stormwater management infrastructure and systems to include erosion and sediment control measures at the Browns Plains Landfill. This will reduce the risk of sediment-laden water escaping the site into the creek and to increase the stored water resource capacity available for on-site use

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

HOUSEHOLD WASTE AND RECYCLING IN LOGAN

TOTAL TONNES LANDFILLED AT THE BROWNS PLAINS LANDFILL (TONNES)

Household waste per wheelie bin week (kg) Household recyclables per wheelie bin per week (kg)

12.70

12.69

12.50

196,591 174,607

12.61

12.24

165,350 161,150 152,774

2.83

2.64

2.78

2.44

2.57

2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

Note: Based on domestic premises issued with 140 or 240 litre wheelie bins

TONNES OF WASTE MATERIAL DIVERTED FROM LANDFILL AT LOGAN WASTE AND RECYCLING FACILITIES BY TYPE (TONNES)

Ewaste collected for recycling at transfer stations

Metal collected for recycling at transfer stations

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

4,042.24 1,512.96 613.68 126.60 58.04

4,291.07 1,414.45 596.15 148.72 33.54 2014/2015

50,750.69

58,712.21 2015/2016

2017/2018

2016/2017

60,227.00

unknown 1,188.95 529.15 196.51 48.73 2013/2014

2016/2017

49,299.23

TOTAL QUANTITY OF MATERIAL DIVERTED FROM LANDFILL AT LOGAN WASTE AND RECYCLING FACILITIES (TONNES)

2015/2016

54,419.67

2014/2015

13,205.33

14,628.56 3,648.99 1,054.38 618.41 209.41 93.89

3,362.15 1,045.30 613.24 303.06 107.34

13,570.79

14,260.59 2013/2014

14,235.59

31,061.43

Comix (kerbside recyclables) collected at transfer stations

30,242.77

35,031.05

Material sold at the recycling market

39,368.00

Cardboard collected for recycling at transfer stations

Net quantity kerbside recyclables

38,343.91

Waste vegetation

2017/2018

115

COMMERCIAL BUSINESS UNITS

PROPORTIONAL COMPOSITION OF KERBSIDE RECYCLABLES BY WEIGHT (TONNES)

33.7

31.9

36.6

1.4

1.0

1.3

2.3 2.7

4.0

44.9

47.2

50.0

2.1

5.0

2.5 2.8 2.7

2013/2014

1.9 3.1

0.8 3.4 12.7

4.8

2015/2016

2014/2015

Paper and Cardboard Glass 36.8

36.7

PET

45.3

1.2 0.9 1.9

3.1

3.8

43.9

Mixed Plastic HDPE

1.3 0.9 2.0

7.0

2016/2017

3.5

Aluminium Steel

4.0

Waste

7.7

2017/2018

WASTE AND RECYCLING PROGRAM ANNUAL PERFORMANCE PLAN REPORT PROGRAMS MANAGEMENT - KEY PERFORMANCE INDICATORS

116

KPI

2017/2018 TARGET

2017/2018 ACTUAL

Return on Assets

9.68%

11.46% due to increased revenue and less than anticipated expenses.

Earnings Before Income Tax (EBIT)

Annual Target $9.749M

$9.521M – 2%

Gross margins

Annual Target $24.779M

$25.132M – 1%

Cost of delivering waste services - Operating contribution margin met (Operating revenue less expenses)

Favourable variance of less than 10%

9.58%

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

ADMINISTRATION PROGRAM - KEY PERFORMANCE INDICATORS KPI

2017/2018 TARGET

2017/2018 ACTUAL Achieved

Proportion of missed bin services

Timeliness of returning to collect missed bin services

Timeliness of repair of damaged wheelie bins

Timeliness of replacement of stolen wheelie bins

Timeliness of completion of Kerbside Clean Up (KCU) services

Proportion of missed services is to be less than 0.05% (0.07% lowest acceptable)

98% by close of business of the next working day (90% lowest acceptable)

98% repaired or replaced within two working days (90% lowest acceptable)

98% of replacements provided within one working day (90% lowest acceptable) 98% completion of suburb areas in accordance with schedule (within 12 days) (90% lowest acceptable)

The actual number of services carried out in the YTD 2017/2018 has been 11,694,572. There have been 1,185 reported missed services due to contractor error during the period. This represents a missed rate of 0.010% which is within the requirement of 0.07%. Achieved 3,813 requests have been received for missed bins during the 2017/2018 YTD. 3,750 (98.3%) requests were actioned within one working day. Achieved 3,088 requests have been received for damaged bins during the 2017/2018 YTD. 3,072 (99.4%) requests were actioned within two working days. Achieved 1,500 requests have been received in total for stolen bins during the 2017/2018 YTD. 1,468 (97.8%) requests were actioned within one working day. Achieved 94%—of the 18 services completed by the end of June 2018, one was not completed on schedule. Achieved

Level of customer satisfaction with wheelie bin collection service

90% (80% lowest acceptable)

86% of residents rated the general waste collection service as “highly satisfied”. 80% of residents rated recycling and reuse services as “highly satisfied”. These figures emerged from the most recent Residents’ Survey in October 2016. The next survey is not scheduled until late 2018.

Contamination level in kerbside recycling

25% (35% lowest acceptable)

Not Achieved 35.9% (May 2018 audit) A number of initiatives are in place to endeavour to address this.

OPERATIONS PROGRAM - KEY PERFORMANCE INDICATORS KPI

2017/2018 TARGET

2017/2018 ACTUAL

Number of odour complaints

No standard

There were 69 confirmed complaints over the year compared to 32 for the previous year.

Level of compliance with environmental licence conditions

No formal enforcement action received

Achieved

Maintain ISO 9001 and ISO 14001 accreditation

Maintenance of accreditation

Achieved

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

No formal enforcement action received

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COMMERCIAL BUSINESS UNITS

ADMINISTRATION AND OPERATIONS PROGRAM - KEY PERFORMANCE INDICATORS KPI

2017/2018 TARGET

2017/2018 ACTUAL

Implement actions in accordance with the 2017-2021 Waste Reduction and Recycling Plan

100% of actions

Achieved

(90% lowest acceptable)

100%

PROJECTS - WASTE AND RECYCLING ADMINISTRATION AND OPERATIONS PROGRAMS PROJECT

2017/2018 TARGET 2017/2018 ACTUAL

Deliver the Browns Plains Landfill Capacity Report to maintain an understanding of the remaining life of the landfill

October 2017

Achieved

Deliver Kerbside Recyclables Composition audits

November 2017 and May 2018

Achieved

Develop a Project Plan for the 2021 Waste and Recyclables Collection and Processing Contracts Renewal

June 2018

Achieved Not Achieved The Business Plan target date of 31 December 2017 for developing a plan in readiness for the scheme was not met as the implications to local government were unclear until January 2018. In January 2018, Council resolved that the Health, Environment and Waste Manager be authorised to consider and negotiate arrangements to establish a reverse vending machine operated by a container refund entity at Councilâ&#x20AC;&#x2122;s facilities.

Develop a plan in readiness for the introduction of the Queensland Container Refund Scheme

December 2017

Deliver a report that considers the strategic direction of the Waste Business in the context of the 'Section 7' reforms.

December 2017

Achieved

Conduct Logan Waste Fair

November 2017

Achieved

Deliver a report on mattress recycling opportunities

December 2017

Achieved

Deliver a report on polystyrene recycling opportunities

December 2017

Achieved Not Achieved

Relocate storm water management infrastructure at Browns Plains Landfill.

June 2018

Priority was given to groundworks needed on site to reduce the risk of polluting sediment being released to Scrubby Creek. The work undertaken included the dressing of landfill cell 2F batters with top soil and construction of new and maintenance of existing stormwater pathways and exposed/vulnerable areas of the site. These groundworks reduced the risk of sediment entering Scrubby Creek and were prioritised ahead of the construction of surface water holding dams. To complete the water resources and infrastructure aspect of this project, a conceptual design, based on calculations to determine the holding dam size necessary and potential pollutant loading will now be prepared.

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PROJECT

2017/2018 TARGET 2017/2018 ACTUAL Not Achieved Data on the quantity and quality of the leachate generated at the Browns Plains landfill was collated and research undertaken into the potential types of leachate management techniques available and which of these may be suitable to manage the emissions.

Deliver a report on future and long term leachate treatment options.

June 2018

Field trials were also undertaken using a potential treatment methodology, these trials were inconclusive and further work and investigations are currently being undertaken. A summary report outlining all the alternative leachate management techniques together with the pros and cons, potential capital and operational costs and environmental performance of each of the techniques will be prepared for discussion with the management team in 2018/2019.

Deliver a report on geotechnical studies for Cell 2E

December 2017

Achieved

Deliver internal site road asset management works at Browns Plains Landfill to maintain a safe and acceptable road infrastructure for all stakeholders.

March 2018

Achieved

Deliver a report on an assessment of the integrity of the landfill batter capping at the former Waller Road landfill.

December 2017

Achieved

Aerial view of the Browns Plains Landfill and Logan Recycling Market

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Danielle Pollard, Lifeguard at Logan North Aquatic and Fitness Centre. Council will continue to provide free Water Awareness for Kids lessons for children and their families

5 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.

ADDITIONAL STATUTORY INFORMATION

SERVICE 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. 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

Garbage

115,065

VALUE ($M) $32.2

SEPARATE CHARGES In levying separate charges, such as the environmental and community services charges, 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

NET VALUE ($M)

Environmental Charge

$8.7

Community Infrastructure Charge

$42.4

Trade Waste Charge

$3.5m

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. CHARGE

NET VALUE ($M)

Application fees Permit, licence and registration fees

$1.8

Property searches

$2.2

Total

122

$20.6

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

$24.6

INTEREST ON RATES AND CHARGES 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 $19.897m, or 4.12 per cent of the gross rates and charges levied for the year (compared to $18.502m or 4.01 per cent in 2016/2017). While we continued our policy of assisting ratepayers to budget for 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 legislation. 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 2017/2018 was to provide assistance 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. Pensioner concessions: Remissions on general rates in 2017/2018 were $332.40 per annum for maximum-rate pensioners and $166.20 per annum for non-maximum rate pensioners, upon application to Council. Council also offered 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 waste 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 emergency levy charge. The state government also provides an additional subsidy on water charges for approved pensioners to a maximum of $120 per year. PENSIONER CONCESSION

NO. OF PROPERTIES

VALUE ($M)

State government

14,148

$2.8

Council

14,201

$4.3

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.

COMMUNITY SERVICE OBLIGATIONS Community service obligations are “top-up” or subsidy payments to our business units for activities undertaken where it is not profitable for the business unit to perform the activity/service but is nonetheless required 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. COMMUNITY SERVICE OBLIGATIONS Cleansing remissions to eligible pensioners Water, sewerage and cleansing remissions to eligible community organisations Free tipping for community organisations (includes Clean Up Australia Day and disposal of motor vehicles) Total

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

ACTUAL VALUE 2017/2018 ($) 327,782

1,144,603

29,066

1,501,451

123

ADDITIONAL STATUTORY INFORMATION

REGISTERS OPEN FOR INSPECTION To allow people to inspect decisions and disclosures made by Council and councillors, the following registers are open for inspection:

• Dog registry • Environmental management programs • Environmental protection orders

• Annual budget

• Environmental reports

• Business activities

• Fees and charges—regulatory fees and schedule of commercial and other charges

• Certificate classification under the Building Act 1975 • Council minutes (on Council’s website)

• Health licences

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

• Infrastructure charges

• Council policies (on Council’s website)

• Licences and approvals under the Environmental Protection Act 1994

• Complaints about councillor conduct or performance • Delegations of authority

• Local laws and subordinate local laws

• Development assessment applications

• Monitoring program results

• Development approvals

• Notices issued under the Building Act 1975

• Development permits

• Notifiable diseases

• Disclosure log under the Right to Information Act 2009

• Register of impounded animals

(on Council’s website)

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

MEASURES OF FINANCIAL SUSTAINABILITY

ACTUAL TARGET 30 JUNE 2019 2018

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. PROJECTED FOR THE YEARS ENDED 30 JUNE 2020

2021

2022

2023

2024

2025

2026

2027

2.3%

1.6%

2.1%

1.9%

2.6%

2.3%

2.8%

Operating surplus ratio Calculated by: Net result (excluding capital items)divided by total operating revenue (excluding capital items)

Between 0% and 10%

6.2%

2.5%

3.6%

Greater than 90%

92.4%

98.0%

92.2% 82.7% 77.5% 81.9% 71.2% 68.8% 70.1% 73.7%

Not greater than 60%

-19.6%

11.2%

29.1% 41.9% 43.5% 43.7% 42.6% 46.3% 53.4% 49.2%

Asset sustainability ratio Calculated by: Capital expenditure on the replacement of assets (renewals) divided by depreciation expense Net financial liabilities ratio Calculated by: Total liabilities less current assets divided by total operating revenue

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

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.

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.

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.

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ADDITIONAL STATUTORY INFORMATION

ADMINISTRATIVE ACTION COMPLAINT DISCLOSURES 2017/2018 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 committed to dealing fairly with administrative action complaints. To demonstrate this commitment we have: • provided good decision training (including online training) to relevant officers and customer service training • implemented a system where administrative action complaints are dealt with by the relevant manager and (where required) internally reviewed by the relevant director. If the complaint still remains unresolved, the complainant is advised of their appeal option to the

complaints process. Please note, the below figures are estimations, due to the document management system available to collect the information. OUTCOME OF ADMINISTRATIVE ACTION COMPLAINTS

NUMBER

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

Number of AACs resolved under the complaints management process

Number of on-hand (or unresolved complaints) under the AAC process during 2017/2018

Number of unresolved complaints under the AAC process from 2016/2017 (previous financial year)

Queensland Ombudsman. 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

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’s prescribed business activities. Significant business activities of Council during 2017/20178 were: • Logan Water (commercialised significant business activity) • Logan Waste Services (commercialised significant business activity)

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

• Plant Fleet Services—Workshop (Code of Competitive Conduct Business - Prescribed Business Activity) • Plant Fleet Services—Fleet External (Code of Competitive Conduct Business - Prescribed Business Activity) • Plant Fleet Services—Fleet Internal (Code of Competitive Conduct Business - Prescribed Business Activity).

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 2017/2018 ($)

CATEGORY Grants to community organisations

$2,146,000

For more information about the Mayor and Councillorsâ&#x20AC;&#x2122; Community Benefit Fund, including a breakdown of funding (recipients, amount and purpose) given by each councillor, visit: logan.qld.gov.au/community-support/grants/mayor-andcouncillorscommunity-benefit-fund

Overseas travel and accommodation costs are detailed below: NAME

POSITION

Mayor Luke Smith

Mayor

Jane Frawley

Director, Innovation and City Transformation

Kirby Orr

Chief of Staff

Marion Lawie

Community Engagement Program Leader

Mayor Luke Smith

Mayor

Kirby Orr

Chief of Staff

Anthony Jones

Economic Development and Strategy Manager

Mayor Luke Smith

Mayor

Kirby Orr

Chief of Staff

Ricardo Martello

City Futures Manager

Jason Sandhar

Business Development Executive - Global Connections

DESTINATION

PURPOSE

COST ($)

Singapore

Council of Mayors South East Queensland (COMSEQ)

New Zealand

Disaster Management Conference

South Korea

Asia Pacific Cities Summit (APCS)

24,527

North America and Canada Business Mission

Trade Delegation

45,405

23,322

547

QUALITY ASSURANCE Logan Water has a state government approved Drinking Water Quality Management Plan and also has an Environmental Management System based on ISO 14001 principles. Logan Waterâ&#x20AC;&#x2122;s laboratory services are National Association of Testing Authorities (NATA) accredited for the tests it provides. This accreditation includes compliance with ISO 17025.

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127

ADDITIONAL STATUTORY INFORMATION

BENEFICIAL ENTERPRISES Under section 41 of the Local Government Act 2009, a local government’s annual report for each financial year must contain a list of all the beneficial enterprises conducted during the financial year.

Our priorities include: • facilitating property development activities • acquisition of and investment in property • delivering social or community benefit from our

Council’s beneficial enterprises include:

activities to the City of Logan • facilitating the achievement of strategic development opportunities to the City of Logan to assist in achieving its vision as an Innovative, Dynamic, City of

investlogan.com.au investLogan is an independent investment company that is 100 percent owned by the Logan City Council. The company is run by a Board which is independent from the Council. It was established to invest in strategic projects in Logan that will not only deliver an investment return to the city but, will also act as a catalyst for further investment. investLogan is an advocate for Logan. investLogan is committed to not just delivering strong financial returns for the people of Logan, but also significant social, environmental and economic benefits. investLogan’s vision is to be a leading and visionary design-driven entity, bringing investment into the City of Logan and returning benefits to Logan residents. We use design across all aspects of our business to deliver quality and innovative outcomes to create great places. investLogan is focused on delivery a broad portfolio of projects that will contribute to the city’s economic growth, whilst delivering social and community benefit.

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

the Future • research and development in property and relating activities • identifying other potential economic development and financial investment activities • partnering and collaborating with our Shareholder – the City of Logan – the community, and current and potential future investors in the city. Logan City Council identified the key focus for investLogan as attracting investment opportunities and identifying emerging industry trends. The overarching strategic objectives of investLogan is to significantly boost economic and social outcomes for the City of Logan. investLogan was established under—and is governed by—the following key legislation and regulations: • Local Government Act 2009 • Local Government Regulations 2012 • Corporations Act 2001. As a controlled entity of a local government, investLogan is classified as a public-sector entity under the AuditorGeneral Act 2009. As such investLogan will be audited annually by the Auditor-General of Queensland.

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 2016/2017, Council had the following differential general rates categories: • commercial • drive-in shopping centres and car parks • commercial mushroom farming • poultry — less than 100,000 birds • poultry —100,000 birds or more • farming • hotels and licensed clubs • industrial

• outdoor sales areas • 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.

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

The policy has been developed in accordance with section 192 (Debt policy) of the Local Government Regulation 2012 and applies to all forms of borrowings undertaken by Council.

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129

ADDITIONAL STATUTORY INFORMATION

EXPENSES REIMBURSEMENT POLICY Date adopted: 30/05/2017 File no: 888737-1 Minute number: 148/2017

POLICY TITLE

POLICY STATEMENT

Expenses Reimbursement

The following are the arrangements in place for expenses reimbursement for the councillors of Logan City Council.

DIRECTORATE

1. Conferences and seminars 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.

Organisational Services

BRANCH Corporate Governance

Further information is provided for in the following Counciladopted policies:

POLICY OBJECTIVE

(b) councillor conferences and professional development

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.

(a) corporate travel and accommodation (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

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.

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 Council provides an office, office furniture and access to corporate meeting rooms and kitchenettes for Council business. (c) Executive support 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.

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(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 councillor’s 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. (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. (h) Stationery Councillors are provided with stationery for Council business purposes only, including, but not limited to: (i) pens (ii) paper (iii) note paper (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 Corporate Governance Manager. Council will provide councillors a copy of the electoral roll for their division in hard copy or electronically. The Corporate Governance Manager will provide six (6) monthly updates or as necessary. The Mayor is provided with the entire city voters roll. Blue Cards will be arranged upon request of the councillor. 6. Safety equipment and Council uniforms Councillors will be provided with personal protective equipment when required for a relevant site inspection.

Individual car parking allocations are provided at the city administration centre for councillor vehicles. 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. 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. Refer to the Insurance and Indemnity for Councillors policy in the related documents table for more information. 9. Superannuation 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 per cent can be paid.

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

8226663

Policy

Insurance and Indemnity for Councillors

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

Councillors will be provided a uniform allowance of $165 per annum for any Council-approved uniforms. Councillors will be provided with a name badge.

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131

Robyn Daw, Creative Industries Program Leader, is contributing to building the Logan Art Galleryâ&#x20AC;&#x2122;s community profile through creative markets, family fun days, Music in the Gallery events, and regular exhibitions and public programs. The gallery also holds networking events to support the professional development of creative practitioners.

6 FINANCIAL REPORTING

This section outlines our financial performance and standing during 2017/2018, including the financial statements that have been prepared in accordance with relevant legislation and accounting standards.

FINANCIAL REPORTING

LOGAN CITY COUNCIL ANNUAL FINANCIAL Consolidated STATEMENTS annual financial statements 30 JUNE 2018 30 June 2018 TABLE OF CONTENTS Key financial statements Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows

Pages(s) FS 2 FS 3 FS 4 FS 5

Notes to the financial statements 1. Significant accounting policies 2. Analysis of results by function 3. Revenue 4. Expenses 5. Cash and cash equivalents 6. Trade and other receivables 7. Property, plant and equipment 8. Fair value measurements 9. Investment in subsidiary company 10. Trade and other payables 11. Borrowings 12. Financial instruments and financial risk management 13. Provisions 14. Asset revaluation surplus 15. Cash flow information 16. Commitments for expenditure 17. Contingent liabilities 18. Local Government superannuation scheme 19. Related parties 20. Statement of activities to which the code of competitive conduct applies 21. Controlled entities that have not been consolidated 22. Events after the reporting period

FS 6 - 8 FS 9 - 11 FS 12 - 13 FS 14 FS 15 FS 15 FS 16 - 21 FS 22 - 25 FS 26 FS 26 FS 27 FS 28 â&#x20AC;&#x201C; 30 FS 31 â&#x20AC;&#x201C; 33 FS 34 FS 35 FS 36 FS 37 FS 38 FS 39 - 40 FS 40 FS 41 FS 41

Management and audit certificates Management certificate Audit report

FS 42 FS 43 - 44

1|Page

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LOGAN CITY COUNCIL STATEMENT OFConsolidated COMPREHENSIVE INCOME statement of comprehensive income FOR THE YEAR ENDED 30 2018 ForJUNE the year ended 30 June 2018 Note Revenue Recurrent revenue Rates revenue Fees and charges Recurrent donations, contributions and grants Profit on sale of land held for development Interest received Recoverable works and commissions Sale of materials and services

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

3(a) 3(b) 3(c)

418,304 37,586 16,590 7,276 10,275 11,903 9,223 511,157

418,304 37,682 16,588 7,276 10,199 11,647 9,223 510,919

400,909 34,602 18,104 10,550 10,814 8,204 483,183

3(c)

237,854 2,500 240,354 751,511

237,854 2,500 240,354 751,273

208,105 33 208,138 691,321

4(a) 4(b)

135,563 221,117 109,107 12,818 2,245 480,850

134,606 220,407 109,089 12,817 2,208 479,127

132,899 195,449 104,721 15,536 3,285 451,890

Total expenses Net result

141,333 15,127 156,460 637,310 114,201

141,333 15,127 156,460 635,587 115,686

16,532 717 17,249 469,139 222,182

Net result attributable to: Net recurrent revenue Net capital revenue Net result for the year

30,307 83,894 114,201

31,792 83,894 115,686

31,293 190,889 222,182

(193,481)

204,418

(193,481)

204,418

(79,280)

(77,795)

426,600

Capital revenue Capital donations, contributions and grants Other capital revenue Total revenue Expenses Recurrent expenses Employee costs Materials and services Depreciation and amortisation Finance costs Other expenses Capital expenses Asset revaluation decrement Decommissioning of infrastructure assets Other capital expenses

4(c)

Other comprehensive income Items that will not be reclassified to net result (Decrease)/ increase in revaluation surplus Other comprehensive (loss)/ income for the year Total comprehensive (loss)/ income for the year

This statement should be read in conjunction with the accompanying notes and significant accounting policies. Council's wholly-owned subsidiary, Invest Logan Pty Ltd (Invest Logan), commenced trading on a for-profit basis on 1 July 2017; as such there are no consolidated comparative figures. Further details are provided in note 9.

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FINANCIAL REPORTING

LOGAN CITY COUNCIL STATEMENT OF FINANCIAL POSITION Consolidated statement of financial position AS AT 30 JUNE 2018 As at 30 June 2018 Note Current assets Cash and cash equivalents Trade and other receivables Inventories Prepayments Non-current assets Other financial assets Property, plant and equipment Investment in subsidiary company Intangible assets

5 6

Non-current liabilities Borrowings Provisions

Council 2017 $'000

319,700 66,737 2,292 4,764 393,493

281,545 61,961 8,403 5,035 356,944

190 5,445,281 2,715 5,448,186 5,845,597

190 5,444,043 6,314 2,715 5,453,262 5,846,755

190 5,562,245 4,615 5,567,050 5,923,994

10 11 13

74,465 13,393 20,185 4,083 112,126

74,249 13,393 20,074 4,083 111,799

62,158 12,685 19,662 1,600 96,105

11 13

175,050 6,659 181,709 293,835 5,551,762

175,050 6,659 181,709 293,508 5,553,247

188,017 8,830 196,847 292,952 5,631,042

2,669,550 2,882,212 5,551,762

2,669,550 2,883,697 5,553,247

2,863,031 2,768,011 5,631,042

7 9

Total liabilities Net community assets Community equity Assets revaluation surplus Retained surplus Total community equity

Council 2018 $'000

323,304 67,024 2,292 4,791 397,411

Total assets Current liabilities Trade and other payables Borrowings Provisions Other liabilities

Consolidated 2018 $'000

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LOGAN CITY COUNCIL STATEMENT OF CHANGES IN EQUITY Consolidated statement of Changes in Equity FOR THE YEAR ENDED 30 2018 ForJUNE the year ended 30 June 2018

Balance at 30 June 2017 Net result from continuing operations Other comprehensive income for the year Balance at 30 June 2018

Asset revaluation surplus $'000 2,863,031 (193,481) 2,669,550

Balance at 1 July 2016 Net result from continuing operations Other comprehensive income for the year Balance at 30 June 2017 Net result from continuing operations Other comprehensive income for the year Balance at 30 June 2018

Asset revaluation surplus $'000 2,658,613 204,418 2,863,031 (193,481) 2,669,550

Consolidated Retained surplus $'000 2,768,011 114,201 2,882,212

Council Retained surplus $'000 2,545,829 222,182 2,768,011 115,686 2,883,697

Total community equity $'000 5,631,042 114,201 (193,481) 5,551,762

Total community equity $'000 5,204,442 222,182 204,418 5,631,042 115,686 (193,481) 5,553,247

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FINANCIAL REPORTING

LOGAN CITY COUNCIL STATEMENT OF CASH FLOWS Consolidated statement of cash flows FOR THE YEAR ENDED 30 2018 ForJUNE the year ended 30 June 2018 Statement of cash flows for the year ended 30 June 2018

Note

Cash flow from operating activities Receipts from customers Payments to suppliers and employees Interest received Recurrent donations, contributions and grants Net cash inflows from operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for intangible assets Proceeds from the sale of property, plant and equipment Investment in subsidiary Transfers (to)/ from term deposits Capital contributions Capital grants and subsidies Net cash outflow from investing activities

15 7

Cash flows from financing activities Proceeds from borrowings (loans raised) Repayment of borrowings (capital repayments) Finance costs paid Net cash outflow from financing activities Net (decrease)/ increase in cash and cash equivalents held Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

488,640 (347,690) 140,950 10,275 16,590 167,815

488,766 (346,285) 142,481 10,199 16,588 169,268

452,311 (337,861) 114,450 10,550 18,104 143,104

(191,728) -

(190,472) -

(155,781) (1,249)

3,912 79,606 6,456 (101,754)

3,912 (6,314) 79,606 6,456 (106,812)

2,646 37,000 64,717 10,815 (41,852)

(12,259) (12,043) (24,302)

(12,259) (12,042) (24,301)

(48,626) (13,790) (62,416)

41,759

38,155

38,836

281,545

242,709

323,304

319,700

281,545

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 with operating cash flows. This statement should be read in conjunction with the accompanying notes and significant accounting policies. Council's wholly-owned subsidiary, Invest Logan Pty Ltd (Invest Logan), commenced trading on a for-profit basis on 1 July 2017; as such there are no consolidated comparative figures. Further details are provided in note 9.

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LOGAN CITY COUNCIL NOTES TO FINANCIAL STATEMENTS Notes to consolidated financial statements FOR THE YEAR ENDED 30 2018 ForJUNE the year ended 30 June 2018 1. Significant accounting policies a. Reporting entity Logan City Council is a not-for-profit local government entity constituted under the Queensland Local Government Act 2009 and is domiciled in Australia. The Council registered office and principle place of business are located at 150 Wembley Road, Logan Central, Queensland, 4114.

b. Basis of preparation These general purpose financial statements are for the period 1 July 2017 to 30 June 2018 and have been prepared in compliance with the Local Government Act 2009 and the Local Government Regulation 2012. These financial statements have been prepared under the historical cost convention except as stated.

c. Basis of consolidation Council and its controlled entities together form the economic entity which is referred to in these financial statements as the consolidated entity. The financial statements of controlled entities are included in the consolidated financial statements where material by size or nature, from the date when control commences until the date when control ceases. Transactions between Council and entities controlled by Council have been eliminated when preparing consolidated accounts. In addition, the accounting policies of controlled entities have been adjusted on consolidation where necessary, to ensure the financial report of the consolidated entity is prepared using accounting policies that are consistent with those of the Council. Information on controlled entities that have been consolidated is included in note 9. Information about controlled entities that have not been consolidated, because they are not considered material, is included in note 21.

d. Statement of compliance These financial statements have been prepared in accordance with all Australian Accounting Standards and Interpretations that are relevant to Council's operations and effective for the current reporting period. Council is a not-for-profit entity and the Australian Accounting Standards include requirements for not-for-profit entities, which are inconsistent with International Financial Reporting Standards (IFRS). Therefore in some instances these financial statements do not comply with IFRS. The main aspects are the offsetting of revaluation gains and losses within a class of assets and the timing of recognition of non-reciprocal grant revenue.

e. Date of authorisation The financial statements were authorised for issue on the date they were submitted to the Auditor-General for final signature. This is the date the Management Certificate has been signed by the acting Mayor and acting Chief Executive Officer.

f. Rounding and comparatives Amounts included in the financial statements are rounded to the nearest thousand ($000) unless otherwise stated. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.

g. Taxation Council is subject to Fringe Benefits Tax (FBT), Goods and Services Tax (GST) and payroll tax on certain activities. The net amount of GST recoverable from or payable to the Australian Tax Office is shown as an asset or liability respectively. Income of local government bodies is exempt from income tax due to the provisions of the Income Tax Act 1997.

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 1. Significant accounting policies (continued) h. New and revised accounting standards Australian Accounting Standards and Interpretations that have recently been issued and are not yet effective and have not been adopted by Council for the year are outlined as follows: Standard and impact

Date Council will apply the standard

AASB 9 Financial instruments

1 July 2018

AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement, and addresses the classification, measurement and disclosure of financial assets and liabilities. The standard introduces a new impairment model that requires impairment provisions to be based on expected credit losses, rather than incurred credit losses. Based on assessments to date, council does not expect any increase to impairment losses based on the new standard. AASB 15 Revenue from Contracts with Customers, AASB 1058 Income from Not-for-Profit Entities, and AASB 2016-8 Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit Entities

1 July 2019

AASB 15 Revenue from Contracts with Customers will replace AASB 118 Revenue, AASB 111 Construction Contracts and a number of Interpretations. AASB 2016-8 provides Australian requirements and guidance for not-for-profit entities in applying AASB 9 and AASB 15, and AASB 1058 will replace AASB 1004 Contributions. Together the new standards contain a comprehensive and robust framework for the recognition, measurement and disclosure of income including revenue from contracts with customers. Council is still reviewing the way that income is measured and recognised to identify whether there will be any material impact arising from these standards. An amount of $6,747,000 of rates was prepaid at 30 June 2018 (2017: $5,954,000). Under AASB 1058 this amount would have been classified as unearned revenue rather than revenue. AASB 16 Leases

1 July 2019

Council has operating leases that are not in the Statement of Financial Position. These leases will need to be included when this standard comes into effect. A lease liability will initially be measured at the present value of the lease payments to be made over the lease term. A corresponding right-of-use asset will also be recognised over the lease term. Council is still reviewing the way that income is measured and recognised to identify whether there will be any material impact arising from the standard.

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NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 1. Significant accounting policies (continued) i. Use of estimates and judgements The financial statements are subject to the use of estimates and judgements. The estimates and judgements that have a risk of causing an adjustment to the carrying amounts of assets and liabilities relate to: Revenue from contributions - timing and amount of revenue recognition 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 3(c). Receivables impairment Council undertakes a regular review of receivables to determine whether current carrying amounts may exceed expected recoverable amount. Unless a receivable is secured (e.g. the Local Government Act 2009, s96(c) provides that a Local Government may sell land to recover overdue rates), a receivables impairment is recognised as soon as a receivable is considered doubtful or non-recoverable or when the receivable reaches 90 days from date of invoice, whether or not the receivable is due for payment and regardless of the type of receivable. Property, plant and equipment valuation, depreciation rates and methodologies, asset useful lives, residual values, and impairment Management reviews and exercises judgement to determine the depreciation methodologies, estimated useful lives and residual values of property, plant and equipment (PPE) assets at the end of each reporting period based on previous experience with each asset category and estimated consumption of asset service potential. 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. Depreciation methodologies and useful lives are disclosed in note 7(i). Non-current physical assets measured at fair value are revalued, where required, so that the carrying amount of each class of asset does not materially differ from its fair value at the reporting date. This is achieved by engaging independent, professionally qualified valuers to determine the fair value of each class of property, plant and equipment assets at least once every three to five years according to Council policy. In the intervening years, Council uses internal engineers and asset managers to assess the condition and cost assumptions associated with all infrastructure assets, the results of which are considered in combination with an appropriate cost index for the region, which are used to form the basis of a management valuation for infrastructure asset classes in each of the intervening years. Asset useful lives are reviewed annually during the valuation process. Further valuation disclosures are provided in note 8. Provisions - Quarry and landfill restoration 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 13(b). Contingencies - assets and liabilities Management assesses past events that may result in assets or obligations whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Council. Where there is a likelihood that the event will result in a future asset or liability, these amounts are disclosed as contingent assets or liabilities. Disclosure is provided in note 17. 8|Page

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 2. Analysis of results by function Council's Executive Leadership Team (ELT) have determined Council functions and activities based on service delivery. Current Council directorships consist of Road & Water Infrastructure, Community Services, Strategy & Sustainability, Innovation & City Transformation, and Organisational Services. Council business units and Corporate Revenues are reported separately as management considers that such disclosures are meaningful to users of Council's financial report.

a. The activities of Council are categorised into the following broad functions: Council business units Council's Water and Sewerage 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 plant fleet services are classified as prescribed business activities 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 sewerage services Council's water and sewerage services unit is a commercially focused business unit. The principal activities are the provision of water and sewerage services. Its business goal is to maximise financial returns and cash flows to support Council's other operations. Water and sewerage services consist of three 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 Corporate Revenue consists of activities related to the collection of general rates and financial service activities comprising Council's treasury function, which is responsible for the administration of council borrowings and investments. Roads Infrastructure Services The objective of Roads Infrastructure Services is to ensure that the community is serviced by a high quality and effective road and drainage network. The directorship consists of road construction and maintenance, road infrastructure planning, and roads infrastructure delivery. Community Services The objective of Customer Services is ensure that Logan is a healthy, vibrant, contemporary and connected community. The directorship includes city standards & animal care, community, libraries & cultural services, sport, leisure & facilities, customer experience & community engagement, and parks. Strategy and Sustainability The goal of the Strategy and Sustainability directorship is to support the local business economy to ensure that it is strong and sustainable. In addition to Health, Environment & Waste, which are accounted for as the separate Waste Services business unit, the directorship includes development assessment and economic development & strategy. Innovation & City Transformation The goal of the Innovation & City Transformation directorship is to transform our city through collaboration, inspiration and leading how we become "next generation" government. The directorate consists of strategic projects, city futures, information services, marketing and events, and media. Organisational Services The objective of the Organisational Services directorship is to support Council business units and city services. The directorship consists of corporate governance, finance, people & culture, plant fleet services, and administration.

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INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

143

Rates, fees and charges $'000 194,930 34,646 181,562 245 7,053 16,681 394 435,511

$'000 55,851 4,368 16,937 117,949 29,909 728 91 376 226,209

$'000 200,163 36,479 192,265 302 6,323 20,058 396 455,986 (96) 455,890

$'000 81,402 4,896 11,775 131,601 23,436 676 158 498 254,442 2 254,444

Grants and contributions

Rates, fees and charges

Grants and contributions

Other recurrent revenue $'000 8,081 1,901 13,197 652 4,900 255 147 435 29,568

Other recurrent revenue $'000 8,651 1,981 20,255 601 6,015 180 187 475 38,345 332 38,677

$'000 33 33

Other capital revenue

1,592 95 813 2,500 2,500

$'000

Other capital revenue

$'000 258,862 40,915 211,696 118,879 41,862 17,664 238 1205 691,321

Total revenue

$'000 290,216 44,948 224,295 132,599 35,774 20,914 345 2,182 751,273 238 751,511

Total revenue

Total recurrent expenditure $'000 (139,550) (30,682) (15,150) (83,743) (93,221) (20,915) (20,103) (48,526) (451,890)

Total recurrent expenditure $'000 (144,628) (32,500) (14,119) (94,907) (95,176) (21,307) (24,836) (51,654) (479,127) (1,723) (480,850)

* Invest Logan is a wholly-owned subsidiary that commenced operations in the current financial year and hence there are no comparative amounts.

Water and sewerage services Waste services Corporate revenue Roads infrastructure services Community services Strategy and sustainability Innovation and city transformation Organisational services Total Council

Year ended 30 June 2017 segments

Year ended 30 June 2018 segments

b. Income and expenses have been attributed to the following segments as set out in note 2(a):

2. Analysis of results by function (continued)

Total capitalrelated expenditure $'000 (1,154) (972) (14,837) (270) (16) (17,249)

Total capitalrelated expenditure $'000 (143,798) (12,509) (135) (18) (156,460) (156,460)

$'000 (140,704) (30,682) (16,122) (98,580) (93,491) (20,915) (20,103) (48,542) (469,139)

Total expenses

$'000 (288,426) (32,500) (14,119) (107,416) (95,311) (21,307) (24,836) (51,672) (635,587) (1,723) (637,310)

Total expenses

10 | P a g e

$'000 118,158 10,233 195,574 20,299 (51,629) (3,251) (19,865) (47,337) 222,182

Net result

$'000 1,790 12,448 210,176 25,183 (59,537) (393) (24,491) (49,490) 115,686 (1,485) 114,201

Net result

Notes to consolidated financial statements For the year ended 30 June 2018

LOGAN COUNCIL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30CITY JUNE 2018

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Year ended 30 June 2017 Total assets Total Net assets liabilities $'000 $'000 $'000 1,524,323 1,738,509 (214,186) 38,772 46,542 (7,770) 262,690 300,123 (37,433) 2,931,537 2,955,944 (24,407) 707,036 711,260 (4,224) 9,711 13,906 (4,195) 11,386 11,379 7 145,587 146,331 (744) 5,923,994 (292,952) 5,631,042 5,923,994 (292,952) 5,631,042

* Invest Logan is a wholly-owned subsidiary that commenced operations in the current financial year and hence there are no comparative amounts.

Year ended 30 June 2018 Total assets Total Net assets liabilities $'000 $'000 $'000 1,265,034 1,471,537 (206,503) 41,087 45,065 (3,978) 297,005 347,487 (50,482) 3,035,055 3,058,285 (23,230) 743,016 746,949 (3,933) (1,363) 2,666 (4,029) 14,504 14,496 8 158,909 160,270 (1,361) 5,846,755 (293,508) 5,553,247 (1,158) (327) (1,485) 5,845,597 (293,835) 5,551,762

c. The financial position of business segments as set out in note 2(a):

2. Analysis of results by function (continued)

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Notes to consolidated financial statements For the year ended 30 June 2018

LOGAN CITY COUNCIL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

6 FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

Analysis of revenue and expenditure from continuing operations 3. Revenue Revenue is recognised at the fair value of consideration received or receivable, on the basis that it meets the recognition criteria set out below:

a. Rates revenue Revenue for rates and utility charges (rates revenue) is recognised upon issue of the levies within the respective rating period or, where earlier, upon receipt of the rates and utility charges. General rates Environmental and community charges Water access charge Sewerage charges Water consumption Garbage charges Less discounts and pensioner remissions

154,073 54,676 36,387 80,312 77,445 32,225 435,118 (16,814) 418,304

144,979 52,023 35,338 78,215 75,643 30,834 417,032 (16,123) 400,909

A prompt payment discount of 5% is offered on certain rates that are paid by due date provided all arrears rates have also been paid.

b. 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. Building, development, town planning and property connection fees Refuse fees Animal registration fees Licenses, permits and parking fees Property search fees Property leases & rentals Other fees and charges

20,570 6,385 2,178 1,812 2,171 1,836 2,634 37,586

20,598 6,385 2,178 1,812 2,171 1,904 2,634 37,682

17,830 5,967 2,032 1,380 2,360 1,588 3,445 34,602

c. Donations, contributions and grants Capital Revenue includes grants and subsidies received for the replacement or upgrade of existing non-current assets and/or investment in new assets. It also includes cash and non-cash contributions, which are usually infrastructure assets received from developers. Contributions are measured at fair value and, unless contributions are reciprocal, are recognised as revenue when Council obtains control over the contribution, which is usually on receipt of the funds. Contributions that have not yet been received and where the revenue recognition criteria have been satisfied, are recognised as receivables. Where grants are received that are reciprocal in nature, revenue is recognised as the various performance obligations under the funding agreement are fulfilled. Council does not currently have any reciprocal grants. 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.

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

3. Revenue (continued) c. Donations, contributions and grants (continued) Capital revenue includes non-cash donations (donated assets), which are recognised as revenue and either non-current assets or expense according to Council's non-current assets recognition thresholds. Donated assets are recognised 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. Recurrent Contributions, cash donations and sponsorships Operational grants and subsidies Capital Cash contributions Non-cash contributions (donated assets) Capital grants and subsidies

1,794 14,796 16,590

1,792 14,796 16,588

733 17,371 18,104

79,606 151,792 6,456 237,854 254,444

79,606 151,792 6,456 237,854 254,442

64,717 132,573 10,815 208,105 226,209

d. Other revenue 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. Land held for development and sale 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 sale date recorded in the signed unconditional contract of sale. Recoverable works and commissions Revenue from contracts and recoverable works generally comprises a recoupment of material costs together with an hourly charge for use of equipment and employees. This revenue and the associated costs are recognised by reference to the stage of completion of the contract activity at the reporting date. Where consideration is received for the service in advance it is included in other liabilities and is recognised as revenue in the period when the service is performed. There are no contracts in progress at the year end. The contract work carried out is not subject to retentions. Council earns commissions on the collection of emergency management levies on behalf of the State government. Commissions are recognised on entitlement at the end of each rating quarter.

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NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

4. Expenses a. Employee costs Wages and salaries Leave entitlements Superannuation Councillors' remuneration Other employee related expenses

Total full time equivalent employees

93,636 16,588 13,366 1,843 10,130 135,563

92,880 16,503 13,295 1,843 10,085 134,606

89,723 16,287 13,028 1,812 12,049 132,899

1,398

1,393

1,341

Councillor remuneration represents salary, and other allowances paid in respect of carrying out their duties. Further details are provided in note 13(a).

b. Materials and services Utilities and water charges Contracted professional services Solid and green waste collection and disposal Other materials and minor contracts Plant hire and running costs Printing, stationery and postage Software licenses Property & equipment leases Operational services

75,951 53,600 15,668 28,232 14,757 3,079 4,781 1,599 23,450 221,117

75,943 53,554 15,668 28,120 14,752 3,063 4,775 1,599 22,933 220,407

70,609 58,488 14,527 15,963 13,730 2,671 1,428 1,379 16,654 195,449

10,900 1,234 775 12,909 (91) 12,818

10,900 1,233 775 12,908 (91) 12,817

12,800 1,186 1,062 560 15,608 (72) 15,536

c. Finance costs Queensland Treasury Corporation interest incurred Market value realisation Account charges Finance costs due to discounting Finance costs incurred Less borrowing costs capitalised Finance costs expensed

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.

d. External audit fee The Auditor-General of Queensland is the auditor of Logan City Council. The Audit fees tabled below are for the audit of the annual financial statements only. An additional audit fee of $18,000 was incurred in 2017/18 in relation to the 2016/17 and 2017/18 financial audits, as a result of additional effort required due to the complexity of the water and roads valuations. Audit of annual financial statements

243

218

200

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

5. 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, and short-term deposits with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value; and bank overdrafts. Deposits with original maturities of greater than three months are reported separately as term deposits and not included in 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: Cash and bank On-call deposits Less trust funds

2,773 332,509 335,282 (11,978) 323,304

2,729 329,150 331,879 (12,179) 319,700

2,283 288,166 290,449 (8,904) 281,545

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. Funds held in the trust account include those funds from the sale of land for arrears in rates, deposits for the contracted sale of land, security deposits lodged to guarantee performance and unclaimed monies (e.g. wages).

6. Trade and other receivables Trade receivables, loans, and other receivables (trade and other 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. Current Rates and utility charges Other trade receivables Less receivables impairment

19,898 47,687 67,585 (561) 67,024

19,898 47,400 67,298 (561) 66,737

18,414 45,107 63,521 (1,560) 61,961

Interest at 11% per annum compounded daily is charged on all rates and charges which remain unpaid 7 days after due date. 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 12(d). Generally, no allowance is made for uncollected rates and utility charges as in most cases Council is empowered by s95 of the Local Government Act 2009 to sell or acquire land for overdue rates or charges. There is no concentration of credit risk for rates and utility charges and other receivables, other than by geographical location and because the area is largely residential, there is also a concentration in the residential sector.

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148

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 7. Property, plant and equipment a. Recognition Items of property, plant and equipment with a total value of less than $5,000, except for land, network and complex assets are treated as an expense in the year of acquisition. All other items of property, plant and equipment are capitalised and included in the relevant asset class. A complex asset is a physical asset capable of disaggregation into significant components, such as road infrastructure where the components may include initial earthworks, formation, pavement, seal, kerb and channelling, road furniture and footpaths. A network asset is a physical asset that is either not separately identifiable or is networked for operational reasons (e.g. computer cabling). Land under the roads and reserve land which falls under the Land Act 1994 or the Land Title Act 1994 is controlled by the Queensland Government pursuant to the relevant legislation. As such, this land is not recognised in these financial statements.

b. 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.

c. Measurement and 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.

d. 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 2018. 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. 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 sewerage infrastructure assets. Other Council infrastructure and specialised building assets are valued using a current replacement cost (CRC) 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 an equivalent 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. Details of fair value classifications and the techniques used to determine fair value are disclosed in note 8, Fair value measurements.

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INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

149

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 7. Property, plant and equipment (continued) d. Measurement subsequent to initial recognition (continued) 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.

e. Impairment of non-current assets Property, plant and equipment assets are assessed for indicators of impairment on an annual basis. If an indicator exists, the asset's recoverable amount is determined. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss.

f. 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 does not transfer amounts accumulated in revaluation surplus to retained earnings on disposal. 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.

g. Additions for Council financial sustainability statement 2017/18 financial year

2016/17 financial year

Total $'000

Renewals $'000

Other $'000

Total $'000

Renewals $'000

Other $'000

Consolidated

343,520

100,800

242,720

288,354

87,419

200,935

Council

342,264

100,800

241,464

288,354

87,419

200,935

Additions analysis

h. Restrictions on title and property, plant and equipment pledged as security Council has the following assets pledged as security for various liabilities: Logan Central Respite Centre bill of mortgage Council 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.

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150

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

LOGAN CITY COUNCIL NOTES TO FINANCIAL STATEMENTS Notes to consolidated financial statements FOR THE YEAR ENDED 30 2018 ForJUNE the year ended 30 June 2018 7. Property, plant and equipment (continued) i. 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 a straightline, 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. 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 sewerage Waste landfill

Asset sub-class Freehold land All buildings Bikeways and pathways Parks equipment Library materials Vehicles Artwork Roads surface Pavements Earthworks Bridges Drainage - Box culverts, headwalls & pipes Drainage - Pipes large diameter Drainage - Pits Public lighting Water infrastructure Sewerage infrastructure Water and sewerage facilities Waste cells

Depreciation periods Not depreciated 2 - 142 years (straight line) 10 - 50 years (straight line) 5 - 50 years (straight line) 2 - 15 years (straight line) 1 - 40 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) 200 years (straight line) Short-lived 100 years (straight line); Long - lived 200 years (straight line) 40 years (straight line) 15 - 90 years (straight line) 40 - 160 years (straight line) 10 - 150 years (straight line) 0.7% - 13.6% based on airspace consumed

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INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

151

152

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Accumulated depreciation Balance at 1 July 2017 Depreciation Disposals Write off/ decommissioning Impairment Revaluations Reclassifications Balance at 30 June 2018 Carrying value at 30 June 2018

Gross carrying amount Balance at 1 July 2017 Additions Completed projects Donated assets Total additions Disposals Write off/ decommissioning Revaluations Transfers from land held for sale Reclassifications Balance at 30 June 2018

581,970

5,445,281

171 581,970

171 7,436,416

1,952,861 107,205 (4,508) (14,626) (139) (49,658) 1,991,135

576,642 2,443 418 2,861 (690) 2,986

$'000

7,515,106 191,728 151,792 343,520 (7,659) (29,753) (384,969)

Land

Total

294,544

58,505 5,684 (32) 1,867 482 66,506

1,023 361,050

332,008 812 9,520 1,706 12,038 (179) 16,160

$'000

Buildings

i. Current year asset movements - consolidated

7. Property, plant and equipment (continued)

120,315

101,790 15,561 (4,508) (192) (138) 112,513

(324) 232,828

201,515 30,089 417 8,377 38,883 (6,969) (277) -

$'000

Plant and Equipment

2,976,894

1,028,256 53,932 (8,004) 106,368 23 1,180,575

(472) 4,157,469

3,918,003 681 44,734 97,634 143,049 (20,440) 117,329

Roads and drainage infrastructure $'000

1,156,039

620,424 20,931 (1,725) (129,375) 510,255

573 1,666,294

2,024,677 1,104 44,781 42,492 88,377 (2,214) (445,119)

Water and sewerage infrastructure $'000

NOTES TO FINANCIAL STATEMENTS FOR THE

170,839

122,653 9,585 (4,673) (139) (28,268) (367) 98,791

(800) 269,630

323,302 28,594 1,165 29,759 (6,643) (75,988)

Water and sewerage facilities $'000

6,983

21,233 1,512 (250) 22,495

29,478

29,815 (337)

$'000

Landfill and quarry

137,697

109,144 156,599 (128,046) 28,553 -

$'000

Work in progress

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LOGAN CITY COUNCIL Notes toENDED consolidated30 financial statements YEAR JUNE 2018 For the year ended 30 June 2018

6 FINANCIAL REPORTING

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

153

581,570

5,444,043

171 581,570

171 7,435,160

1,952,861 107,187 (4,508) (14,626) (139) (49,658) 1,991,117

576,642 2,043 418 2,461 (690) 2,986

7,515,106 190,472 151,792 342,264 (7,659) (29,753) (384,969)

$'000

294,295

58,505 5,683 (32) 1,867 482 66,505

1,023 360,800

332,008 562 9,520 1,706 11,788 (179) 16,160

$'000

Buildings

119,726

101,790 15,544 (4,508) (192) (138) 112,496

(324) 232,222

201,515 29,483 417 8,377 38,277 (6,969) (277) -

$'000

Plant and Equipment

2,976,894

1,028,256 53,932 (8,004) 106,368 23 1,180,575

(472) 4,157,469

3,918,003 681 44,734 97,634 143,049 (20,440) 117,329

Roads and drainage infrastructure $'000

1,156,039

620,424 20,931 (1,725) (129,375) 510,255

573 1,666,294

2,024,677 1,104 44,781 42,492 88,377 (2,214) (445,119)

Water and sewerage infrastructure $'000

170,839

122,653 9,585 (4,673) (139) (28,268) (367) 98,791

(800) 269,630

323,302 28,594 1,165 29,759 (6,643) (75,988)

Water and sewerage facilities $'000

6,983

21,233 1,512 (250) 22,495

29,478

29,815 (337)

$'000

Landfill and quarry

137,697

109,144 156,599 (128,046) 28,553 -

$'000

Work in progress

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In line with Council policy, $141,333k of the decrease in the carrying amount arising on the revaluation of Water and Sewerage infrastructure in the current year has been recognised in profit or loss, as the total revaluation decrement exceeded the balance held in the revaluation surplus relating to a previous revaluation of that asset class. The balance of the revaluation decrement has been adjusted in other comprehensive income.

Accumulated depreciation Balance at 1 July 2017 Depreciation Disposals Write off/ decommissioning Impairment Revaluations Reclassifications Balance at 30 June 2018 Carrying value at 30 June 2018

Land

Total

j. Current year asset movements - council

7. Property, plant and equipment (continued)

Notes to consolidated financial statements For the year ended 30 June 2018

LOGAN CITY COUNCIL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

154

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Accumulated depreciation Balance at 1 July 2016 Depreciation Disposals Write off/ decommissioning Impairment Revaluations Reclassifications Balance at 30 June 2017 Carrying value at 30 June 2017

Gross carrying amount Balance at 1 July 2016 Additions Completed projects Donated assets Total additions Disposals Write off/ decommissioning Revaluations Reclassifications Balance at 30 June 2017

0 576,642

1,790,383 102,742 (3,866) (17,793) 4,723 76,672 1,952,861

5,562,245

563,125 5,187 2,050 7,237 (972) 7,252 576,642

$'000

6,983,132 155,781 0 132,573 288,354 (7,226) (34,325) 285,171 7,515,106

Land

Total

j. Prior year asset movements - council

273,503

59,077 5,300 (158) (5,709) (5) 58,505

310,307 274 4,261 13,458 17,993 (513) 4,504 (283) 332,008

$'000

Buildings

7. Property, plant and equipment (continued)

99,725

98,093 14,419 (3,866) (6,861) 5 101,790

191,338 15,137 6,115 1,946 23,198 (6,254) (7,050) 283 201,515

$'000

Plant and Equipment

2,889,747

980,627 50,145 (9,058) 6,542 1,028,256

3,723,661 421 71,613 84,908 156,942 (23,891) 61,291 3,918,003

Roads and drainage infrastructure $'000

1,404,253

539,327 23,430 (1,716) 59,383 620,424

1,775,704 38,847 30,211 69,058 (2,871) 183,053 (267) 2,024,677

Water and sewerage infrastructure $'000

200,649

95,576 8,835 4,723 13,519 122,653

285,714 6,864 6,864 30,457 267 323,302

Water and sewerage facilities $'000

8,582

17,683 613 2,937 21,233

31,552 (351) (351) (1,386) 29,815

$'000

Landfill and quarry

109,144

101,731 134,762 (127,349) 7,413 109,144

$'000

Work in progress

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LOGAN CITY COUNCIL Notes to consolidated financial statements For the year ended 30 June 2018

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

6 FINANCIAL REPORTING

LOGAN CITY COUNCIL NOTES TO FINANCIAL STATEMENTS Notes to consolidated financial statements FOR THE YEAR ENDED 30 2018 ForJUNE the year ended 30 June 2018 8. Fair value measurements The methods used to estimate fair values comprise: • • •

Level 1 - the fair value is calculated using quoted prices in active markets. Level 2 - the fair value is estimated using inputs that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3 - the fair value is estimated using inputs for the asset or liability that are not based on observable market data.

a. Recognised fair value measurements The following table shows assets as at 30 June as either level 2 or level 3 in accordance with AASB 13 Fair Value Measurement. 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 during the current financial period. Council has no assets and liabilities measured at fair value on a non-recurring basis. Consolidated

Note

Land Buildings - Commercial Buildings - Residential Buildings - Total Roads and drainage infrastructure Water and sewerage infrastructure Water and sewerage facilities Landfill and quarry

Council

Note

Land Buildings - Commercial Buildings - Residential Buildings - Total Roads and drainage infrastructure Water and sewerage infrastructure Water and sewerage facilities Landfill and quarry

Level 2 2018 $'000 581,970 2,022 2,022

292,522 292,522

Total 2018 $'000 581,970 292,522 2,022 294,544

2,976,894

1,156,039

583,992

170,839 6,983 4,603,277

170,839 6,983 5,187,269

Level 2 2018 $'000 581,570 2,022 2,022

Level 3 2018 $'000

292,273

Total 2018 $'000 581,570 292,273 2,022 294,295

Level 2 2017 $'000 576,642 1,794 1,794

2,976,894

1,156,039

583,592

170,839 6,983 4,603,028

292,273

Level 3 2017 $'000 271,709 271,709

Total 2017 $'000 576,642 271,709 1,794 273,503

2,889,747

1,156,039

1,404,253

170,839 6,983 5,186,620

578,436

200,649 8,582 4,774,940

200,649 8,582 5,353,376

b. Disclosed fair values Council borrowings are measured at amortised cost with interest recognised in profit or loss when incurred. The market (fair) value of borrowings disclosed in note 11 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 short-term nature.

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INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

155

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 8. Fair value measurements (continued) c. Valuation techniques used to derive fair values and transfers between levels Where there are transfers between the different levels of the fair value hierarchy, they 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 transfers between hierarchy levels in the current year. There have been changes in valuation techniques used for Roads, Water and Sewerage infrastructure assets during the year, as described below. Specific valuation techniques used to value Council assets include: Land (level 2) Land fair values were determined by independent valuer, Australian Pacific Valuers (APV) based on a desktop update of the assets effective 30 June 2018. Land was last comprehensively valued in 2015. The land values have been indexed to make them current effective 30 June 2018. 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 a 1.8% indexation factor applied to land values effective 31 December 2017. Buildings (levels 2 and 3) Buildings fair values were determined by independent valuer, Australian Pacific Valuers (APV) based on a desktop update of the assets effective 31 December 2017. Buildings were last comprehensively valued in 2015. In 2018, for buildings valued under a cost method, indexation percentages were 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. Indexation percentages ranged from 5.2% to 11.0%. For structures valued under a market/ income approach, indexation percentages were based on recent sales data. APV advised a reduction of 3.8% in average market values. 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 2018, water and sewerage infrastructure assets were valued using a DCF valuation technique, while all other infrastructure assets were valued using a current replacement cost (CRC) valuation technique. 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 determined, and then adjusted the asset gross replacement cost to replace the full service potential of the asset, to take account of the expired service potential of the asset. CRC was measured by reference to the average 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. 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. Infrastructure assets - Waste landfill cells Current replacement cost (CRC) Waste landfill cells fair values were determined by Council engineers effective 30 June 2018. 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 Certified Agreement (CA). 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. 23 | P a g e

156

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 8. Fair value measurements (continued) c. Valuation techniques used to derive fair values and transfers between levels (continued) Infrastructure assets - Roads Roads and associated infrastructure fair values were determined by Council asset management officers at 30 June 2018. 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 up to 500m, while rural roads are managed in segments up to 1km in length. All road segments are then componentised into earthworks, pavement and surface (where applicable). Council assumes that environmental factors such as soil type, climate and topography are consistent across each segment but these vary across the network. 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 road stereotypes using work breakdown schedules that consider terrain, environment, soil type and region. During 2018, Council engaged an independent registered professional engineer (Queensland), Graham Jordan of Lemmah Pty Ltd, to develop Council-specific work breakdown schedules to better align unit costs to Council contracted projects. Benchmarking and sensitivity analysis was undertaken against selective SEQ Councils and Council's day labour construction projects. CRC at 30 June 2018 was determined by Council engineers using the newly developed Logan schedule of unit rates. Accumulated depreciation In determining the level of accumulated depreciation, roads were disaggregated into significant components (Surface, Pavement and Earthworks), which exhibited different useful lives. (Note: Earthworks is considered to be a perpetual asset) A remaining service potential assessment was undertaken based on four Austroads pavement health indices; the Pavement Health Roughness Index, the Pavement Health Rutting Index, the Surface Health Cracking Index, and the Surface Health Texture Index. Each index was 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 service potential of assets. Infrastructure assets - Footpaths A full internal revaluation was undertaken by Council officers of the Councilâ&#x20AC;&#x2122;s footpaths within road reserve for the 2016/207 reporting period (last year). As at 30 June 2018, 30 June 2017 unit rates were increased in line with the 3.25% (Mar 2017 â&#x20AC;&#x201C; Mar 2018) increase in the Queensland Construction and Bridges index. Accumulated depreciation In determining the level of accumulated depreciation, remaining useful lives were calculated based on straight line methodology. Infrastructure assets - Bridges 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, short life and long life components methodology, and in accordance with Australian Accounting Standards. JRA revalued the assets against the material revaluation categories of pipes (drains), pits, channels, box culverts and headwalls. All asset categories are further subdivided into material components and separate useful lives applied where relevant. At 30 June 2018, unit rates were increased in line with the 3.25% increase in the Queensland Construction and Bridges index.

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INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

157

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 8. Fair value measurements (continued) c. Valuation techniques used to derive fair values and transfers between levels (continued) Accumulated depreciation In determining the level of accumulated depreciation, remaining useful lives were calculated at straight line. Infrastructure assets - 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, short life and long life components methodology, and in accordance with Australian Accounting Standards. JRA revalued the assets against the material revaluation categories of pipes (drains), pits, channels, box culverts and headwalls. All asset categories are further subdivided into material components and separate useful lives applied where relevant. At 30 June 2018, unit rates were increased in line with the 3.25% increase in the Queensland Construction and Bridges index. Accumulated depreciation Drainage assets are located underground and are assessed through CCTV survey as required. In order to determine the level of accumulated depreciation, remaining useful lives were calculated based on a straight line methodology. These lives were revisited as part of the annual review and it was determined that they remained appropriate so were left unchanged. Infrastructure assets - Water and sewerage Council's water business is considered a cash-generating business unit and, as a result, water and sewerage infrastructure and facilities assets fair values effective 30 June 2018 were determined using a discounted cash flow (DCF) valuation technique. 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 valuations are based on Level 3 inputs substantially derived from unobservable inputs. The DCF calculation uses cash flow projections based on a Council approved ten-year financial budget with projections for revenue price paths, capital and operating expenditure using a mix of estimates and growth rates for future years. Cash flows beyond the final year are extrapolated to give a terminal value using a growth rate. The extrapolated cash flows are assumed to continue in perpetuity. The net cash flows are discounted using a Weighted Average Cost of Capital (WACC) based on an assumed 60% debt and 40% equity capital structure. There were changes to the revenue profile comprising, amongst other things, basing operating revenue on the Maximum Allowable Revenue (MAR) in accordance with the building block regulatory approach, changes to the post-tax nominal WACC which decreased from 5.49% to 5.13% in the year, and changes to the initial forecast period, which was increased from 10 to 30 years to provide a more meaningful projection. These changes are major contributors to the change in asset values experienced in the year. The WACC used in the calculation is provided by The Queensland Treasury Corporation (QTC) in January of each year. The WACC estimate relates to post tax business cash flows of the water and wastewater business of Logan City Council and reflects the risk inherent in the cash flow projections. The calculation is based on a post-tax nominal basis. The Gordon growth model is used for cash flows from the final year to in-perpetuity. In using the DCF model; land, buildings, plant, equipment and work-in-progress asset values were deducted from the DCF valuation to determine water and sewerage 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.

d. Valuation process Council's valuation policies and procedures are set by the City Treasury Committee, which comprises Councillors and administrative staff, but is attended by the Director: Organisational Services and the Finance Manager. They are reviewed annually taking into consideration an analysis of movements in fair value and other relevant information. 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. 25 | P a g e

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NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 9. Investment in subsidiary company Council's wholly-owned subsidiary, Invest Logan Pty Ltd (Invest Logan), commenced trading on a for-profit basis on 1 July 2017. Invest Logan is a corporatised business entity, wholly owned by Council, established in accordance with the Local Government Regulation 2012 (Qld) and the Corporations Act 2001 for the purpose of undertaking Property Development activities which will benefit, or can reasonably be expected to benefit, the City of Logan. The Council's investment in Invest Logan of $6,314,000 is in ordinary shares at $1 per share accounted for at cost in the Council's separate financial statements. The investment is eliminated in the financial statements on consolidation. The shares in Invest Logan Pty Ltd are not traded on an active market and their fair value cannot be determined reliably. Council has approval under s73 (1) of the Statutory Bodies Financial Arrangements Act 1982 (the SBFA Act) to enter into a type 2 financial arrangement under s61A of the SBFA Act to provide Invest Logan with a loan facility of $25.5m comprising $12.5m for property acquisition and $13m for working capital. As the sole shareholder of Invest Logan Pty Ltd, Council has 100% voting rights in the company enabling Council to direct the company's activities. Council uses these rights to ensure that the company provides advice to the Council on all matters related to regional economic and tourism development and commercial/ industrial development opportunities.

10.

Trade and other payables

Accounts payable are recognised as a liability at the time the amount owed can be measured reliably and when it is probable the amount will have to be paid, when the goods are received or the service is performed. Amounts are unsecured and normally settled within 30 days. Accrued employee benefits comprise annual leave, vested sick leave, leave in lieu, Christmas leave, and accrued salaries and wages. Annual leave, vested sick leave, leave in lieu, and Christmas leave represent the amount which Council has a present obligation to pay resulting from employees' services provided up to balance date. The accrual is based on the present value of remuneration rates that will be paid when the liability is expected to be settled and includes related on-costs. As Council does not have an unconditional right to defer settlement of the annual leave, vested sick leave, leave in lieu, or Christmas leave beyond twelve months after the reporting date, these leave types are classified as current liabilities.

Note Current Creditors and accruals Accrued employee benefits

Consolidated 2018 $'000 56,304 18,161 74,465

Council 2018 $'000 56,197 18,052 74,249

Council 2017 $'000 43,513 18,645 62,158

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 11.

Borrowings

Borrowings comprise both general and specific purpose loans. Council had no finance leases at the reporting date. Borrowings 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 Queensland Treasury Corporation (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 QTC's borrowing guidelines and ensure that sustainability indicators remain within acceptable levels at all times. All loans payable at the reporting date are with the QTC and are measured and disclosed in the statement of financial position at book value of the principal outstanding. The book value of loans represents the current value of the debt to be repaid over its remaining term. Where borrowing costs can be attributed to a specific capital project, the costs are capitalised as part of the qualifying asset during construction. Otherwise, borrowing costs are expensed as finance costs when they are incurred.

Note

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

Current Non-current

13,393 175,050 188,443

12,685 188,017 200,702

Market (fair) value at year end

213,766

228,941

Reconciliation of liabilities arising from financing activities Council's liabilities arising from financing activities consist of borrowings (note 11) only. A reconciliation between the opening and closing balances is provided below: Opening balance Cash - New loans Cash - Loan repayments Non-cash - Market value realisation Closing balance

200,702 (12,259) 188,443

248,142 (48,626) 1,186 200,702

Market value represents the value of debt if Council repaid the debt at year-end date. 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 and has provided no guarantees except to the Local Government Workcare (LGW) disclosed in note 17, 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 LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 12.

Financial instruments and financial risk management

a. Financial instruments recognition 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. Council has exposure to credit, liquidity, and market risks from financial instruments. Council is responsible for the establishment and oversight of the risk management framework, together with developing and monitoring risk management policies. The Council's risk management policies are established to identify and analyse the risks faced, to set appropriate limits and controls and to monitor these risks and adherence against limits. Council does not enter into derivatives.

b. Financial instruments classifications Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’, ‘held-to-maturity’ 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 On-call deposits are designated as at fair value through profit or loss and 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 Term deposits 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 and 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. 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). Council had no financial liabilities at fair value through profit or loss at the reporting date. 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.

c. 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.

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 12.

Financial instruments and financial risk management (continued)

c. Impairment of financial assets (continued) For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’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 asset’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 impairment account. When a trade receivable is considered uncollectible, the expected uncollectible amount is adjusted against the impairment account. Subsequent recoveries of amounts are credited against the impairment 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 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.

d. Financial risk management Credit risk Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its contractual obligations. These obligations arise principally from the Council's investments and receivables from customers. By the nature of the Council's operations, there is a geographical concentration of risk in the Council's area. Because the area is largely residential, there is also a concentration in the residential sector. Exposure to credit risk is managed through regular analysis of credit counterparties ability to meet payment obligations. The carrying amount of financial assets represents the maximum credit exposure. The Council may be exposed to credit risk through its investments in the QTC Cash Fund, the Janus Henderson Enhanced Fund, and various term deposits with financial institutions. The QTC Cash Fund is an asset management portfolio that invests with a wide range of high credit rated counterparties. Deposits with the QTC Cash Fund are capital guaranteed. Unless otherwise noted, on-call deposits are held with a maximum call term of two days. Council has a category 2 investment power under the Statutory Bodies Financial Arrangements Act 1982, which restricts the types of institutions, the types of investments, and the minimum financial ratings in which the Council can invest. Therefore, the likelihood of the counterparty having capacity to meet its financial commitments is strong. The following table represents the maximum exposure to credit risk based on the carrying amounts of financial assets at the end of the reporting period:

Note Financial assets Cash and on-call deposits Loans and receivables Equity instruments Total financial assets

Consolidated 2018 $'000 335,282 67,024 190 402,496

Council 2018 $'000

Council 2017 $'000

331,879 66,737 6,504 405,120

290,449 61,961 190 352,600

On-call deposits include trust fund monies as detailed in note 5. Council bankers are the National Australia Bank, which has a credit rating of Aa2 by Moody's and at AA- by Standard and Poor's. 29 | P a g e

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NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

12.

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

Financial instruments and financial risk management (continued)

d. Financial risk management (continued) In the case of receivables, the Council assesses the credit risk prior to providing goods or services and applies normal business credit protection procedures to minimise the risk. For rates receivables, the Council has the power to sell the rated property to recover any defaulted amounts. In effect this power protects the Council against credit risk in the case of defaults. 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. 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: 40,415 2,223 2,352 22,595 (561) 67,024

1 - 30 days 31 - 60 days 61 - 90 days Over 90 days Impairment

40,128 2,223 2,352 22,595 (561) 66,737

39,704 1,455 65 22,297 (1,560) 61,961

Liquidity risk Liquidity risk is the risk that the Council will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Council is exposed to liquidity risk through its trading in the normal course of business and borrowings from the Queensland Treasury Corporation. 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: Financial liabilities 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

23,159 88,455 147,312 258,926 74,249 333,175

23,159 90,313 168,613 282,085 62,158 344,243

The outflows in the above table are not expected to occur significantly earlier and are not expected to be for significantly different amounts than indicated in the table. Market risk Market risk is the risk that changes in market prices, such as interest rates, will affect the Council's income or the value of its holdings of financial instruments. Council is exposed to market (interest rate) risk through investments and borrowings with QTC and other financial institutions. The Council has access to a mix of variable and fixed rate funding options through QTC so that interest rate risk exposure can be minimised. Council's Treasury function manages cash allocations daily to maximise Council return and minimise risk exposure. Fair value The fair value of trade and other receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment. The fair value of borrowings with QTC is based on the market value of debt outstanding. The market value of a debt obligation is the discounted value of future cash flows based on prevailing market rates and represents the amount required to be repaid if this was to occur at balance date. QTC applies a book rate approach in the management of debt and interest rate risk, to limit the impact of market value movements to clients' cost of funding. The book value represents the carrying value based on amortised cost using the effective interest method.

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163

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

13.

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

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 and the effect of the time value of money is material, its carrying amount is the present value of those cash flows. 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. Employee benefits Restoration provisions Third party claims

21,946 3,692 1,206 26,844

21,835 3,692 1,206 26,733

21,986 5,641 865 28,492

Current Non-current

20,185 6,659 26,844

20,074 6,659 26,733

19,662 8,830 28,492

2.47% 2.60%

2.43% 2.00%

Average discount rates used in estimating provisions Employee benefits Restoration provisions

a. 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 10 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. 31 | P a g e

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NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 13.

Provisions (continued)

a. Employee benefits (continued) 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 that represent accrued expenses are reported in note 10 as payables. Long service leave Council has an obligation to pay accumulating long service leave that employees have qualified for at the reporting date, which is reported in note 10 as a payable, but does not have an obligation to pay long service leave based on the probability that employees will reach entitlement, which is reported in note 13 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 (LGIAsuper) scheme is a multi-employer plan. As LGIAsuper 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 18.

b. 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. 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 2019 and 2029. Quarry restoration 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 2029.

c. 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.

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165

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 13.

Provisions (continued)

d. Movements on provisions Consolidated Balance at 30 June 2017 Additional provisions made Unused amounts reversed Amounts incurred Increase/ (decrease) in discounted amount Balance at 30 June 2018

Council Balance at 30 June 2016 Additional provisions made Unused amounts reversed Amounts incurred Increase/ (decrease) in discounted amount Balance at 30 June 2017 Additional provisions made Unused amounts reversed Amounts incurred Increase/ (decrease) in discounted amount Balance at 30 June 2018

Employee benefits $'000 21,986 2,332 (3,000) 628 21,946

Restoration provisions $'000 5,641 (2,096) 147 3,692

Third party claims $'000 865 720 (379) 1,206

Total provisions $'000 28,492 3,052 (2,096) (3,379) 775 26,844

Employee benefits $'000 22,197 2,241 (2,927) 475 21,986 2,323 (3,102) 628 21,835

Restoration provisions $'000 6,084 171 (700) 86 5,641 (2,096) 147 3,692

Third party claims $'000 816 595 (10) (536) 865 720 (379) 1,206

Total provisions $'000 29,097 3,007 (710) (3,463) 561 28,492 3,043 (2,096) (3,481) 775 26,733

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NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

14.

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

Asset revaluation surplus

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

2,863,031

2,658,613

2,986 14,293 10,961 (192,967) (29,164) (87) (193,978)

7,252 10,213 54,749 123,670 16,938 (4,323) 208,499

139

(4,723)

358

642

2,669,550

2,863,031

320,143 126,047 2,218,513

317,157 111,754 2,207,551

4,847 2,669,550

221,993 4,576 2,863,031

Net adjustments to capital non-current assets to reflect a change in fair value: Land Buildings Roads and drainage infrastructure Water and sewerage infrastructure Water and sewerage facilities Landfill and quarry

Asset impairment (incurred)/ reversed: Water and sewerage facilities Change in the value of future rehabilitation cost: Landfill and quarry

Closing revaluation surplus Closing revaluation surplus by asset class: Land Buildings Roads and drainage infrastructure Water and sewerage infrastructure and facilities Landfill and quarry Closing revaluation surplus

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167

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

15.

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

114,201

115,686

222,182

109,107 15,127 (151,792) 141,333

109,089 15,127 (151,792) 141,333

104,721 16,532 1,186 (132,573) -

(764)

717

113,011

112,993

(9,417)

(79,606) (6,456) 12,043 (74,019)

(79,606) (6,456) 12,042 (74,020)

(64,717) (10,815) 13,790 (61,742)

(5,063) 5,941 244 12,307 (1,290) 2,483 14,622 167,815

(4,776) 5,941 271 12,091 (1,401) 2,483 14,609 169,268

(1,619) (593) (444) (5,540) 33 244 (7,919) 143,104

Cash flow information

Reconciliation of net result attributable to Council to net cash inflow from operating activities Net result Non-cash items included in operating result Depreciation Capital expenses Market value realisation Donations of assets Revaluation expense (Gain)/ loss on sale of property, plant and equipment

Investing and financing activities Capital contributions Capital grants and subsidies Finance costs

Changes in assets and liabilities Receivables Inventories Prepayments Payables Provisions Other liabilities Net cash inflows from operating activities

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LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

16.

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

Commitments for expenditure

a. Operating lease commitments No later than 1 year Later than 1 year but no later than 5 years Later than 5 years

700 720 5 1,425

1,174 416 1,590

b. 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 No later than 1 year Later than 1 year but no later than 5 years Later than 5 years

45,302 16,883 62,185

49,160 26,310 75,470

223 38 68

226 34 69

Maintenance Water Other

239 4,456 2,074 7,098

1,640 2,425 1,573 5.967

No later than 1 year Later than 1 year but no later than 5 years Later than 5 years

5,934 1,164 7,098

4,118 1,849 5,967

c. Contractual commitments Waste contracts Waste and recyclables collection Recyclables processing Green waste management Operational contracts

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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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 Note

17.

Consolidated 2018 $'000

Council 2018 $'000

Council 2017 $'000

Contingent liabilities

Details and estimates of maximum amounts of contingent liabilities are as follows: Liability claims Infrastructure offsets Local Government Workcare maximum exposure

151 2,135

521

1,877 4,163

1,979 2,500

a. Liability claims 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.

b. 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.

c. 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 2017 and show accumulated member funds (equity) of $50,306,803 (2016: $42,676,161) meaning that the likelihood of a claim against Council's guarantee is remote.

d. 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 2017 and show accumulated member funds (equity) of $70,521,289 (2016: $60,234,042) meaning that the likelihood of a claim is remote.

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LOGAN CITY COUNCIL NOTES TO FINANCIAL STATEMENTS Notes to consolidated financial statements FOR THE YEAR ENDED 30 2018 ForJUNE the year ended 30 June 2018 18.

Local Government superannuation scheme

The Council contributes to the LGIAsuper Regional Defined Benefits Fund (the scheme), at the rate of 12% for each permanent employee who is a defined benefit member. This rate is set in accordance with the LGIAsuper trust deed and may be varied on the advice of an actuary. The Regional Defined Benefits Fund is a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation and is also governed by the Local Government Act 2009. The scheme is a defined benefit plan, however Council is not able to account for it as a defined benefit plan in accordance with AASB119 because LGIAsuper is unable to account for its proportionate share of the defined benefit obligation, plan assets and costs. Any amount by which the scheme is over or under funded may affect future benefits and result in a change to the contribution rate, but has not been recognised as an asset or liability of the Council. Technically the council can be liable to the scheme for a portion of another local governmentsâ&#x20AC;&#x2122; obligations should that local government be unable to meet them. However the risk of this occurring is extremely low and in accordance with the LGIAsuper trust deed changes to council's obligations will only be made on the advice of an actuary. The last completed actuarial assessment of the scheme was undertaken as at 1 July 2015. The actuary indicated that â&#x20AC;&#x153;At the valuation date of 1 July 2015, the net assets of the scheme exceeded the vested benefits and the scheme was in a satisfactory financial position as at the valuation date." The Council is not aware of anything that has happened since that time that indicates the assets of the scheme are not sufficient to meet the vested benefits, as at the reporting date. No changes have been made to prescribed employer contributions which remain at 12% of employee assets and there are no known requirements to change the rate of contributions. Another actuarial investigation is being conducted as at 1 July 2018. At the time of signing these financial statements this investigation is still in progress. The most significant risks that may result in LGIAsuper increasing the contribution rate, on the advice of the actuary, are: Investment risk - The risk that the scheme's investment returns will be lower than assumed and additional contributions are needed to fund the shortfall. Salary growth risk - The risk that wages or salaries will rise more rapidly than assumed, increasing vested benefits to be funded. There are currently 63 entities contributing to the scheme and any changes in contribution rates would apply equally to all of these entities. Council made 5.2% of the total contributions to the plan in the 2017-18 financial year.

Superannuation contributions

Note

Superannuation contributions made to the Regional defined benefits fund Other superannuation contributions for employees Total superannuation contributions paid by Council

Contributions Council and its subsidiary expect to make to the Regional Defined Benefits Fund for 2018/19

Consolidated 2018 $

Council 2018 $

Council 2017 $

659,867

750,278

13,425,863

13,363,722

12,803,563

14,085,730

14,023,589

13,553,841

Consolidated 2019 $

Council 2019 $

783,390

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NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 19.

Related parties

a. Subsidiary company and transactions between Council and Invest Logan Pty Ltd The economic entity consists of Council and Invest Logan Pty Ltd, a wholly-owned subsidiary company. The following are transactions that occurred and balances and commitments at the reporting date: Note

Rates and charges Deposit on property Costs incurred

Transactions for the year 1 201 205

2018 - $'000s Balances 30 June -

Commitments at 30 June -

b. Associate companies and joint venture arrangements Council had no associate companies and was not participant to any joint venture arrangements during the reporting period. Council does not have control, joint control or significant influence over any entities other than those listed in this disclosure.

c. Key management personnel (KMP) KMP are those persons having authority for the planning, directing, and controlling the activities of the Council, directly or indirectly, including the Mayor, Councillors, the Chief Executive Officer, directors, and any personnel acting in these roles.

d. Key management personnel compensation In addition to their salaries, Council also provides non-cash benefits to KMP, and contributes to the Local Government Superannuation Scheme (Qld) on their behalf. All employees also accrue leave entitlements in accordance with Council policy. Details of superannuation schemes are disclosed in note 18. The aggregate compensation made to the Mayor, Councillors, and other members of the KMP for the current and prior financial years are set out below: Consolidated Council Council 2018 - $'000s 2018 - $'000s 2017 - $'000s 4,396 4,396 Short-term employee benefits 4,302 331 331 401 Post-employment benefits 66 66 41 Other long-term benefits 26 26 Termination benefits 1,597 4,819 4,819 6,341 Short-term benefits include annual and sick leave accruals and non-monetary fringe benefits provided to KMP. Detailed remuneration disclosures are provided in the annual report.

e. Transactions with KMP and other related parties Other related parties include the close family members of KMP and any entities controlled or jointly controlled by KMP or their close family members. Close family members include a spouse, child and dependent of a KMP or their spouse. The aggregate value of transactions and outstanding balances between Council and other related parties are tabled below:

Rates and charges levied on properties owned by KMP and close family: Balances outstanding at reporting date Grants provided to: The Beenleigh Police Citizens Youth Club The City of Logan Mayorâ&#x20AC;&#x2122;s Charity Trust

Consolidated 2018 - $'000s

Council 2018 - $'000s

134 (12)

105 4

30 126

Council 2017 - $'000s

There were no balances outstanding or further commitments at the reporting date. There have been no fees and charges or other transactions between the Council and KMP during the reporting period, other than those disclosed. Rates and charges levied on properties owned by KMP were in accordance with rates and charges adopted by Council on the same basis as rates and charges levied to the general public. All close family members of KMP were employed through an arm's length process. They are paid in accordance with the Award for the job they perform. There were no Council staff who are family members of key management personnel. 39 | P a g e

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NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE financial 2018 statements Notes 30 to consolidated For the year ended 30 June 2018 19.

Related parties (continued)

f. Loans and commitments to or from related parties Council does not make loans to or receive loans from related parties other than its wholly-owned subsidiary, as disclosed above. No guarantees have been provided. Council has no outstanding commitments to/ from other related parties other than its wholly-owned subsidiary, as disclosed above.

20.

Statement of activities to which the code of competitive conduct applies

a. 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.

b. Activity statements for activities subject to the competitive code of conduct Water and Sewerage services

Waste Services

Workshop

Fleet internal

Fleet external

Revenue for services provided to:

$'000

Council External clients

3,208 290,243 293,451 (290,263) 3,188

Less expenditure (excluding return on capital) Surplus/ (deficit)

691 39,094 39,785 (32,697) 7,088

4,397 39 4,436 (4,386) 50

9,247 57 9,304 (8,017) 1,287

9,637 9,637 (9,136) 501

c. Community service obligations

Cleansing remissions to eligible pensioners Water, sewerage, and cleansing remissions to eligible community organisations Free tipping for community organisations

Water and Sewerage services

Waste Services

$'000

328

1,113 1,113

31 29 388

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL FOR THE YEAR ENDED JUNE 2018 Notes30 to consolidated financial statements For the year ended 30 June 2018 21.

Controlled entities that have not been consolidated

Council has a single controlled entity, The City of Logan Mayor's Charity Limited (the Trustee), which was registered as a company limited by guarantee on 17 November 2017, and which is not consolidated because it is dormant and has not traded in the current financial year. The Council is the sole member of the Trustee. The directors of the Trustee act as the responsible persons for the City of Logan Mayor's Charity Trust (the Trust) and are collectively a formal decision-making body that has ultimate responsibility for all matters involving the Trust. The Trust is a community appeal fund, established to provide the public with a means by which to make donations for charitable purposes for the Logan community, and is a related party of Council. Related party transactions between the Council and the Trust, and balances and commitments at the reporting date are disclosed in note 19 (e)

22.

Events after the reporting period

There were no material adjusting events after the balance date.

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MANAGEMENT CERTIFICATE 30 JUNE 2018

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

175

FINANCIAL REPORTING

REPORT ON THE AUDIT OF THE FINANCIAL REPORT

INDEPENDENT AUDITOR’S REPORT To the Councillors of Logan City Council

Report on the audit of the financial report Opinion I have audited the accompanying financial report of Logan City Council (the Council) and its controlled entities (the Group). In my opinion, the financial report: a)

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

complies with the Local Government Act 2009, the Local Government Regulation 2012 and Australian Accounting Standards.

The financial report comprises the consolidated statement of financial position as at 30 June 2018, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements including significant accounting policies and other explanatory information, and the management certificate given by the Acting Mayor and the Acting Chief Executive Officer. Basis for opinion I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of my report. I am independent of the Council and the Group in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Other information Other information comprises the information included in the Logan City Council annual report for the year ended 30 June 2018, but does not include the financial report and my auditor’s report thereon. At the date of this auditor’s report, the other information was the current year financial sustainability statement and long-term financial sustainability statement and the annual report. My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon. However, as required by the Local Government Regulation 2012, I have expressed a separate opinion on the current year financial sustainability statement.

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REPORT ON THE AUDIT OF THE FINANCIAL REPORT

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report and my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of the Council for the financial report The Council is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Local Government Act 2009, the Local Government Regulation 2012 and Australian Accounting Standards, and for such internal control as the Council determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. The Council is also responsible for assessing the Council's and Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless it is intended to abolish the Council or to otherwise cease operations of the Group. Auditor’s responsibilities for the audit of the financial report My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: 

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.



Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the Council's or the Group’s internal control.



Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Council.

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FINANCIAL REPORTING

REPORT ON THE AUDIT OF THE FINANCIAL REPORT



Conclude on the appropriateness of the Council’s and the Group’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Council's or the Group’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. I base my conclusions on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Council or the Group to cease to continue as a going concern.



Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.



Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. I am responsible for the direction, supervision and performance of the audit of the Group. I remain solely responsible for my audit opinion.

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

Report on other legal and regulatory requirements In accordance with s.40 of the Auditor-General Act 2009, for the year ended 30 June 2018: a)

I received all the information and explanations I required.

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

21 September 2018 Patrick Flemming as delegate of the Auditor-General

178

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Queensland Audit Office Brisbane

SUSTAINABILITY REPORT

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

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FINANCIAL REPORTING

REPORT ON THE CURRENT-YEAR FINANCIAL SUSTAINABILITY STATEMENT

INDEPENDENT AUDITOR’S REPORT To the Councillors of Logan City Council Report on the Current Year Financial Sustainability Statement Opinion I have audited the accompanying current year statement of financial sustainability of Logan City Council for the year ended 30 June 2018 comprising the statement, explanatory notes, and the certificate of accuracy given by the Acting Mayor and the Acting Chief Executive Officer. In accordance with section 212 of the Local Government Regulation 2012, in my opinion, in all material respects, the current year financial sustainability statement of Logan City Council for the year ended 30 June 2018 has been accurately calculated. Basis of opinion I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the current year financial sustainability statement section of my report. I am independent of the council in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the statement in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Emphasis of matter – basis of accounting I draw attention to Note 1 which describes the basis of accounting. The current year financial sustainability statement has been prepared in accordance with the Financial Management (Sustainability) Guideline 2013 for the purpose of fulfilling the council’s reporting responsibilities under the Local Government Regulation 2012. As a result, the statement may not be suitable for another purpose. My opinion is not modified in respect of this matter. Other Information Other information comprises the information included in Logan City Council’s annual report for the year ended 30 June 2018, but does not include the current year financial sustainability statement and my auditor’s report thereon. At the date of this auditor’s report, the other information was the general purpose financial statements, the long-term financial sustainability statement and the annual report. My opinion on the current year financial sustainability statement does not cover the other information and accordingly I do not express any form of assurance conclusion thereon. However, as required by the Local Government Regulation 2012, I have expressed a separate opinion on the general purpose financial report.

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REPORT ON THE CURRENT-YEAR FINANCIAL SUSTAINABILITY STATEMENT

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report and my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of the council for the current year financial sustainability statement The council is responsible for the preparation and fair presentation of the current year financial sustainability statement in accordance with the Local Government Regulation 2012. The council’s responsibility also includes such internal control as the council determines is necessary to enable the preparation and fair presentation of the statement that is accurately calculated and is free from material misstatement, whether due to fraud or error. Auditor’s responsibilities for the audit of the current year financial sustainability statement My objectives are to obtain reasonable assurance about whether the current year financial sustainability statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this statement. My responsibility does not extend to forming an opinion on the appropriateness or relevance of the reported ratios, nor on the council’s future sustainability. As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: 

Identify and assess the risks of material misstatement of the statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.



Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the council’s internal control.



Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the council.



Evaluate the overall presentation, structure and content of the statement, including the disclosures, and whether the statement represents the underlying transactions and events in a manner that achieves fair presentation.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

181

FINANCIAL REPORTING

REPORT ON THE CURRENT-YEAR FINANCIAL SUSTAINABILITY STATEMENT

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

21 September 2018

Patrick Flemming as delegate of the Auditor-General

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Queensland Audit Office Brisbane

LONG-TERM FINANCIAL SUSTAINABILITY REPORT INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

183

FINANCIAL REPORTING

NOTE 1 - FINANCIAL MANAGEMENT STRATEGY

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A tributary of the Logan River, Tygum Lagoon in Waterford is a haven for native waterbirds.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

185

Georgina Williams often works in the box office of the Logan Entertainment Centre, which staged a wide range of touring national and international plays, concerts, musicals and stand-up comedy showsâ&#x20AC;&#x201C;as well as community events, school holiday activities, fully catered conferences and conventions.

7 APPENDICES

This section includes background information relevant to the main report, indexes and contact information for our organisation and elected representatives.

APPENDICES

GLOSSARY OF TERMS

188

Advocacy

Collaborating with and seeking to influence other levels of government, local governments and peak bodies in matters that are important to the community.

Annual Report

Our Annual Report is a publication that provides a detailed account of the progress made in delivering against our Corporate Plan and Operational Plan, and reports our financial performance and position in the statutory financial statements and notes.

Asset

An economic resource owned or controlled that enables services to be provided that has a useful life of greater than 12 months.

Audit

An examination of the records, statements, systems, and procedures of an organisation, together with its stated claims for performance.

Best-practice

A way or method of accomplishing a business function process or outcome/result that is considered to be superior to all other known methods; achievement of outcomes/results that are superior to all others known.

Branch

Our organisation is divided into five key operational departments, known as directorates. Each directorate contains a number of branches, which deliver a series of programs and services to the community. There are 26 branches led by managers within our organisation (refer to the organisational structure on page 26). Each branch manager reports to a director.

Budget (annual)

Councilâ&#x20AC;&#x2122;s annual budget identifies the planned expenditure and revenue approved by Council for a financial year. This included any specific projects identified as a priority under the Operational Plan.

Business Continuity Plan

A clearly defined and documented plan for the organisation that establishes ground rules for the critical operations of Logan City Council. It contains the guidelines for the business to continue to operate within a defined timeframe using a set of predefined resources and workarounds.

Business planning

Planning of Councilâ&#x20AC;&#x2122;s business direction to detail the what, why, when, who and how. It includes strengths and weaknesses, strategies and resources. Business planning is different from the Operational Plan because it is targeted at a particular functional area of Council and provides the detail of a branchâ&#x20AC;&#x2122;s business for a set period (usually consistent with the period set for the Operational Plan).

City

City refers to the City of Logan.

City Pride

The City Pride Program supports us in championing the city through a range of initiatives including a Hidden Gems photobook, street banners and a handy guide. To find out more about the City of Logan Pride Program, visit the website: logan.qld.gov.au/citypride

Community

The people living in and visiting Logan e.g. residents, ratepayers, business investors and visitors.

Community engagement

The process of working collaboratively with and through groups of people affiliated by geographical proximity, special interest, or similar situations, to address issues affecting the wellbeing of those people. The levels of engagement are: inform, consult, involve, collaborate and empower.

Corporate Plan

A strategic document with a minimum five-year outlook, which outlines the key strategies that the organisation will undertake to achieve its desired outcomes. This is a legislative requirement.

Culture

This defines who we are as an organisation, our ethics, our institutions, our behaviours, and our routines.

Debt servicing ratio

The principal and interest on debt divided by available revenue to fund debt.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

Directorate

Council is divided into five key operational departments. Each department contains a number of branches and is headed by a director. Council’s five directorates are: Community Services, Innovation and City Transformation, Organisational Services, Road and Water Infrastructure; and Strategy and Sustainability.

Executive Leadership Team (ELT)

Council’s executive management team. Its members are the Chief Executive Officer and five directors.

Financial year

The financial year we are reporting on in this report is the period from 1 July 2017 to 30 June 2018.

Framework

Best described as a diagram that shows the links between various processes in order to achieve a particular outcome. It usually includes an explanation of the relationships between the various elements.

Global Reporting Initiative (GRI) Index

The GRI framework is used by large and small organisations to report their economic, environmental, social and governance performance and impacts.

Governance

The process by which an organisation makes and implements decisions, is controlled and managed to achieve its objectives, is directed, reviewed and held to account.

Initiatives

A program of work or project to achieve a measurable benefit within a quantifiable timeframe.

Key Performance Indicators

Objective evidence on the extent of, or progress towards, achievement of a desired outcome.

Local Government Act 2009

The principal legislation which provides the legal framework for Queensland’s local government sector.

Local Government Boundary Reform

The 2008 restructure of Queensland local government authorities, including Logan City Council, which was mandated by the state government.

Local Government Regulation 2012

Effective from December 2012, the Local Government (Beneficial Enterprises and Business Activities) Regulation 2010, Local Government (Finance, Plans and Reporting) Regulation 2010 and Local Government (Operations) Regulation 2010 have been collapsed into one Regulation, the Local Government Regulation 2012.

Logan: City of Choice

This is an initiative helping the City of Logan to grow and prosper into a connected, sustainable city. It was the result of the Logan: City of Choice Summit in February 2013, which attracted more than 1,000 people from community, business and non-government sectors, as well as Council, state and federal government representatives.

Logan Together

Logan Together 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. The initiative brings together representatives from all three levels of government, their agencies, community organisations, a wide range of child development service providers and the broader community. It is based on the collective impact framework, which enables organisations across a particular sector to focus on a common agenda to achieve large-scale social change.

National Framework for Sustainability

In March 2007, the Local Government and Planning Ministers’ Council endorsed national frameworks for assessing financial sustainability, asset planning and management and financial planning and reporting. According to the frameworks, a council’s long-term financial performance and position are sustainable where planned long-term service and infrastructure levels—and standards as prioritised through community engagement and consultation—are met without unplanned increases in rates and charges or disruptive cuts to services.

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190

APPENDICES

Operational Plan

A document with a one-year outlook, which outlines the key activities to be undertaken to achieve the desired outcomes set out in the Corporate Plan. This is a legislative requirement.

Outcomes

The effect, impact, result on, or consequence for the community, environment or organisation, of strategies, services, policies or activities.

Performance measurement

Collecting the relevant data, including past and current performance, forecasts and targets. It helps to monitor services and products, and allows organisations to identify good performance, learn from others, and focus on their priorities and any areas of poor performance. It is only part of a bigger performance management framework and is an ongoing improvement process, which involves not just systems but people and the whole organisation.

Performance scorecard

A visual display of the most important performance information consolidated so an overall understanding of performance can be viewed at a glance.

Philanthropic

A word used to describe benevolent behaviour.

Planning scheme

A requirement under the Integrated Planning Act 1997 that coordinates and integrates the planning and development matters for a designated local government including environmental matters and key infrastructure concerns.

Policy

A definitive statement issued at the highest level, which clearly states Council’s intent, commitment or position to achieve an objective and which provides a decision-making framework for day-to-day application.

Priority Area

Areas that Council will give priority to over the life of the Corporate Plan 2017-2022. Council has six priority areas: Quality Lifestyles, Conveniently Connected, Economic Transformation, Image and Identity, Green and Renewable, and Next Generation Governance.

Program

Council is divided into five key operational departments, known as directorates. Each directorate contains a number of branches, which deliver a series of programs and services to the community. There are 113 programs within our organisation, with program leaders reporting to branch managers.

Reconciliation Action Plan

Logan City Council’s Reconciliation Action Plan 2015–2017 is a strategic document involving all areas of the organisation. It includes a range of achievable and practical measures that will influence positive reconciliation outcomes within the City of Logan.

Risk management

The process of identifying, evaluating and controlling risk via the method outlined in the Australian Standard AS/NZS ISO 31000:2009.

South East Queensland Water Reform

A range of structural and regulatory reforms proposed for urban water supply arrangements in South East Queensland.

Strategic planning

An overarching process used to help Council and the community plan for the future and realise their vision. It is a continuous, systematic process for identifying intended future outcomes, how outcomes are to be achieved, and how success will be measured.

Strategies/strategic priorities

Council’s priorities as outlined in the Corporate Plan or as approved through the annual strategic planning, resource allocation and budgeting cycle.

Target

A quantifiable level of performance to be attained at a specific future date. Setting the right target is just as important as setting the right measure. It is crucial that targets are realistic but at the same time challenging for those involved in the process. They are important to drive forward the improvement of services across Council.

Trend

Movement or change in results in a general direction.

Vision

A statement that embraces the desired future the organisation is working towards.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

CONTACT INFORMATION LOGAN CITY COUNCIL Mailing address: PO Box 3226 Logan City DC Qld 4114

Logan City Councillors

Phone: 1300 1 LOGAN* (1300 156 426)

E: mayor@logan.qld.gov.au

*Council’s 1300 number is only for use by customers within Logan City from a landline. When contacting us from a mobile phone or from outside Logan City, please phone 07 3412 3412.

Cr Cherie Dalley Acting Mayor, Divisions 8 and 6 T: 07 3412 3412 F: 07 3412 3444 Cr Lisa Bradley

Cr Phil Pidgeon

REPRESENTING DIVISION 1

REPRESENTING DIVISION 9

E: lisabradley@logan.qld.gov.au

E: philpidgeon@logan.qld.gov.au

T: 07 3412 5501

T: 07 3412 5509

Fax: 07 3412 3444

F: 07 3412 3444

M: 0411 869 109

Email: council@logan.qld.gov.au

Cr Russell Lutton

F: 07 3412 3444

REPRESENTING DIVISION 2

Cr Darren Power

E: russelllutton@logan.qld.gov.au

REPRESENTING DIVISION 10

Social media: facebook.com/logancitycouncil twitter.com/logancc

T: 07 3412 5502

E: darrenpower@logan.qld.gov.au

M: 0411 869 099

T: 07 3412 5510

F: 07 3412 3444

M: 0411 869 119

Customer service centres

Cr Steve Swenson

Website: logan.qld.gov.au

Logan City Council Administration Centre 150 Wembley Rd, Logan Central Open Monday to Friday, 8 am to 5 pm (except public holidays) Beenleigh Customer Service Centre Corner George St and City Rd Open Monday to Friday, 8 am to 4.45 pm (except public holidays) Jimboomba Customer Service Centre 18–22 Honora St, Jimboomba Open Monday to Friday, 8 am to 4.45 pm (except public holidays) We welcome your feedback on the Logan City Council 2017/2018 Annual Report. Please feel free to contact us through one of the methods listed above.

F: 07 3412 3444

REPRESENTING DIVISION 3

Cr Trevina Schwarz

E: steveswenson@logan.qld.gov.au

Acting Deputy Mayor,

T: 07 3412 5503

City Treasurer

F: 07 3412 3444

REPRESENTING DIVISION 11

Cr Laurie Koranski REPRESENTING DIVISION 4 E: lauriekoranski@logan.qld.gov.au T: 07 3412 5504

E: trevinaschwarz@logan.qld.gov.au T: 07 3412 5511 M: 0411 658 066 F: 07 3412 3444

M: 0473 415 294

Cr Jennie Breene

F: 07 3412 3444

REPRESENTING DIVISION 12

Cr Jon Raven REPRESENTING DIVISION 5 E: jonraven@logan.qld.gov.au T: 07 3412 5505

E: jenniebreene@logan.qld.gov.au T: 07 3412 5512 M: 0411 658 297 F: 07 3412 3444

M: 0499 560 995 F: 07 3412 3444 Cr Laurie Smith REPRESENTING DIVISION 7 E: lauriesmith@logan.qld.gov.au T: 07 3412 5507 F: 07 3412 3444

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

191

APPENDICES

LEGISLATIVE INDEX LOCAL GOVERNMENT ACT 2009 REQUIREMENT

CHAPTER

SECTION PAGE

Identifying beneficial enterprises

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

128

A local government’s annual report for each financial year must— (1) contain a list of all the business activities that the local government conducted during the financial year; and

141—142

(2) identify the business activities that are significant business activities; and

141—142

(3) 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

125

(4) 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.

143

Annual report must detail remuneration

201

(1) The annual report of a local government must state—

192

(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.

LOGAN CITY COUNCIL 2017/2018 ANNUAL REPORT

LOCAL GOVERNMENT REGULATION 2012 REQUIREMENT

CHAPTER

SECTION

Financial sustainability statements

178

PAGE

124 183—184

(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) t he relevant measures of financial sustainability for the 9 financial years following the year to which the statement relates; and

183—184

(b) an explanation of the local government’s financial management strategy that is consistent with the long-term financial forecast.

124

Community financial report

179 47

(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

49—50, 58

(b) be consistent with the general purpose financial statement for the financial year; and

(d) be written in a way that can be easily understood by the community.

Financial statements The annual report for a financial year must contain—

183

(1) the general purpose financial statement for the financial year, audited by the auditor-general; and

176—178

(2) the current-year financial sustainability statement for the financial year, audited by the auditor-general; and

179

(3) the long-term financial sustainability statement for the financial year; and

183—184

(4) the auditor-general’s audit reports about the general purpose financial statement and the current-year financial sustainability statement.

180—182

Community financial report

184 47—58

The annual report for a financial year must contain the community financial report for the financial year. Administrative action complaints

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

126

(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.

126

(2) The annual report must also contain particulars of— (a) the number of the following during the financial year— (I)

administrative action complaints made to the local government;

126

(II) administrative action complaints resolved by the local government under the complaints management process;

126

(III) administrative action complaints not resolved by the local government under the complaints management process; and

126

(b) the number of administrative action complaints under paragraph (a)(iii) that were made in a previous financial year.

INNOVATIVE, DYNAMIC, CITY OF THE FUTURE

126

193

APPENDICES

REQUIREMENT

CHAPTER

SECTION

Overseas travel

188

PAGE

(1) (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;

127

(b) for a local government employee—the name of, and position held by, the local government employee;

127

(d) the purpose of the overseas travel;

127

(e) the cost of the overseas travel;

127

(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

127 5

189

The annual report for a financial year must contain a summary of— 127

(1) the local government’s expenditure for the financial year on grants to community organisations; and (2) expenditure from each councillor’s discretionary fund, including— (a) the name of each community organisation to which an amount was allocated from the fund; and

127

(b) the amount and purpose of the allocation.

127