2014/15 Annual Report by Logan City Council

STRONGER TOGETHER

ANNUAL REPORT 2014/2015

The City of Logan is a dynamic, diverse and proud community that is a perfect place for young, growing families. More than 307,000 people already call Logan home. The city comprises of 64 suburbs and covers 957 square kilometres. The city’s population is growing at 2.2 per cent a year, with new town centres at Yarrabilba and Flagstone coming to life. We are a green city and have the lowest level of pollution in Australia. With 70 per cent of our city being rural, semi-rural or land for conservation, Logan has more than 900 parks as well as world-renowned wetlands and bike trails.

ON THE COVER This year’s Annual Report is themed ‘Stronger Together’. This theme represents the key projects and initiatives delivered during 2014/2015 to build a stronger community through partnerships with other individuals and organisations. In naming just a few, these have included implementation of the Logan: City of Choice Two-Year Action Plan, the development of the Reconciliation Action Plan, community events including Eats and Beats and Jazz and Shiraz, hosting international delegations, launching a city pride campaign, finalising the Logan Planning Scheme 2015, and planning for the Queensland Music Festival and Logan Together initiative.

This image is one of several chosen for inclusion in our City of Logan Hidden Gems photobook. ‘Butterfly in my backyard’. Photo: Mark Glancy.

CONTENTS OUR ANNUAL REPORT

COMMERCIAL BUSINESS UNITS

Introduction 6

Logan Water

Our vision, purpose, twin goals and values

Logan Waste Services

Performance summary

2014/2015 in review

2014/2015 financial summary

Our city

The City of Logan in profile

Mayor’s message

CEO’s message

How we engage our community

Awards received in 2014/2015

98 100

ADDITIONAL STATUTORY INFORMATION Revenue Policy

106

Borrowing Policy

106

Service charges

107

Financial sustainability

108

Tenders and expressions of interest

108

Community service obligations

109

Registers open for inspection

109

OUR COUNCIL

Code of Competitive Conduct

110

Organisational structure

for business activities

Democratic governance

Administrative action complaint

Corporate governance

Working at Logan City Council

111

disclosures 2014/2015 National Competition Policy reforms

112

Local Government Finance Standard disclosures

112

continuity planning

Quality assurance

113

PERFORMANCE REPORTING

FINANCIAL REPORTING

Internal audit, risk management and business

Our framework

Financial performance highlights

116

CEO Directorate 2014/2015 summary

Community financial report

117

Road and Water Infrastructure

Annual financial statements

131

stream summary 2014/2015 Community and Customer Services

stream summary 2014/2015 Organisational Services

stream summary 2014/2015 Strategy and Sustainability

stream summary 2014/2015

APPENDICES Expenses Reimbursement Policy

196

Legislative index

200

Global Reporting Initiative (GRI) Content Index

203

Glossary of terms

206

Water branches annual performance

209

Priority area: Building our major infrastructure (MI)

plan report

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

Waste services annual performance

Priority area: Building our economic base (EB)

plan report

Priority area: Building our environment (E)

Contact information

213

Priority area: Building our service excellence (SE)

Index

214

Priority area: Building the wellbeing of our

210

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

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR ANNUAL REPORT

OUR ANNUAL REPORT This introductory section of the 2014/2015 Annual Report outlines information about our organisation and the city, gives a summary of our operational and financial performance for the 2014/2015 financial year, introduces our Mayor and Chief Executive Officer, and highlights the awards we have won.

STRONGER TOGETHER

Stronger together: we are proud to support the community through our many community and recreation facilities.

LOGAN CITY COUNCIL ANNUAL ANNUAL REPORT REPORT 2014/2015

OUR ANNUAL REPORT

INTRODUCTION This Annual Report details our performance during the financial year of 2014/2015 in meeting the strategic priorities outlined in our Corporate Plan 2013–2018 and our Long-Term Financial Plan. We provide more than 90 programs and services to the community and this report details our successes and the challenges faced over the past 12 months to ensure we remain open and accountable to our stakeholders. This information is relevant to Logan residents and ratepayers, local business owners, potential investors, community groups, government agencies, funding bodies, and current and potential staff. The objectives of the Annual Report include: • communicating our vision and commitments to the community • reporting on our performance in delivering the Corporate Plan • instilling community confidence in our ability to show strong leadership and deliver on our promises • illustrating our commitment to accountable and transparent government • promoting the Logan area and Council to potential investors for economic development • creating sustainability and stimulating the economy by building state and federal partnerships, or obtaining grants or funding for projects

OUR VISION, PURPOSE, TWIN GOALS AND VALUES OUR VISION Logan City: Building our communities, our businesses and our pride.

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

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

OUR VALUES At Logan City Council, we value:

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

• building confidence and satisfaction in the partnerships that are being created with community groups, local authorities and others • recognising the significant achievements of our staff • marketing Council as an employer of choice for potential recruits • meeting statutory requirements under the Local Government Act 2009.

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

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

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

STRONGER TOGETHER

PERFORMANCE SUMMARY We are reporting according to Logan City Council's Corporate Plan 2013–2018, which is focused on seven priority areas. Our Corporate Plan 2013–2018 identifies our councillors' long-term city vision and priority areas over a five-year period. We deliver on our priorities by implementing our annual Operational Plan, which includes key projects and measures that directly respond to the priority areas from the Corporate Plan (refer to our planning and performance management framework on page 52 for more information). Additional projects and key performance indicators (KPIs) that do not directly align to one of the seven priority areas, but still have a strategic focus and are of community interest, were included in the 2014/2015 Operational Plan, and are listed under the responsible stream and branch. We focus on developing meaningful performance measures in all branch business plans and creating key performance indicators at the branch and organisational levels. This will continue over the coming years as we strive to continuously improve both our internal and external reporting processes and accountability. We produce a Corporate Performance Report Card every three months. Our organisational leadership team uses this information to identify strengths and areas for improvement within the business, and monitor the effectiveness of new initiatives or changes made to core services. The report card provides a set of approximately 20 high-level key measures that enable the organisational leadership team to track achievement against priority outcomes in the Corporate Plan and monitor key organisational sustainability indicators, such as investment returns against industry benchmarks, working capital ratio, lost time injury frequency rate, etc. The balanced scorecard approach enables us to apply critical perspectives to the performance areas we most want to measure: customer service delivery, finance, internal business processes, organisational culture, governance, innovation and learning.

2014/2015 SCORECARD We produce a quarterly Operational Plan performance report (available on our website), which provides a more detailed analysis of our performance and identifies progress on projects and performance against KPIs during the financial year. The following is a high level summary of our performance in delivering our 2014/2015 Operational Plan, which consisted of 93 projects and/or key performance indicators: • Sixty-two (67%) projects and KPIs have met or exceeded acceptable performance targets. This means projects were completed before 30 June 2015 and KPI results were equal to or greater than the set performance target. • Twenty-seven (29%) did not meet set performance targets. Of these: – Nine KPIs were below the desired level of performance as at 30 June 2015 but exceeded the lowest acceptable performance limit. – Thirteen projects were not completed by 30 June 2015 (these projects will be carried forward to the 2015/2016 Operational Plan for completion in the new financial year). – Five KPIs were below target and below the lowest acceptable performance limit. • Three (4%) projects and one KPI did not proceed in 2014/2015, based on a Council decision. Amendments were made to our performance scorecard options during the first quarter of the 2014/2015 year to enable more precise classification of our performance results. This was a necessary and positive change that has enabled the organisation to report performance in a more open and transparent way to both the elected Council and the community. A summary of our performance against the 2014/2015 Operational Plan is shown on the following pages. A more detailed analysis of performance results is provided for each priority area and stream in the Performance Reporting section (pages noted at the end of each priority summary).

Performance against our 2014/2015 Operational Plan is measured against project milestones and targets set at the beginning of the financial year. This performance is reported to Council and the community on a quarterly basis.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR ANNUAL REPORT

OPERATIONAL PLAN PRIORITY AREAS

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

Building our major infrastructure (MI) PRIORITY FOCUSES MI1: Increase emphasis and funding for maintenance and upgrade of local road networks

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 the current financial year.

MI2: Achieve high-level delivery of annual capital works program

See page 66 for more details.

Undeliverable: The project will not be delivered this financial year.

PRIORITY FOCUSES

Note: This scorecard option is specific to projects only.

0% 0%

100%

and71% implement

See page 69 for more details.

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

0% 0% 0%

Projects/KPIs

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

29%

47% Projects/KPIs

Projects/KPIs

CI1: Adopt a three-year city image campaign

KPIs

18%

23%

Building our economic base (EB)

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

PRIORITY FOCUSES EB1: Support existing businesses

Not proceeding: Measuring the KPI will be discontinued based on a Council decision.

EB2: Attract new businesses

Note: This decision is usually due to a lack of available data to accurately assess performance.

EB3: Enhance local employment opportunities and local jobs containment EB4: Enhance focus on tourism, including100% eco-tourism opportunities

0% 0% 0%

See page 71 for more details.

50%

18%

23% 12%

Projects/KPIs

47% Projects/KPIs

EB5: Proactively market 29% SouthWest 1 and SouthWest 2 developments Projects/KPIs

Projects/KPIs

71%

STRONGER TOGETHER

Building our city’s image (CI)

Not proceeding: A Council decision has been made to cancel the project.

29%

Projects/KPIs

MI3: Consider and adopt plan for harmonisation of water rates, including assessment of trickle feed consumers

Projects/KPIs

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’.

100% 71%

37.5% 12.5%

Building our environment (E) E1: Enhance our rivers and wetlands with our community

MG1: Adopt and implement a new city-wide planning scheme

37.5%

12.5% 0%

Building our service excellence (SE)

Enhanced focus on 14% 14% city events 0%

See page 83 for more details.

14% 0%

15%

See page 58 for more details.

Projects/KPIs

69% 100%

14% 0% Projects/KPIs

Projects/KPIs

15%

0% 0% 0%

Projects/KPIs relating 100% to this branch: 69%

14% 71% 0%

24% 5%

• City Standards

15% 79% 8%

0% 0% 69% 0%

See page 64 for more details.

Projects/KPIs

100%

100% 0% 0%

15% 14% CEO7%Directorate (CEO) and 8% 8% 0% Organisational Services stream (OS)

Projects/KPIs

37.5% WC3: 12.5%

24%

69% Planning • Road Infrastructure

Projects/KPIs

WC2: for healthy and active lifestyle initiatives

50%

Projects/KPIs

14%

79%

Projects/KPIs

72% 0% Ongoing priority

14%

Projects/KPIs relating to this branch:

Projects/KPIs

14%

Projects/KPIs

12%

14%

Strategy and Sustainability stream (SS)

WC1: Consider the Action Plan compiled from the Logan: City 71% Summit, agree on an 79% of Choice appropriate role and determine appropriate responsibilities for Council in response to that plan 24% Projects/KPIs

14%

Road and Water Infrastructure 79% stream (RWI)

PRIORITY FOCUSES

Projects/KPIs

0% the

14%

69%

71%

24% 5%

Building wellbeing of our communities (WC)

• Parks

Projects/KPIs

14%

100%

See page 60 for more details.

Projects/KPIs

14%

in Projects/KPIs

Projects/KPIs

37.5%

24%

72%

See page 80 for more details.

12.5%

Community and Customer Services stream (CCS)

• Media and Communication

Projects/KPIs

SE4: Subject to the necessary resourcing being available, Council commits 50% to maintaining 47% the programs and services listed in 23% the Corporate Plan at or near 37.5% 18% 72% 71% 12.5% current12% levels Projects/KPIs

Projects/KPIs

50% 0% 0%

• Libraries and Cultural Services

14% SE3: Pursue 12.5% alternative sources 14% 0% Council’s 0% of revenue to diversify income streams

12%

Projects/KPIs

50%

37.5%

14%

• Community Services 79%

71%

SE2: Enhance community communication and engagement

23%

14%

• Animal and Pest Services

SE1: Enhance our quality customer service practices 72%

18%

See page 92 for more details. 24%

Projects/KPIs relating to these branches:

PRIORITY FOCUSES

47%

69% 79%

Projects/KPIs

See page 76 for more details.

14%

Projects/KPIs

0% 0% 0%

Projects/KPIs

29%

Projects/KPIs

12% 12.5% E3: Reduce Council’s energy 0% 0% 0% costs and carbon footprint 23% through 18% innovation and new technology12%

Projects/KPIs

37.5% 50%

79%

MG3: Proactive involvement in the 71% review of infrastructure charging 24% 14% philosophies for Queensland 5%

72%

Projects/KPIs

18%

23%47%

MG2: Development assessment to 71% be best practice

72%

Projects/KPIs

E2: Build our future wildlife corridors through vegetation, 47% 50% 100%koala and water quality offsets and focused community partnerships

Projects/KPIs

PRIORITY FOCUSES

Projects/KPIs

PRIORITY FOCUSES

Projects/KPIs

100%

Managing growth in our city (MG)

0% 0% 0%

Council’s CEO Directorate and Organisational Services stream do not have any specific projects or KPIs in the 2014/2015 Operational Plan.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

0% 0

OUR ANNUAL REPORT

OTHER PERFORMANCE INDICATORS

Customer perspective

These have been drawn from the Corporate Performance Report Card.

Customer calls answered within timeframes

Financial perspective Investment returns (actual) against benchmarks (UBS Bank Bill Index) We have consistently achieved at or above the benchmark over the four-year period from June 2011 to June 2015. The 2014/2015 year position for investment returns (3.32 per cent) was a significant outperformance of the UBS Bank Bill Index benchmark (2.58 per cent). This can be attributed to a combination of good returns from managed funds invested and the use of long-term term deposits.

5.13% 4.54% 3.80%

Benchmark = 3.19%

Benchmark = 2.63%

Benchmark = 2.58%

Benchmark = 5.13%

3.32%

2011/2012

2012/2013

2013/2014

2014/2015

From 1 July 2014, we implemented a new performance measure for tracking the time taken to answer telephone enquiries through our customer service contact centre. Consideration was given to the national benchmark for calls answered within a call centre (44 seconds) and resource reductions initiated ahead of the 2014/2015 budget. Performance will be tracked in line with the national benchmark in the 2015/2016 financial year, and with the aim to achieve an average wait time of less than 45 seconds. As a result of this change, data captured for the 2014/2015 financial year is incomparable to previous year’s results. The average wait times for individual months throughout the 2014/2015 financial year are provided on opposite page. There were three months in the 2014/2015 financial year where the average wait time exceeded the acceptable performance range (July 2014, January 2015 and February 2015). During these three months, it was identified that there were reduced numbers of staff in the centre to answer the calls, for a combination of reasons. This may account for the higher average wait times for these months. Over the 12-month period from 1 July 2014 to 30 June 2015, Council’s average wait time of 42.5 seconds was within the acceptable performance range.

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

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

Our percentage of arrears figure of 4.80 per cent is an improvement of 0.38 per cent on the 2013/2014 year figure of 5.18 per cent and on the previous financial year’s performance.

We completed 101 per cent of our planned capital works projects in 2014/2015. This result includes projects by the Parks, Road Infrastructure Delivery, Water Infrastructure and Major Venues and Facilities branches. Capital works projects can include the construction of new or upgraded community facilities and parks, roads, drainage systems, and water and sewerage networks. Major Venues and Facilities branch was the only branch to fall short of the 90 per cent lowest acceptable performance target due to delays in the Logan Metro Sports Park and Jimboomba Park projects. This was counteracted by the above planned delivery by the Road Infrastructure Delivery and Parks branches.

Target = 4.80%

Target = 5.14%

Target = 5.38%

Target = 5.18%

2011/2012

2012/2013

2013/2014

2014/2015

4.80%

Lowest acceptable performance

Target = 100%

101%

86%

2011/2012

STRONGER TOGETHER

93%

2012/2013

92%

2013/2014

Target = 100%

5.18%

5.14%

Target = 100%

5.38%

Target = 100%

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

2014/2015

Acceptable performance range 40–45 (seconds) 58

49 44 39

47 43

Jul 14

Aug 14

Sep 14

Oct 14

Nov 14

Dec 14

Jan 15

Feb 15

Mar 15

Apr 15

May 15

Jun 15

2014/2015 IN REVIEW HIGHLIGHTS • We finalised and adopted the Logan Planning Scheme 2015. • We conducted the Logan Listens: Residents’ Survey, with results indicating residents continue to have a high level of satisfaction with the facilities and services we provide. • We continued to deliver the Logan: City of Choice initiative including specific action plans for each portfolio area. • We produced a quality 2013/2014 Annual Report, which was awarded a Silver Award by the Australasian Reporting Awards. • We finalised and adopted our Total Asset and Services Management Plan 2014. • We opened our new $1.4 million safety camera monitoring room in March 2015, which reinforced messages about community safety in the City of Logan. • We prepared to launch the Logan Together collective impact initiative for children, from birth to eight years, and their families. • We finalised our Reconciliation Action Plan in consultation with Logan’s Aboriginal and Torres Strait Islander communities. • We finalised Logan’s Rivers and Wetlands Recovery Plan after extensive internal and external consultation. • We successfully delivered the Logan Eco Action Festival

• We completed the Community Energy Efficiency Program (CEEP), which resulted in 224 street and park lights being replaced with fluorescent and LED lamps, and the entire lighting systems at the Beenleigh Events Centre and Beenleigh Library being upgraded. • We facilitated 261 one-on-one business mentoring sessions to local businesses. • We attracted a total of $154.72 million of investment into the city. • We facilitated trade and investment missions to South Korea, China and North America. • We finalised the Loganholme Tourism Precinct Master Plan. • We sold six lots at SouthWest 1 generating revenue of $12 million. Other land sales at SouthWest 2 and Wembley Rd generated a further $23.2 million. • We delivered the fourth and final year of the staged implementation of Council’s Risk Management Framework 2010–2014. • We endorsed our City Image Strategy. • We secured $1.5 million for Jimboomba Park through the State Government’s ‘Get Playing Plus’ funding program. • We generated more than $9 million worth of media coverage, of which 95 per cent was positive or neutral. • We delivered community events such as Jazz and Shiraz, Eats and Beats, and launched our city pride campaign.

(LEAF) – attracting more than 6,000 residents to an event that celebrates the local environment and provides information about environmental management and sustainability in a fun, family-friendly atmosphere. LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR ANNUAL REPORT

CHALLENGES AND OPPORTUNITIES • We planned a CPI budget for 2015/2016. • We established the Strategic Asset Management and Maintenance System Project (known as the SAMMS Project), with a focus on transforming the way we manage our significant asset base, valued at more than $6.2 billion. • We adopted an organisation-wide business improvement plan and action plan to help focus improvement/efficiency efforts and build a strong continuous improvement culture. • We finalised the divisional boundary review in preparation for the 2016 Local Government elections.

• We will finalise our Total Asset and Services Management Plan 2015. • We will deliver the 2015 Addendum to the State of the City Report 2015. • We have committed more than $560,000 towards keeping our city graffiti free over the next 12 months. • We will continue to progress our Logan: City of Choice Action Plan initiatives after securing $6.8 million from the Federal Government, State Government and philanthropic organisations. • We will deliver a targeted maintenance program for more than 100 community buildings to ensure they meet acceptable standards for

LOOKING AHEAD • We will invest $215.5 million in road, drainage and engineering services, including bringing forward $7.5 million in funding to complete the $17 million project to upgrade Chambers Flat Rd between Park Ridge Rd and Entrance St in Park Ridge. • We will invest $209 million in water and sewerage services — $42.9 million in community infrastructure and $35.8 million in waste management. • We will also invest $48.8 million in the management and maintenance of the city’s parks while some of the city’s busiest roads will be given a makeover in a $2.4 million city beautification project. • We will establish a $4 million natural disaster fund to ensure Council’s facilities and damaged infrastructure can be restored as quickly as possible after a crisis. • The $9.75 million revitalisation of Beenleigh’s town centre will be completed delivering enhanced civic, recreational and community opportunities.

Our new $1.4 million safety camera monitoring room opened in March 2015.

STRONGER TOGETHER

public use. • We will work with the Queensland Music Festival to deliver Under This Sky: Logan’s Musical Celebration in August 2015. • We will initiate a Work for the Dole program, which will provide project-based opportunities for unemployed people to gain practical and worthwhile job-related experiences and skills. • We will stage a range of local, regional and national events to promote Logan as a business destination after allocating $80,000 to build leads and relationships with businesses and industry. • We will release our environmental offset estimator tool as an upgrade to our online interactive mapping system. • We will facilitate trade and investment missions to China, Taiwan and North America. • We will install 26 new safety cameras across the city.

2014/2015 FINANCIAL SUMMARY OPERATING SURPLUS RATIO

Working capital ratio

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

4.1

4.37

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. We have provided an operating surplus (deficit) trend over the past five years and a forecasted ratio. The operating surplus ratio of 6.9 per cent is a positive result and was higher than anticipated — largely due to profits from land sales at SouthWest 1 and SouthWest 2, additional returns from Logan Water, and savings in depreciation for roads and drainage assets. Operating surplus (deficit) ratio %

6.9

2010/2011

2011/2012

2012/2013

3.15

2013/2014

3.34

2014/2015

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 we are to pay our liabilities out of current operating revenue and is calculated as the value of net financial liabilities (assets) divided by operating revenue. Net financial liabilities (assets) are calculated as total liabilities minus current assets, and a negative measure means that our current assets exceed total liabilities.

2.3

2.1

2012/2013

2010/2011 2011/2012

2013/2014

2014/2015

–2 –2.7

WORKING CAPITAL RATIO

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

The working capital ratio provides an indication of short-term liquidity: whether the business has enough current assets to meet current liability commitments. A ratio of better than 1:1 reflects a strong ability by an organisation to meet its commitments. We had, on average over the past six years, 3.6 times the amount required in current assets to pay our short-term liabilities. In 2015, the ratio was 3.34:1, which was an increase from 3.15:1 in 2014. This demonstrates our healthy liquidity, meaning we have sufficient funds to meet short-term commitments as they fall due.

13.2 11.7 6.9

2010/2011

2011/2012 2012/2013

2013/2014

2014/2015

–10.3 –12.5

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR ANNUAL REPORT

OUR CITY The City of Logan is ideally located in South-East Queensland, Loganwith Citymore than 307,000 residents across 64 suburbs. Our population is expected to grow to 473,000 by 2031.

AUSTRALIA

Noosa

finest tract of land he had seen in this or any other country and he named it the Darling, in honour of the Governor of Queensland. However, the Governor returned the compliment by renaming it Logan River, in recognition of Loganâ&#x20AC;&#x2122;s enthusiasm and efficiency. The first leases of land in the Logan area were issued from 1849 and immigration was encouraged following the Heads separation from New South Wales in 1859. Irish, English and German settlers initially settled the area.

Our city has a mix of rural and urban lifestyles that are woven together by open green spaces, a dynamic, diverse and proud community, and a range of educational, industrial Cotton, sugar and dairy farming were the major industries in and business opportunities that are connected by distinct Coolum Beachthe regionâ&#x20AC;&#x2122;s first 100 years. urban, economic and cultural hubs.

After World War II, urban development boomed in the former Albert and Beaudesert shires, and the South-East Freeway was also built to link Brisbane to the Gold Coast.

OUR HISTORY

The Logan region was originally inhabited by Aboriginal Mooloolaba The Logan local government area was created in 1979 and people from two major language groups: the Yugambeh Logan was declared a city in 1981. In 2008, parts of the and the Jagera. Their first contact with Europeans former Beaudesert Shire and Gold Coast City joined Logan occurred when the Commandant of the Moreton Bay City, creating what is now the fifth-most populated local Penal Settlement, Captain Patrick Logan, explored the Caloundra government area in Australia. river in 1826. He described the river as running through the

Kilcoy

Caboolture

Esk

CITY OF LOGAN Strathpine

AUSTRALIA

Brisbane

Gatton

Ipswich

CITY OF LOGAN

Warrill View

Beenleigh

Gold Coast 14

Boonah

Nerang Beaudesert Surfers Paradise

THE CITY OF LOGAN IN PROFILE

19,502 businesses

12 council divisions incorporating 107,957rateable assessments

54% of the city's area is vegetated

An economy worth

$19.298 billion with a gross regional product of $9.8 billion 116 sporting facilities

Logan City Council 2014/2015 budget:

$804.9 million

Assets worth more than

4 major city community venues

9 libraries

55 neighbourhood and community centres

4 indoor sports centres 6 aquatic centres

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

64 suburbs covering 957 square kilometres

94km of unsealed roads 245km of bikeways 227,148 tonnes of waste handled each year: 50,673 tonnes is recycled

2,087km of wastewater mains 6 cemeteries

924 parks 1,088km of footpaths 305,110 residents comprising 217 ethnicities 26.1% of residents were born overseas Median age: 33 2,053km of sealed roads

2,633ha of wetlands

2,177km of waterways

42,372ha of ecological corridors

2,126km of water mains

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR ANNUAL REPORT

MAYOR'S MESSAGE Our community is stronger when it works together, and that has been reflected over the past 12 months. We are Stronger Together in every sense, especially when working in partnership with those individuals and organisations that create the wonderful community spirit we all enjoy. As the elected council, it is our vision that we build Logan’s communities, businesses and pride. We have gone above and beyond during 2014/2015 to do so, but it was not in isolation. Perhaps the most visual examples of being Stronger Together in the community were the continuation of the Logan: City of Choice initiative, and the planning of the Queensland Music Festival – Logan’s Musical Celebration ‘Under this Sky’, scheduled for August 2015. The two-day Queensland Music Festival has brought together many talented musicians, singers and actors over the past 12 months, as well as those who work behind the scenes, to create something never seen before in Logan. The Logan: City of Choice Leadership Team continued to meet with State and Federal Government representatives to ensure our needs remained on the agenda. Planning was also underway for a new program to improve the health, education and wellbeing of every child aged up to eight years in our city. We have been able to source more than $1.6 million of government and philanthropic funding for Logan Together, which is launching in 2015/2016. In making our economy stronger, we finalised and implemented the Logan Planning Scheme 2015 in May 2015 to create a unified planning approach for all of the city. This will ensure we manage population growth in a

STRONGER TOGETHER

sustainable way and create jobs for our long-term future. We also continued to support our city’s 20,000 businesses, both large and small, through the Logan Office of Economic Development and welcomed new businesses into the city. We are spreading our wings into the international market, with delegations to Asia and North America sharing the message that Logan is open for business. To strengthen our pride, this year we introduced the Eats and Beats pop-up food and music event, which happens on the last Friday of each month at a different location. We wanted to bring together foodies while providing an opportunity for local musicians in a unique market atmosphere. This has been more successful than we could have ever imagined and is shining our city in a new light. We also launched a new city pride campaign to show the rest of the world that the City of Logan is entering a new chapter. This campaign again brought together the best parts of our community, from local produce growers and school children, to our beautiful environment and historic remnants and cultural diversity. These achievements would not be possible without the support of my fellow councillors, our Chief Executive Officer Chris Rose, his management team and our expert staff. It is by working together with our community that we can become stronger.

Finally, in a decision that I did not make lightly, I will be stepping away from Logan City Council following the 2016 elections in March, after almost 20 years serving the community as councillor and mayor. We are a city on the go and I have been proud to be part of the team that is setting up a stronger tomorrow for future generations. My very best wishes to you all for a wonderful future. A particular thank you to the many people over the years who have shown me such kindness, support, encouragement and friendship in my role as a truly dedicated people’s Mayor.

“I firmly believe it is a connected community that makes a city great – and that is certainly the case here in the City of Logan.”

Cr Pam Parker City of Logan Mayor

CEO'S MESSAGE It was another successful year for our city, our council and our organisation as we continued the trend of high levels of performance against established priorities and benchmarks, particularly in the key areas of economic development, city image and infrastructure delivery. With the strong support of our council, the Logan: City of Choice project is evolving into a significant initiative that will bring long-lasting benefits for our community. One of the exciting projects emanating from City of Choice, the Logan Together initiative, is a groundbreaking project that will improve the lives and future of 0–8 year olds in our city. We place great importance on feedback we receive from our community and our customers. The Logan Listens Residents’ Survey results from October 2014 provide strong evidence that we are delivering services that our communities value, with high levels of community satisfaction. This is important, and we will continue to strive for improvement in both service delivery and value for money. Our organisation continues to be in a sound financial position through prudent management and long-term strategic financial planning. We are pleased that we again received an unqualified audit report. Additionally, our internal audit program continues to be proactive and we have no outstanding high-risk issues. In delivering our roads capital program this year, we did not achieve our envisaged percentage level of completion. While there were acceptable reasons for this backlog, there is a strong commitment to catching up as quickly as possible and ensuring that ongoing capital delivery rates exceed the targets set. We also continue to lobby for certainty from the State Government around funding for infrastructure to support growth in the future. This is critically

important, and we will continue to pursue this on behalf of our ratepayers, both current and future. Our council adopted the 2015/2016 rates and charges this financial year. The rates increase was the equivalent of prevailing CPI for Brisbane for the third consecutive year, and incorporated maintaining ongoing service delivery at current levels, as well as a range of important service, capital and project enhancements. It is a credit to the commitment of our staff and their focus on continuous improvement that we have maintained this position. Like all businesses, we continued our focus on the workplace we need for success now, whilst also ensuring we are creating the workplace we need for the future. This is primarily captured in our “People Plan”, and we began updating this important document this year. We also focused on safety in the workplace during 2014, with our Year of Organisational Safety initiative. It is pleasing to see strong support from staff for safety, and improved performance against our key targets. The awards we received this year as detailed in this report, are extensive and significant, ranging across the broad spectrum of our business. These awards are judged by independent experts, and confirm the high levels of innovation and achievement realised this year. I would like to record my appreciation to Mayor Pam Parker and our 12 councillors for their direction and support during the year. I particularly express my view

that they have been well-focused and very successful in delivering against the priorities set in their Corporate Plan 2013–2018. They can be rightly proud of their achievements in this regard. I have the privilege of working with a large and diverse team of committed, competent and dedicated staff. The achievements detailed in this report would not be possible without their support. I thank each and every one of them for their contributions during the year and look forward to continuing our important work of providing facilities and services of a high standard to our communities and customers while maintaining a strong focus on the importance of being “great value for money”.

“I have the privilege of working with a large and diverse team of committed, competent and dedicated staff.”

Chris Rose PSM Chief Executive Officer

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR ANNUAL REPORT

HOW WE ENGAGE OUR COMMUNITY LOGAN LISTENS: RESIDENTS' SURVEY In 2014, we conducted our fifth Logan Listens: Residents' Survey, a city-wide survey that has been conducted since 2010. In addition to playing a key role in our annual planning and budgeting process, the survey results help us gauge our overall performance in providing services to our residents. In 2014, eight out of 10 people (80 per cent) indicated they were either 'satisfied' or 'very satisfied' with our services and facilities. The chart below shows an increase in residents' satisfaction across all of Council's services every year for the five-year period from 2010 to 2014. Logan Listens: Residents’ Survey overall satisfaction with Council services and facilities

COMMUNITY ENGAGEMENT ACTIVITIES CONDUCTED IN 2014/2015 Residents have the opportunity to “have a say” on Council decisions that affect their community. In 2014/2015, the number of large projects involving community engagement substantially increased but online engagement opportunities decreased. The following graph shows the number of projects where community engagement was undertaken and how many online engagement activities were completed over the past three years.

Engagement projects

Online engagement

78 59 55

3.98%

52 31

Overall satisfaction rating

3.88% 3.71%

3.75%

3.54%

2012/2013

2013/2014

2014/2015

Key projects 2010

2011

2012

2013

2014

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

FINALISATION OF THE LOGAN PLANNING SCHEME The draft Logan Planning Scheme was released for consultation with the community in early 2014. During 2014/2015, we focused on ensuring people understood and were aware of the process being undertaken to review all community feedback. We used easily-interpreted materials to aid people in understanding technical matters. This community engagement was the largest in the city’s history reaching every household in the city. We received 693 submissions, met with more than 2,600 people, and had 26,065 visits to our website (65 per cent were unique*). The Logan Planning Scheme was adopted in May 2015. *A unique visit to the website means it is from a different computer.

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LOGAN: CITY OF CHOICE INITIATIVE Following the Logan: City of Choice Summit in 2013, which led to the development of a Two Year Action Plan, members of the community asked for a community governance process to be established. As a result, the Logan: City of Choice Leadership Team was formed, involving representatives from all levels of government, the community and experts relevant to the summit’s key themes.

The leadership team was able to provide and build capacity within the community, government and partner organisations. Just one year after its formation, the leadership team had already netted incredible benefits for the Logan community, including securing more than $656 million in investment commitments for City of Choice Action Plan initiatives.

Key highlights included: Employment

South Western Corridor Workforce Development

A workshop was held in November 2014 to address workforce development needs in the corridor, including Yarrabilba and Flagstone. Council hosted the event, which was attended by representatives from the State Government, industry and development sector.

Housing

Logan Renewal Initiative

In September 2014, the Department of Housing and Public Works announced that not-for-profit housing provider, Logan City Community Housing, would manage social housing across Logan from mid-2015 as part of the Logan Renewal Initiative. This will review and revitalise the community over the next 20 years.

Education

Pacific Youth Research Symposium

More than 120 people from academic, education, health, government and church organisations came together in November 2014 at Woodridge State High School to learn new strategies to better engage with Pacific islander youth.

Social infrastructure

Logan Together collective impact model

This initiative – aimed at improving the health and wellbeing of every child aged zero to eight years in the city – continued to build momentum, with support from the Federal Government and key State Government departments. Funding was also secured through the philanthropic Ten20 Foundation. By December 2014, 37 agencies signed up and plans progressed well for a backbone organisation.

Safety

Logan safety camera network

An additional five cameras were installed in August 2014 in Woodridge and Logan Central (co-funded by Logan City Council and the former Queensland Department of Local Government, Community Recovery and Resilience). Planning is also continuing for additional cameras in locations across the city, funded through a $1.4 million Federal Government grant.

The new Logan Planning Scheme was adopted in May 2015 and will guide future development in Logan.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR ANNUAL REPORT

LOGAN RIVERS AND WETLANDS RECOVERY The Logan Rivers and Wetlands Recovery Plan 2014–2024 sets the direction for the recovery of Logan’s rivers, streams and wetlands with collaboration and community stewardship at its centre. The focus is on empowering our local communities to take increasing ownership of our environment and deliver on-ground actions to improve local waterways. Community engagement to determine how our city could best improve the health of our waterways started with the Logan Waterways Summit in 2011. This has grown into an ongoing city-wide effort with a diverse range of activities working to improve waterway health today. With the city’s population set to increase significantly over the next two decades, it is critical that we prepare for this growth and ensure that these unique community assets are enjoyed, used and protected for future generations.

In 2014/2015, the following pilot projects were undertaken: Slacks Creek Catchment Recovery Project

• More than 30,000 trees planted

Logan River Landholder Engagement Project

• One-on-one engagement with 101 properties

• $1.9 million in funding from the Federal and State governments • 4km of riparian revegetation

• Six sustainable property management workshops • 20 property management plans along 11km of the Logan River

Share a cuppa with the mayor Residents were offered ten minutes to have a one-on-one chat and complimentary cuppa with the Mayor and divisional councillors each month during 2014/2015.

STRONGER TOGETHER

COMMUNITY EVENTS AND ACTIVITIES We are proud to host events for the community that instil community pride and enhance the city’s image. Council sponsors or runs many events throughout the year that aim to increase our residents’ participation in the community through healthy activity, learning programs and workshops. These programs, services and events include:

Community events sponsored by Council Council sponsors many externally-run events and festivals. We provided more than $151,862 towards community events in 2014/2015.

Council-run events and activities In 2014/2015, Council hosted the 2014 Logan Mayor’s Christmas Carols (December 2014), Jazz and Shiraz (May 2015) and launched the new Eats and Beats pop-up food truck and music event. FREE TREES All Logan City ratepayers can beautify their properties by accessing three free trees each financial year. WASTE Residents can learn more about waste through our Watch Out Waste education program. We also offer a kerbside clean-up service and free household paint and chemical drop-off days.

Our city’s nine libraries are very popular with our residents.

Council-run educational events

Council-run cultural events

ENVIRONMENTAL WORKSHOPS

LOGAN ART GALLERY

We are committed to protecting, managing and enhancing our natural environment and offer a variety of environmental programs, workshops, events and activities for residents to increase environmental awareness and understanding.

Logan Art Gallery celebrates the diverse practices of visual artists, craft workers and designers, and presents a dynamic exhibition program for residents and visitors to the region. Exhibitions feature touring exhibitions, local artists, visiting artists and works from the Logan Art Collection. An extensive range of free public programs is offered and includes guided tours, practical workshops, special events and artist talks.

BUSINESS DEVELOPMENT OPPORTUNITIES The Logan Office of Economic Development provides information, business workshops and networking opportunities to make it easier to do business in the City of Logan. ENVIRONMENTAL HEALTH SERVICES We support a healthy environment for our community. We aim to minimise our community’s exposure to health risks by providing specific intervention-based preventative measures. We provide vaccination services, pest management, graffiti removal services and encourage responsible companion animal ownership. Various educational events and activities to support these endeavours are run throughout the year. LIBRARIES Our nine libraries provide innovative, inclusive and collaborative library spaces, services, programs and collections to engage, inspire, empower and inform our diverse communities. DISASTER MANAGEMENT We encourage our residents to be ready for natural disasters and emergencies. In 2014/2015, we arranged a series of events enabling residents to meet with emergency services providers so they could learn more about how to be prepared to protect life and property.

LOGAN ENTERTAINMENT CENTRE (LEC) The Logan Entertainment Centre showcases a diverse range of national and international musical performances and artists every year. The popular Merry Melodies series entertains audiences with a range of quality acts – from classic love songs to Broadway hits.

Council-run active and healthy activities LIVE WELL LOGAN This initiative offers a range of low-cost physical activities and healthy living programs for everyone to enjoy. The activities are a great way to get active, enjoy our parks and local facilities, and meet new friends in the local community. AQUALOGAN LAURIE LAWRENCE SWIM SCHOOL Logan North Aquatic and Fitness Centre is home to the Aqualogan Laurie Lawrence Swim School. Teaching children to swim not only encourages active lifestyles but reduces the risk of childhood drownings in the city. KRANK The KRANK school holiday program is a low-cost program for Logan residents aged 13–17 years that offers a broad range of activities including sports, recreation, entertainment and cultural activities at venues throughout the city.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR ANNUAL REPORT

AWARDS RECEIVED IN 2014/2015 Our organisation received the following awards during 2014/2015, recognising the excellent contributions our staff make to the community. Information about our internal Employee Excellence Awards can be found on page 39.

LOGAN CITY COUNCIL

Name of awards

Presented by

Award won

Comments

Healthy Waterways Awards

Healthy Waterways

Sustainable Water Management Award

For the Blackwell Street Wetlands Park at Hillcrest

Healthy Waterways Awards

Healthy Waterways

Government Stewardship Award

For the Logan River Landholder Engagement Project

2015 Swim Australia Awards

Swim Australia

Outstanding Community Service Award

For the Kids Alive Do the Five swimming program

Australasian Reporting Awards

Australasian Reporting Association

Silver Award

For the 2013/2014 Annual Report

Australian Institute of Landscape Architects Qld Awards

Australian Institute of Landscape Architects Qld

Winner – Urban Design Category

For the Beenleigh Town Square project

Australian Institute of Landscape Architects Qld Awards

Australian Institute of Landscape Architects Qld

Winner – Design Category

For the Forest of Memories at Logan Village

Local Government Managers Association Queensland Awards

Local Government Managers Association Queensland

Winner – Excellence in Sustainability

For the Pressure and Leakage Management Program

2014 Golden Target Awards

Public Relations Institute of Australia

Commendation

For outstanding performance by Council’s in-house public relations team

Queensland Safe Work Awards 2014

Workplace Health and Safety Queensland (Queensland Government)

Best Work Health and Safety Management System

For the Alliance’s approach to workplace health and safety management

Global Alliance of Healthy Cities Conference Awards

World Health Organisation

Special Recognition Award (Winner)

For contributing to the advancement of Healthy Cities in the Western Pacific

Global Alliance of Healthy Cities Conference Awards

World Health Organisation

Health in All Policies (Winner)

For the Logan: City of Choice initiative

Engineering Excellence Awards

Queensland Institute of Public Works Engineering Australasia

Highly commended (projects less than $1 million)

For Kimberley Forest scour rectification works

Fitness Australia Quality Awards

Fitness Australia

Gold Award

For Logan North and Logan Metro fitness centres

AustSwim Queensland Swim School of the Year

AustSwim

Winner

For the Aqualogan Laurie Lawrence Swim School

2014 Golden Target Awards (Queensland)

Public Relations Institute of Australia (Queensland branch)

In-house PR Team of the Year

For outstanding performance by Council’s in-house public relations team

2015 Maxima Employer Awards

Maxima

Winner

For Youth Employer of the Year

2015 Heart Foundation Local Government Awards

Heart Foundation

Queensland Winner for populations greater than 25,000

For working to improve heart health through a variety of initiatives

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INDIVIDUAL Name of awards

Presented by

Award won

Presented to

Local Government Association of Queensland Healthy Leader Awards 2014

Local Government Association of Queensland

Winner – Senior Category

Mike Ellis

Economic Development Australia National Awards for Excellence

Economic Development Australia EDA

Innovation Award

Nick McGuire

Local Government Managers Association Queensland Awards

Local Government Managers Association Queensland

Manager of the Year for Leadership and Management Excellence

Chris Rose

Bob Marshman Trainee of The Year Award for The South East Region

Queensland State Government – SEQ Bob Marshman Trainee of the Year Award

Winner

Lachlan McIver

The award-winning Forest of Memories, located at Logan Village, showcases the pioneer history of our city. LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

OUR COUNCIL This section highlights how Logan City Council works for its community, with information about our elected members, executive leadership team and our staff.

STRONGER TOGETHER

Stronger together: we take pride in our cityâ&#x20AC;&#x2122;s 924 parks. Funderwood Hollow, which opened in July 2015, is a popular part of Underwood Park.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

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

(Audit Committee)

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

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

• Councillors

• Standing committees

Chief Executive Officer (See page 56) Strategy, Leadership and Performance Team

Office of the CEO

Road and Water Infrastructure (See page 58)

Community and Customer Services (See page 60)

Organisational Services (See page 62)

Strategy and Sustainability (See page 64)

Deputy CEO

• Disaster Management and Specialist Engineering Support

• Animal and Pest Services

• Administration

• Development Assessment

• Marketing

• Governance

• Major Venues and Facilities

• Information Services

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

Community outcomes

The CEO also provides executive leadership to the organisation.

Council • Mayor

(Internal Audit)

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

STRONGER TOGETHER

• Community Services • Customer Service

• Finance

• People and Culture • Plant Fleet Services

• Libraries and Cultural Services

• Economic Development • Environment and Sustainability • Growth Management and Urban Design • Waste Services

• Parks

• City Standards

• Media and Communication

• Building our major infrastructure

• Building our economic base • Building our environment

• Building the wellbeing of our communities

• Building our city’s image

• Building our service excellence

• Managing growth in our city

DEMOCRATIC GOVERNANCE ELECTED MEMBERS Mayor Pam Parker After serving 11 years as a Logan City councillor, Pam Parker was elected as Logan’s first female mayor in 2008 and re-elected unopposed in the 2012 Local Government election. The City of Logan is now Australia’s fifth largest local government area by population, and Mayor Parker is dedicated to making Logan a city where people matter and can live, learn, work and play. With the city’s annual economic output of $19.2 billion and the population set to boom over the next two decades, Mayor Parker is confident about Logan’s exciting future.

Mayor Parker is an executive member of the South-East Queensland Council of Mayors, Chair of the Council of Mayors Planning Reform Taskforce, and an executive member of the Women in Local Government Association. She is a member of the Invest Logan board and the Queensland Economic Development Association, and was recognised for Economic Development Excellence in 2011. As Mayor, she also chairs the Logan City Local Disaster Management Group. As well as being patron or member of numerous community organisations, Mayor Parker has been a lifetime volunteer for many organisations, clubs, schools and charities. She is known for her strong, caring and inclusive community focus, for being hard-working and getting the job done to create a sustainable and desirable future for the city and its residents.

Logan City councillors (from left): Cr Luke Smith, Cr Jennie Breene, Cr Graham Able, Cr Lisa Bradley, Mayor Pam Parker, Cr Darren Power, Cr Trevina Schwarz, Cr Steve Swenson, Deputy Mayor Russell Lutton, Cr Don Petersen, Cr Phil Pidgeon, Cr Cherie Dalley and Cr Laurie Smith.

OUR COUNCIL

Councillor Lisa Bradley (DIVISION 1) Councillor Lisa Bradley was elected to Logan City Council in 2008 after 19 years as a registered nurse, including 14 years in intensive care. She has a Bachelor of Applied Science (Nursing) and post-graduate qualifications in business, intensive care and psychiatric nursing, and has been involved in quality improvement, education and research. Cr Bradley is a patron of a number of organisations and has volunteered for a number of clubs, charities and organisations. She chaired the Environment and Sustainability Committee between 2008 and 2012, and the Health, Environment and Sustainability Committee in 2012/2013. Cr Bradley has three adult children and enjoys yoga as part of her daily exercise routine. She is a member of the Australian Institute of Company Directors and achieved a Company Directors Course Diploma in 2011.

Councillor Russell Lutton (DIVISION 2, Deputy Mayor) Councillor Russell Lutton is one of the city’s longest-serving councillors, first elected in 1985. Before becoming a full-time councillor, he worked for Queensland Rail and was Woodridge Station Master. Cr Lutton has served on all of Council’s standing committees, including six years as chair of the Town Planning and Environment Committee and four years as chair of the Development and Environment Committee. He currently serves as the chair of the Sport and Community Services Committee, Safe City Advisory Committee and the Road Safety and Bicycle Advisory Committee. Cr Lutton became a councillor to help people in the community and make a difference. He has three children, has lived in Logan since 1982 and has an active interest in all sports.

Councillor Steve Swenson (DIVISION 3) Councillor Steve Swenson was elected to Logan City Council in 2012. He worked in the not-for-profit sector for more than 20 years and also served as a Logan honorary ambassador from 2010 to 2012. He previously worked as a youth worker, church minister and community relations officer. Cr Swenson believes the city’s enviable location, lifestyle and abundance of green space are the city’s biggest attractions, but the people are the jewel in Logan’s crown. He became a councillor to make an effective contribution to the community and ensure the concerns of residents are heard and acted upon. He feels humbled to work on behalf of the city and its residents to influence how Logan grows and develops. Cr Swenson is married to Sherry and they have two school-aged children. He loves all sports, especially cricket and rugby league.

STRONGER TOGETHER

Councillor Don Petersen (DIVISION 4) Councillor Don Petersen was elected to Logan City Council in 2012. He was a councillor with the former Beaudesert Shire Council for 14 years until 2008. He has chaired the Roads and Water Infrastructure Committee since 2012. He is interested in bringing transportation and social infrastructure matters to the forefront and is keen to see positive changes in the Logan community. Cr Petersen believes in building communities from the ground up. As an active member of many organisations over many years, he knows social change cannot be imposed on a community – it has to be a grassroots, long-term process by the community. He and his wife Nola have lived at Jimboomba since 1990 and they have two adult children.

Councillor Graham Able (DIVISION 5) Councillor Graham Able is one of the city’s longest-serving councillors after first being elected in 1985. Cr Able, who has lived locally since 1975, describes himself as self-educated. He spent his childhood at Nudgee orphanage, St Vincent’s Home — a time of which he is proud. After working as a farm hand and travelling extensively around Australia with book companies, Cr Able worked for PMG (now Telstra) and in 1978 set up his own commercial cleaning business. He was Mayor of Logan from 2006 to 2008, Deputy Mayor from 1997 to 2004, and has chaired the Health Committee and City Works Committee. He is currently serving as chair of the Animals and City Standards Committee, a role he also held in the 2008-2012 term. Cr Able and his wife have four children.

Councillor Luke Smith (DIVISION 6) Councillor Luke Smith was elected to Logan City Council in 2006 as the Division 5 Councillor, and he was elected to represent Division 6 in 2008. Born and raised in Logan, Cr Smith has a professional background in the media, having worked for Network 10 and in film production. Cr Smith is passionate about his work in the local community, having worked as a Senior Minister for Impact Christian Community Church and later as a community worker at the Loganlea Community Centre. Cr Smith chairs a number of committees across Council, including the Governance, Finance and Economic Development Committee and the Audit Committee, and he is a member of several internal and external boards. Cr Smith previously chaired the Logan Enterprises Board and Council’s Water and Waste Committee. He is married and has three daughters.

Councillor Laurie Smith (DIVISION 7) Councillor Laurie Smith was elected to Logan City Council in 2012, after a career in the printing industry, most recently as business development manager, and nine years in the Australian Defence Force. He was the area coordinator of his local Neighbourhood Watch for 15 years and has been involved with surf lifesaving since 2002, including time in committee and official roles. He now spends his time as an official at surf lifesaving carnivals. Cr Smith is assistant chairperson of Council’s Roads and Water Infrastructure Committee. As a councillor, he is dedicated to changing people’s lives and surroundings by improving their enjoyment of local community parks and facilities. Cr Smith is married with three adult children. He has lived in Logan since 1983.

Councillor Cherie Dalley (DIVISION 8) Councillor Cherie Dalley was elected to Logan City Council in 1997. She operated a commercial tiling business with her husband until 1999. 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 previously chaired Council’s Finance Committee and is currently chair of the Planning and Development Committee, a role she also held in the 2008–2012 term. A divisional consultation committee advises Cr Dalley on issues — she says the feedback helps her make decisions to benefit the whole community. Cr Dalley has lived in Logan since 1980, and she has three grown children and three grandchildren.

Councillor Phil Pidgeon (DIVISION 9) Councillor Phil Pidgeon was elected to Logan City Council in 1997. Born and bred in Queensland, he grew up in Central Queensland and Brisbane, and worked as a trainee manager at Woolworths, obtained a trade as a sheet metal worker and welder, and spent time as a professional photographer before being elected to Council. Cr Pidgeon is patron of several community groups, including the Queensland Bird Breeders Club (based in Logan), the Crestmead 40+ Club and Logan City Square Dancers, is an honorary member of the Logan District Orchid Society and founder of the Crestmead Community Garden. Cr Pidgeon has previously chaired various Council committees that have managed roads and drainage, parks, sport, community services, animals, regulatory services and city standards. Councillor Pidgeon is married with four children and has four grandchildren.

Councillor Darren Power (DIVISION 10) Councillor Darren Power was elected to Logan City Council in 1997 and served two terms as the Development, Health and Environment Committee chairperson after previously working with Council’s environmental health department for five years. He was a qualified graphic reproducer with the Herald Sun, and also served as a qualified Special Forces Commando and a Federal Officer. Cr Power believes that living in Logan and working at Council has provided him with an understanding of residents’ needs and an essential knowledge of Council’s operations. His vision is for Logan to become a brighter and more appealing city that continues to provide better facilities for all residents. Cr Power lives in Shailer Park with his wife and family.

Councillor Trevina Schwarz (DIVISION 11) Councillor Trevina Schwarz was elected to Logan City Council in 2012 and currently serves as the Parks, Health, Environment and Sustainability Committee chairperson. Cr Schwarz has 13 years experience in the accounting profession and also managed her family’s mechanical workshop. She has lived in Logan since 1989 and believes the area’s unique rural lifestyle should be protected for families. As a councillor, she aims to ensure residents’ interests are served. Cr Schwarz grew up on acreage and has a lifelong love of horses; she has ridden at Royal level equestrian competitions. With her husband, she also imports American muscle cars and they have also been keen drag racing fans. Cr Schwarz and her husband have two children.

Councillor Jennie Breene (DIVISION 12) Councillor Jennie Breene was elected to Logan City Council in 2012 and is the assistant chairperson of the Sport and Community Services Committee. Prior to being elected, Cr Breene worked in her parents’ Brisbane-based business, managing the finances and customer service. Her previous work experience has been in office administration and customer service. She is extremely passionate about 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 and has lived in Beenleigh for more than 20 years. She has been married to Michael for 21 years and they have two teenage children, Geoffrey and April.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

THE ELECTED COUNCIL'S RESPONSIBILITIES 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.

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

The community also plays a role in good democratic governance by participating in elections, being actively involved in engagement programs, and providing feedback on current issues and the services provided.

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

MAYOR – Pam Parker

DIVISION 2 – Cr Russell Lutton

Representing the whole of the City of Logan.

DIVISION 3 – Cr Steve Swenson Representing Daisy Hill (part of), Kingston (part of), Slacks Creek, Springwood (part of) and Underwood (part of).

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

DIVISION 7 – Cr Laurie Smith

DIVISION 5 – Cr Graham Able

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

DIVISION 1 – Cr Lisa Bradley

Representing Berrinba (part of), Browns Plains (part of), Crestmead (part of), Kingston (part of), Loganlea, Marsden and Waterford West (part of).

DIVISION 11 – Cr Trevina Schwarz

Rochedale South

DIVISION 8 – Cr Cherie Dalley

Representing Cedar Grove, Cedar Vale, Greenbank (part of), Jimboomba (part of), Kagaru (part of), Lyons, New Beith, North Maclean (part of), South Maclean (part of), Undullah (part of), Veresdale (part of), Veresdale Scrub (part of) and Woodhill.

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

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

Browns Plains

Hillcrest Regents Park

Div 7

Boronia Heights

Berrinba

Daisy Hill

Div 3 Slacks Creek

Kingston

Shailer Park Cornubia

Meadowbrook

Div 5

Loganlea

Marsden Heritage Park

Tanah Merah

Crestmead

Bethania

Waterford West

Park Ridge Waterford

Logan Reserve

Carbrook

Loganholme Eagleby

Edens Landing

Div 12

Holmview

Beenleigh Mount Warren Park

Park Ridge South Bahrs Scrub

Buccan Chambers Flat

Munruben North Maclean

New Beith

Windaroo Belivah Bannockburn

Div 9

Lyons

Logan Village

Stockleigh

Div 11

Div 10

Div 6

Div 8

Greenbank

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

Springwood

Woodridge Logan Central

Forestdale

Div 1

Underwood

Div 2

DIVISION 10 – Cr Darren Power

Priestdale

Wolffdene

South Maclean

Div 4 Cedar Creek

Yarrabilba

DIVISION 12 – Cr Jennie Breene Representing Beenleigh, Eagleby, Edens Landing and Holmview (part of).

DIVISION 6 – Cr Luke Smith

Jimboomba Undullah

Kairabah

Kagaru Tamborine Cedar Grove

DIVISION 9 – Cr Phil Pidgeon

STRONGER TOGETHER

DIVISION 4 – Cr Don Petersen

Cedar Vale Woodhill

Representing Chambers Flat, Crestmead, Jimboomba (part of), Veresdale Logan Reserve, Logan Village (part of), Munruben Forest, North Maclean (part of), Park Ridge South (part of), South Maclean (part of), Stockleigh and Waterford West (part of).

Veresdale Scrub

Representing Bethania, Cornubia (part of), Loganholme, Meadowbrook and Tanah Merah.

Mundoolun

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

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

Public Sector Ethics Act implementation statement During the year, we undertook the following actions to fulfil our obligations under the Public Sector Ethics Act 1994: • The Code of Conduct was updated as required and is reviewed every three years. Refresher training was conducted for all staff against the reviewed Code during the second half of 2014. In addition, electronic and online training courses in Code requirements were reviewed and updated. • The Code was made available upon request to all staff and to the public online, and internally via our electronic document management system. • We provided all new permanent staff with online training and access to a copy of the Code of Conduct. • No external inspections of the Code were requested during 2014/2015.

Councillor Code of Conduct disclosures 2014/2015 We are required to disclose figures relating to the 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.

No breaches or orders to report for 2014/2015.

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 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 in accordance with section 176C(4)(a) of the Act.

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

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

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

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

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

COUNCILLOR REMUNERATION In accordance with the Local Government Regulation 2012, the Local Government Remuneration and Discipline Tribunal is responsible for determining the maximum remuneration payable to the Mayor, Deputy Mayor and councillors. As determined in the 2013 Local Government Remuneration and Discipline Tribunal Report, remuneration paid to councillors between July 2014 and June 2015 is detailed below.

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

Surname

Given names

Division

Period covered

Total

Logan City Council superannuation

Parker

Pamela Lorraine

Mayor

Full year

$190,358.37

$22,840.78

Bradley

Lisa Catherine

Full year

$114,215.02

$13,705.69

Lutton

Russell Bruce

Full year

$129,443.25

$15,533.08

Swenson

Stephen Frederick

Full year

$114,215.02

$13,705.69

Petersen

Donald Christian

Full year

$125,636.45

$15,076.49

Able

Graham John

Full year

$125,636.45

$15,076.49

Smith

Timothy Luke

Full year

$125,636.45

$15,076.49

Smith

Laurence William

Full year

$114,215.02

$13,705.69

Dalley

Cherie Marie

Full year

$125,636.45

$15,076.49

Pidgeon

Phillip Wayne

Full year

$122,034.49

$11,593.22

Power

Darren Ross

Full year

$114,215.02

$13,705.69

Schwarz

Trevina Dale

Full year

$125,636.45

$11,955.14

Breene

Jennifer Rachael

Full year

$114,215.02

$10,850.33

EXPENSES REIMBURSEMENT POLICY FOR COUNCILLORS We adopted a new Expenses Reimbursement Policy for councillors in April 2014 in accordance with section 250 of the Local Government Regulation 2012. Our new policy considers the ‘24/7’ nature and community expectation of a modern councillors’ role and makes arrangements for reimbursing expenses for our councillors: • conferences and seminars, including travel and accommodation

• publications and newspapers • safety equipment and uniforms

• training and professional development

• vehicles, including fuel and tolls

• civic-related expenses

• insurance cover and legal cost

• daily meals and refreshments

• superannuation.

• facilities, including office accommodation, equipment, stationery and executive support Refer to the Appendices (page 196) for a full copy of our Expenses Reimbursement Policy.

STRONGER TOGETHER

ATTENDANCE AT COMMITTEE AND COUNCIL MEETINGS Councillors must attend 75 per cent of the duration of each meeting to have attendance recorded. All councillors are members of all of Council’s standing committees. Councillor Russell Lutton is the chairperson for Council’s advisory committee meetings. *The Mayor is not required by Council to attend all committee meetings.

Road and Water Infrastructure

Sport and Community Services

Parks, Health, Environment and Sustainability

Governance, Finance and Economic Development

Planning and Development

Animals and City Standards

CNCL Ordinary Council

1 July 2014 to 30 June 2015

SCN

Special Council

Safe City Advisory

Logan Road Safety Advisory

Logan Bicycle Advisory

Committee meetings

Advisory committee meetings

CNCL

TOTAL

113

Cr Russell Lutton (Deputy Mayor)

Cr Lisa Bradley

109

Cr Steve Swenson

Cr Don Petersen

Cr Graham Able

Cr Luke Smith

105

Cr Laurie Smith

Cr Cherie Dalley

Cr Phil Pidgeon

Cr Darren Power

Cr Trevina Schwarz

100

Cr Jennie Breene

113

Number of committee meetings Cr Pam Parker (Mayor)*

SCN

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

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.

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

Chris Rose PSM CHIEF EXECUTIVE OFFICER: CEO SINCE FEBRUARY 2006; DIRECTOR 1995 TO 2004 Chris began his career in local government in 1973. He worked for four local authorities in New South Wales before joining Logan City Council as Director of Corporate Services in 1995, becoming Director of City Governance and Policy Coordination in 1998. He served as Toowoomba City Council’s CEO for two years, and returned to Logan in February 2006 as CEO. His role is one of overall strategic management of Council’s organisation. He is principal adviser to Council on local government matters. Chris holds qualifications in local government and accounting, and is a Fellow of the Local Government Managers Australia, a Fellow of the Australian Institute of Management and a Fellow of the Australian Institute of Company Directors. Chris was honoured to receive the Public Service Medal (PSM) in the Queen’s honours list announced on Australia Day 2010 for his contribution to local government. Chris was also awarded the 2014 Award for Leadership and Management Excellence by Local Government Managers Australia (Queensland Division).

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

STRONGER TOGETHER

Remuneration packages for Council's executive staff may include short-term incentives subject to achieving agreed performance targets. The following remuneration was paid to senior contract employees during the year: Employee

Remuneration

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

$405,000 – $455,000

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

$230,000 – $280,000

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

Silvio Trinca

John Oberhardt

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

DEPUTY CEO — ORGANISATIONAL SERVICES: JOINED COUNCIL IN 1984

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

John joined Council in 1984 after working with the Commonwealth Bank. He has worked in all areas of local government, particularly finance, governance and administration, as well as with many industry and community groups, and inter-government working parties and committees. He is committed to the performance and reputation of Council, its staff, the industry and the community of Logan. John holds a Bachelor in Commerce and a Master’s degree in Public Administration, is a Certified Practising Accountant (CPA) and holds a Queensland Local Government Clerk’s Certificate. He is a Fellow of Local Government Managers Australia (LGMA) and LGMA Queensland’s past president. He is also a Fellow and Graduate Member of the Australian Institute of Company Directors and is a Justice of the Peace (Qualified).

Oliver Simon

Todd Rohl

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

DEPUTY CEO — STRATEGY AND SUSTAINABILITY: JOINED COUNCIL IN 2009

Oliver has a strong focus on change management, infrastructure development and community planning. He was previously Community Services Manager at Caboolture Shire Council and a senior executive manager with the State Government. He was Logan’s Director of Community Services for six years before becoming Deputy CEO – City Services (later Deputy CEO – Community and Customer Services) in a realignment in 2006. Instrumental in driving reforms in major projects at Logan, he is focused on infrastructure, establishing strong partnerships with other levels of government and developing innovative policy solutions. He has a Bachelor of Applied Science in Planning and a Graduate Diploma in Urban and Regional Planning. He is a Fellow Member of the Australian Institute of Company Directors and a member of Local Government Managers Australia and Regional Development Australia Logan and Redlands.

Todd oversees development approvals, town planning policy, planning for the future growth, investment and attraction, property development, environment management and health and waste management, and works with residents and customers to protect the amenity of the city. He became Deputy CEO in July 2012 and has worked in the private sector and all three tiers of government: local, state and federal. Todd has been involved in planning for more than 20 years and held senior executive management positions for more than 10 years. He is also involved in planner education in his role as adjunct lecturer in planning practice at James Cook University.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

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 2013–2018) produced through a comprehensive and inclusive process, which is owned by all parts of the organisation, including elected members.

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

Outcomes • We finalised the new Logan Planning Scheme 2015 and implemented master plans and local areas plans to ensure our city’s growth is well planned, provides a range of lifestyle choices and has long-term sustainability.

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

• We held our fifth annual strategic planning and review process to build on the methodology and processes introduced over the past four years. By undertaking this exercise, we can ensure the strategic objectives and activities can be adapted in a timely manner to changes created by internal and external influences. • We continued to provide a constructive work environment for all our staff through our leadership and development programs, employee initiatives such as the annual employee innovation and excellence awards, and branch culture journey projects.

• We provided 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, which provides an opportunity for a meaningful two-way conversation between staff and supervisors on their role and performance over the past year.

Excellence in Local Government

PRINCIPLE 3: Decision-making and management

PRINCIPLE 4: Accountability

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

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

Outcomes • Within the evolution of the new planning and performance framework, all branches are required 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.

Outcomes • We continued our requirement that all branches have business plans and develop key performance indicators to guide project delivery and track performance throughout the year. • We continued to complete quarterly performance reports against our Operational Plan and branch business plans, resulting in increased transparency and accountability.

• We continued to develop our risk management and ensure alignment between our organisation risk management framework and international standards.

• Our Corporate Performance Report Card continued to help our senior leadership team monitor and evaluate our performance as an organisation.

• We continued to focus on asset and services management by developing Branch Asset and Services Management Plans and implementing our new Asset Management Strategy.

• We continued the internal audit review function, implementing a number of improvements to existing business processes.

STRONGER TOGETHER

• Our Logan Listens Residents’ Survey again gathered feedback from the Logan community on our services and how they are being delivered. This data is used to inform our annual budgeting and planning process.

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

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

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

• fair and open competition

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

• processes do not unfairly discriminate at any stage

It is a plan to:

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

• ensure a safe and healthy working environment • attract and keep the right staff, who are focused on service excellence and share our values for a positive workplace culture • develop and empower staff • encourage the best outputs, with the emphasis on staff

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

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

productivity and value for money • enable staff to learn and grow both professionally and personally. The key areas to be addressed over the life of this plan are: • safety, health and wellbeing • leadership and culture • workforce planning • contemporary work practices • achievement planning and review. It is a plan to create a place where our staff want to work and choose to stay.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

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

STRONGER TOGETHER

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

As an organisation, we value excellence, and fundamental to achieving that is fostering enquiry, innovation and creativity with a focus on continuous improvement. These awards acknowledge those who have excelled in this area. Announced in March 2015, the 2014 winners were:

We marked the 10th anniversary of the awards in 2014 and changed the name of the awards and some categories changed this year based on staff feedback.

Corporate Innovation Award Projects

Team members

WINNER: Logan Safety Camera Monitoring Room redevelopment project

Keely Bell, Michelle Griffin, Paul Taudevin, Dianne Ezzy, Allan Wilson, Jennifer Fredericks, Lars Waalder, Nigel Brown, Jane Frawley, Lachlan Gordon

This project incorporated the redesign of Council’s existing safety camera monitoring room to create a state-of-the-art facility that will service Council’s needs both now and well into the future. The monitoring room is in operation 24 hours a day and includes 59 camera feeds. RUNNER-UP: Use of drones for volumetric landfill survey Council conducts volumetric surveys of tipping areas at the Browns Plains Landfill on a quarterly basis to determine filling rates for future planning and tip life as well as ensuring filling is being performed to design. Historically, this had been completed using traditional field survey techniques.

Michael Asnicar, Richard Oakley, Ewen Sneddon, Robert Nantes, Scott Grattan

The use of Unmanned Aerial Vehicles (UAV’s or drones) was trialled this year with excellent outcomes. The cost for the alternative drone survey was comparable, but met and exceeded the area and accuracy obtained by field surveyors. Landfill operations were able to continue uninterrupted as well. SPECIAL MENTION: Bushfire plan modelling assessment tool A decision-aid spatial model was developed to better manage bushfire risk in environmental parks. The model prioritised 580 burn blocks within 209 environmental parks across the city. The tool will provide cost savings and helps minimise the public safety fire risk by enabling more controlled burns to be conducted each year in the highest priority areas.

Rodney Adam, Lee-Anne Veage, Fatih Dur, Darrell Kraehenbeuhl, James Napier

Customer Service Innovation Award Projects

Team members

WINNER: Logan City Council Stormwater Quality Offsets Policy

Daniel Carrick, Tom Stanson, Anna Markula, Nosheem Hanif, Trevor Kanapi, Cheryl Pollitt, Derek Lawrie, James O’Brien, Fiona Perry, Tracey Arthurson, Zabeitha Khan

The stormwater quality offset scheme and policy was developed to provide an additional option for developers in complying with their water quality requirements under the Sustainable Planning Act, while still achieving the same or better environmental outcomes. RUNNER-UP: Digital literacy initiative for young people Four new programs were introduced at Logan’s libraries to promote digital literacy in the local community, particularly with young people. These programs relate to computer coding and programming, Minecraft and Lego robotics.

Bradley Nitins, Jennifer Hall, Darshan Balasuriyar, Ashley Strelcs, Daniel Park, Aaron Radford, Amanda Platt, Rowena Wilmott, Laney Robinson, Bryony Jensen

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

Teamwork Award Projects

Team members

WINNER: XOX tee configuration The XOX tee configuration was developed to reduce the number of customers affected and the duration and frequency of interruptions to customers during water main replacement works.

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

RUNNER-UP: Desktop upgrade project

Information Services Branch

The Desktop upgrade project modernised Councilâ&#x20AC;&#x2122;s corporate systems and ICT environments to ensure we are well supported and positioned to take maximum advantage of new features and technologies in the future.

Collaboration/Engagement Award Projects

Team members

WINNER: Public consultation for the draft Logan Planning Scheme

Justine Rudd, Jordanna Blanch, Marion Lawie, Alice Sherring, Jessica Poole, Sharon Angus, Heleen Muller, Mark Limb, Brandon Maloney, Neil Flanagan, David Janson, Albrecht Herholdt, Linda Cleary, Karen Abel

Public consultation on the scheme took place for 60 business days (twice the timeframe required by the State Government) and was the largest city-wide community engagement process undertaken in the city in recent years. A key feature of the project was the online engagement, including the interactive mapping tool, simple website design and the use of social media and video. RUNNER-UP: City of Logan Pride program This campaign empowered residents to use social media to communicate with Council and amplify the key messages via social media to their own networks. The City of Logan Pride video was a key piece of the campaign, showcasing the cityâ&#x20AC;&#x2122;s beauty, serenity and diversity.

Kate Dalton, Nicole Davis, Ben Travaini, Michelle Reid, Cody Duschka, Marielle Palmer, Elissa Cole, Paula Weston, Victoria Fraser, Paul Massingham, Deanna Nott, Steve Cadzow, Karen Tattersall, Dina Wirawan, Stephen Petroff, Caitlin Row, Eddie Tuifao, Nicolette Anderton, Natalie Matthews

Sustainability Award Projects

Team members

WINNER: Blackwell Street Regional Wetlands and Detention System

Daniel Carrick, James McDonnell, Trevor Kanapi

The Blackwell Street Wetland Project (Stage 1) at Jimmy Phillips Park was part of an integrated solution to reduce flooding effects for the local community and improve water quality and reduce pollution of our local creeks, the Logan River and Moreton Bay. RUNNER-UP: New wet landfill cell design leachate collection system

Michael Asnicar, Brett Lee, Mitul Desai, Richard Oakley

We developed our latest waste cell at the Browns Plains Landfill to allow full recirculation of leachate back into the cell whenever possible, to minimise future sewer disposal needs and reduce costs.

Safety Award Projects

Team members

WINNER: RU1m (Are you 1 metre?)

Elissa Cole, Deva Naiker, Natalie Matthews, Dina Wirawan, David Shaw, Nicole Davis, Michelle Griffin, Janine Walford, Cody Duschka, Deanna Nott

We initiated this campaign after new laws were introduced in Queensland defining a minimum legal passing distance for motorists overtaking cyclists. In support of safer roads for all, our RU1m campaign is a safety initiative aimed at both cyclists and motorists and seeks to increase road user safety. RUNNER-UP: Living and breathing the basics This program encourages employees and subcontractors to focus on 10 basic safety principles that will help us achieve our goal of zero harm.

Rajindar Singh, Anthony Kajtar, David Parker, Brendan Lennox, David Montoya, Dean Bowen, Denver Pollock, Matt Wesener, Nilantha Senevirathne, Nishendra Attygalla, Sandy Stewart, Sandy Veeren, Sue Salisbury, Tracey Leslie, Sarabjeet Bedi, Shafqat Gohar, Stephanie Lees, Purvi Shah

LEADERSHIP AND STAFF DEVELOPMENT Great leaders develop an understanding about who they are and how they lead within an organisation.

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 staff by staff and has run for nine years. The program is highly regarded throughout the organisation and is in popular demand. Approximately 15 per cent of our workforce has completed the program. Enrolment in the program is capped to ensure participants and mentors get optimum support throughout the program and gain the most from this experience. Staff participation in our annual Leadership Development Program

Number of participants

2010

2011

2012

2013

2014

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

OUR COUNCIL

SAFETY

Measuring workplace safety

Purpose

Leadership and values “Leading the Way”

Create a culture in which people are empowered to demonstrate leadership in safety at all levels and at all times. It also serves to show the commitment of Council’s leaders to the vision.

Prioritisation of safety “Safety First”

Create a culture in which safety is the highest priority at all levels and across all branches at Council.

Communication “Talking Safety”

Create a supportive culture in which open communication about safety becomes ‘the way we do things around here’.

Personal responsibility for safety “Bringing Safety Home”

Create a culture in which people feel empowered to take personal responsibility for the safety of themselves and those around them.

(Total hours worked in accounting period)

x 1,000,000

Lost time injury frequency rate compared to benchmark for similar-sized councils in Queensland: four-year rolling average

17.33

17.21

16.47 14.07 Benchmark = 15*

Focus area

Benchmark = 19

A series of events and initiatives focused on four key areas:

(Number of lost time injuries in accounting period)

Benchmark = 19

'Always Safe: Me | You | Us' was the vision for the initiative. This vision communicated the message that safety is relevant to everyone, and that we are all accountable for safety as individuals, as team members, and as a collective organisation.

As the number of lost-time injuries per hour worked is always a very small number, for ease of interpretation, a multiplier of 1 million is used. Therefore, the LTIFR is reported as the number of lost-time injuries per million hours worked. This is calculated as:

Benchmark = 18

Our Year of Organisational Safety launched in January 2014 as an organisation-wide initiative aiming to advance the understanding and motivation of our staff to think and act safely every day.

We are part of the Local Government Workcare Scheme, whereby our lost time injury frequency rate (LTIFR) is independently calculated, tracked and benchmarked against a group comprising of 10 similar-sized Queensland councils.

Logan City Council's performance

Our Year of Organisational Safety

2011/2012

2012/2013

2013/2014

2014/2015

Comparable data is not available for five years due to a change in methodology four years ago in the way data was reported. While we are unable to identify any definitive trends due to the minimal amount of data, it is positive to see that our LTIFR has progressively decreased over the past four years and continues to be significantly lower in comparison to the benchmark group. *The benchmark was revised down in 2014/2015 as Logan, along with a number of other similar-sized councils, were consistently achieving results below the previous benchmark of 19. Revising the benchmark helps ensure a continued focus on reducing the number of lost time injuries.

STRONGER TOGETHER

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

Part-time

Temporary

Councillors

Casual

Total 1,705

1,703

1,682 1,409

1,394

1,274

1,014

1,273

1,237

1,002

106

13 2011/2012

267 133

127

117 40

13 2010/2011

273

267

248

230

2012/2013

2013/2014

2014/2015

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

Staff age profiles: five-year trend 15–24

25–34

35–44

45–54

55–64

65+ 417

405

339

403 363

356

355

352

426

359

344 321

318

304

297

285

226

215 195 180

173

192 160

95 76

2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

Years of service: four-year trend 3% 2%

Staff gender comparisons: five-year trend (percentage) Male

Female

12%

51.4

52.5

49.8

48.6 50.2 47.5

20%

47.5

44%

2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

2011/2012

3% 2%

Rolling average percentage of staff separation: five-year trend

16%

Our average staff turnover increased by 0.68 per cent in 2014/2015. We do not anticipate turnover will rise significantly in the short-term as there is currently a rise in unemployment across the region, state and country.

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

17% 43%

2012/2013

10.4

3% 3%

9.6 8.27

6.35

7.03

8% 32%

12%

2010/2011

2011/2012

2012/2013

2013/2014

32% 2013/2014

3% 3%

4% 8%

33%

11%

32%

2014/2015

Less than one year

15–20

1–5

20–25

5–10

25–30

10–15

30+

2014/2015

OUR VOLUNTEERS Residents wanting to make a contribution to the community are able to participate in voluntary work through Council and we recognise the diversity our volunteers bring to the organisation. Voluntary positions are available in the home library and other library services, at Logan Art Gallery, Mayes Cottage House Museum, Logan Entertainment Centre, our parks (through the Bushcare, Trailcare and honorary park ranger programs), the animal management centre (as foster carers and in-house volunteers), and the State Emergency Service.

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

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

All of our volunteers receive a briefing on our expectations and their rights and responsibilities as volunteers, including health and safety requirements and Code of Conduct training.

INTERNAL AUDIT, RISK MANAGEMENT AND BUSINESS CONTINUITY PLANNING INTERNAL AUDIT Our Audit Committee is an advisory committee established under our Audit Policy. 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 Governance, Finance and Economic Development Committee. Members of the Audit Committee for 2014/2015 were: • Councillor Luke Smith (Governance, Finance and Economic Development Committee Chair)

• John Oberhardt (Deputy Chief Executive Officer – Organisational Services) • Oliver Simon (Deputy Chief Executive Officer – Community and Customer Services) • Len Scanlan (external representative). Representatives from both the internal and external audit providers also attend Audit Committee meetings. A Queensland Audit Office representative has a standing invitation and regularly attends Audit Committee meetings as an observer. The internal audit function, performed on an outsourced basis by Price Waterhouse Coopers (PWC), is part of an overall strategy towards continuous improvement, benchmarking and best practice.

• Councillor Steve Swenson (Governance, Finance and Economic Development Committee Assistant Chair) • Councillor Trevina Schwarz (proxy member in the absence of either the above elected representatives)

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

Internal audit achievements In the past 12 months, internal audit has reviewed, provided assurances, and recommended control and efficiency improvements across our diverse operations in areas including: Review

Objective

Output performance measurement and reporting

The review considered business performance monitoring processes, including ReFlector, by reviewing the following: • inputs into ReFlector (including manual data entry) • outputs and reporting from ReFlector • branch management of data requirements and ReFlector security protocols. This was a two-phased approach, based on the use of ReFlector for operational purposes.

Delegation of authority for human resources

The review focused on our delegations of authority framework for human resourcing, including compliance and timeliness of enforcement.

Workplace health and safety

The review assessed the proposed controls to be implemented within the Intelex system prior to golive. To provide adequate support to management and enable the most efficient use of resources, management and internal audit agreed on a two-phased approach for this review: 1. Phase one (early May 2015): Perform a high-level review of the system including walkthroughs and provide recommendations to management to assist in prioritising key actions prior to go-live. This phase was conducted before the pilot. 2. Phase two (end of August 2015): Perform a high level review to evaluate the progress of the recommendations highlighted as part of phase one and review management’s action plan for addressing any feedback from the pilot. Additionally, detailed testing will be conducted within the system of a few key areas. This phase is scheduled to occur post-pilot with selected branches and before the broader go-live throughout the organisation. This approach provided real time feedback to management throughout the build and implementation. A full report will be provided at the end of phase two.

Customer service standards

The review assessed the current complaints process, specifically for the Water business, including the tracking, monitoring and response to customers. In addition, service level standards were reviewed to ensure they were in line with overall standards.

Records management

The review focused on policies and procedures for the Council’s records management and assessed against better practice for Animal and Pest Services. Specifically, the use of network drives and the information that is stored on the network versus the document management system were reviewed and assessed.

Accounts payable

The review assessed the key financial processes and controls in relation to the payables process. Computer Assisted Audit Techniques Software analysis of Council purchasing and monitoring practices were used. Processes for vendor master data changes were incorporated. Significant coordination occurred amongst internal and external audit to enable reliance by external audit for the work performed by internal audit to provide value for money to Council.

Rural fire levy

The review focused on the processes and key controls in place for the application and reconciliation of rural fire levy payments.

Lease of Council land and buildings to sporting and other community groups

The review assessed whether any buildings attached to Council-owned land, which have been funded by sporting and other community groups, should be treated as Council-controlled assets and recorded in our balance sheet under the new lease contract template.

Fuel card analytics

The review focused on internal audit performing data analytics of fuel card data usage by lease holders and compared to leave (annual and sick) data. The results of the analysis were provided to management in the form of charts and graphs to enable management to validate potential exceptions and determine any necessary follow up or action.

STRONGER TOGETHER

Overall, the reviews noted sound control procedures with only one high risk area of concern being identified. Management has immediately enacted strategies to address this issue. In all other cases, recommendations were made to further develop and improve the respective governance, risk management and control processes. These recommendations were accepted by management and endorsed by the Audit Committee for implementation. The implementation of actions will be pursued through our audit issues monitoring process, which involves the internal auditors validating all issues through the follow up process before closure. The outcome of this process is reported to the Audit Committee on an ongoing basis.

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 to an acceptable level. We use the Australia/New Zealand Risk Management Standard ISO31000:2009 (or any subsequent successors) as our risk management methodology. This standard describes the main elements of the risk management process as: Step 1 — establish the context Step 2 — identify risks Step 3 — analyse risks

In developing its annual Internal Audit Plan, we have a forward-looking three-year plan that is revisited each year and is flexible throughout the year to the changing needs and risks as they arise.

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

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

Step 4 — evaluate risks Step 5 — treat risks Step 6 — monitor and review risks. We introduced our organisation-wide risk management framework in 2010 to promote a consistent approach to risk management that optimises opportunities and reduces damage or loss across all areas of Council business. Our framework is supported by expert staff, risk management tools and a suite of document templates to support staff through the risk management process. In 2014/2015, we reviewed and updated our framework after introducing our Risk Management Policy in December 2014, and to ensure the framework continues to reflect risk management contemporary practice, current standards, guidelines and legislative requirements.

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

Initial integration of our framework was guided by a four-year staged implementation schedule. We measured our success in meeting this schedule internally and will continue to evaluate our risk management maturity with the use of our award winning risk management maturity model.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

OUR COUNCIL

The six categories used in our model are detailed below:

Risk management maturity level

Percentage (%) of risk management integration

Description

Embryonic

0–10

No evidence of risk management or compliance

Emerging

10.1–30

Risk management exists but is yet to evolve; add value and be effective

Immature

30.1–50

Risk management is developing; an approved risk management policy and framework is in place

Established

50.1–70

Risk management practices are taking effect; risk reports and compliance can be validated

Integrated

70.1–90

Risk management practices are interactive

Highly Integrated

90.1–100

Risk management activities are embedded; regular monitoring and review of risk maturity occurs

STRONGER TOGETHER

75.44 72.81 69.3

established

integrated

63.16 established

It is evident that we already had established risk management practices within the organisation before introducing our framework. As an organisation, our risk maturity has increased each year since the introduction of the framework to the point that our risk management practices are now integrated.

Risk management maturity levels

Maturity rating

We have seen continuous improvement in the organisation’s risk management maturity since introducing our organisation-wide risk management framework in 2010.

2011

2012

2013

2014

RE PA

MA N E AG

PR E

BUSINESS CONTINUITY PLANNING

BUSINESS CONTINUITY

We have identified potential threats to our core business and constructed a master business continuity plan, and supporting stream recovery plans, to guide our response, recovery and resumption in a crisis event affecting our core business operations.

The document is split into three main sections that 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 tolls, contact lists and key roles and responsibilities.

Phase 2: recover critical business functions

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

Phase 3: resume normal business operations

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

The review and update of our business continuity plans is an integrated part of our annual strategic planning and review process. We have a committed crisis management team that is responsible for responding to a significant business disruption and for coordinating our recovery and business resumption operations. Key roles on the crisis management team are assigned an alternate member in the event that an officer is not available. We 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 providing annual business continuity training and awareness sessions for key staff.

‘Storm clouds roll in over Holmview.’ Photo: Jaydon Cabe. This image was one of hundreds entered into Logan Hidden Gems online photo competition, which showcased some of the city’s natural beauty, active recreation and cultural pursuits.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

PERFORMANCE REPORTING This section explains how we manage our reporting within the organisation and introduces the directorate and four streams of services that we provide for the community. It outlines our performance in delivering key projects for the city and meeting our KPIs as per our 2014/2015 Operational Plan.

Stronger together: events like our popular Eats and Beats pop-up festival bring our community together.

STRONGER TOGETHER

LOGAN CITY COUNCIL ANNUAL ANNUAL REPORT REPORT 2014/2015

PERFORMANCE REPORTING

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

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

IMPLEMENTATION OF THE FRAMEWORK Strategic planning ensures that our city remains sustainable for current and future generations and that all key stakeholders are aware of, and have a say in, its development. The Corporate Plan 2013–2018, which came into effect from 1 July 2013, is the city's key strategic plan as it translates the needs and expectations of our community into priorities. The plan identifies our long-term city vision and priorities for the organisation over a five-year period. Significant community consultation played a key part in development of the Corporate Plan. The diagram below represents the strategic planning framework used by Council and illustrates where the Corporate Plan fits within that framework. In 2014/2015, we reviewed our Corporate Plan 2013–2018 to ensure alignment with the Queensland Plan Act 2014. Our performance and actions taken that relate to the nine Foundation Areas of the Queensland Plan are detailed in this section under the relevant Corporate Plan priority area. We conducted the fifth citywide survey of Logan residents, the Logan Listens: 2014 Residents' Survey in October 2014, seeking the community's views to help us plan effectively for our growing city's needs. We plan to continue with the survey as it plays an important role in informing our strategic planning process.

STRONGER TOGETHER

Queensland Plan (state government)

Our planning process

Our planning documents

Set long-term vision

City Vision

Identify priorities and service delivery commitments

Five-year Corporate Plan

Determine and implement operational projects

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

Monitor and report on performance

Quarterly Performance Assessments and Annual Report

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

BRANCH BUSINESS PLANS Although all elements of the strategic planning and performance management framework are equally important, we believe requiring each branch to have approved business plans has had the most significant positive impact on our organisation. All branch business plans are reviewed each year to ensure they remain aligned with our 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.

In addition to the Corporate Plan 2013-2018, SLPT endorsed priorities that detail our organisation's mission, twin goals and values, and the initiatives to which we will give particular attention in 2015/2016. The diagram below shows how the annual planning, budgeting and reporting cycle is integrated and driven by our Corporate Plan priorities, and updated each year.

MONTHLY • Branch reports • Corporate financials • Stream issues

JAN

FEB

MAR

Business plans are strongly linked upwards to the Corporate Plan and in turn provide strong planning direction to the annual Operational Plan and Budget. APR

STRATEGIC REVIEW We held our fifth annual strategic review process in 2014/2015, building on the methodology and processes introduced over the past four years. The annual strategic review process involves councillors and the executive leadership team (SLPT), to assess our current situation and determine a position for moving forward in line with our strategic objectives. By completing this exercise on an annual basis, we are able to adapt to changes created by internal and external influences in a timely manner. The annual strategic review process consists of three phases:

JUN

• Quarter 2 Operational Plan, Corporate Performance Report Card and stream reports

• Annual Corporate Plan review • Annual Organisational Priorities Review

• Budget review 2 • Annual Branch Business Plan review

• Quarter 3 Operational Plan, Corporate Performance Report Card and stream reports

• Operational Plan adoption • Budget adoption

JUL

• Quarter 4 Operational Plan, Corporate Performance Report Card and stream reports

OCT

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

• reviewing the previous year's performance • identifying the emerging issues, drivers and trends • setting organisational priorities. These priorities were incorporated into the annual business planning cycle, which fed into the Operational Plan and budget development for 2015/2016.

PERFORMANCE REPORTING

ASSET MANAGEMENT Our asset management service delivery coordination team is chaired by the Deputy Chief Executive Officer – Road and Water Infrastructure and involves all relevant Council branches. The team is responsible for reviewing the Assets and Services Management Policy, strategy and various plans on an ongoing basis. It also provides effective communication between elected members, staff and the executive leadership team to promote and raise awareness of asset management principles.

Why do we have Assets and Services Management Plans? • There are legislative obligations: – Local Government Act 2009 – section 104(5)(a)(ii) – Local Government Regulation 2012 – sections 167,168,202(5). • It is good business practice because: – The plans help protect our assets, which have a current replacement value of more than $6 billion.

We continue to improve our approach to assets and services management planning for all asset classes. Assets and Services Management Plans provide a critical link between our policy, Corporate Plan and strategic documents, Long-Term Financial Plan and Local Government Infrastructure Plan. The strategy guides the management of the various assets under our control, and takes a whole-of-life-cycle approach to ensure all assets are well managed throughout their life, from creation to disposal.

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

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

External influences on asset management International Standard ISO 55000

National Framework

Legislation, regulations, standards and State Government expectations

Growth Management and Settlement Patterns

Assets and Services Management Policy

Strategic

Asset Management Strategy

Asset Management Improvement Program

Long-term Financial Management Strategy

Levels of Service

Growth Management Capital and Operational Major Projects Enhancements Schedule (COMPES)

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

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

Operational

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

STRONGER TOGETHER

Corporate Plan

What information do we put in our Assets and Services Management Plans? Our Assets and Services Management Plans are developed using a strategy template provided by the Institute of Public Works Engineering Australia. • They address six key elements of asset management:

LOOKING AHEAD TO 2015/2016 • We will continue our asset management journey by identifying opportunities to improve our approach to asset management. This will involve: – undertaking maturity assessments of our asset management practices

– levels of service

– continuing to revise our levels of service

– future demand

– reviewing asset management maturity against

– lifecycle management – financial summary – asset management practices – improvement plan. • They provide critical asset information, including: – asset values and depreciation

the accepted industry standard – providing stronger risk-based asset management – developing a better understanding of the full lifecycle costs to deliver services to the community. • We are looking to implement a strategic asset

– asset sustainability analysis

management and maintenance system, which

– what is required to manage the asset

will involve reviewing resources, processes, data

– service deficiencies – what is spent on managing the asset – condition data (where possible).

and technology. Stronger asset management governance arrangements and clarity on roles and responsibilities for asset custodians will play an integral role in this process.

The Berrinba Wetlands park is a picturesque part of Logan.

PERFORMANCE REPORTING

CEO DIRECTORATE 2014/2015 SUMMARY The CEO Directorate takes a lead role in advancing organisational planning and performance, business improvement, strategic asset management and providing executive support to the Chief Executive Officer and the executive leadership team.

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN PROJECTS/KPIs

BRANCHES • Office of the CEO

CORE SERVICES

* Performance for internal services directorate/streams is measured via monthly reporting against corporate KPIs as well as projects and KPIs captured in each branch's annual business plan.

• organisational strategy and business planning • performance reporting and development • business improvement • strategic asset management planning • executive administration and business support

The Logan River plays an important role in our city’s natural environment.

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We coordinated the annual strategic planning and review process, including: – production of the 2015/2016 Operational Plan. – coordination of the annual branch business plan review process.

• We initiated a review of asset custodianship roles and responsibilities to achieve better asset management outcomes. • We started an audit of all Council-owned car parks across the city to determine asset condition and quantum of maintenance and renewal backlogs. • We coordinated the SEQ Local Government Managers Australia (LGMA) forum, held at the Logan Entertainment Centre in November 2014.

– coordination of the organisational priorities plan. – provision of customised reporting options via our corporate performance reporting software, reFlector. • We conducted the Logan Listens: Residents' Survey, with results indicating further improvement in residents' high satisfaction of facilities and services. • We conducted the bi-annual internal services survey to help branches identify areas where internal service delivery could be improved. • We produced quarterly Operational Plan progress

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We will finalise our Total Assets and Services Management Plan 2015. • We will develop the 2014/2015 Annual Report.

reports for the elected Council and the community

• We will develop the 2016/2017 Operational Plan.

(available on our website).

• We will continue to produce quality quarterly

• We produced a quality 2013/2014 Annual Report, which was awarded a Silver Award by the Australasian Reporting Awards. • We updated our Asset Management Strategy. • We began preliminary work on the 2015 Addendum to the State of the City Report. • We started an organisation-wide review of corporate performance reporting. • We coordinated the annual review and update of branch Asset and Services Management Plans. • We finalised the Total Asset and Services Management Plan 2014. • We adopted an organisation-wide business improvement plan to help focus customer improvement and efficiency efforts and build a strong continuous improvement culture. • We reviewed and updated our project management framework and guidelines to ensure continued alignment with best practice project management. • We established a peer mentoring program, in partnership with the South-East Queensland CEO forum, to provide opportunities for rural, remote and indigenous Council CEOs to be mentored by urban Council CEOs. • We established the Strategic Asset Management and

Operational Plan progress reports for Council and the community (available via our website). • We will conduct Residents' Survey fieldwork for our sixth survey. • We will deliver pilot projects for business process reviews with our Growth Management and Urban Design and Parks branches and put in place the fundamental elements required to support a continuous improvement culture. • We will investigate improvements to the Councillor Portal. • We will coordinate and implement a significant upgrade of our Performance Reporting Software, reFlector. • We will finalise the 2015 Addendum to the State of the City Report. • We will prepare for the development of the 2017–2021 Corporate Plan and 2017–2021 Organisational Priorities Plan. • We will progress the SAMMS project to improve asset management practices from a people, process, data and technology perspective. • We will complete and implement the outcomes of the asset custodianship review.

Maintenance System Project (known as the SAMMS Project) with a focus on transforming the way we manage our significant asset base, valued at more than $6.2billion.

PERFORMANCE REPORTING

ROAD AND WATER INFRASTRUCTURE STREAM 2014/2015 SUMMARY The Road and Water Infrastructure stream combines the planning, design, construction and ongoing maintenance of road, drainage, water and wastewater infrastructure. Disaster management planning and response, and strategic asset management coordination are also part of this stream's services.

BRANCHES • Disaster Management and Specialist Engineering Support

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN (these are not linked to a specific priority focus) PROJECTS On track/completed

• Road Infrastructure Planning

• Develop the 2015/2016 roads and drainage Asset and Services Management Plan

• Road Construction and Maintenance

• Implement the 2014-2016 Road Safety Strategy

• Road Infrastructure Delivery

• Review Council’s Transport Strategy to incorporate any change of commitments of State Government

• Water Business • Water Infrastructure • Water Operations

• Complete information and procedures for our emergency flood management response Undeliverable • Nil

CORE SERVICES

Not proceeding

• disaster management coordination

• Nil

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

STRONGER TOGETHER

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

(Scorecard definitions can be found on page 8).

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We received increased funding for maintenance and rehabilitation of the local road network, with an additional $2 million for road rehabilitation, and $1.5 million for the inaugural Gravel Road and Shoulder Sealing Program. • We experienced delays in the project scoping for trunk infrastructure for major roads. The Local Government Infrastructure Plan process impacted on the design period for 2016/2017 construction projects. • We did not have the statement of intent and project scoping for the 2015/2016 pavement rehabilitation program available, which limits the time available to deliver the pavement rehabilitation program. • We were hampered in our ability to deliver the roads capital works program due to severe weather events, frequent periods of intermittent rain and unresolved land compensation claims.

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We will deliver a roads capital infrastructure program of $82 million. More than 80 per cent of this will be delivered by the Road Infrastructure Delivery branch. It is anticipated that additional support will be required at senior contract level to facilitate this program. • We will provide city beautification works, with $200,000 allocated per division. We expect this work to include signage, line marking, street sweeping and median clean-ups. *For key highlights, challenges and key issues looking ahead relating to the water branches, refer to pages 98–99.

We are delivering much-needed infrastructure for our city’s growing population.

PERFORMANCE REPORTING

COMMUNITY AND CUSTOMER SERVICES STREAM 2014/2015 SUMMARY The Community and Customer Services stream develops and delivers facilities, policies and programs that enhance the quality of life for Logan residents. This is achieved by collaborating with the State and Federal governments and community agency partners.

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN (these are not linked to a specific priority focus)

BRANCHES • Animal and Pest Services • Marketing

On track/completed

• Customer Services

• Award a new tender for the monitoring of safety cameras for the Logan Safety Camera Program

• Media and Communication

• Deliver a new safety camera monitoring room

• Major Venues and Facilities

• Participate in the pilot eSmart Libraries initiative to promote smart, safe and responsible use of digital technology in our community

• Community Services • Libraries and Cultural Services • Parks

CORE SERVICES • animal management, including customer requests,

• Implement the Arts, Culture and Heritage Strategy 2014–2017 • Review the Disaster Management Communication Sub-plan • Develop a communication plan to support delivery of the Parks capital works program

impounds, cat and dog sales and re-homing, and

• Complete inspections of properties with regulated dogs

community education

Undeliverable

• health operations, including immunisation, graffiti removal, and pest and weed control • community engagement, city events, marketing, media and corporate communication for Council programs and services • social planning, including targeted community development initiatives and sport and recreation • community safety programs and initiatives, including safety cameras • customer service delivery for the organisation • library and cultural services, including public art programs, history and local heritage resources, community learning and support programs • public swimming pools • facilities planning, construction, maintenance and management, including community venues, aquatic centres and sports facilities, as well as management of Logan Entertainment Centre and Beenleigh Events Centre • parks planning, construction, management and maintenance, street landscape maintenance and cemeteries management and maintenance

PROJECTS

STRONGER TOGETHER

• Begin installing new safety camera infrastructure as funded by the Federal Government* • Implement the Parks Bookings and Events Management Strategy^ Not proceeding • Deliver the Logan Housing Renewal initiative+ * Unforeseen delays were met during the design process. These issues were resolved and while not completed within 2014/2015, the project has the approval of the Attorney General's Department for the commissioning of cameras to be completed by the end of September 2015. ^ The original scope for this project was to transfer the events management tasks within the Parks branch and review the small processes in accordance with this intent, which was achieved. The scope for this project grew considerably from the original intent due to the impact from a large, 10,000-person event, that identified further items for review. The remaining review items will be carried forward and completed in 2015/2016. + In February 2015, the Governance, Finance and Economic Development Committee endorsed a recommendation for reporting against this project to cease because progress was already being captured under Operational Plan item WC1.3 – Delivery of the Logan City of Choice Action Plan: Housing Portfolio.

• We finalised the Broncos Junior Sport Academy

KPIs Meeting/exceeding target • Percentage of desexed dogs released from the Animal Management Centre • Number of inspections of identified water bodies (e.g. Tygum Lagoon) with identified weeds and pests.

memorandum of understanding. • We began discussions to provide in-kind support via a sponsorship arrangement to a South-East Queensland basketball team, which will be based out of Logan Metro Sports Centre.

Monitor

• We hosted the annual Australia Day Awards.

• Removal of graffiti~

• We hosted Australia vs China volleyball events in May

Below target • Nil ~ Historically, levels of graffiti were at the predicted target and there was no reason to suggest that the amount of graffiti would decline. The fact that targets were set higher than the actual incidents of graffiti and were not met is a significant improvement in the management of graffiti. In future, the targets will be revised downwards to reflect the trend, including consideration of transferring graffiti management in parks to Animal and Pest Services, which could again inflate the number of customer requests. What is not reflected in customer requests is the proactive graffiti identification work completed by staff under the ‘Signing off Taggers’ grant funding of $74,284 from the Department of Local Government, which enabled 438 traffic signs to be cleaned of graffiti, 697 signs to be identified as needing repair and 2,796 traffic signs to be identified as needing to be replaced. This is a major achievement, as the signs being replaced will be coated to ensure staff can easily remove graffiti in the future.

(Scorecard definitions can be found on page 8).

2015, which attracted more than 3,000 attendees and were streamed live throughout Australia and China.

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We will realign our sport functions in our organisational structure. • We will continue to build the momentum of the City Image campaign with funding support from Council and external agencies. • We will deliver phase two of the Logan: City of Choice

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We introduced our City of Logan Pride Program, including a video and booklets, which attracted significant attention and had extremely positive feedback from the community. • We introduced the Eats and Beats music and food truck pop-up event, with an average attendance of approximately 8,000 people at four locations around the city. • We rolled out phase two of the City Image Strategy, including advertising on billboards, radio, bus shelters, press, in-flight magazines and in the digital space. • We opened the new $1.4 million safety camera monitoring room in March 2015 and announced the location of 26 new safety cameras in June 2015. • We were successful in gaining $6.8 million of funding from the Federal Government, State Government and philanthropic organisations for Logan: City of Choice Action Plan initiatives. • We were advised that the city will receive $800 million over 20 years from Logan City Community Housing for the Logan Renewal Initiative, to transition public housing tenancies from Department of Housing and Public Works.

initiative to consolidate achievements to date and ensure core successful elements are sustained well into the future. • We will complete the community facilities leasing project by December 2015 in partnership with volunteer community, sport and recreation organisations. • We will develop partnership opportunities to provide for community, sport and recreation infrastructure in Yarrabilba and Flagstone. • We will plan a suitable venue for events catering for up to 15,000 people. • We will plan a major signature event in the city. • We will review the Community Engagement Strategy and supporting policy and management directive documents. • We will redesign our website to improve functionality on mobile devices and its overall look and feel. • We will host the Queensland Music Festival event, Under This Sky: Logan's Musical Celebration, in August 2015. • We will help launch the Logan Together initiative to close the gap in healthy child development rates for children aged zero to eight-years-old.

• We created stronger ties with Logan's Aboriginal and Torres Strait Islander communities through our Reconciliation Action Plan, Aboriginal and Torres Strait Islander Partnership Group, Black Diggers of Logan digital stories project and Cultural Awareness Guide for staff.

PERFORMANCE REPORTING

ORGANISATIONAL SERVICES STREAM 2014/2015 SUMMARY The Organisational Services stream delivers the services necessary to support Council business units and city services, including property management, finance, legislative requirements, information technology and human resourcing.

BRANCHES • Administration • Finance • Governance • Information Services • People and Culture • Plant Fleet Services

CORE SERVICES • manage and maintain Council facilities and buildings • purchasing, tendering and contracts

• financial management, including corporate budgeting, estimating and reporting, financial systems, financial accounting and rates administration • internal audit, intergovernmental advocacy, and grants and subsidies administration • records management, legal services and Right to Information and Information Privacy • information communications and technology services and support • workforce management, including recruitment, training, workplace health and safety and workforce planning • plant and fleet management, purchasing and repairs

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN (these are not linked to a specific priority focus)

• corporate property management, and property acquisition and disposal • corporate risk management and insurance

Jurassic Park is located at the epicentre of our Logan Central Administration Centre.

PROJECTS/KPIs * Performance for internal services streams is measured via monthly reporting against corporate KPIs as well as projects and KPIs captured in each branch’s annual business plan.

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We continued to focus attention on building a culture of safety-first to ensure that neither our workforce nor

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We will have a new Council after 19 March 2016, when the next Local Government elections are held. • We will pursue property development projects that

members of the community are exposed to hazards

provide both a community benefit and financial

and risks.

return to Council.

• We completed the fourth and final year of the staged implementation of our Risk Management Framework 2010–2014. • We completed the annual review of our business continuity management plans and successfully conducted a scenario test in November 2014. • We implemented a framework to help staff effectively manage contracts and contractor performance.

• We will continue to pursue grant funding opportunities where possible. • We will continue to investigate new online services to improve accessibility for residents and businesses. • We will refine our long-term financial plan, particularly around providing funding for infrastructure necessary to support growth.

• We appointed National Australia Bank as our corporate banker. • We finalised the divisional boundary review ahead of the 2016 Council elections. • We enhanced our officers' access to information through mobile and web-based systems to improve our level of service for the community. • We were able to provide employment opportunities to our 2014 trainees by offering employment to some, while others gained employment with other employers in the city or went on to partake in further study. • We coordinated the 2014 Logan Youth Jobs and Careers Expo in July 2014, which was attended by more than 2,000 students from 20 schools in Logan. More than 60 exhibitors were present. • We provided 14 bursaries to local students through the Logan City Tertiary Educational Bursary Program. • We delivered information sessions to local businesses to help them become suppliers to our organisation. • We are managing reduced grant funding from the State and Federal governments. • We replaced the public access computers in our libraries to ensure they continue to meet community expectations. • We developed a vehicle safety management manual to support safer operations of our fleet. • We commenced the new certified agreement process.

Inside Council’s Plant Fleet Services workshop at Marsden.

PERFORMANCE REPORTING

STRATEGY AND SUSTAINABILITY STREAM 2014/2015 SUMMARY The Strategy and Sustainability stream delivers approval of new development, town planning policy, investment attraction, business support, property development, environment management, waste management and works with our residents and customers to ensure compliance with Council’s Local Laws and regulations. These are key focus areas for Logan, currently Australia's fifth largest local government area by population and expected to be home to more than 450,000 people by 2031.

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN (these are not linked to a specific priority focus) PROJECTS On track/completed • Nil

BRANCHES • City Standards • Growth Management and Urban Design • Development Assessment • Economic Development • Environment and Sustainability

Undeliverable • Develop a program to align local laws with State legislation and emerging trends in legal precedent, public policy and community expectations* Not proceeding • Nil

• Waste Services KPIs

CORE SERVICES • building, land use and environmental compliance • licensing related to local laws • strategic land acquisition and development as well as

• Nil Monitor • Nil

strategic land use planning, including planning schemes

Below target

and infrastructure charges

• Nil

• development assessment services, including building and plumbing, development application approvals and town planning advice • economic development, including business support, investment attraction and city promotion • environmental health planning and licencing • environmental planning and management, including vegetation, waterways, energy and climate change • waste and recycling planning and management

Meeting/exceeding target

STRONGER TOGETHER

* A large number of local laws were identified for amendment in 2014/2015. The majority of local law amendments were completed before June 2015. The remaining amendments are expected to be completed within the first half of 2015/2016.

(Scorecard definitions can be found on page 8).

LOOKING BACK: KEY ACHIEVEMENTS AND CHALLENGES • We finalised the Logan Rivers and Wetlands Recovery Plan following extensive internal and external consultation. • We successfully completed a pilot program to stabilise the banks at Doug Larsen Park as part of our Water Body Asset Management Plan. • We continued to deliver the Slacks Creek Catchment Recovery Program, constructing a treatment wetland at Arlington Park and a wetland area at Shailer Pioneer Park. • We engaged with our community through environmental activities such as a canoeing event on the Logan River and initiatives associated with Clean Up Australia Day and World Wetlands Day. • We attracted more than 6,000 people to the Logan Eco Action Festival (LEAF) to celebrate our local environment and educate the community about sustainability. • We finalised the new Logan Planning Scheme and implemented associated online mapping and policies. • We provided funding to 25 EnviroGrant recipients, including eight wildlife carer grants and 15 environmental projects. • We began on-ground assessments for enhanced vine scrub mapping to improve and refine our ecological significance mapping. • We completed our draft city-wide flying fox management plan. • We completed our koala conservation strategic plan. • We designed and installed solar powered public lights for Ewing Park, Albert River Place and the Eagleby Boat Ramp. • We saw an increase in the number of RiskSmart applications made after the implementation of the new Logan Planning Scheme. • We finalised an infrastructure schedule of works to support the city's growth until 2026. • We adopted an infrastructure plan as our primary tool to collect infrastructure charges in support of our growing city. • We delivered 12 programs as part of the BizConnect service to assist new or evolving businesses with business planning and marketing. • We facilitated 261 one-on-one business

LOOKING FORWARD: KEY ISSUES FOR THE NEXT 12–18 MONTHS • We are preparing to deliver the Logan River Vision and Implementation Plan in 2016 to ensure the river remains a key environmental, social and economic asset into the future. • We will deliver the second stage of our landholder engagement program, including the development of an online property management tool and targeted workshops. • We will continue to deliver the Slacks Creek Catchment Recovery program. • We will design and release a localised waterway reporting tool in partnership with Healthy Waterways and CSIRO. • We will release our environmental offset estimator tool as an upgrade to our online interactive mapping system. • We will deliver key actions from our koala conservation strategic plan. • We face possible changes to legislation, including a new Planning Act and the South East Queensland Regional Plan, which impacts on the way we do business. • We will develop and implement RiskSmart accreditation for infrastructure charging. • We are working towards an online infrastructure charging tool for the public. • We will continue to deliver business support initiatives. • We have planned trade and investment missions to China, Taiwan and North America. • We are preparing for the 2016 Queensland Investment Expo. • We will increase activity associated with the Skills for Industry initiative to identify and generate more local employment opportunities. • We are working with major developers to identify employment requirements into the future. *For key highlights, challenges and key issues looking ahead relating to waste services, refer to pages 100–103.

mentoring sessions. • We attracted $154.72 million of investment into the city. • We facilitated trade and investment missions to South Korea, China and North America. • We sold six lots at SouthWest 1, generating revenue of $12 million. Other land sales at SouthWest 2 and Wembley Rd generated a further $23.2 million.

PERFORMANCE REPORTING

PRIORITY AREA: BUILDING OUR MAJOR INFRASTRUCTURE (MI) PRIORITY FOCUS MI1: Increase emphasis and funding to maintain and upgrade local road networks MI2: Achieve high-level delivery of annual capital works program MI3: Consider and adopt plan for harmonisation of water rates, including an assessment of trickle feed consumers

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN PROJECTS On track/completed • Nil Undeliverable • Nil Not proceeding • Nil

KPIs Meeting/exceeding target • Deliver the pavement rehabilitation program on time and on budget • Deliver the annual roads and drainage maintenance program on budget • Deliver the parks capital works program on time and on budget • Deliver the waste capital works program on time and on budget • Deliver the water infrastructure capital works program on time and on budget Monitor • Nil Below target • Deliver the road infrastructure capital works program on time and on budget+ • Deliver the major venues and facilities capital works program on time and on budget~ + Numerous external issues have disrupted the delivery of the roads infrastructure capital program, including the final settlement of land acquisitions for future infrastructure and Showgrounds Dr, unseasonal wet weather events, the temporary suspension of the master drainage program for review, and the temporary suspension of the Millers Bridge project for funding processes and developer negotiations. Although expenditure targets have not been met, contracts have been executed for all remaining projects in the program with a greater portion of expenditure on these projects to be realised early in 2015/2016. ~ A large number of small to medium sized projects have been completed this financial year. However, there are three major projects (Logan Metro Sports Park, Jimboomba Park redevelopment and the Bayliss Rd entrance to Browns Plains landfill) that were originally scheduled to begin construction in 2014/2015 but were delayed in the planning and design phases.

(Scorecard definitions can be found on page 8).

STRONGER TOGETHER

HIGHLIGHTS IN FOCUS: New Edward O'Neill Bridge opens to traffic Motorists travelling between Flagstone and Beaudesert via Kilmoylar Rd are now enjoying a safer trip after the ageing Edward O'Neill Bridge was replaced this year. The $2.8 million project was jointly funded by Logan City Council and Scenic Rim Regional Council as the bridge sits on the boundary of both areas. Logan managed the project on behalf of both councils including the five-month construction period. The new two-lane bridge replaced a 50-year-old single-lane wooden structure, which was nearing the end of its life.

The bridge will service the needs of future growth in Flagstone and Bromelton in the coming years – it was raised by two metres and has no weight restrictions. The bridge is named after the O’Neill family who lived at the nearby “Kilmoylar” property and were well-known graziers in the district. The Kilmoylar property, which was more than 3,000 acres, was originally leased by Edward’s father, Lawrence O’Neill, who was an Irish settler in Australia. The family also leased the Kilrea property and ran cattle. Edward was Lawrence's only child. He was known as a great lover of horses and took an interest in district racing. He passed away in 1947, aged 84. We are investigating the possibility of preserving the history of the old timber bridge.

Undullah residents Isaac and Anthony Gittins have benefited from the upgrade to the Edward O'Neill Bridge.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

Works hit the road in Daisy Hill

Demeio Park towers above the rest

A comprehensive road rehabilitation project in Daisy Hill has solved a number of long-term issues experienced by motorists and residents.

The $1.5 million development of Demeio Park at Marsden was completed in 2014 after more than two years of planning and construction.

The $2.4 million project addressed the deterioration of Magnolia, Oleander, Begonia, Lilac and Harley streets, which were experiencing issues with potholes, and failing kerb and channel for some time.

The park features a custom-designed playground called the 'garden tower', which is made up of climbing nets over three levels.

The project started in August 2014 and took about six months to complete.

The 'garden tower' is designed to assist with developing mobility and coordination skills in young people, and was complemented by a flying fox, swing set, basketball halfcourt and new picnic shelters.

Water alliance tender awarded We awarded a three-year tender to a consortium led by Downer Utilities together with their partners Cardno and Parsons Brinkerhoff to plan and deliver the water and wastewater infrastructure that Logan will need in the coming years. The decision concluded a long and thorough tender process and will provide us with strong value for money over the course of the agreement. The successful bid came from a strengthened alliance group, which held the previous contract and had planned, designed and built more than $200 million of water and wastewater infrastructure in the city since 2009, saving at least $96 million in capital costs. The new alliance supports the areas of asset management, planning, design, project management and staff development. The new contract integrates asset management activities and includes a requirement to build our organisation's capabilities towards self-sufficiency.

Improvements made at Plantain Rd A beautification project at Plantain Rd, Shailer Park, has improved the amenity and sight-line of the area. Work completed in early 2015 at the median strip between Mandew St and Shailer Rd enhanced safety for motorists, cyclists and pedestrians, with native trees and plants chosen for their size and aesthetic qualities. In August 2015, native trees and plants will be planted between Anbury St and Blackthorne Cr, while existing palms will be removed. This work will continue to the intersection of Scilla St.

Investment in capital projects ($m)

The new contract comes into effect from 1 July 2015 for three years, with two one-year options at our discretion.

Roads and drainage

Water and wastewater

Parks 74.7

Up to $180 million worth of water and wastewater infrastructure to support the city's growing population will be delivered.

Environmentally-friendly lights installed at Edens Landing The pathway near Edens Landing railway station was made safer during 2014 when new lighting was installed.

68.1 61

64.6 58.7

41.2 34

17.1

The battery-powered lights are environmentally-friendly and can operate for three days, even without sunlight.

8.3

2010/2011

2011/2012

7.9

9.3

9.1

2012/2013

2013/2014

2014/2015

Responsibility for water and wastewater services lay with the former Allconnex Water in 2010/2011 and 2011/2012. We resumed responsibility for those services on 1 July 2012.

STRONGER TOGETHER

PRIORITY AREA: BUILDING OUR CITY'S IMAGE (CI) PRIORITY FOCUS CI1: Adopt and implement a three-year city image campaign

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN PROJECTS On track/completed • Finalise a three year City Image Strategy Undeliverable • Nil Not proceeding • Nil

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

(Scorecard definitions can be found on page 8).

HIGHLIGHTS Campaign shares Logan’s positive stories The first phase of our city image campaign started in June 2015, aimed to tell the positive stories about the City of Logan to residents in South-East Queensland. We wanted to enhance our reputation by attracting people for day trips and promoting opportunities for business investment. The campaign was made up of billboards, radio and print advertising, as well as social media.

Instagram record attempt connects our community We hosted our first ‘Instameet’ at Berrinba Wetlands in October, joining a world record achievement held across Queensland when more than 1,000 people came together at 90 locations to share more than 6,000 images tagged #thisisqueensland. The previous world record for an Instameet was held by a Californian group that had 451 people participate. We were proud to be involved to showcase the city’s natural beauty to people around the world, while providing an opportunity for locals to come together and make new friends while enjoying the great outdoors. Berrinba Wetlands stretches across 80 hectares and features more than eight kilometres of shared walking and riding tracks, a viewing platform, five bridges and 100 nesting boxes for wildlife.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

Chambers Flat farmer Ray Crooks featured in the City of Logan pride video.

IN FOCUS: Locals share their city pride We launched a campaign in October 2014 encouraging our residents to promote the pride they have in their city. The campaign included an inspirational video that showcases the local faces and places that define the City of Logan. Set to the song â&#x20AC;&#x2DC;I am Australianâ&#x20AC;&#x2122; performed by Logan's own Dami Im, as well as Justice Crew and Jessica Mauboy, the video features locations throughout the city and a host of local people who generously donated their time to be involved. Locations included Underwood Lagoon, Daisy Hill Conservation Park, Springwood Reservoir, Berrinba Wetlands, the Global Food Village at Woodridge and the Forest of Memories at Logan Village. Chambers Flat herb growers, Lisa and Ray Crooks, were among those featured in the video. Ray is a second-generation farmer with more than three decades in the horticulture industry, while Lisa proudly manages the administration, human resources, planning and development of their farm, which supplies parsley, coriander and radishes to major supermarkets in Queensland and northern New South Wales. Lisa said their involvement with the city pride campaign had been successful. "It has given us the opportunity for our consumers to meet us and other opportunities, such as participating in Council stands at the Brisbane Ekka, have increased business opportunities for all of the growers in Logan," she said. In addition to the pride video, which can be viewed online and is being used at presentations and other forums, the campaign included banners depicting photographs of the city's hidden gems, a Championing Change booklet with facts about Logan and a coffee table photo book. The campaign aimed to encourage positive conversations about the City of Logan and was an initiative from the Logan: City of Choice Two-Year Action Plan and our city image strategy.

STRONGER TOGETHER

PRIORITY AREA: BUILDING OUR ECONOMIC BASE (EB) PRIORITY FOCUS

KPIs

EB1: Support existing businesses

Meeting/exceeding target

EB2: Attract new businesses

• Deliver one-on-one mentoring/business advice sessions for the small business sector

EB3: Enhance local employment opportunities and local jobs containment

• Promote Logan at targeted industry trade shows and events • Promote Logan as a business location of choice

EB4: Enhance the focus on tourism, including eco-tourism opportunities

• Generate a pipeline of business and investment opportunities for Logan

EB5: Proactively market the SouthWest 1 and SouthWest 2 developments

Monitor

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN PROJECTS On track/completed • Host the 2014 Logan Youth Jobs and Career Expo • Facilitate and support workforce development initiatives aimed at building competitive entry level and industry skills • Deliver Logan’s tourism strategy through the development and implementation of an annual tourism action plan • Prepare South West 2 and 368 Wembley Road for market and sale Undeliverable • Implement the Loganholme Tourism Precinct Master Plan* • Sell the remaining nine lots in SouthWest 1~ Not proceeding • Finalise ground lease arrangements for the development of a hotel and associate uses at SouthWest 1+ * Council terminated the agreement for lease with Logan Alma Park Zoo Pty Ltd due to non-compliance with the terms of that agreement. While this is a disappointing setback, we are taking action to ensure tourism development occurs in this precinct. We have started the process for expressions of interest for the site. ~ While contracts of sale were signed for the remaining three lots during the fourth quarter of 2014/2015, settlement has not occurred and is expected to take place before the end of January 2016. + The Governance, Finance & Economic Development Committee meeting on 12 February 2015 endorsed a recommendation that this project not proceed.

• Deliver ‘BizConnect’ business support programs for the small and home-based business community (participant satisfaction level)+ • Deliver export-focused events for local businesses (number of events delivered)* • Deliver the Digital Connect program (participant satisfaction level)^ Below target • Deliver BizConnect business support programs for the small and home-based business community (number of programs delivered)~ • Deliver the Digital Connect program (number of programs delivered)# Not proceeding • Deliver export-focused events for local businesses (participant satisfaction level)> + For the first half of 2014/2015, participant satisfaction was consistently at 100 per cent. Participant satisfaction for the June courses measured at 94 per cent. The cumulative satisfaction level for the financial year was 98 per cent, which still exceeded the lowest acceptable performance limit. * A fourth event scheduled for 2014/2015 was not delivered due to limited expressions of interest received. The Economic Development branch has scheduled a review of services in the first quarter of 2015/16 to help identify key topics of interest for future events. ^ Participant satisfaction for the Digital Marketing Made Easy courses throughout the year averaged 96 per cent, which is just below the target of 100 per cent but still exceeded the lowest acceptable performance level. It is positive to see that the two courses delivered during the year were well received by participants. ~ The BizConnect Centre delivered two Effective Marketing Made Easy courses in June. This brings the year-end total to 12, which is below the lowest acceptable level of 20. Participation levels have steadily decreased throughout this financial year and a digital media campaign has been implemented to promote increased participation. # No Digital Marketing Made Easy courses were run in June 2015 due to a low number of registrations. A digital media campaign has been implemented to promote greater participation. A review of services provided by the Economic Development branch is scheduled for completion by 30 September 2015. The review will consider feedback from previous course participants, consultation with local chambers of commerce and an online survey, which will target course requirements and demand. The review will frame the scale and variety of offered services moving forward. > During the third quarter, Council decided to discontinue with this key performance indicator due to a lack of available data to accurately assess performance.

(Scorecard definitions can be found on page 8).

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

The Brezac family expanded its business in Logan this year, making the most of the city's strong economic credentials.

HIGHLIGHTS IN FOCUS: Brezac builds future in Logan A local family business opened a new multi-million dollar facility in Crestmead in December 2014, continuing its strong relationship with the City of Logan. Brezac Construction supplies structural steel fabrications to the building industry and expanded to a 3,000 square metre facility (double the size of its previous premises) to capitalise on our strong economic attributes. Gus Brezac first opened Brezac Constructions in 1986 and handed over the reins to his sons Peter and Andrew in 2007. Co-Director Peter Brezac said it wasn't a hard decision to build the new facility in Logan.

“We did look further afield but Logan is where this business started and where it will stay. All but one of our 19 employees live in Logan and most are within five kilometres of our new home,” he said. “This area provides access to suppliers, clients and major transport routes so it is a logical choice to base our operations.” “The Logan Office of Economic Development has also provided invaluable support, which has made the whole process of building a new facility while continuing to operate the business much simpler.” Over the past 28 years, the business has worked on projects in the resources, infrastructure, industrial and commercial sectors and had outgrown its previous facilities, also in Crestmead. The new building was awarded the 2014 Queensland Steel Excellence Award for Small Buildings based on overall design merit, environmental sustainability and construction efficiency.

STRONGER TOGETHER

Asia visit capitalises on economic opportunities The growing international connections and city-wide opportunities promoted by our Economic Development branch led to a mission in September 2014 to encourage trade opportunities for local businesses and attract further investment in our city. Representatives from local businesses, including those from the renewable energy and recycling, tourism, education and development industries, joined us on the strategic economic trade mission to Asia to capitalise on significant opportunities. The two-part delegation had Councillor Luke Smith visiting Korea and China, with Deputy Mayor Russell Lutton visiting Shanghai and other cities in China to oversee the signing of three significant agreements. Our representatives also visited Singapore during the trade mission. We signed a new Friendship and Economic Cooperation Agreement with Panjin and a performance by 35 local musicians from the Logan Youth Music Exchange (LYME) formed part of celebrations for the renewal of an existing agreement with Xuhui District in Shanghai. Significant investment is now occurring in the city as a direct result of the strong relationships we have established with business leaders in Asia. We see export revenue and international investment as being key drivers in diversifying the local economy and creating jobs that are vital for prosperity as the city grows.

North America trade mission explores investment opportunities In addition to the Asia visit, a delegation of local businesses and Council officers also visited North America in 2014, ahead of the G20 meeting held in Brisbane. Due to the diversity of industries they offer, both destinations have been identified as high priority markets for trade and investment opportunities. Mayor Pam Parker visited Canada and met with numerous mayors, including City of Edmonton Mayor Don Iverson, to explore investment opportunities.

Tourism attraction springs to life Jumping became big business in December 2014 as a new indoor trampoline centre opened at Meadowbrook thanks to support from our Economic Development branch.

He said the centre provided a fun way to stay fit and active and would attract people ranging from professional athletes looking to hone their aerial skills through to parents wanting to enjoy a fun experience with their children.

Locals look to turn innovative ideas into business riches Three local businesses unveiled their innovative products, developed with support from our Economic Development branch, at the Logan Country Chamber of Commerce business breakfast in November 2014. The Logan Office of Economic Development team provides support to both new and existing businesses to ensure they have the best possible chance to grow and flourish. One business that has benefited from this support is Breggos, established by locals Brad Hall, Graham Davies and Ben Hall. They developed the concept of an edible egg ring after cooking many fundraising breakfasts as Lions Club members. “We were always given the task of cooking eggs with aluminium rings and I kept burning my fingers so I thought there had to be a better way,” Brad said. “From there the product was developed.” With guidance from the Logan Office of Economic Development team, Breggos developed a business case to help ensure the concept was financially viable. The team then set about turning the idea into a potentially national success. Breggos has now secured several major retail chains to stock the product including Drakes and Richies IGA in eastern states of Australia. The edible egg rings are now on the shelves of more than 500 supermarkets. The Onsong Swing sports improvement technology, created by Vern Johnston, was also launched at the event, along with the Jacobs Ladder boating accessory. While looking to improve his golf swing, Vern created a product that improves technique in any sport involving swinging a bat, club or even a fishing pole. The Jacobs Ladder was created by John Canaris and bolts on to the bow of aluminium boats and bay cruisers to allow passengers to board from the beach without getting wet.

The Xtreme Indoor Trampoline Centre offers more than 80 trampolines across 1,000 square metres. Manager Cory Taylor said more than 20 local jobs had been created, with the centre open every day of the week and catering to people aged three years and older. LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

Vision shared for Meadowbrook medical and educational hub We co-hosted a breakfast forum for the Australasian College of Health Services Management in October 2014, focusing on the potential for Meadowbrook to develop into an educational and medical hub for the region. We believe the nearby Jeta Gardens hospital and training college will attract other health service providers into the area, helping it develop into a one-stop-shop for medical education and care. With the expansion of Logan Hospital, the location of Griffith University's Logan Campus and plans for future healthcare providers underway, the area will soon be home to some of the best medical practitioners and researchers in South-East Queensland.

Indonesian delegation welcomed to city We welcomed a government delegation from Indonesia to the city in August 2014. His Excellency, Mr H. Ganjar Pranowo SH Governor of Central Java, visited Queensland with education and planning officials from the Central Java Province and spent time at Browns Plains State High School. A memorandum of understanding to extend the sister school agreement between Browns Plains State High School and SMAN 1 Salatiga in Central Java was signed during the delegation. Central Java Province is a sister state of Queensland. This was just one of 21 delegations to visit during 2014/2015.

Businesses on display at our stand included the Berry Patch (strawberries), Kenon Corporation (mushrooms), Riverview Herbs (coriander, parsley and radishes) and N T Fresh (cucumbers). Ekka visitors could also purchase a show bag from the stand, including a recipe book, mushroom kit, strawberries, herbs and more. The funds raised from the show bags were returned to the growers.

Master plan sets out vision for Loganholme Tourism Precinct While not fully implemented in 2014/2015, we endorsed the Loganholme Tourism Master Plan in July 2014 to help guide future development of the site on the Pacific Motorway at Loganholme. The tourism precinct has the potential to be developed into an iconic tourist destination for residents and visitors alike, with best suited development options including adventure parks, indoor themed attractions, outdoor event facilities, wildlife attractions and a range of other complementary uses. We want to make sure the area delivers a positive economic outcome for the area by making use of the unique river and ecotourism opportunities available at the site, which has already generated significant interest from potential investors and tourism operators. The master plan also recognises the important role other precincts in the city already play from a tourism perspective and provides direction around how the tourism precinct can align with these areas.

Logan’s green growers on show at the Ekka

Youth employment given a boost through coffee

In a first for the city, Logan growers were front and centre at the 2014 Ekka (Royal Queensland Show).

A number of locals received a career kick-start at Logan's newest The Coffee Club store in March.

We partnered with a variety of local growers to highlight the little known fact that the region generates a wealth of fresh produce. In fact, Logan growers supply to many major national businesses including Coles and Sizzler.

We facilitated a Skills for Industry partnership with the Meadowbrook store, which provided 13 local youths with the opportunity to complete hospitality training.

We have an abundance of local farmers and growers who produce tonnes of fresh fruit and vegetables every week, including cucumbers, mushrooms, strawberries and herbs and spices.

Eight members of the group secured employment, including six who were employed by The Coffee Club franchisee, Barry Lane. “We have been able to give local people a chance thanks to this program and the training will allow them to hit the ground running,” Barry said. “While we could not hire everybody, all those who completed the training gained practical experience in a fully operating Coffee Club store, which will give them a distinct advantage in pursuing a career in the hospitality industry.”

STRONGER TOGETHER

“There is a great deal of work involved in setting up a new business and having the Logan Office of Economic Development as a central point of contact between our team, the trainees and training organisations has been fantastic.”

New business investment attracted to Logan ($m)

446.9

The Skills for Industry agreement was established as part of the Logan: City of Choice Two Year Action Plan.

QMI Solutions relocates from Brisbane to Logan QMI Solutions officially launched the relocation of its headquarters from Brisbane to Logan in April 2015. Now based at Springwood, QMI Solutions is a Queensland-based not-for-profit organisation that is dedicated to improving the competitiveness of small-tomedium enterprises across Australia. It connects businesses with tools and expertise to enable them to succeed and become commercially competitive. “Logan Office of Economic Development was instrumental in the move to our new premises in Springwood. Once they understood our requirements, they liaised extensively with landlords and agents to find us great premises in a fantastic location,” QMI Solutions CEO Gary Christian said.

154.79 108 88 59.7 2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

The figures for 2011/2012 are based on announcements and projections, including the $300 million Jeta Gardens expansion, which will develop over a number of years. This year’s data includes the sale of the SouthWest 2 property and the sale of the Marsden Shopping Centre.

Growing a strong economy

Approximately 30 staff work at the new headquarters.

New business leads generated

SouthWest 2 sale plots course for jobs growth

New jobs created

1,420

The land could potentially create 1,000 new jobs in the city, as it has direct access to the Logan Motorway and is wellconnected for logistics and technology-related industries. We began preparing the site for sale in late 2011 in anticipation that it would one day become a key employment hub. We will use the net profits from the land sale to fund future initiatives.

0 2010/2011

2011/2012

(plus 421 retained)

(plus 106 retained)

The GPT Group holds interests in a number of industrial properties across Australia, including the nearby Toll Transport facility on Forest Way, Berrinba.

662

598

(plus 320 retained)

We sold the 21 hectare SouthWest 2 site, located on the corner of Wembley and Bardon Rds, to property investor The GPT Group for $23.2 million.

2012/2013

(plus 118 retained)

Our long-term strategy to drive jobs growth in the city has received a vote of confidence from the private sector after industrial land at Berrinba was sold in late June.

270

191 46 2013/2014

98 2014/2015

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

PERFORMANCE REPORTING

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

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN PROJECTS

* The detailed design and schedule of works for the Paradise Rd precinct was not delivered as planned. Moving forward, the Parks branch and Environment and Sustainability branch have now partnered to plan and deliver on capital works in urban parks along waterways. + The design and construction of the Doug Larsen Park water body rehabilitation project was a key deliverable under the Logan River and Wetlands Recovery Plan in 2014/2015. The Logan River Vision Project was not fully delivered as further funding to complete the works was required. This service enhancement was successful and works to finalise this project are scheduled for 2015/2016.

KPIs Meeting/exceeding target • Nil Monitor • Quality of environmental events and workshops delivered^

On track/completed

Below target

• Implement Council’s environmental offset policy and framework

• Nil

• Develop an environmental education strategy • Develop and implement a schedule of energy reduction projects for 2014/2015 • Develop a schedule of priority energy reduction projects for future budget consideration Undeliverable • Finalise the draft energy management framework~ • Implement the Slacks Creek restoration project and catchment recovery project* • Implement the Logan River and Wetlands Recovery Plan+ Not proceeding • Nil

~ The development of a draft climate change and peak oil strategy was discontinued. A draft energy management framework is being developed instead to provide a structured approach to improving our energy usage and performance. An initial draft will be provided to relevant stakeholders in quarter 1 of 2015/2016.

STRONGER TOGETHER

^ More than 20 successful environmental events, workshops and activities were delivered this year. The majority of feedback across all activities was positive with a cumulative satisfaction level for the financial year of 95%, which still exceeded the lowest acceptable performance limit.

(Scorecard definitions can be found on page 8).

HIGHLIGHTS IN FOCUS: Links with landowners continue to improve rural conditions We began planning the second stage of a project to improve the conditions of rural land across the city following the success of a pilot project at Chambers Flat and Stockleigh during 2014. The Logan Rural Landholder Engagement Project was endorsed in June 2015 for implementation in 2015/2016. The majority of Logan’s waterways, ecological corridors and significant habitat areas are located within the rural and semi‐rural parts of the city, and the health and resilience of our waterways and corridor connections are significantly impacted by how rural land in the catchment is managed. Poor land management practices impact on these waterways and can cause the loss of productive land through bank erosion.

The pilot Logan River Landholder Engagement Project, which focused on the Chambers Flat/Stockleigh area, was a highly successful model in engaging landholders, raising awareness of the importance of land management and the connection to healthy river systems, and providing landholders with access to information and services on how to manage their land effectively. Phase 2 will build on the learnings and feedback received from key stakeholders and will have a city‐wide reach, focusing on a series of land management workshops/ demonstration days that will be open to all residents. The educational series, in partnership with community and industry groups, will provide practical advice and up‐to‐date information on best practice weed, pasture, and grazing management strategies and techniques and will cater for differing rural audiences and industry needs. We will also create a dedicated landholder engagement webpage as a central portal for land management communication throughout Logan, providing information on upcoming workshops and links to external community and industry initiatives as well as fact sheets and links to support property management planning.

Rural landowners are making changes to their practices to help improve the health of the Logan River.

PERFORMANCE REPORTING

Plunkett Regional Park is being protected for the future.

New lighting brightens city New technology LED lamps and new generation fluorescent tubes are now lighting up key sites across the city providing better lit public spaces and significant energy savings. We installed park, pathway and street lighting at 13 sites including Logan Gardens, The Red Bridge at Beenleigh and Crestmead Park, while internal and external light fittings were installed at the Beenleigh Events Centre and Beenleigh Library. New technology lights provide multiple benefits, using considerably less energy, helping the environment, and improving the amenity and usability of the public spaces. We will reduce our carbon emissions by 120 tonnes annually and approximately $28,500 per year in operational costs as a result. The total cost of the project was $392,021, with $247,974 funded by the Australian Government.

Friends of Plunkett preserves regional park for the future The Friends of Plunkett is a volunteer group comprising some of the city’s outdoor adventurers, conservators and enthusiastic educators who are passionate about Plunkett Regional Park. Working under the auspices of the Friends of Parks program, a partnership between Conservation Volunteers Australia and the Queensland Parks and Wildlife Service, the group aims to ensure the park is protected, preserved and rehabilitated for future generations. Formed officially last year, Friends of Plunkett member Trisha Rogers said the group aimed to care for the park while facilitating appropriate use. “Plunkett Regional Park hasn’t really had a lot of care and attention in the past few years,” she said.

LEAF celebrates Logan’s green successes

“It’s home to a number of rare, vulnerable and unique species, and some of them are regionally important.

Thousands of people enjoyed our popular sustainable lifestyle event, the Logan Eco Action Festival (LEAF), at Griffith University’s Logan Campus in June 2015.

“We do the usual sort of projects – get rid of weeds, do remediation and conservation, and try to make sure the park is used appropriately.

Live music, organic food, wildlife displays and children’s activities were just some of the attractions at the event, which had a theme of ‘reducing avoidable waste’.

“We work with a lot of other users, such as mountain bike riders, walkers, and other groups to make sure the park is used actively, but responsibly.

Stalls, workshops and demonstrations were held in a villagestyle atmosphere, and we recognised our city’s greenest advocates during the event too, announcing this year’s EnviroGrants recipients, and the winners of the Logan Eco Awards and the World Environment Day calendar competitions.

“The more we can all do the better – it’s a resource we want to preserve for the future.” Friends of Plunkett facilitates regular activities open to members of associated organisations and the public.

We announced funding for 23 projects, with just over $80,000 provided for local wildlife carers and environmental projects to be done by a range of organisations, community groups, schools and individuals through the EnviroGrants. The festival is held each year in the lead-up to World Environment Day on 5 June.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

PRIORITY AREA: BUILDING OUR SERVICE EXCELLENCE (SE) PRIORITY FOCUS SE1: Enhance our quality customer service practices SE2: Enhance community communication and engagement SE3: Pursue alternative sources of revenue to diversify Council's income streams SE4: Subject to the necessary resourcing being available, commit to maintaining the programs and services listed in the Corporate Plan at or near current levels

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN PROJECTS On track/completed • Develop quarterly customer satisfaction surveying to identify opportunities to improve customer service and undertake pilot • Implement the customer experience project to enhance library customer service • Develop Aboriginal and Torres Strait Islander community engagement guidelines • Investigate the sale or development of surplus Councilowned land Undeliverable • Nil Not proceeding • Consider introducing fees and charges for commercial use of parks* * There have been a number of significant legislative changes to the Sustainable Planning Act, which meant additional work to prepare a Local Government Infrastructure Plan by July 2015. As a result, there was not enough resources to deliver this project before 30 June 2015. The Governance, Finance and Economic Development Committee endorsed removing this project from the 2014/2015 Operational Plan on 13 November 2014.

Right to Information access applications processed

KPIs Meeting/exceeding target

52 47

• Responsiveness to answering telephone enquiries within Council’s contact centre Monitor • Responsiveness to customer requests relating to park and cemeteries management+

Below target • Nil + The trend for ‘requests entered’ increased between April and May 2015 due to flooding experienced in some areas of the city, meaning there were more requests entered than completed. This trend is reversed during June 2015, with more requests being completed than raised. While the end of financial year result of 93 per cent of requests actioned within timeframes is below the target, it is positive to see that additional temporary resources helped reduce outstanding work and requests were responded to more efficiently during the final quarter of 2014/2015.

2010/2011

2011/2012

2012/2013

STRONGER TOGETHER

2013/2014

2014/2015

(Scorecard definitions can be found on page 8).

Island descent.

HIGHLIGHTS IN FOCUS: Pacific youth research symposium held in Logan More than 150 delegates from across academic, education, health, government and church sectors came together at the 2014 Pacific Youth Research Symposium at Woodridge State High School in November 2015 to learn new strategies to better engage with Pasifika youth. The event was presented by the Woodridge State High School Youth and Multicultural Hub, in partnership with Australian National University and Griffith University, and was led by five leading international Pasifika experts. Key speakers from New Zealand included Rhodes Scholar and Associate Professor Damon Ieremia Salesa. The symposium was particularly significant for our city, given Samoan is the most frequently spoken non-English language in our community. Pasifika students comprise more than half of the student population at some schools in South-East Queensland. This figure includes a significant number of people of Pacific Island heritage who are New Zealand citizens. Woodridge State High School has more than 1200 students from 70 nationalities, of which 30 per cent are of Pacific

Woodridge State High School Community Hub Project Manager, Josephine Aufai, said the symposium was invaluable for educators, policy advisors, community Elders and practitioners as it helped them further understand issues facing Pasifika young people in Logan. “Students from Pacific Island communities attending primary and secondary schools in South East Queensland are a high-risk group for under-achievement, and are underrepresented in higher education,” Ms Aufai said. “Of particular concern are the increasing numbers of Pasifika young people disengaging from education early, and the lack of support or expertise available to support them before that happens.” “On many levels, this symposium was not only positive and aspirational, but more importantly inspirational for our Pasifika communities locally and nationally.” As a result, 13 recommendations were proposed from symposium workshops, including that the Federal and State governments engage with the Woodridge State High School Community Hub as a central point of the community. The symposium report was tabled at the Logan: City of Choice Leadership Team meeting in December 2014. Another Pasifika research symposium is planned for 2015.

The Woodridge State High School Community Hub is a Federal Government initiative of the Logan: City of Choice Two Year Action Plan 2013-2015, in partnership with BoysTown and the Centre for Multicultural Youth.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

Survey says….Logan is a leader A commitment to excellence means we are leading the way for metropolitan councils in Australia, according to the results of the 2014 Logan Listens: Residents' Survey.

Information Privacy access applications processed

We received the most impressive results to date in the fifth survey undertaken. Residents, both urban and rural, clearly indicated their improved satisfaction with the services and facilities we provide to our 305,000 residents who live in the city's 64 suburbs. The overall citywide satisfaction level jumped from 72.5 per cent to an outstanding 80.2 per cent while almost 85 per cent of residents believed we 'get things done' and just over 90 per cent believe we work in the best interests of the community. Residents again rated us highly in the key areas of general waste and recycling collection, immunisation, animal management, sewerage services, sporting grounds, food safety, and parks. We use the results of the survey to help plan effectively for the growing needs of the community and determine budgetary priorities.

15 11 2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

Volume of calls taken by our customer service contact centre 240,040 231,154

229,983 228,578 226,524

IRIS Research Director Michael Di Leo said Logan City Council had been able to “better an already impressive set of figures”. “The Council has set another benchmark for resident satisfaction,” he said. A total of 802 residents completed surveys this year, well in line with nationally-recognised survey sample sizes.

Desexpo service helps city's pet owners We again offered our popular Desexpo program in 2014/2015 to encourage our city's pet owners to be more responsible. Desexing prevents pets from roaming, fighting or causing nuisance to neighbours, as well as reducing the number of unwanted kittens and puppies. In females, it significantly reduces the risk of urine infections and mammary cancer. In males, it significantly reduces the risk of cancer of the prostate gland. We offer a significant discount on pet registration fees if animals are desexed.

STRONGER TOGETHER

2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

Responsibility for water and wastewater services lay with the former Allconnex Water in 2010/2011 and 2011/2012. We resumed responsibility for those services on 1 July 2012. We also achieved consistency over time with rates, animal registrations and other services, which means we have stabilised call volumes and are now slightly decreasing in customer contacts.

PRIORITY AREA: BUILDING THE WELLBEING OF OUR COMMUNITIES (WC) PRIORITY FOCUS WC1: Consider the Action Plan compiled from the Logan: City of Choice Summit. Agree on an appropriate role and determine appropriate responsibilities for Council in response to that plan

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN PROJECTS

WC2: Ongoing priority for healthy and active lifestyle initiatives WC3: Enhanced focus on City events

On track/completed • Deliver the Logan: City of Choice Action Plan portfolios of: – education – employment – housing (including the Logan Renewal Initiative)

Visitors to our community spaces Logan Art Gallery

Mayes Cottage

– safety

Logan Entertainment Centre

– social infrastructure – communication and community involvement

2012/2013

2013/2014

1,871

4,030

16,931

59,018

60,300 17,345

3,620

2011/2012

3,755

14,600

58,429

65,033

– transport

15,264

16,759

71,416

– cultures

2010/2011

2014/2015

Mayes Cottage experienced significantly lower patronage this year due to The Time Before festival being cancelled after wet weather in May 2015.

• Support delivery of the Logan: City of Choice Action Plan: – media services – marketing, community engagement and events • Implement the Logan City Environmental Health Plan 2014–2017 to contribute to positive public health outcomes • Complete design of the Logan Metro Sports Park and commence construction • Commence construction at Jimboomba Park and Glenlogan Park to improve the current facilities identified in their master plans. • Deliver the 2014/2015 calendar of events from the Logan Events Strategy (number of events delivered) Undeliverable

Visitors to our libraries Visitors

• Implement a proactive inspection program for Council-leased facilities that prepare food*

Loans

2010/2011

2011/2012

2012/2013

2013/2014

1,998,174

1,673,952

1,840,245

• Complete club development plans for all sporting lease holders or clubs with right of use agreements~

2,101,048

1,420,900

2,180,365

2,289,199 1,239,844

1,222,326

2,346,200

• Develop a draft Sports Infrastructure Strategy+

2014/2015

We experienced a drop in visitors and loans this year, which aligns with some other library services in South-East Queensland, but are still experienced strong usage from residents.

Not proceeding • Nil *Due to the complexity associated with scheduling inspections, only 11 inspections of the 86 facilities were completed prior to 30 June 2015. In 2015/2016, the environmental health program will be taking a more proactive approach, which is likely to include inspections on a predetermined schedule. +In December 2014, our executive management expanded the scope for this project. As a result, the project could not be completed by the due date, however is expected to be finalised in the first half of 2015/2016. ~Our Sport and Recreation Officers have met with 111 individual organisations on this matter. As at 30 June 2015, 69 club development plans were received. Officers will continue to work with the organisations, to progress club development plans in 2015/2016.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

KPIs

Graffiti customer requests received Meeting/exceeding target

10,738

• Provide food safety training to community organisations Monitor • Deliver the 2014/2015 calendar of events for the Logan Events Strategy (participant satisfaction)^ Below target

6,117

• Complete regular inspections of leased premises> • Distribute Lions Junior Sports development funding (percentage of acquittals received on time)<

5,363

5,169 3,778

^The result for the 2014/2015 financial year was 95 per cent, which is still above the lowest acceptable performance limit and a positive result, indicating that on average, 95 per cent of event attendees were either ‘satisfied’ or ‘very satisfied’ with events delivered by Council during the year. >As at the end of June 2015, our Sport and Recreation team has visited and inspected 127 separate leased facilities, equating to 68 per cent of the community leasing network of facilities. Inspection of leased facilities is an ongoing process and will be a focus for the team in 2015/2016. <Of the 395 applications supported/funded, 62 are not requiring acquittal as they have not expended the funds. Of the 333 applications requiring an acquittal, 122 (36.6 per cent) applications have been fully acquitted. Reminder letters have been distributed to all applicants who have not completed their acquittal documentation to date. We have revised our funding acquittal processes to better manage future non-compliance for the acquittal of funds and a new online system for the application and acquittal of the Logan Sports Development Program will be introduced in 2015/2016 to improve the percentage of acquittals completed.

(Scorecard definitions can be found on page 8).

Number of animals sold through our sales and rehoming program 499

2010/2011

2011/2012

2013/2014

Percentage of customer feedback on our aquatic centre venue services that is ‘good’ or better (%) 95.70

497 88.85 453

86 444

2010/2011

2011/2012

2014/2015

The data for 2012/2013 onwards also includes instances of graffiti that were proactively identified and removed by our team without a request from an external customer. The cumulative result for 2014/2015 shows that 84.78 per cent of graffiti requests (4,669) were actioned within two business days. This result is below the annual target of 90 per cent but still exceeds the lowest acceptable performance limit of 70 per cent. We removed 44,463 square metres of graffiti in 2014/2015.

465

2012/2013

STRONGER TOGETHER

2013/2014

2014/2015

83.76

2011

2012

2013

2014

HIGHLIGHTS IN FOCUS: Second City of Choice milestone event a hit Two hundred people gathered at the Beenleigh Events Centre in March 2015 for an update on the Logan: City of Choice initiative. Community members, and business, government and non-government agency representatives came together for the event, which featured panel-style discussions, a live performance and video clips including an exclusive look at the trailer for the Black Diggers of Logan documentary. In its second year of delivery, the ground-breaking Logan: City of Choice initiative has secured more than $6 million in funding and another $650 million in investment commitments. The milestone event coincided with the delivery of the JulyDecember update report from government stakeholders on progress of the Logan: City of Choice Two-Year Action Plan 2013â&#x20AC;&#x201C;2015. Logan: City of Choice Leadership Team member (and Queensland Theatre Company Artistic Director) Wesley Enoch hosted the morning, with his first guests being Logan Mayor Pam Parker, City of Choice Leadership Team Chair Jude Munro, and the Honourable Shannon Fentiman, the newly elected Member for Waterford and Minister for

Communities, Women and Youth, Minister for Child Safety and Minister for Multicultural Affairs. Other guests on stage included Queensland Music Festival's Sean Mee, who provided an update on Under This Sky: Logan's Musical Celebration and Douglas Watkin, film director of Black Diggers of Logan. Leadership Team member Matthew Cox gave an overview of the Logan Together initiative and Charles Northcote from Logan City Community Housing updated guests on the Logan Renewal Initiative. The breakfast event closed with an a cappella performance by three members of the Logan Youth Gospel Choir. Leadership Team Chair Jude Munro told the audience the focus moving forward was on strengthening community capacity building beyond the Two-Year Action Plan, particularly in areas of jobs, roads and public transport. "We have been very strong on ensuring our major initiatives are evidence-based, and this has been the key to building bi-partisan government support and partnerships. "In addition to consolidating our relationships with other levels of government, we are also determined to ensure we have backbone organisations in place by the end of the year to take the important work of City of Choice into the future," Ms Munro said.

Mayor Pam Parker, Logan: City of Choice Leadership Team chair Jude Munro and State Minister for Communities Shannon Fentiman are interviewed by Wesley Enoch. LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

Logan: City of Choice continues to strengthen our city

PLANNING FOR UNDER THIS SKY: LOGAN'S MUSICAL CELEBRATION

The Logan: City of Choice Two-Year Action Plan 2013–2015 continued to deliver a wide range of positive outcomes in 2014/2015, including the Logan Together collective impact initiative for early child development, Under This Sky: Logan's Musical Celebration, additional safety camera funding, significant progress on the Logan Renewal Initiative, and a raft of community-based programs. A few key highlights are outlined below.

Significant planning was undertaken for Under This Sky: Logan's Musical Celebration, the signature event of the Queensland Music Festival (QMF) in 2015 (held in Logan City on 1 and 2 August 2015). This was a partnership event between Council, QMF, Queensland Police Service and local business sponsors and brought together more than 700 singers, musicians and dancers for the spectacular musical about a day in the life of Logan.

NEW STATE MINISTER JOINED LEADERSHIP TEAM

TIES WITH ABORIGINAL AND TORRES STRAIT ISLANDERS STRENGTHENED

In March 2015, the Hon. Shannon Fentiman, newly elected Member for Waterford and Minister for Communities, Women and Youth, Minister for Child Safety and Minister for Multicultural Affairs, was confirmed as the Queensland Government representative on the Logan: City of Choice Leadership Team. The Queensland Government also formed the Inter-Departmental Committee to address whole-ofgovernment issues arising from City of Choice (which met for the first time in August 2015).

• Council adopted a Reconciliation Action Plan for the organisation in May 2015, which was supported by a Guideline for Engaging Aboriginal and Torres Strait Islander Peoples in the City of Logan. • Aboriginal and Torres Strait Islander flags were installed

LOGAN TOGETHER GAINED SIGNIFICANT MOMENTUM

outside Council's Administration Centre in Logan Central

Momentum continued to build for the collective impact initiative aimed at improving the health, education and wellbeing of every child aged birth to eight years of age in Logan. By 30 June 2015, 44 government and nongovernment agencies and service providers were official Logan Together partners, the backbone organisation was operating at Griffith University Logan Campus, a Logan Together Director had been appointed and planning was under way for an official community launch and a series of road-mapping workshops in the second half of 2015. More than $1.6 million had been sourced for the initiative through government and philanthropic funding.

in April 2015 and now fly daily alongside the Australian,

LOGAN RENEWAL INITIATIVE PROGRESSED In September 2014, the Queensland Government announced that not-for-profit housing provider Logan City Community Housing (LCCH) would manage social housing across Logan from late 2015 as part of the 20-year Logan Renewal Initiative. Extensive planning then began for the transition, which will be the largest transfer of social housing stock in Australia. LOGAN CITY STAYED FIRMLY ON STATE AND NATIONAL AGENDA The Leadership Team – in partnership with Council – continued to meet with State and Federal Ministers, Director-Generals and Federal Secretaries in 2014/2015, including two delegations to Canberra. These meetings provided an invaluable opportunity to engage with decision-makers and advocate on behalf of the Logan City community regarding initiatives in the City of Choice TwoYear Action Plan.

Council strengthened its ties with local Aboriginal and Torres Strait Islander communities through a series of key City of Choice initiatives, including:

STRONGER TOGETHER

Queensland and Logan City flags. • Council produced the Our Aunties and Uncles and Black Diggers of Logan digital stories, in partnership with the Australian Government and Queensland Government. KEY PROJECTS DELIVERED ON SAFETY • Weeks of Action were held at Crestmead (August 2014) and Rochedale South (April 2015). • Additional funding was provided for the safety camera network (Queensland Government contributed 40% of total funding for five additional CCTV cameras in Logan Central and Woodridge with Council providing the other 60% of funding; the Australian Government contributed $1.4m through the Safer Streets Program to expand the safety camera network). • The first Community Safety Symposium was held at Griffith University in June 2015, focusing on child protection. • Research and planning began in early 2015 for a new Safe City Strategy. For a full update on progress and outcomes of the Logan: City of Choice Two-Year Action Plan, go to www.logan.qld.gov.au/cityofchoice

Immunisations provided to the community (vaccines) School

Staff influenza

Outreach

At risk influenza

Total

2010

2011

9,466

11,561 7,338

2012

2013

1,608 151

519

1,479 133

388 0

418

469 0

15,753

9,974 5,361

5,872

1,533

6,884

8,417

11,611

17,952

20,899

26,566

38,310

Community

2014

Immunisations provided to the community (clients) School

Staff influenza

Outreach

At risk influenza

Total

2010

151

519

307

493 2013

1,009

4,800 2012

133

388

2011

418

469

1,089

1,498

8,665

3,848

11,468

2,912

8,276

12,271

8,890

6,182

14,123

19,225

18,262

24,741

27,705

Community

2014

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

Volunteer takes on title of Logan Seniors Ambassador Beenleigh resident and long-term volunteer, Mary Bickerdike, was named the 2014/2015 Logan Seniors Ambassador at our Logan Loves Seniors event in August 2014. Mary was a deserving recipient of the title, having fundraised tirelessly as part of the Logan Mayoress' Community Service Committee and volunteering as vice president of the Logan City Theatre Company, as well as promoting Slip Slop Slap for the Cancer Council, coordinating toy drives and food parcels and helping the homeless as a member of Mission Possible. Mary took over the ambassador role from Ann Raymond, who received the honour in 2013/2014. The sixth annual Logan Loves Seniors Day gave seniors the chance to try a range of activities and hobbies such as yoga, massage and gentle fitness classes, as well as access to free health checks and services and equipment designed to make life easier. The free annual event at the Logan Entertainment Centre, designed to recognise and honour the contribution of local seniors, attracted almost 2,000 people to 33 expo-style stands.

Stars of Australian music shine at Jazz and Shiraz Two of Australia's top performers visited Logan in June 2014, headlining our popular annual Jazz and Shiraz event. Australian songstress Kate Ceberano and acclaimed musician James Morrison hit the stage at Griffith University's Logan campus at Meadowbrook, and were joined on stage by David De Vito and the Kayleigh Pincott Quartet. Jazz and Shiraz is a relaxed and family-friendly celebration of great live music and gourmet food.

Wet weather forced us to cancel two popular community events this year. We were unable to go ahead with the City of Logan Mayor's Christmas Carols in December 2014 and the Time Before Festival in May 2015 due to safety concerns at the event venues. No alternative venues were available as any viable venues had long-standing bookings.

Locals receive Australia Day honours We honoured three outstanding citizens at our 2015 Australia Day awards, held in January 2015. Donna Thomassen was named Citizen of the Year, Sam Escobar was named Young Citizen of the Year, while Logan Elder, Aunty Heather Castledine received the Mayor’s Spirit of Logan Award. Ms Thomassen has helped many Logan families through her work, providing emotional support and protection for children required to give evidence in court. Mr Escobar co-founded the Logan Metro Football Club and has made an outstanding contribution to Logan through his considerable work with the refugee community. Ms Castledine was selected by the Mayor for the Spirit of Logan Award due to her wide ranging work in the community, including being a member of the Logan Elders for eight years and working with women in the community through her role on the board of directors with DV Connect and YFS Ltd.

Hetty held in high acclaim in Logan We recognised Hetty Johnston AM as the 16th inductee to our Wall of Acclaim in January 2015.

Eats and Beats a popular new addition

Hetty, a long-term resident of the city, formed the Bravehearts organisation in 1997 to stop child sexual assault and provide support to survivors.

We launched our new Eats and Beats pop-up festival in 2015, providing a new event for South-East Queensland residents.

Her dedication and persistence has helped many families and led to positive reforms in child protection across Queensland and Australia.

The first event was held at Ikea Logan, with thousands of people turning out to enjoy food trucks and live music in March.

Bravehearts has grown to 80 staff, with 13 offices across the country providing school-based prevention programs, counselling, research, support and case management for survivors.

Further events were held at the Hyperdome Shopping Centre and Village Square precinct at Browns Plains. The event is designed to promote different parts of the city as it literally ‘pops up’ on the last Friday of each month after dark.

Wet weather cancels community events

STRONGER TOGETHER

The Wall of Acclaim acknowledges and celebrates the achievements of Logan residents who have made a significant contribution to the city and the wider community. It is located at our Logan Central administration centre.

Indoor sports centres: percentage of available court time booked/occupied

Total for Beenleigh, Bethania, Eagleby and Logan North aquatic centres (managed by Council)

Logan Metro Sports Centre (three courts)

Gould Adams Park Aquatic Centre (facility is owned, but not managed, by Council. Also includes spectators from the learn to swim program)

Cornubia Park Sports Centre (four courts)

2014/2015

2010/2011

64.38

2011/2012

2012/2013

49.18 32.18

2013/2014

31.14

2012/2013

16.43

2011/2012

54,742 0

103,530

52.16 56.49

56.86 60.27

218,490

213,916 117,420

197,761 106,476

152,059 100,418 0 0 0 2010/2011

72 71 70

Mt Warren Sports Centre (four courts)

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

50.26

Attendance at our aquatic centres*

2013/2014

2014/2015

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

Animals desexed at our Combined Vets of Logan City clinic Dogs

Animals microchipped at our Combined Vets of Logan City clinic

Cats

Dogs

1,307

Cats

1,296 1,091

1,035

988

965

940

622 535 335

2010/2011

355

2011/2012

388 303

2012/2013

2013/2014

346 251

2014/2015

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

2010/2011

505

307 233

2011/2012

2012/2013

175

2013/2014

212

2014/2015

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

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

A&TSI women's health features in Live Well Logan 2015 We provided new activities and programs in our dynamic Live Well Logan program in 2015, including a new initiative specifically designed for Aboriginal and Torres Strait Islander women. Live Well Logan delivers a wide range of free and low-cost physical activities and healthy living programs for the entire community, including gardening, nutrition seminars, boot camps, yoga, bushwalking, aqua aerobics and zumba classes. Most classes are free, or no more than $3. The 2015 program also includes a new reward scheme. Participants can now collect stamps each time they attend the session and then be in the running to win a prize pack each month. ‘Healing Our Women, Our Way’ encourages Aboriginal and Torres Strait Islander women to lead happier and healthier lifestyles through activities including cultural dance, murri walking and cultural cooking.

Expressions of interest sought for management of premier sports field We called for expressions of interest to operate, maintain and manage Logan Metro Sports Park in May 2015. The Heritage Park site will become our premier sports field when it opens at the end of 2016, and final designs are being progressed. When complete, the facility will feature: • one premier rectangular field • three local level rectangular fields

The project aligned with the Logan: City of Choice TwoYear Action Plan and was designed to use sport to build meaningful and more cohesive relationships between Pacific Islander communities and other cultural groups within the city. QRU General Manager, Game Development, Robert Donaghue said Logan's unique characteristics and geographic location to the Gold Coast made the city the most suitable location to trial the project. “The project is a formal legacy project within the official 2018 Commonwealth Games Embracing Our Games Legacy program,” he said. “The core focus of the PICEP, will be improving the attendance and educational performance of Pacific Islander students and providing capacity building volunteer education courses to the wider Pacific Islander community across the Logan region.” The 2014 pilot project included the following events and programs: • Reclink rugby program • Logan school 7s event • Kings and Queens of Pacific rugby tournament • Rookies2Reds school attendance program • Queensland Reds community volunteer education courses Almost 300 rugby players from schools in Logan City and the Brisbane area ran out on Meakin Park at Slacks Creek as part of the Logan School 7s event, which was attended by Queensland Reds players Ben Tapuai and Samuela Kerevi.

• one facility to service the premier field • four change rooms per facility • one facility to service the local level fields • lighting to all fields • a minimum of 200 car parks • road access to all fields. The expression of interest period closed on 23 June 2015, with submissions yet to be evaluated as at 30 June 2015.

Rugby partnership engages Pacific Islander communities We joined forces with Queensland Rugby Union to deliver a $40,000 Pacific Islander Community Engagement Project in the city.

STRONGER TOGETHER

Unique safety awareness program goes to Rochedale South Home, car and personal security and graffiti and litter removal were the focus of a dedicated Week of Action held in Rochedale South in April 2015. The program links the community with our staff, Queensland Police, Neighbourhood Watch, PCYC and other volunteers to provide information about safety in the suburbs. The Week of Action program has been previously held at Woodridge, Loganlea and Crestmead, and the agencies involved focus on each suburb's unique attributes, services, social infrastructure and community expectations of safety. A family fun day was planned at Underwood Park as part of the event but had to be rescheduled due to wet weather.

Residents connect with community centres

Number of cameras

We invited our residents to build closer community ties in June 2015 through the Community Connect program.

Division

The month-long project focused on promoting the programs and services available at our community centres to encourage residents to be involved in their neighbourhoods.

Division 1

Two

Underwood Park, Priestdale (two cameras)

Division 5

Four

cnr Haig and Monash roads, Loganlea

We held open days at some of our centres, where services could range from parenting programs to playgroups, school holiday programs, community education classes and computer courses, as well as counselling, financial and legal support, emergency relief and social networking opportunities.

Safety camera program gets a multi-million dollar boost

cnr Chambers Flat Rd and Kingston Rd, Waterford West cnr Chambers Flat Rd and Bourke St, Waterford West cnr Barklya Pl and Brigalow St, Marsden Division 6

Three

Our award-winning safety camera program received a multi-million dollar boost this year, with a new monitoring room officially opened and final plans made to install 26 new cameras across the city. The $1.3 million state-of-the-art safety camera monitoring room, opened in March 2015, highlighted our continued commitment to and investment in community safety – the purpose-built room will service our city's needs well into the future. The video management software we are using is the same state-of-the-art software operating in the likes of Paris, Sweden and Austria’s nationwide transport and roadway monitoring systems.

We worked with Queensland Police Service representatives to determine the camera locations. The cameras are due to be installed within the first half of 2015/2016.

cnr Ellerslie Rd and University Dr, Meadowbrook Logan Hospital, Armstrong Rd, Meadowbrook Loganlea TAFE, Armstrong Rd, Meadowbrook

Division 7

One

Greenbank Recreation Reserve, Greenbank

Division 10

One

Shailer Pioneer Park, Harley St, Shailer Park

Division 11

Nine

cnr Mt Lindesay Hwy and Cusack Lane, Jimboomba Jimboomba Park, Jimboomba (two cameras – one funded by divisional funding) cnr Homestead Dr and Bushman Dr, Flagstone

We use web-based GIS mapping to track and monitor incidents, which helps to identify emerging issues in safety camera precincts. The monitoring room also streams a feed directly to local police communication rooms to enable police to respond to, and manage incidents while in progress, allowing them to be more effective in keeping our neighbourhoods safe. Meanwhile, we progressed plans to install 26 new safety cameras – 25 have been funded through the Federal Government's Safer Streets Program ($1.4 million), with the additional camera funded by the Division 11 Divisional Infrastructure Capital Improvement Program.

Locations

Coachwood Park, Flagstone cnr Homestead Dr and Poinciana Dr, Flagstone Parkside Dr, Flagstone Teviot Downs Park, New Beith Tully Park, North Maclean Division 12

Six

George St, Beenleigh cnr Alamein and Lae St, Beenleigh cnr Alamein and Main streets, Beenleigh Doug Larsen Park, Boundary St, Beenleigh Beenleigh Town Square, Beenleigh (two cameras)

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

PERFORMANCE REPORTING

PRIORITY AREA: MANAGING GROWTH IN OUR CITY (MG) PRIORITY FOCUS MG1: Adoption and implementation of a new city-wide planning scheme MG2: Development assessment to be best practice MG3: Proactive involvement in the review of infrastructure charging philosophies for Queensland

SIGNIFICANT KEY PERFORMANCE INDICATORS/PROJECTS AS INCLUDED IN THE 2014/2015 OPERATIONAL PLAN PROJECTS On track/completed • Adopt the new Logan Planning Scheme and gazette for implementation • Implement the new Logan Planning Scheme specific to development assessment processes

KPIs Meeting/exceeding target • Compliance with the Sustainable Planning Act 2009 requirements (development assessment) • Compliance with the Sustainable Planning Act 2009 requirements (landscape assessment) • Achievement of statutory timeframes for social planning advice on development assessments Monitor • Achievement of statutory timeframes for development applications* Below target • Nil * During 2014/2015, 99.62 per cent of the 1,061 applications received were decided by the due date. Reasons were identified for the four instances where the applications were decided after the due date and rectified for future assessments. While this result is slightly below the annual target of 100 per cent, it still far exceeds the lowest acceptable performance limit of 98 per cent.

(Scorecard definitions can be found on page 8).

• Complete the Logan Central implementation program • Complete the Meadowbrook draft Master Plan • Prepare and implement the Logan City infrastructure advocacy document • Upgrade the PD online system to include the new planning scheme • Complete amendments to the Logan infrastructure charges resolution • Review the parks constrained income reserve fund policy and practices to ensure compliance with legislative requirements Undeliverable • Complete the Beenleigh Town Centre implementation program* • Complete the Springwood implementation program~ Not proceeding • Nil * The Beenleigh Town Centre implementation program was completed in June 2015. Councillor consultation was completed and progress will be reported back to Council in late 2015. ~ The Springwood implementation program was completed in June 2015. Councillor consultation was completed and progress will be reported back to Council in late 2015.

HIGHLIGHTS IN FOCUS: Logan’s best urban designs recognised One of our city's leading cafés received the Logan Urban Design Award in October 2014 as we recognised the most innovative urban design and planning projects. The awards recognise the best in urban planning, architecture and design across a range of environments and settings and celebrate our commitment to creating and encouraging more attractive, accessible and safe places throughout Logan. From master planned communities, parks and urban areas to buildings and small businesses, there are plenty of examples of creativity and inspired design in Logan. Grandma's Kiwi Kitchen, located at Springwood, won the overall award, with the judges saying it was “an inspiring example of how a fulfilling and engaging business has the capacity to change our streetscapes one shop-front at a time”.

STRONGER TOGETHER

Grandma’s Kiwi Kitchen is an award-winning cafè in Logan.

PERFORMANCE REPORTING

Award

Winner

Judge’s comments

Master Planning Award

Verge Urban Landscape Architecture: Berrinba Wetlands Master Plan, 379-490 Browns Plains Rd, Berrinba

Master planning is an important ingredient of urban design as it tries to get the best integrated outcome. This project turned an old sand-mining site into a parkland and conservation area of regional significance. The wetlands seamlessly integrates with the surrounding industrial, business and residential uses. The judges were impressed by the quality of the landscape and conservation outcome, the aim to use the environment in an integrated way to attract and provide for sophisticated “clean and green” enterprises, the quality of the architectural design of the included built forms, the designed esplanade relationship between green space and MIBA areas, the staging of the process and the leadership of the integrated master planning process to make a powerful community and economic asset out of a ‘spent’ mining area.

Architecture Award

Horizon Housing: Tallowood on North, 13 North Rd, Logan Central (architect: Idearchitecture)

This modest affordable housing project ticks all the boxes: a great use of a corner site, entry gestures to both frontages, casual surveillance, efficient site planning, the richness of colour, consolidation in proximity to shops and the rail station, consideration of privacy and safety, appropriate proportion to its context and quite simply, it looks good. Tallowood on North is a fantastic demonstration of how good architecture and good urban design are inextricably linked, and what the valueadd benefits are of achieving both, not only for the project itself, but also for the neighbourhood it enhances. Tallowood is almost a textbook example of good urban and architectural design principles being applied to one of our most challenging project types. Architecture can so often become self-centred, but this modest affordable housing project looks to its client, context, custodians and community for inspiration, and serves up a design solution that addresses all of their needs in style.

Landscape Architecture and Urban Infrastructure Award

Australand: CEVA industrial site, 2-56 Australand Dr, Berrinba (designers: Jeremy Ferrier Landscape Architect and Hyder Consulting)

A 9.6ha industrial site located within the Berrinba industrial precinct incorporates innovative and high quality water management and has achieved several key water sensitive urban design (WSUD) outcomes. Stormwater management has become one of the most important issues facing councils, developers and consultants. How we manage water quality, run off, flooding, drought and erosion in urban areas is always challenging, and this project successfully demonstrates best practice WSUD management and implements a range of water sensitive urban design principles. Projects like CEVA remind us that there is always an opportunity to include urban design principles in any project, and the owners and designers should be congratulated for such a clear demonstration of this axiom.

Businesses and Events Award

Global Food Village, Croydon Rd, Woodridge

The Global Food Village has served to activate and sustain a transport-oriented development, and it does so in the most colourful, rich, versatile, connected and delicious way. The Global Food Village is not only a great way to reinvent an existing shopping area responding to its rail-station proximity, but also provides a great example of ‘gorilla growth’, i.e. an innovative way to catalyse in an area where the investment in expensive physical infrastructure is not financially viable. The Global Food Village provides opportunities for community enhancement, connectivity and cooperation, and serves as a cohesive device that has not only financially sustained the micro-businesses that sustain Logan, but it has transformed an important public space from ordinary to exotic.

Logan Urban Design Award (overall award)

Grandma’s Kiwi Kitchen, 6/1 Murrajong Rd, Springwood

Grandma’s Kiwi Kitchen is an inspiring example of how a fulfilling and engaging business has the capacity to change our streetscapes one shop-front at a time. Grandma’s Kiwi Kitchen embodies the multi-cultural richness that differentiates Logan from many other South-East Queensland cities by drawing upon family values and emerging social themes of collaborative economic sustainability. Urban design manifests in many forms, from the grand and colourful gestures on the highways of Melbourne all the way down to the second-hand couch that humbly activates the street of a central Logan business precinct. Grandma’s Kiwi Kitchen is a great reminder that each and every one of us can make an urban design intervention, and the culmination of these interventions is what can make the difference between the city we loathe and the city we love.

STRONGER TOGETHER

New Logan Planning Scheme plans for future growth The new Logan Planning Scheme commenced in May 2015, helping us to manage population growth, plan for a sustainable future for Logan and guide the way land is used and developed across the city. The new scheme replaces the cityâ&#x20AC;&#x2122;s three existing planning schemes with a single scheme, reducing red tape and simplifying the rules for property development. The new Logan Planning Scheme was developed in consultation with the community, with many residents and interested stakeholders taking the time to have their say in 2014. New development will now be assessed against the new scheme, although it is still possible for some development to be assessed against the old schemes for the next 12 months.

Foundation for Beenleigh's future laid A $9.75 million redevelopment of Beenleigh's CBD started this year to create a new cultural precinct for the community. Construction on the Beenleigh Town Square began in September 2014 and the project is transforming a six-way roundabout into a revitalised civic space that can be used for community events. During 2014/2015, we have called for expressions of interest for people to operate markets and a cafĂŠ in the space, as well as getting the community involved in deciding the precinct's final name. The community overwhelmingly voted for Beenleigh Town Square to be the name out of the three options (Beenleigh Town Square, Yalburru Place and The City Green). Beenleigh is one of our cityâ&#x20AC;&#x2122;s primary economic development hubs, and the significant investment in creating the town square precinct will benefit our community for many years to come.

Growth spawns new suburb in Logan Our city's 64th suburb was declared in January 2015 as we plan for future population growth. The Department of Natural Resources and Mines established the new suburb of Kairabah after a boundary change to the existing suburb of Yarrabilba. Kairabah (pronounced care-a-bar) means 'place of the white cockatoo' in the Yugambeh language. We are home to more than 300,000 residents and that number will approach 500,000 residents by 2031 with sustained population growth of 2.2 per cent per year predicted. Extensive consultation was carried out with the local community and we worked closely with Lend Lease and the Department of Natural Resources and Mines throughout the process of creating a new suburb for the city. The name Kairabah was recommended by the Yugambeh Museum, Language and Heritage Research Centre.

Consultation begins on Loganholme neighbourhood plan amendment We made our Loganholme neighbourhood plan available for public comment from the end of June 2015 until 7 August 2015. The plan was endorsed in 2013 but needs to be reflected in the new Logan Planning Scheme as an amendment. The draft amendment is consistent with State Government requirements. Once all properly made submissions have been considered, and any changes are made to the draft amendment, we will send the finalised amendment back to the State Government seeking Ministerial approval. It will then become part of the Logan Planning Scheme.

The precinct is scheduled to open to the public in September 2015.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

COMMERCIAL BUSINESS UNITS

Stronger together: we are planning infrastructure for the future needs of our city and delivering it as growth happens.

STRONGER TOGETHER

COMMERCIAL BUSINESS UNITS This section summarises the performance of our two commercial business units – Logan Water and Logan Waste Services – in achieving their key performance indicators during 2014/2015. This is a requirement under the Local Government Regulation 2012. This section also highlights key achievements for the financial year and a summary of projects planned for the year ahead.

LOGAN CITY COUNCIL ANNUAL ANNUAL REPORT REPORT 2014/2015

COMMERCIAL BUSINESS UNITS

LOGAN WATER It is critical that we plan for the future to ensure we continue to provide a safe and secure water supply for our growing city.

The Logan Water Alliance was responsible for planning, designing and constructing new and improved water, wastewater and recycled water infrastructure throughout the city until 30 June 2015. The alliance is made up of Logan City Council, Downer, Cardno and WSP Parsons Brinckerhoff, and is one of the largest water infrastructure delivery programs in Australia.

OUR SERVICES

The Alliance's activities benefit the local economy, environment and community by:

We own, operate and maintain water and sewerage assets that currently have a replacement value of approximately $2.6 billion.

We are responsible for providing safe, reliable and efficient water and wastewater (sewerage) services – including drinking water supply, recycled water supply and trade waste management – to consumers in Logan.

• enhancing the value and minimising the cost of infrastructure for the Council and its customers • providing infrastructure for Logan's growing population and economy

We provide community service obligations in accordance with our Community Organisations and Community Service Obligations Policy, which ensure our business unit, Logan Water, will be paid in full for all water and sewerage charges.

• installing infrastructure and technologies that reduce environmental and social impacts • providing local employment and training opportunities for staff and local businesses.

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

KEY PERFORMANCE INDICATORS Target

Result

Budget variation

Earnings before interest and taxes

within +/- 5% of budget

$49.828 million

$130,000 (0.26%) over budget target of $49.698 million

Operating expenditure

within +/- 10% of budget

$113.549 million

$2.39 million (2.10%) under budget target of $115.939 million

Water purchases

within +/-5% of estimated consumption

20,441 megalitres

789 megalitres (3.72%) under consumption target of 21,230 megalitres *There was a reduction in water purchases due to increased rainfall since December 2014.

*See appendices for the complete Logan Water 2014/2015 Performance Plan Report.

STRONGER TOGETHER

HIGHLIGHTS Water Netserv Plan (Part A) finalised Our Water Netserv Plan (Part A) was adopted by Council in August 2014. It is a statutory requirement under the South East Queensland Water (Distribution and Retail Restructuring) Act 2009. The Water Netserv Plan aims to: • ensure water and wastewater services are safe, reliable and secure • provide strategic planning of water operations • plan for the delivery of water and wastewater infrastructure for the next 20 years • ensure water and wastewater service planning is integrated with land and infrastructure planning • manage our water and wastewater services in an ecological and sustainable way. Our Water Netserv Plan is consistent with the South East Queensland Regional Plan and the expectations of our local community. It comprises two parts:

More efficient water supply created through pressure management We supply drinking water to more than 92 per cent of our city's residents, or about 96,000 properties. More than 2,000km of underground pipelines circulate more than 20,000 megalitres of water around the city every year – the equivalent of 20,000 Olympic-sized swimming pools. Excess water pressure in the network can cause leaks and bursts in those pipelines, costing up to $4.6 million a year, but an ongoing program across the city is making a big difference. Since 2008, we have divided the water network into smaller networks called district metered areas, which service up to 5,000 properties. By gradually reducing the pressure in each area, leaks are minimised and detecting and repairing them is more cost-effective. This has saved $2.5 million since 2010. In 2014/2015, we were able to complete the project in the Logan North and Logan East water zones, and planning was underway for the project to start in the Logan South zone.

• Part A sets out Council's commitments to our community and provides general information regarding our water and wastewater services. It explains how we serve and engage with customers, how we deliver the right infrastructure, and how we are planning water and wastewater services for the future. • Part B details how Council will achieve the commitments made in Part A. It is an internal planning document for use by Council officers.

LOOKING AHEAD TO 2015/2016 • We will continue to manage the water supply and wastewater services for our city in a socially,

• We have dedicated $13.7 million for progressing the water and wastewater network renewal program. • We will commence construction of the Razorback

environmentally and financially sustainable manner in

Reservoir to ensure that we continue to meet the water

accordance with our Water Netserv Plan 2013–2017.

supply needs of some of Logan's key growth suburbs.

• We will deliver the Logan Sewer Junction Replacement

• We are committed to continue providing affordable water

Program to ensure sewerage infrastructure continues to

and wastewater services to Logan residents by keeping

meet the needs of our growing city.

costs for these services in line with the Consumer Price

• We will commence the Slacks Creek gravity network

Index (CPI) – only a 1.4 per cent increase.

augmentation and the Heritage Park trunk wastewater infrastructure project.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

COMMERCIAL BUSINESS UNITS

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

During 2014/2015, Council directed Logan Waste Services to endeavour to limit the amount of commercial waste received at the Browns Plains Landfill to 30 per cent of the total amount of waste received (and later 40 per cent in June 2015).

OUR SERVICES

This decision was made to allow the Waste Services Manager to negotiate new commercial waste disposal deals resulting in an increase in commercial revenue.

We provided the following services and facilities during 2014/2015: • household waste and recyclables collection • transfer stations at Carbrook, Greenbank, Logan Village and Beenleigh • Browns Plains landfill

Prior to 2014/2015, Logan Waste Services had a performance plan that was separate to its annual branch business plan. For the first time in 2014/2015, these two plans were combined into a single document to achieve improved efficiencies in performance reporting.

• Logan Recycling Market • municipal bulk solid waste collection (kerbside collection) • maintenance of closed landfills • community service obligations.

KEY PERFORMANCE INDICATORS Result

Budget variation

Revenue

$33.682 million

$389,000 (1%) over budget target of $33.293 million

Operating Expenditure

$30.116 million

$251,000 (1%) over budget target of $29.865 million

Net profit after tax

$2.394 million

$5,000 (0.2%) under budget target of $2.399 million

*See appendices for the complete Logan Waste Services 2014/2015 Performance Plan Report.

HIGHLIGHTS Landfill cell opens for business Disposing of rubbish entered a new era with a new 1.2 million cubic metre landfill disposal cell taking its first rubbish in November. The new cell, located at the Browns Plains Waste and Recycling Facility, was built to modern-day engineering standards and is estimated to be large enough to receive waste into the 2020s.

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STRONGER TOGETHER

The new cell will meet the city's needs for about seven years, even as our population continues to grow. It is lined with a combination of more than 25,000 cubic metres of clay and approximately 40,000 square metres of a manufactured clay liner material to prevent pollutants escaping, as well as two kilometres of drainage pipe to manage the leachate. The new cell is located more than 200 metres further away from nearby Heritage Park homes, with the new buffer expected to reduce the risk of environmental nuisance, including odours.

Free composting and worm farming workshop

Community service obligations

We hosted a free workshop in May 2015 to teach residents how to turn their organic waste into free resources for their gardens.

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

The composting and worm farming workshop was held at the Browns Plains Landfill and provided attendees with information on how to establish and maintain a home composting and worm farming system.

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:

One lucky participant also had the opportunity to take home a free compost bin or worm farm.

Community service obligation

Responsible branch

Actual ($)

Free tipping for community organisations

Community Services

38,790

Clean Up Australia Day campaign

Community Services

5,670

Disposal of motor vehicles received from City Standards branch

City Standards

Animal removal

Environment and Sustainability

102,518

Hazardous waste collection service

Environment and Sustainability

69,386

Natural disasters/emergency situations

Community Services

Pensioner discounts for rated garbage and recyclables collection services

Finance

282,392

$498,756

Total

LOOKING AHEAD TO 2015/2016 • We will begin building the new entry road into the Browns Plains Landfill from Bayliss Rd. • We will install a high efficiency sediment basin at the Browns Plains Landfill to ensure adequate sediment control. • We will continue to progress agreed options to formalise

• We will continue to provide four general waste tip vouchers free of charge to our residential rateable properties. • We will continue to allow residents and ratepayers to dispose of green waste free of charge at any of our waste facilities and provide free household paint and chemical drop-off days.

future waste disposal arrangements following the closure of the Browns Plains Landfill.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

101

COMMERCIAL BUSINESS UNITS

Household waste and recycling in Logan waste per household per week (kilograms)

recyclables per household per week (kilograms)

2.1

2010/2011

2011/2012*

2012/2013*

2.69

(based on 12,465.07 tonnes from 100,952 properties)

(based on 76,140.91 tonnes from 103,037 properties)

2.85

(based on 14,260.59 tonnes from 101,733 properties)

(based on 74,070.26 tonnes from 102,086 properties)

2.58

(based on 15,055.21 tonnes from 101,733 properties)

(based on 73,061.12 tonnes from 101,733 properties)

4.9

3.5

14.2

13.95

13.81

(based on 13,432.8 tonnes from 100,292 properties)

(based on 73,290.58 tonnes from 100,292 properties)

Former Gold Coast

14.05

Former Beaudesert

13.7

Former Logan

13.9

Former Beaudesert

Former Logan

15.9

2.38

2013/2014*

2014/2015*

* From 2011/2012, we are no longer recording separate data for the former Logan, Beaudesert and Gold Coast areas.

Tonnes of waste material diverted from landfill at Logan Waste disposal sites and transfer stations by type material sold at recycling market

cardboard recycled at landfill

waste vegetation

metal recycled at landfill

net quantity kerbside recyclate

total quantity of material diverted

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STRONGER TOGETHER

2014/2015

3,648.99

618.41

93.89

30,242.77 1,054.38

13,570.79

49,229.23

54,419.67 2013/2014

3,362.15

14,260.59 613.24

1,045.30

107.34

35,031.05

2012/2013

3,026.96

662.4

15,055.21 110.65

37,067.36 924.38

635.41

127.81

2011/2012

3,519.46

13,432.80 2010/2011

23,132.02

1,165.58

4,378.69

751.24

4,810.49 105.05

1,356.45

32,893.47

42,013.08

45,295.39

56,846.86

comix (collected from yellow-lid wheelie bins) recycled at landfill

Composition of recyclable waste by percentage 1.4

0.5 1.2 1.4 1.2

7.8

37.28

42.31

52.9 33.6 1.41 0.98 1.42 1.99 2.47

12.14

2010/2011

2011/2012*

29.07

33.71

50.0

52.92 1.78

3.7

2.31 0.99 2.74 1.30

2.56 3.99

2.62 3.36

4.0

2012/2013*

2013/2014*

36.6 47.2

2.1 1.3 2.5 2.8

4.95

paper and cardboard

HDPE

glass

aluminium

PET

steel

mixed plastics

waste

2.7 4.8 2014/2015*

* The recycling composition is now based on actual audit of Logan material. Previously, it was based on the total (from numerous councils) processed through the materials recovery facility in Brisbane.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

103

ADDITIONAL STATUTORY INFORMATION

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.

104

STRONGER TOGETHER

Stronger together: we continue to organise family-friendly events, such as our annual Jazz and Shiraz festival, which brings together friends and family in celebration of great live music.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

105

ADDITIONAL STATUTORY INFORMATION

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

• not allocated land • offices • oil depots and offensive industries • outdoor sales • residential 1 • residential 2 • miscellaneous • residential institutions: up to 50 sites

This policy applies whenever Council considers the levy or imposition of rates and service charges, fees and other revenue raising strategies.

• residential institutions: 51 to 100 sites

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.

• residential institutions: greater than 275 sites

We had the following differential general rates categories in 2014/2015:

• transformers.

• commercial • drive-in shopping centres and car parks • commercial mushroom farming • poultry: less than one million birds • poultry: greater than one million birds • farming • hotels and licensed clubs • industrial • multi-residential dwellings

• residential institutions: 101 to 210 sites • residential institutions: 211 to 275 sites

• retail warehouses • service stations

Rateable values of properties are based on averaged valuations over the past three years. This recognises 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 Rural Fire Service for the purpose of funding rural fire brigades to assist them in providing a rural fire service. A full copy of our Revenue Policy is available on request.

BORROWING POLICY The policy aims to facilitate our capital expenditure program by borrowing funds both externally and internally at the minimum rate of interest obtainable in the money market for the applicable term at the time of drawdown. The policy has been developed in accordance with section 192 (Debt policy) of the Local Government Regulation 2012,

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STRONGER TOGETHER

and will apply when Council wishes to borrow funds to finance its capital works program, in particular, new road works, library construction, and community and sporting facilities. A full copy of our Borrowing Policy is available on request.

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

Number of assessments

Garbage

Value ($m)

105,029

28.254

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 $20.577 million, or 4.80 per cent of the gross rates and charges levied for the year (compared to $20.803 million and 5.18 per cent in 2014/2015). While we continued our policy of assisting ratepayers to budget payments, we also continued to pursue debtors.

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

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 Charge

Net value ($m)

Environmental charge Community infrastructure charge

7.505 36.900

CONSUMER CHARGES

Discounts

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

Value ($m) 13.240

Permit, licence, and registration fees

1.225

Property searches

1.895

Total

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

16.360

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 within 30 days after the date of issue of the rates notice.

Concessions We provided assistance by way of rate concession to property owners in receipt of a pension from the Federal Government and offered concessions to achieve specific objectives, such as the conservation of environmentallysensitive land.

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ADDITIONAL STATUTORY INFORMATION

Pensioner concessions Remissions are available on general rates of $317 per annum for maximum-rate pensioners and $158.50 per annum for part-rate pensioners, upon application. We also offer eligible pensioners a remission on garbage charges of up to 10 per cent per year (on a maximum rate pension) and five per cent for non-maximum rate pensioners.

Number of properties

Concession

Value ($m)

The Queensland Government

13,806

2.681

Council

13,806

3.953

Total

27,612

6.634

The State Government provides a 20 per cent subsidy on current rates and charges as levied (to a maximum of $200 per annum) and a 20 per cent pensioner subsidy on the fire levy charge.

FINANCIAL SUSTAINABILITY FINANCIAL MANAGEMENT STRATEGY We measure 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.

We ensure that our financial management strategy is prudent and that our long-term financial forecast shows a sound financial position while meeting the community's current and future needs.

Financial sustainability ratios Budget 14/15

Actual 14/15

Budget 15/16

Budget 16/17

Budget 17/18

Budget 18/19

Budget 19/20

Budget 20/21

Budget 21/22

Budget 22/23

Budget 23/24

Operating surplus ratio

0.0%

6.9%

0.6%

2.8%

2.6%

2.1%

1.9%

2.1%

2.7%

2.9%

Asset sustainability ratio

87.6%

69.4%

82.6%

86.2%

78.7%

69.2%

71.8%

78.7%

67.5%

71.9%

71.2%

Net financial liabilities ratio

28.9%

6.9%

33.8%

38.2%

38.4%

34.9%

30.5%

32.7%

28.7%

20.9%

14.7%

Ratio

TENDERS AND EXPRESSIONS OF INTEREST There were no invitations to change tenders under section 228(7) of the Local Government Finance, Plans and Reporting Regulation 2012 during the financial year.

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STRONGER TOGETHER

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

The following information highlights the categories for which Council believes assistance is required on public interest grounds.

Community service obligations

Actual value 2014/2015 ($)

Cleansing remissions to eligible pensioners

299,897

Water, sewerage and cleansing remissions to eligible community organisations

576,127

Household hazardous waste

99,327

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

33,452

Animal removal

122,819

Natural disasters/emergencies

5,386

Total

1,137,008

REGISTERS OPEN FOR INSPECTION To allow people to inspect decisions and disclosures made by Council and Councillors, the following registers are open for inspection: • annual budget • business activities • council minutes

• disclosure of election gifts • environmental management programs • environmental protection orders • environmental reports • fees and charges – regulatory fees and schedule of commercial and other charges

• councillors’ register of interests

• health licences

• council policies

• impounded animals

• complaints about councillor conduct or performance

• infrastructure charges

• delegations of authority

• licences and approvals under the

• development applications • development approvals

Environmental Protection Act 1994 • local laws and subordinate local laws.

• development permits

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

109

ADDITIONAL STATUTORY INFORMATION

CODE OF COMPETITIVE CONDUCT FOR BUSINESS ACTIVITIES In accordance with sections 45 and 47 of the Local Government Act 2009, Council resolved that the Code of Competitive Conduct 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, Logan Entertainment Centre and development assessment building services.

demonstrate they are efficient and competitive, and Council has accurate financial information on which to base its assessment. The financial information for these activities highlights their non-commercial nature and the main reason for supplying these services is to increase access and social benefit. • Development assessment building services ceased marketing external private certification service on 30 June

The reasons for not applying the code to the above are as follows:

2010, and is primarily focused on providing a customer

• One argument often advanced for applying the code to

backlog of building approvals from the transferred local

business units is that the commercial culture will drive

government areas, as part of boundary reforms. If any

efficiencies in both the business unit and the Council

future requests are made under section 51 of the Building

administration as a whole. In Logan's case, the internal

Act 1975 for Council to provide a certification service,

support service providers work on an ongoing basis in

Customer Service provides a register of external providers

conjunction with the business units and other streams

and also refers the requester to the Yellow Pages.

service obligation in the finalisation of the historical

within Council to drive efficiencies for the business units and Council as a whole. The application of the code to these activities would not increase this pressure for change. • It has been the view of Council that the code not be applied until such time as the business activities can

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STRONGER TOGETHER

SUMMARY OF INVESTIGATION NOTICES FOR COMPLAINTS AND REFERENCE There were no complaints received in regard to competitive neutrality. Currently, no business activities are accredited. Significant business activities undertaken by Council in 2014/2015 related to Logan Waste Services and Logan Water.

ADMINISTRATIVE ACTION COMPLAINT DISCLOSURES 2014/2015 We aim to ensure excellent standards of service and have a policy in place to efficiently and effectively investigate – and, where appropriate – take corrective actions and/or revise a decision made when a customer is dissatisfied.

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

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

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

• 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 Deputy CEO. If the complaint still remains unresolved the complainant is advised of their appeal option to the Queensland Ombudsman.

Outcome of administrative action complaints

Number

Number of complaints made under the administrative action complaints (AAC) process

152

Number of AAC resolved under the complaints management process

134

Number of on-hand (or unresolved complaints) under the AAC process during 2013/2014

Number of unresolved complaints under the AAC process from 2013/2014 (previous financial year)

Our administration centre at Logan Central.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

111

ADDITIONAL STATUTORY INFORMATION

NATIONAL COMPETITION POLICY REFORMS In the late 1990s, the Local Government Act 2009 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.

• Plant Fleet Services – Workshop (T3 – code of

These principles were then translated across to Council business activities (detailed below). Significant business activities of our local government business entities during 2014/2015 were:

• Plant Fleet Services – Fleet Internal (T3 – code of

competitive conduct business) • Plant Fleet Services – Fleet External (T3 – code of competitive conduct business) competitive conduct business).

• Logan Water (T1 – commercialised significant business) • Logan Waste Services (T2 – commercialised significant business)

LOCAL GOVERNMENT FINANCE STANDARD DISCLOSURES The Local Government Regulation 2012 requires certain matters to be disclosed to improve awareness about how we use money for the following:

Category 2014/2015 grants to community organisations ($'000)

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Expenditure 2014/2015 ($’000) 1,583

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

Overseas travel and accommodation costs are detailed below: Name

Position

Destination

Purpose

Cost ($)

Cr Pam Parker

Mayor

United States/Canada

Trade mission

$29,138.50

John Oberhardt

Deputy CEO – Organisational Services

United States/Canada

Trade mission

Garnet Radford

Business Development Executive

United States/Canada

Trade mission

Cr Luke Smith

Councillor – Division 6

China/Korea/Singapore

Trade mission

Chris Rose

Chief Executive Officer

China/Korea/Singapore

Trade mission

Cr Russell Lutton

Deputy Mayor

China

Trade mission

Nick McGuire

Economic Development Manager

Korea and China

Trade mission

Oliver Simon

Deputy CEO – Community and Customer Services

China

Trade mission

Jenni Kang-Stahmer

Business Development Executive

Korea and China

Trade mission

Michael Asnicar

Waste Services Manager

Hong Kong

Sixth Annual Global Conference of Alliance for Healthy Cities

$2,494.04

Silvio Trinca

Deputy CEO – Road and Water Infrastructure

New Zealand

$5,887.00

Marty Wallace

Road Construction and Maintenance Manager

Institute of Public Works Engineering Australia Conference

Daryl Reilly

Road Infrastructure Delivery Manager

William Smith

Treatment Supervisor

Kambez Akrami

Product Quality Systems Officer

$34,075.76

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

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

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FINANCIAL REPORTING

FINANCIAL REPORTING This section outlines our financial performance and standing during 2014/2015, including a summary in plain language, as well as the financial statements that have been prepared in accordance with relevant legislation and accounting standards.

Stronger together: our community shares many cultures and religions, including the Khmer Buddhist Temple at Marsden. Photo: Matthew White.

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STRONGER TOGETHER

LOGAN CITY COUNCIL ANNUAL ANNUAL REPORT REPORT 2014/2015

115

FINANCIAL REPORTING

FINANCIAL PERFORMANCE HIGHLIGHTS • We reported an operating surplus of $31.076 million

– Our low debt levels result in a favourable debt to equity

and an operating surplus ratio of 6.9 per cent against an

percentage of 5.2 per cent (debt as a percentage of

industry standard of between zero and 10 per cent for

equity).

2014/2015. • Our total assets have grown by $729 million over the past 12 months to $5.378 billion at 30 June 2015. • We remain in a sound financial position at 30 June 2015 in terms of both short-term liquidity and long-term

– We have a low net financial liabilities ratio (total liabilities less current assets as a percentage of operating revenue) of 6.94 per cent, indicating that we have a large capacity to borrow if need be. • Our interest-bearing debt has increased by $472 per

sustainability:

capita since 2011 due to boundary and water reform

– We have a 3.3:1 working capital ratio (ratio of current

changes. Our capital expenditure over the five year period

assets to current liabilities) meaning that we have more

was $609m, a 15% growth of our asset base.

than three times the amount of current assets available to meet current liability obligations.

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

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• The statement of changes in equity summarises activities in equity accounts for a period. • The statement of cash flows shows changes to the balance of cash due to business operations. • Notes to the financial statements provide additional information to key financial statements.

COMMUNITY FINANCIAL REPORT WHAT IS A COMMUNITY FINANCIAL REPORT? The community financial report provides a plain English explanation of our financial statements so they can be easily understood by readers who have no financial background. It can often be difficult for stakeholders to interpret formally-presented financial statements that have been prepared in accordance with accounting standards.

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

The community financial report highlights key areas of performance and financial sustainability by focusing on the six key elements to the financial statements. The links between the six key elements and brief explanations of each element are provided below.

Statement of comprehensive income Notes to the financial statements

Statement of financial position

Opening equity + comprehensive income = closing equity

Assets – liabilities = equity

Our corporate governance is crucial to sustainable funds management

The Local Government Regulation 2012 requires that local governments prepare both current year and long-term financial sustainability statements and publish these in their annual report. The current year financial sustainability statement is also included in the community financial report. The financial sustainability statement and the associated measures (ratios) provide evidence of our ability to continue operating and to provide an acceptable standard of service to the community, both currently and in the longer term.

We disclose other changes to the value of our business

Additional information to support key financial statements

Statement of changes in equity

WHAT IS FINANCIAL SUSTAINABILITY?

Net result + or – other equity changes = comprehensive income

We ensure that our business is financially sustainable

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 councils to report on three financial sustainability measures: • asset sustainability ratio • net financial liabilities ratio • operating surplus ratio. We have included these in this section. These ratios are reported in addition to the annual financial statements and are designed to provide an indication of our financial sustainability.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

117

FINANCIAL REPORTING

INCOME STATEMENT The income statement displays the revenues recognised for a period, and the costs and expenses charged against those revenues, as well as measuring our operating performance during the financial year. Our net result is measured as the net of total revenues and expenses.

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

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

Amount

2010/2011

Loss on transfer to Allconnex Water

(186.5)

2011/2012

Loss on transfer to Allconnex Water

(8.7)

2012/2013

Gain on transfer from Allconnex Water

42.5

The transfer of our water and wastewater businesses to Allconnex Water on 1 July 2010 meant that we did not earn revenue from these businesses during 2010/2011 and 2011/2012, although we earned both interest and tax revenue from Allconnex Water of $39.1 million and $8.4 million respectively in 2011/2012 ($31.6 million and $8.3 million in 2010/2011). Our water and wastewater businesses were reincorporated into our organisation on 1 July 2012 and were the major reasons for increases in both revenues and expenses during 2012/2013 and 2013/2014. Our city's population has increased from 275,000 in 2010 to 305,000 in 2015, which represents a 11 per cent increase over the five-year period.

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

567.8

expenses

516.8

revenue

Interpreting the figures

45.7

49.4

140.5

99.5 48.9

2011/2012

2012/2013

We continue to provide an increased level of service to the community while maintaining a surplus of funds from our yearly operations to ensure our long-term financial stability is maintained.

427.3

417.3

458.4 409 339.5 293.8

319.7 270.8 2010/2011

The net result includes funding provided for future operational and capital expenditure, which we transfer to reserve until spending is incurred. These funds are essential for maintaining and developing our assets as the city grows.

2013/2014

2014/2015

This information excludes any gain or loss incurred on the transfer of assets and liabilities in and out of Allconnex Water, as these amounts are not due to normal council operations.

The net result includes developer and other contributions that are disclosed as revenue but then set aside to fund current and future infrastructure costs. Each development approved by Council is required to contribute either completed assets (called donated assets) or cash towards the building of current and future infrastructure necessary to support increased population levels. We carefully monitor city expansion and plans for priority infrastructure needs. We also received grants and subsidies from the State and Federal governments, which are used to fund identified operational and asset (capital) projects. We actively seek out additional funding to reduce the burden on ratepayers. Amounts transferred to reserve are disclosed in the statement of changes in equity.

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Sourcing our revenue: where our money came from

Total expenses: where we spent the money

We receive revenue from several sources:

Council incurs both operational and capital expenditure. The expenditure table and graph are of operational spending only. Capital spending is added to the carrying value of assets when incurred.

2014/2015 revenue sources

rates ($369.1m)

fees and charges ($28.8m)

grants and subsidies ($60.4m)

asset donations ($71.3m)

recoverable works and sales ($19.6m)

interest and other* ($18.7m)

3% 3%

2014/2015 expenditure

employee costs ($127.4m)

depreciation ($93.6m)

materials and services ($166.6m)

borrowing costs ($13.0m) other costs ($10.2m)

plant costs ($16.5m) 3%

13%

11%

Total revenue ($567.9m)

30% 65% 39%

Total expenses ($427.3m)

2013/2014*

22%

2013/2014*

*Interest and other includes $10.2 million from the sale of developed land. Our revenues are used to fund operational and asset development expenditure, and are based strictly on recovering costs incurred to provide the levels of service expected by the Logan community. Many of our revenues have a base charge used to partly recover infrastructure costs and a usage element linked to consumption. This ensures a fair distribution of costs across the community. Key revenue statistics include: • Our recurrent revenue increased by $33.4 million (eight

Key expenditure statistics include: • Our total operating costs amounted to $427.3 million, an increase of $10.2 million (two per cent) over last year. There were no material increases in any expense categories during the year. • We spent $151 million on expanding and replacing city assets. Such expenditure is accumulated in capital projects and then recognised as assets on commissioning of the work. • Thirty-nine per cent of our operating costs was incurred

per cent) over the year. We made a gain on the disposal

for purchasing materials and services. Materials and

of land developments of $10 million during the year and

services expenditure is necessary to maintain asset

rates revenues increased by $16 million.

service levels and for the achievement of community

• Grants and subsidies and developer contributions represented 24 per cent of our total revenue. Of this,

objectives portrayed in our corporate plan. • The value of assets under our administration is $5.378

$14.4 million (last year $9.8 million) of total grants and

billion means we set aside $93.6 million in depreciation

subsidies were used for operational purposes, while $46

for the year. These funds are used to improve and replace

million (last year $35 million) was used for targeted capital

our infrastructure and other assets.

programs, such as the correction of road black spots and other safety initiatives. • Developers provided $71.3 million (last year $64.2 million) in completed assets as part of approved development applications – an increase of 11 per cent on last year.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

119

FINANCIAL REPORTING

STATEMENT OF COMPREHENSIVE INCOME

What are our assets?

The statement of comprehensive income summarises changes to the value of a business other than those in the income statement.

The bulk of our assets are in the form of infrastructure assets such as roads and drainage, and water and wastewater, which collectively represent 75 per cent of our total asset base. 2014/2015 asset types ($m)

We increased the carrying value of our assets by $562 million through revaluation in 2014/2015. We regularly review the condition and carrying value of assets as part of our sustainability management. Deterioration in asset condition is managed through planned maintenance programs, while changes in the replacement costs of assets are provided for through revaluation.

STATEMENT OF FINANCIAL POSITION

roads and drainage

cash

inventory

debtors

other assets

total assets 5,378

2,651

The statement of financial position measures what we own and owe to relevant stakeholders at the end of the financial year. The result of these two components determines our net wealth, which is the community's net wealth. Our assets increased by $729 million over the year. The main change is in property, plant and equipment assets, due to: • $151 million new and replacement assets and $562 million revaluations reported above • $71 million in donated assets received from developers • $92 million reduction in asset values due to depreciation and asset reworks incurred during the year. Our cash balance has increased by $78 million over the year due to new loan drawdowns to be used for upcoming capital works. 2014/2015 net worth ($m)

120

Assets (what the community owns)

5,378

LESS liabilities (what the community owes)

(354)

Community equity

5,024

STRONGER TOGETHER

water and wastewater

property, plant and equipment

1,381

1,016 250

49%

26%

19%

100%

A significant part of our activities are focused on the maintenance and upgrade of infrastructure assets including the provision of roads, drainage, water, wastewater, and waste services. We undertake ongoing preventative maintenance processes to maintain high asset service levels for community use.

What are our liabilities? The bulk of our liabilities are in the form of loans, which represent 73 per cent of our total liabilities. We fund some projects through loan borrowing to ensure inter-generational equity in the allocation of cost. Provisions include setting aside funds to rehabilitate landfill and quarry sites that we manage, as well as for employee entitlements.

What is our debt strategy?

2014/2015 liability types ($m)

loans

provisions

other

total liabilities

Like other councils, we undertake a loan borrowing program to fund new major facilities that are constructed to service community needs.

creditors

The following information outlines important measures of debt management.

354

DEBT AND CAPITAL EXPENDITURE TRENDS

260

The debt and capital expenditure graph reflects our total outstanding debt and capital works expenditure program over the past five years.

64 28 2 1%

18%

73%

100%

We increased borrowings by $153 million over the five-year period from 2011 to 2015 to meet capital commitments and due to State water reform. In 2011/2012, we had to borrow money to fund some capital projects due to a reduction in development activity in the city. We received an additional $58.6 million in borrowings transferred from Allconnex Water in 2012/2013. Our debt per capita has increased from $390 to $853 over the five-year period due to these changing circumstances.

In the period 2011 to 2015, our debt increased from $105.6 million to $260.4 million, an increase of $154.8 million, including $58.6 million in additional debt in 2012/2013 transferred from Allconnex Water. During the 2011 to 2015 period, Council spent $558 million ($609 million less $51 million transferred from Allconnex Water) on building new community facilities and/or increasing our infrastructure services such as roads, water, sewerage and reticulation.

Outstanding debt and capital expenditure: five-year trend ($m)

outstanding debt

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

capital expenditure 260.4 228.2

assets

liabilities

195.7

equity

165.8 5,024

5,378

4,321

4,649

4,062

4,355

4,100

4,282

3,929

4,093

150 120

105.6

-164

-182

-293

-328

-354

2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

151

2011

76.7

2012

2013

2014

2015

Our net assets grew by 16.3 per cent during 2014/2015 due to the changes in asset carrying values described above.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

121

FINANCIAL REPORTING

DEBT PER CAPITA The debt per capita graph presents the value of our debt per resident over the past five years. Our debt per capita has increased from $381 to $853 over the five-year period. Approximately $200 of this increase is due to the debt transferred from Allconnex Water. We manage financial assets and liabilities to progressively optimise cash and debt levels. Our strategy is to reduce debt levels to provide borrowing facility in preparation for future asset upgrades and replacements.

PERCENTAGE OF REVENUE REQUIRED TO FUND DEBT REPAYMENTS The percentage of revenue used to fund capital and interest repayments provides an indication of how much of our revenue is committed to fund past borrowings. The percentage of revenue to finance debt repayments has been between two and four per cent in the past five financial periods as represented by the debt servicing ratio. Debt servicing ratio: five-year trend (%)

Debt per capita: five-year trend ($)

3.75 668 381

759

4.22

853

417

2.33

2011

2012

2013

2014

2012

2.02

2.09

2013

2014

2015

How healthy is our liquidity? 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 remained consistent at two to three per cent over the five-year period 2008-2012, but then increased to 4.5 per cent in 2012/2013 and 4.9 per cent in 2013/2014, largely due to the additional debt transferred from Allconnex Water. The 2014/2015 ratio is 4.8 per cent. Assets funded by debt: five-year trend (%)

4.91

Measuring an organisationâ&#x20AC;&#x2122;s ability to meet commitments when they fall due is another important indication in determining its financial health. This indicator is commonly known as the working capital ratio and examines the value between short-term assets and liabilities. A result of better than a one-to-one ratio reflects a strong ability by an organisation to have sufficient funds to continue to maintain its cash flows and hence meet its commitments. Working capital ratio: five-year trend

4.84 4.1

4.49

4.37

3 2.58

2011

122

3.15

3.34

2.80

2012

2013

STRONGER TOGETHER

2014

2015

2011

2012

2013

2014

2015

STATEMENT IN CHANGES OF EQUITY

We have incurred capital expenditure and loan repayments of $161 million during the year, which were partially funded from transfers from reserves, developer contributions, planned loan funding and provisions included in our rates charges.

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

Net transfers to capital and operational reserves amounted to $130.5 million in 2014/2015. Part of reserves funds have been used to fund the $161 million capital expenditure and loan redemptions incurred in the year. Funds collected in previous years may be transferred back to operations to fund operational projects or as capital funding to fund capital projects.

We have also elected to voluntarily include an appropriation statement and capital funding statement in the financial statements. While not required by Australian Accounting Standards or the Local Government Act 2009, the appropriation and capital funding statements provide further transparency of our management of community funds by disclosing funds transfers to and from revenue and reserves and details of capital funding.

The following information presents net transfers between reserves and operations over the past five years (the net result excludes any gain or loss on water reform).

Revenues transferred to reserve to fund asset expenditure: five-year trend ($m) 2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

Net result

48.9

45.6

49.3

99.4

140.6

Transfers

(46.1)

(42.1)

(46.8)

(91.5)

(130.5)

Surplus

2.8

3.5

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

2.5

7.9

10.1

Community equity: five-year trend ($m) 5,024

Our operating surplus is the result of developed land being sold during the period, which netted a $10.2 million profit.

3,930

4,100

4,062

2012

2013

4,322

Community wealth Community wealth or community equity is measured as the net of our assets less liabilities. Comparative trends show that we have a healthy community equity position, which has grown steadily over the past five years.

2011

2014

2015

A portion of the community's wealth is cash-backed by an appropriate level of reserves held to plan for future projects. With financial planning, this can place less reliance on loan borrowing in meeting the needs of the community. Our equity has increased by $702 million over the past year due to increases in asset values.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

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FINANCIAL REPORTING

STATEMENT OF CASH FLOWS

Sustainability measures

The statement of cash flows identifies how we received and spent our money during the year, resulting in what cash is available at the end of the year.

Our Corporate Plan identifies seven priority focus areas:

2014/2015 cash flows ($m)

• Building our economic base (EB)

Opening balance

172.0

PLUS cash received

571.8

LESS cash spent

(493.7)

Cash available at year end

250.1

Major sources of cash received and spent ($m) 2013/2014

2014/2015

Net cash received from trading

146.9

103.8

New loans

42.7

41.9

Purchase of assets (net)

(101.0)

(112.6)

Repayment of debts

(10.5)

(8.7)

Net cash received/(spent)

78.1

24.4

Cash available While our current cash balance is $250.1 million, it is important to note that this amount is restricted for specific purposes such as future capital works. We started the financial year with $172.0 million as current cash balance and ended with $250.1 million. The increase is due to a positive cash inflow from operations and new loans borrowings. Looking forward, our short and long-term cash flows indicate that sufficient cash is available to meet recurring activities and capital expenditure. Cash available: five-year trend ($m)

• Building our major infrastructure (MI) • Building our city’s image (CI)

• Building our environment (E) • Building our service excellence (SE) • Building the wellbeing of our communities (WC) • Managing growth in our city (MG). All of these priorities require both an immediate and longer-term focus, and we have included both legislated and additional measures that provide an indication of our sustainability. The Local Government Act 2009 s102(2) states that ‘a local government is financially sustainable if the local government is able to maintain its financial capital and infrastructure capital over the long-term’. A lack of explanation and trend analysis can provide a misleading interpretation of our financial capital and infrastructure capital. We have thus provided a trend analysis of the required measures plus additional measures of financial sustainability such as an interest cover ratio, a working capital ratio and an asset consumption ratio, each of which are relevant in the determination of financial sustainability. WHAT IS FINANCIAL CAPITAL AND INFRASTRUCTURE CAPITAL? Financial capital is the money we use to finance our operations. Without continued access to financial capital, we would not be able to provide services to the community. We need to maintain sufficient long-term financial capital to continue operating and do this by extensively planning our 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.

250,101

Our long-term financial plan includes an assessment of our 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.

172,048 147,675 118,494

2011

124

130,197

2012

2013

STRONGER TOGETHER

2014

2015

Infrastructure capital refers to the physical assets that we construct and then maintain. All of these assets need to be in a condition that provides a level of service acceptable to the community. Our extensive maintenance, renewals and upgrade programs provide the roads, stormwater drainage, landfill, and water and wastewater assets necessary to service the city. WHAT ARE THE MEASURES AND WHAT DO THEY MEAN? Sustainability measures focus on both the present and the future. We are required to show the following financial sustainability measures under the Local Government Act 2009:

3. Our depreciation is mainly based on a straight line methodology. Our road pavement depreciation is based on asset condition assessments 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. We are 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 both the stage of life and condition of the asset to determine the rate of depreciation. 4. Our assets are ‘relatively new’ and are well maintained. Newer and well maintained assets tend to depreciate

• asset sustainability ratio

at a slower rate. Inclusion of our extensive maintenance

• net financial liabilities ratio

expenditures would provide a more accurate

• operating surplus ratio. We also choose to present the following sustainability measures to our community: • interest cover ratio

determination of asset sustainability. The asset sustainability ratio was introduced in 2012.

Asset sustainability ratio: four-year trend

• working capital ratio

2011/ 2012

2012/ 2013

2013/ 2014

2014/ 2015

Asset renewals

$21.4m

$61.7m

$76.2m

$63.8m

Depreciation

$55.7m

$74.4m

$91.6m

$91.9m

Ratio

38.4%

82.9%

83.2%

69.4%

• asset consumption ratio. Asset sustainability ratio The asset sustainability ratio is an approximation of the extent to which the property, plant and equipment (PPE) assets that we manage are being replaced as these reach the end of their useful lives. The ratio is calculated as the value of the PPE renewal capital expenditure divided by PPE depreciation expense. The theory is that depreciation expense represents the extent that an asset has ‘worn out’ over the financial year while renewals capital expenditure represents the extent that the worn out portion has been replaced. The ratio is misleading and should be read in conjunction with our long-term forecasts and financial planning. The following additional information should be considered: 1. The majority of our PPE comprises of

82.90%

83.20% 69.40%

38.40%

2011/2012

2012/2013

2013/2014

2014/2015

infrastructure assets. 2. Our 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 into account our 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.

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

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

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FINANCIAL REPORTING

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 we are to pay our liabilities out of current operating revenue and is calculated as the value of net financial liabilities (assets) divided by operating revenue. Net financial liabilities (assets) are calculated as total liabilities minus current assets and a

negative measure means that our current assets exceed total liabilities. 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.

Net financial liabilities (assets) ratio: five-year trend 2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

Current assets

$194.5m

$212.2m

$247.6m

$272.7m

$323.1m

Total liabilities

$163.6m

$182.4m

$292.9m

$327.5m

$354.4m

Net financial liabilities (assets)

($30.9m)

($29.8m)

$45.3m

$54.8m

$31.3m

Operating revenue

$248.0m

$289.4m

$386.5m

$416.8m

$450.2m

Ratio

(12.5%)

(10.3%)

11.7%

13.2%

6.9%

13.20% 11.70% 6.90%

2010/2011 2011/2012 2012/2013 2013/2014

–10.30% –12.50%

126

2014/2015

The ratio indicates that we are well placed to meet our financial obligations. While total liabilities have exceeded current assets in the past few years, this is a result of shortterm borrowings transferred from Allconnex Water. We have 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 indicates 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 our strategy to maintain low borrowings in anticipation of future infrastructure assets replacement expenditures (see asset sustainability ratio).

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. It is calculated as net operating result (presented in the income statement) divided by operating revenue.

A positive ratio indicates that surplus revenue is available. A negative ratio indicates an operating deficit, which is considered not sustainable in the long term.

Operating surplus (deficit) ratio: five-year trend 2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

Operating revenues

$248.0m

$289.4m

$386.5m

$416.8m

$450.2m

Net result

($6.6m)

$6.8m

($7.9m)

$8.9m

$31.1m

Ratio

(2.7%)

2.3%

(2.0%)

2.1%

6.9%

6.90%

2.34%

2010/2011

We incurred an operating surplus in 2014/2015, maintaining a positive trend that started in 2013/2014. The 2014/2015 result includes a $10.1 million surplus made on the sale of developed land.

2.13%

2012/2013 2011/2012

2013/2014 2014/2015

â&#x20AC;&#x201C;2.04% â&#x20AC;&#x201C;2.66%

The Springwood Master Plan identifies a range of infrastructure investments, which will benefit both the redevelopment activities of the suburb as well as the wider Logan community, particularly in relation to regional community and parks infrastructure.

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FINANCIAL REPORTING

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

A high interest cover ratio may also mean future borrowings are restricted, so it is an important sustainability measure. The ratio is calculated as net interest expense (revenue) divided by operating revenue. Net interest expense (revenue) is interest expense minus interest revenue.

Interest cover ratio: five-year trend 2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

Interest expense

$6.8m

$6.5m

$9.8m

$10.7m

12.0m

Interest revenue

$6.9m

$7.6m

$8.5m

$7.3m

$8.2m

Net interest expense (revenue)

($0.1m)

($1.1m)

$1.3m

$3.4m

$3.8m

Operating revenues

$248.0m

$289.4m

$386.5m

$416.8m

$450.2m

Ratio

0.82%

0.0%

0.85%

(0.4%)

0.3%

0.8%

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

0.34%

2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 â&#x20AC;&#x201C;0.04%

â&#x20AC;&#x201C;0.37%

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STRONGER TOGETHER

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

Asset consumption ratio The asset consumption ratio is a measure of the written down value of depreciable assets to their â&#x20AC;&#x2DC;as newâ&#x20AC;&#x2122; value at up-to-date prices and highlights the average aged condition of non-current assets. The ratio is potentially misleading, is dependent on the depreciation methodologies used for assets (see asset

sustainability ratio comments) and is calculated as the written down value of PPE assets divided by the gross current replacement cost of PPE assets. The ratio indicates the extent that PPE assets are through their lives on average, and a high ratio indicates that assets are still new. PPE assets are depreciable assets only and so exclude land, earthworks and artwork assets.

Asset consumption ratio: five-year trend 2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

$2,259m

$2,400m

$3,525m

$3,791m

$3,594m

PPE gross

$3,444m

$3,647m

$5,355m

$5,802m

$5,416m

Ratio

65.6%

65.8%

65.3%

66.4%

PPE written down value

66.40%

65.80%

65.60%

Our total PPE assets were affected by South-East Queensland Water Reform during 2010/2011, 2011/2012 and 2012/2013, when assets were transferred to Allconnex Water and then returned on 1 July 2012. The change in 2015 has been driven by ongoing reviews of our depreciation methodologies, resulting in an extension of asset lives (partly because of opportunities to reline rather than replace drainage pipes).

65.30%

2010/2011

2011/2012

2012/2013

2013/2014

2014/2015

SUMMARY We ended 2014/2015 financial year in a sound financial position. Our current position provides the building blocks for stability in line with our long-term financial strategy and allows us to meet our future obligations and demands of our community in the foreseeable future.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

129

FINANCIAL REPORTING

Mayes Cottage is one of our most historic addresses, paying tribute to our cityâ&#x20AC;&#x2122;s pioneer past.

130

ANNUAL FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Annual financial statements

30 JUNE 2015

TABLE OF CONTENTS Page(s) Key financial statements Statement of comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows

FS FS FS FS

Notes to the financial statements 1 Significant accounting policies 2 Analysis of results by function 3 Rates revenue 4 Fees and charges 5 Recurrent donations, contributions and grants 6 Interest received 7 Profit on land held for sale 8 Donated assets 9 Capital contributions 10 Gain/ (loss) on sale of non current assets 11 Employee costs 12 Material and services 13 Depreciation and amortisation 14 Finance costs 15 Other expenses 16 Capital expenses 17 Conditions over contributions 18 Cash and cash equivalents 19 Trade and other receivables 20 Inventories 21 Prepayments 22 Other financial assets 23 Investment in subsidiary 24 Investment in joint venture 25 Property, plant and equipment 26 Intangible assets 27 Trade and other payables 28 Borrowings 29 Financial risk management 30 Fair value measurements 31 Provisions 32 Asset revaluation surplus 33 Cash flow information 34 Trust fund 35 Commitments for expenditure 36 Contingent liabilities 37 Contingent assets 38 Superannuation 39 Statement of activities to which the code of competitive conduct applies 40 Change in accounting estimate 41 Events after reporting period

135–151 FS 5 - 21 152–157 FS 22 - 27 158 FS 28 158 FS 28 FS 28 158 FS 28 158 FS 28 158 FS 28 158 FS 29 159 FS 29 159 FS 29 159 FS 29 159 FS 30 160 FS 30 160 FS 30 160 FS 31 161 FS 31 161 161 FS 31 161–162 FS 31 - 32 162 FS 32 162 FS 32 162 FS 32 162 FS 32 163 FS 33 FS 34 - 36 164–166 FS 36 166 FS 36 166 FS 37 167 FS 37 - 39 167–169 FS 40 - 45 170–175 FS 46 - 47 176–177 FS 47 177 FS 48 178 FS 49 179 FS 49 179 FS 50 180 FS 51 181 FS 51 181 FS 52 182 FS 52 182 FS 52 182

Management and audit certificates Management certificate Audit report Unaudited Statements of appropriation and capital funding

FS 53 183 184–185 FS 54 - 55 FS 56 - 57 186–187

2 3 4 4

132 133 134 134

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

9130032

131

FINANCIAL REPORTING

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015 LOGAN CITY COUNCIL Statement of comprehensive income

For the year ended 30 JUNE 2015

Note

2015

2014

$â&#x20AC;&#x2122;000

Revenue Recurrent revenue Rates revenue Fees and charges Recurrent donations, contributions and grants Interest received Profit on sale of land held for development and sale Recoverable works and commissions Sale of materials and services Capital revenue Donated assets Capital contributions Capital grants and subsidies Gain on the sale of non current assets Share of joint venture profit Other capital revenue

3 4 5 6 7

369,090 28,784 14,380 8,162 10,177 11,221 8,342 450,156

353,316 25,411 9,797 7,282 12,154 8,806 416,766

8 9

71,330 39,731 6,253 349 4 117,667 567,823

64,159 29,901 5,219 131 4 586 100,000 516,766

10 24

Total revenue Expenses Recurrent expenses Employee costs Materials and services Depreciation and amortisation Finance costs Other expenses

11 12 13 14 15

127,352 183,125 93,583 12,979 2,041 419,080

123,540 177,387 92,819 11,829 2,328 407,903

Capital expenses Capital expenses

8,171

9,415

Total expenses Net result

8,171 427,251 140,572

9,415 417,318 99,448

Net result attributable to: Net recurrent revenue/ (expense) Net capital revenue/ (expense) Net result for the year

31,076 109,496 140,572

8,863 90,585 99,448

Increase/ (decrease) in revaluation reserve Other comprehensive income for the year

561,891 561,891

159,919 159,919

Total comprehensive income for the year

702,463

259,367

Other comprehensive income Items that will not be reclassified to net result

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

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STRONGER TOGETHER

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 LOGAN CITY COUNCIL Statement of financial position As at 30 JUNE 2015

Note

2015

2014

$â&#x20AC;&#x2122;000

Current assets Cash and cash equivalents Trade and other receivables Inventories Prepayments

18 19 20 21

250,098 58,800 10,476 3,759 323,133

172,047 60,851 35,621 4,171 272,690

Non-current assets Other financial assets Investment in joint venture Property, plant and equipment Intangible assets

22 24 25 26

190 507 5,048,339 6,142 5,055,178

190 503 4,368,725 6,869 4,376,287

5,378,311

4,648,977

27 28 31

63,575 12,426 18,289 2,483 96,773

72,756 10,546 20,054 884 104,240

28 31

247,992 9,619 257,611

217,661 5,612 223,273

354,384

327,513

5,023,927

4,321,464

2,634,295 2,389,632

2,072,404 2,249,060

5,023,927

4,321,464

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

Non-current liabilities Borrowings Provisions

Total liabilities

Net community assets Community equity Asset revaluation surplus Retained surplus Total community equity

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

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

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FINANCIAL REPORTING

STATEMENT OF CHANGES IN EQUITY AND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015 LOGAN CITY COUNCIL

Statement of changes in equity and Statement of cash flows For the year ended 30 JUNE 2015 Asset revaluation surplus $'000 1,912,485

$'000 2,149,612

Total community equity $'000 4,062,097

159,919

99,448 -

99,448 159,919

Balance at 30 June 2014

2,072,404

2,249,060

4,321,464

Net result from continuing operations Other comprehensive income for the year Balance at 30 June 2015

561,891 2,634,295

140,572 2,389,632

140,572 561,891 5,023,927

Statement of changes in equity for the year ended 30 June 2015

Balance at 1 July 2013 Net result from continuing operations Other comprehensive income for the year

Note

Statement of cash flows for the year ended 30 June 2015

Retained surplus

Note

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

Cash flows from operating activities 457,516

399,195

(320,277) 137,239 7,434 (12,138) 14,380

(300,428) 98,767 6,194 (11,002) 9,797

146,915

103,756

25 26 10 9

(149,475) (1,265) 3,736 39,731 6,253

(147,692) (2,374) 2,355 29,901 5,219

(101,020)

(112,591)

42,704 (10,548)

41,945 (8,738)

32,156

33,207

78,051

24,372

172,047

147,675

250,098

172,047

Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax)

Interest received Finance costs paid Recurrent donations, contributions and grants Net cash from operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for intangible assets Proceeds from sale of property, plant and equipment Capital contributions Capital grants and subsidies Net cash used in investing activities Cash flows from financing activities Proceeds from borrowings (loans raised) Repayment of borrowings (capital repayments)

28 28

Net cash provided by/ (expended on) financing activities Net (decrease)/increase in cash and cash equivalents held Cash and cash equivalents at beginning of reporting period Cash and cash equivalents at end of reporting period

These statements should be read in conjunction with the accompanying notes and significant accounting policies.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Significant accounting policies

General information Logan City Council (Council) is a not-for-profit local government entity constituted under the Queensland Local Government Act 2009 and charged with the good rule and local government of the City of Logan. The Council is domiciled in Australia. Its registered office and principle place of business are located at: 150 Wembley Road Logan Central Queensland 4114 Basis of preparation These financial statements are general purpose financial statements for the period 1 July 2014 to 30 June 2015 and have been prepared in accordance with the Local Government Act 2009, the Local Government Regulation 2012, Australian Accounting Standards, Australian Accounting Interpretations, and other authoritative pronouncements issued by the Australian Accounting Standards Board (AASB) . The financial statements are presented in Australian dollars unless otherwise noted. These financial statements were authorised for issue by Council on 18 September 2015. Recurrent/ capital classification Revenue and expenditure are presented as "recurrent" or "capital" in the Statement of Comprehensive Income on the following basis: Capital revenue includes grants and subsidies received, which are tied to specific projects for the replacement or upgrade of existing noncurrent assets and/ or investment in new assets. It also includes non-cash contributions which are usually infrastructure assets received from developers. Capital expenses include the refund of capital contributions and the cost of decommissioning infrastructure assets. Gain or loss on the disposal of non-current assets, discount rate adjustments to restoration provisions, revaluations of property, plant and equipment., share of joint venture profit or loss, and gain or loss on market value realisation on borrowings are classified as "capital revenue" or "capital expenses" depending on whether they result in accounting gains or losses. All other revenue and expenses have been classified as "recurrent". Compliance with International Financial Reporting Standards (IFRS) These general purpose financial statements comply with all accounting standards and interpretations issued by the AASB that are relevant to Council's operations and effective for the current reporting period. These statements do not comply with International Financial Reporting Standards as Council is a not-for-profit entity. The main impacts are the offsetting of revaluation and impairment losses within a class of assets, and the timing of the recognition of non-reciprocal grant revenue. Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and certain classes of property, plant and equipment at fair value. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Fair value Fair value means the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date taking account of characteristics that are specific to that asset or liability. Valuation techniques and inputs used to develop fair value measurements are provided in the accounting policy notes below. The recognised fair values of financial and non-financial assets and liabilities are classified according to the following fair value hierarchy that reflects the significance of the inputs used in making these measurements: Level 1 - Fair values that reflect the unadjusted quoted prices in active markets for identical assets/liabilities. Level 2 - Fair values that are based on inputs that are directly or indirectly observable for the asset/liability (other than unadjusted quoted prices). Level 3 - Fair values that are derived from data not observable in a market.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

Significant accounting policies (continued)

30 JUNE 2015

Fair value (continued) Council recognises transfers between the fair value hierarchy levels, where relevant, at the end of the reporting period. A transfer between the fair value hierarchy levels may occur if the basis of valuation was changed. Details of fair value measurements are provided in note 30. Additional management information Following amendments to the Local Government Finance Standard 1994, effective from 9 April 2003, the financial statements are not required to include the Appropriation Statement, Capital Funding Statement, or the Statement of Original Budget compared with Actual Results. Council has adopted these amendments to simplify the statements for audit purposes, however Council considers that the financial information supplied by the Appropriation Statement and the Capital Funding Statement provides additional transparency of the financial stewardship of Council to the reader, and has therefore included the Appropriation Statement and the Capital Funding Statement in an unaudited addendum. Critical accounting judgements and key sources of estimation uncertainty In the application of the Councilâ&#x20AC;&#x2122;s accounting policies, which are described in note 1, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The following are the critical judgements and estimations that management have made in the process of applying the Councilâ&#x20AC;&#x2122;s accounting policies and that have the most significant effect on the amounts recognised in the financial statements: Property, plant and equipment fair value measurements Some of Council's assets and liabilities are measured at fair value for financial reporting purposes. The Council finance branch under the leadership of the Finance Manager submits asset and liability policies to Council's Finance and Governance Committee for approval. All Council policies are reviewed annually and updated where relevant. In estimating the fair value of an asset or a liability, the Council uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Council engages internal or third party qualified valuers to perform the valuation. The relevant asset owners and Council's finance branch work closely with the valuers to establish the appropriate valuation techniques and inputs to asset valuations. There is no active market for certain Council assets due to their specialist nature and in these cases fair value is calculated using either a cost- or income-based valuation technique. The fair value of Council's water and wastewater infrastructure assets is determined using an income approach based on the net present value of expected future cash flows. The fair value of other specialist assets is determined using a cost approach based on the estimated depreciated replacement cost of the assets. The Finance Manager reports valuation findings to the Council Audit Committee annually to explain the cause of fluctuations in the fair value of the assets and liabilities. Information about Council valuation policy is disclosed in note 1(i) and the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in note 30. Road asset components Road assets comprise the three major components of road formation, pavement and seal. Road formation is defined as the surface of finished earthworks on which a pavement is constructed. It includes earthworks, the general shaping of the road and basic drainage, but excludes stormwater infrastructure. Formation costs are generally a significant portion of the overall road cost. Upon construction of a road asset Council recognises the full cost of construction which is apportioned to individual asset components in the financial asset register. At the end of the year and on recognition of contributed assets, road assets are revalued to fair value (depreciated replacement cost). Council uses a "Greenfield" approach to determine depreciated replacement cost (DRC), including formation costs using unit rates determined for local government by the State Roads Alliance project, per road type to estimate the total replacement costs of the major road asset components. The valuation methodology is provided in note 30.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Significant accounting policies (continued)

Critical accounting judgements and key sources of estimation uncertainty (continued) Property, plant and equipment depreciation methodology, estimated useful lives and residual values Management reviews the depreciation methodologies, estimated useful lives and residual values of property, plant and equipment assets at the end of each reporting period based on previous experience with each asset category. Each of these estimates has the potential to affect the amount of depreciation recognised annually. Council uses standard rates of depreciation for each major asset category unless factors exist that require a different rate to be applied for particular assets. There have been no major changes during the current year and depreciation methodologies and useful lives remain as disclosed in note 1(i). Landfill and quarry rehabilitation provisions Council recognises provisions for the estimated cost of restoration in respect of refuse dumps (landfills) and quarries where it is probable the Council will be liable, or required, to incur such a cost on the cessation of use of these facilities. The provision is measured at the expected cost of the work required; discounted to current day values using the interest rates attaching to Commonwealth Government guaranteed securities with a maturity date corresponding to the anticipated date of the restoration. Management estimates the amount of expected restoration work based on current known restoration costs inflated using relevant cost inflation indices and then discounted to current day values; and the timing of the work based on estimated landfill or quarry volumes. Further details are provided under note 1(q). Employee leave entitlements Employee leave entitlements are calculated based on the probability that employees will reach entitlement to vested sick leave and long service leave where relevant and an estimation of the timing that leave will be taken or paid out for all leave types. Management determines these probabilities based on recent leave and employment trends as recorded in Council's pay system. There have been no major variations to these trends in the current accounting period. Further details are provided in note 1(r). Revenue from contributions Council receives different types of contributions from external parties including infrastructure contributions from developers and grants and subsidies from State and Federal government. Council applies the relevant accounting policies and interpretations in determining a suitable accounting treatment for each revenue type. Management reviews and interprets development application contracts to determine whether these include reciprocal contributions in the form of a requirement that Council undertake work on specific assets, in which case a liability is recognised, instead of revenue, and revenue recognised progressively according to stage of completion of the associated work. Full details are provided under note 1(c). Impairment of non-current assets Each non-current physical and intangible asset and group of assets is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. There has been no impairment adjustment in the current financial year. Sustainability measures Council is required to report on three sustainability ratios and compiles a separate sustainability report for audit purposes. The three sustainability ratios; the Operating Surplus ratio, the Asset Sustainability ratio, and the Net Financial Liabilities Ratio are determined based on the Council's reported financial results. The Council financial results are based on many critical accounting judgements and estimates the most material of which are reported above. The Asset Sustainability ratio is impacted by Council's renewals capital expenditure and depreciation policy. During the year, Council formally approved a definition of capital renewals expenditure as "Works to replace existing assets or facilities with assets or facilities of equivalent capacity or performance capability". The definition corresponds to that used in previous years and is not expected to materially impact sustainability ratio calculations.

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LOGAN CITY COUNCIL Notes to financial statements

Significant accounting policies (continued)

30 JUNE 2015

Adoption of new and revised accounting standards (continued) In the current year, Council adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current reporting period. The adoption of the new suite of consolidation standards has resulted in changes to disclosure in Council's annual financial statements. These standards comprised, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities, AASB 127 (revised 2011) Separate Financial Statements and AASB 128 (revised 2011) Investments in Associates and Joint Ventures. The impact of these and other standards is summarised below: AASB11 Joint Arrangements (effective from 1 January 2014) AASB 11 Joint Arrangements replaced AASB 131 Interests in Joint Ventures for the 2014-15 financial year. AASB 11 specifies how a joint arrangement, where two or more parties have control, should be accounted for. Under AASB 11 joint arrangements are classified as either joint operations or joint ventures and this, in turn, determines the accounting treatment. This classification is based on the rights and obligations of the parties and, when relevant, other facts and circumstances. Previously, AASB 131 classified joint arrangements based primarily on legal form. Under that standard there were three types of joint arrangements - jointly controlled entities, jointly controlled operations and jointly controlled assets. Council has joint control of the Greenbank Commercial Centre Pty Ltd, which under AASB131 was classified as a jointly controlled entity. The application of AASB11 has resulted in the reclassification of Council's investment as a joint venture. Despite the change in classification, there is no change to Council's accounting for the investment, which will continue to be accounted for using the equity method. Further details on Council's investment in associates and joint ventures policy are disclosed in note 1(h) and details of the Greenbank Commercial Centre Pty Ltd investment are disclosed in note 24. AASB12 Disclosure of interests in other entities (effective from 1 July 2015) AASB 12 is a new disclosure standard applicable to interests in subsidiaries, joint ventures, associates and unconsolidated structured entities. At reporting date, Council's interest in other entities was restricted to a 50% interest in the Greenbank Commercial Centre Pty Ltd, which is accounted for as a joint venture. Details of Council's accounting policy and interest in the joint venture are disclosed in notes 1(h) and 24 respectively. Council has not applied any Australian Accounting Standards and Interpretations that have been issued but are not yet effective. Council applies standards and interpretations in accordance with their respective commencement dates. The following statements are expected to have a material impact on Council's financial statements: Standards that are not yet effective AASB9 Financial Instruments (effective from 1 January 2018) AASB9, which replaces AASB139 Financial Instruments: Recognition and Measurement, is effective for reporting periods beginning on or after 1 January 2018 and must be applied retrospectively. The main impact of AASB9 is to change the requirements for the classification, measurement and disclosures associated with financial assets. Under the new requirements the four current categories of financial assets stipulated in AASB139 will be replaced with two measurement categories: fair value and amortised cost. Financial assets will only be able to be measured at amortised cost where specific conditions are met. As a result, Council will be required to measure its financial assets, including its investments in SEQ Regional Recreational Facilities Pty Ltd, Invest Logan Pty Ltd and the Logan Country Financial Services Ltd, at fair value. Each of these entities is a non-trading entity and insufficient information exists to determine a market based fair value. Council thus considers that cost is an appropriate measure of fair value for these investments and does not anticipate any changes to carrying value. AASB15 Revenue and Contracts with Customers (effective from 1 January 2017) AASB15 replaces AASB118 Revenue, AASB111 Construction Contracts and a number of interpretations and provides a framework for the recognition, measurement and disclosure of revenue from contracts with customers. Due to its recent release, Council is still reviewing AASB15 to identify whether the standard will have a material impact. AASB124 Related Party Disclosures (effective from 1 July 2016) The application of AASB124 to not-for-profit entities, means that council will need to disclose more information about related parties and transactions with those related parties. Council is currently preparing for this change by identifying related parties. Related parties will include the Mayor, councillors and some council staff. In addition the close family members of those people and any organisations that they control or are associated with will be classified as related parties. The amended Australian Accounting Standards and Interpretations which were issued at the date of authorisation of the financial report, but have future commencement dates are not likely to have a material impact on the financial statements.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Significant accounting policies

The following is a summary of the material accounting policies adopted by Council in the preparation of the financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated: (a)

The Local Government reporting entity

Council has no material operating controlled entities and the financial statements presented are those of the Council only. (b)

Taxation

Income of local authorities and public authorities is exempt from Commonwealth taxation except for Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). The net amount of GST recoverable from the Australian Taxation Office (ATO) or payable to the ATO is recognised as an asset or liability respectively. The Council pays payroll tax to the Queensland Government on certain activities. (c)

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of discounts, pensioner remissions and amounts collected on behalf of third parties. Council recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of Council's activities as described below: Rates revenue Where rate monies are received prior to the commencement of the rating period, rates revenue is recognised when the funds are received; otherwise rates revenue is recognised at the commencement of the rating period. Council offers a cash discount for the early payment of rates and a rates remission to pensioners. Cash discounts are recognised as a reduction in revenue on payment while rates remissions are accounted for as a reduced rate charge. Fees and charges Consumer charges include fees for processing applications, licensing and search fees. Revenue from fees and charges is recognised upon unconditional entitlement to the funds. Generally this is upon lodgement of the relevant applications or documents, payment of the infringement notice or when the service is provided. Contributions, grants, subsidies and donations Council receives different types of contributions from external parties including infrastructure contributions from developers and grants and subsidies from State and Federal government. Contributions are measured at fair value and, unless contributions are reciprocal, are recognised as revenue when Council obtains control over the contribution or the right to receive the contribution, when it is probable that the future economic benefits will flow to Council, and if the contribution can be measured reliably. Council did not have any reciprocal grants at the reporting date. Control over a contribution is normally obtained upon receipt or upon prior notification that the contributed amount or asset has been secured based on the arrangements that exist between the contributor and Council. Reciprocal contributions are contributions in which Council sacrifices goods or services of approximately equal value directly to the contributor. Reciprocal contributions do not include the provision of goods and services by Council to third party beneficiaries even if this is a condition of the contribution. A liability is recognised, rather than revenue, if contributions are provided on condition that Council make a reciprocal transfer to the contributor and that reciprocal transfer has not taken place prior to the reporting date. Revenue is recognised as reciprocal performance obligations under funding agreements are fulfilled. Non-reciprocal contributions are recognised as revenue irrespective of whether conditions are imposed on Council's use of the funds. A liability and expense are recognised if and when Council fails to meet specific conditions attaching to the contribution and part or all of the contribution has to be repaid. Details of restricted contributions received, but not used in the current period, and restricted contributions that were received in prior period and used in the current period, are provided in note 17. Infrastructure contributions Infrastructure contributions may be in the form of cash contributions, land contributions or works performed by developers which are then provided to Council as completed works. Authority for the levy of infrastructure charges is contained in the Sustainable Planning Act (2009), which requires local governments to develop a "Priority Infrastructure Plan". Council has applied AASB Interpretation 18 Transfer of Assets from Customers with effect from 1 July 2009. Where cash infrastructure contributions provided by developers are used to provide a separately identifiable reciprocal supply to the community in the form of community assets, these contributions are initially recognised as a liability and revenue is recognised progressively based on the stage of completion of the associated works.

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30 JUNE 2015

Significant accounting policies (continued)

(c)

Revenue recognition (continued)

Physical assets are recognised as revenue when the development becomes "on maintenance", which is the point at which Council obtains control of the assets and becomes liable for any ongoing maintenance, and when there is sufficient data in the form of drawings and plans to determine the approximate specifications and values of such assets. Physical assets contributed to Council by developers are non-cash infrastructure assets (donated assets) in the form of road works, stormwater, water and wastewater infrastructure, and parks equipment recognised at fair value as revenue and non-current assets on receipt. Non-cash contributions below asset acquisition thresholds are recognised as revenue and expenses. Land held for development and resale Revenue is recognised when the risks and rewards have been transferred and Council retains neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the units sold. Due to the nature of agreements entered into by Council, this is considered to occur on the signing of a valid unconditional contract of sale. Interest income Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the council and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition. Recoverable works Recoverable works revenues are prepaid and held in an unearned revenue account until Council has entitlement and revenue is recognised on completion of the work. (d)

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, all cash and cheques receipted but not banked at the year end, deposits held at call with financial institutions, other short-term, highly liquid investments 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. Cash flows are included in the statement of cash flows on a gross basis using the direct method of reporting whereby major classes of gross cash receipts and gross cash payments are disclosed. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified within operating cash flows. (e)

Receivables

Trade receivables, loans, 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. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance (impairment) account is used when there is objective evidence that Council will not be able to collect amounts due according to the original terms of the receivables. The amount of the impairment allowance is the difference between the asset's carrying value and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the impairment loss is recognised as an expense charged against Council's net result within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off to expense and the impairment allowance is reversed. Subsequent recoveries of amounts previously written off are credited against other expenses resulting in an increase in Council's net result. Because Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property to recover outstanding rate debts, Council does not impair any rate receivables.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

Significant accounting policies (continued)

(f)

Financial risk management

30 JUNE 2015

Council minimises its exposure to financial risk in the following ways: Council has been allocated a category 2 investment power per the Statutory Bodies Financial Arrangements Regulation 2007 and limits fund investments to category 2 authorised investments as provided in the Statutory Bodies Financial Arrangement Act 1982 as amended. Investments are for periods of less than one year in banks and other financial institutions with suitable defined asset quality and credit ratings. Investments in financial assets are only made where those assets are with a bank or other financial institution in Australia. Council does not invest in derivatives or other high risk investments. When Council borrows, it borrows from the Queensland Treasury Corporation. Borrowing by Council is constrained by the provisions of the Statutory Bodies Financial Arrangements Act 1982 and Statutory Bodies Financial Arrangements Regulation 2007. Details of financial instruments and the associated risks are disclosed in note 29. The maximum credit risk exposure of receivables is the carrying amount of these assets as disclosed in note 19. Rates debtors are secured against the property, which can be sold to recover unpaid rates. Council's objectives, policies and processes for managing risk and the methods used to measure risk have not changed since 2009. (g)

Inventories

Inventories include stores inventory held for distribution, recoverable works and land held for sale. Inventory held for distribution is measured at actual cost unless there is an identified loss in service potential, in which case inventories held for distribution are measured at the lower of original and current replacement cost. Recoverable works are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. Cost includes the cost of acquisition, direct materials and labour, directly attributable borrowing costs and an appropriate proportion of direct overheads where relevant. Costs are assigned on the basis of weighted average cost. Borrowing costs and other holding charges incurred after development is complete are recognised immediately as expenses. Costs of purchased inventory are determined after deducting rebates and discounts. Land held for sale is measured at the lower of cost or net realisable value. Cost is assigned by specific identification and includes the cost of acquisition and development and borrowing costs. When development is completed, borrowing costs and other holding charges are expensed as incurred. Borrowing costs included in the cost of land held for sale are those costs that would have been avoided if the expenditure on the acquisition and development of the land had not been made. Borrowing costs incurred while active development is interrupted for extended periods are recognised as expenses. (h)

Financial instruments

Financial assets and financial liabilities are recognised when the council becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. Financial assets and financial liabilities are presented separately from each other and offsetting has not been applied. Financial assets −

Classification & measurement

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’ (AFS) 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 at fair value through profit or loss

Financial assets are classified as at fair value through profit or loss when the financial asset is either held for trading or it is designated as at fair value through profit or loss. Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates interest earned on the financial asset and is included in the ‘interest received’ line item. Managed funds investments, which are investments in the Queensland Treasury Corporation's (QTC) cash fund, are financial assets classified as fair value through profit or loss on initial recognition.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Significant accounting policies (continued)

(h)

Financial instruments (continued)

The QTC cash fund is run on a similar basis to a cash management account, where customers' deposits are pooled to take advantage of attractive interest rates available for larger investments in the short-term money market. The QTC cash fund balance is measured at fair value based on the current redemption value of the fund. Performance is measured on a fair value basis as this provides a more relevant measure of gains or losses. Council policy provides for investment in Cash Management Unit Trusts having an "AAm" rating or better from Standard and Poors Australian Ratings. â&#x2C6;&#x2019;

Held to maturity investments

Financial assets with fixed or determinable payments and fixed maturity dates that the Council has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are short-term deposits measured at amortised cost using the effective interest method less any impairment. Interest is recognised on an accrual basis. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or a shorter period, to the net carrying amount on initial recognition. â&#x2C6;&#x2019;

Available for sale financial assets

Council had no investments in listed shares or listed redeemable notes at the report date. 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 (because Council considers that fair value can be reliably measured). Details of unlisted shares held by Council are provided below. â&#x2C6;&#x2019;

Equity shareholdings

Equity shareholdings comprise investments in subsidiaries, associates, joint ventures, and equity instruments where relevant. More details are described under individual headings listed below. De-recognition of financial assets Council derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. On de-recognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss. On de-recognition of a financial asset other than in its entirety, Council allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement, and the part it no longer recognises on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in other comprehensive income is recognised in profit or loss. Investments in subsidiaries Council had no investments in trading subsidiaries at the reporting date. Council's wholly-owned subsidiary, Invest Logan Pty Ltd, is not consolidated as the entity is not trading. For trading and non-trading subsidiary entities, Council discloses the name, country of incorporation, proportionate ownership interests and proportionate voting power held by Council. Full details of investments in subsidiaries are provided in note 23. Investments in joint arrangements A joint arrangement is an arrangement in which two or more entities have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Council has determined that Council's investment in the Greenbank Commercial Centre Pty Ltd is a joint venture under AASB11 Joint Arrangements and accounts for this investment using the equity method. Under the equity method the investment is initially recorded at cost and then adjusted each year to recognise Council's share of the profit or loss and other comprehensive income of the joint venture. Full details of Council's investment in the Greenbank Commercial Centre Pty Ltd are disclosed in note 24.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Significant accounting policies (continued)

(h)

Financial instruments (continued) −

Equity instruments

Equity instruments are measured at fair value being the quoted price for equity shares where an active and liquid market exists for the shares. Where there is no active and liquid market and no relevant valuation technique, Council considers that cost is an appropriate measure of fair value and investments are measured at original cost. Dividends on equity instruments are recognised in profit or loss when Council’s right to receive the dividends is established. −

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. −

Trust funds

Under the Local Government Regulation 2012 s200, a Local Government must establish a trust fund to be used to hold money that is paid to the Local Government to be held in trust or as a deposit on behalf of a third party. Council performs only a custodian role in respect of these funds and they are not considered revenue nor brought to account in the financial statements. Trust funds are disclosed in note 34 to the Financial Statements for information purposes only. −

Impairment of financial assets

Financial assets, other than those at FVTPL, 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 investment have been affected. 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 allowance account. When a trade receivable is considered uncollectible, the expected uncollectible amount is adjusted against the allowance account. Subsequent recoveries of amounts are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. A full list of financial assets is provided in note 29. Financial liabilities −

Classification & measurement

Financial liabilities are classified as either financial liabilities, ‘at fair value through profit or loss’, or ‘other financial liabilities measured at amortised cost’ (other financial liabilities). −

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or it is designated as at fair value through profit or loss. Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘other gains and losses’ line item. Council had no financial liabilities classified as fair value through profit or loss at the reporting date. −

Other financial liabilities

Other financial liabilities, including borrowings and trade and other payables, are initially measured at fair value, net of transaction costs and subsequently at amortised cost. Council borrows from the Queensland Treasury Corporation (QTC) and amortised cost is determined using the QTC book rate methodology, with interest expense recognised on an effective yield basis.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

Significant accounting policies (continued)

(i)

Property, plant and equipment

30 JUNE 2015

Asset classes Council property, plant and equipment (fixed asset) classes comprise land, buildings, plant and equipment, roads and drainage, water and wastewater, landfill and quarry, and capital work-in-progress. Fixed assets are held for use in the production or supply of Council goods or services or for administrative purposes. Measurement on initial recognition Fixed assets are initially measured at cost (being the fair value of the assets given as consideration after discount), other costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management including borrowing costs where relevant, and an initial estimate of the costs of dismantling and removing the item, and restoring the site on which it is located. Non-monetary assets contributed to Council (contributed or donated assets) are recognised as assets and revenues at fair value by Council valuation. Fixed assets in the course of construction for production, supply or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognised impairment loss. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Measurement subsequent to initial recognition Subsequent to initial recognition, assets within each class of asset, excluding plant and equipment, but including major plant and equipment, are measured at fair value less accumulated depreciation and accumulated impairment. Major plant and equipment is defined as that component of plant and equipment with a gross carrying value in excess of $1m. Council had no recorded major plant and equipment at 30 June 2015. 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 wastewater infrastructure assets. Council has resolved that its water services business unit is to be operated on a for-profit basis. Council's water services business unit is a commercially focussed business unit the principal activities of which are the provision of water and wastewater services. Its business goal is to maximise financial returns and cash flows to support Council's other operations. Other Council infrastructure and specialised building assets are valued using a depreciated replacement cost approach. Depreciated replacement costs are determined based on the current replacement costs of similar assets purchased or constructed by Council or the cost to Council to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence. Fixed asset fair value measures are classified under a fair value hierarchy required by Australian Accounting Standard AASB13, Fair Value Measurement, as described under the paragraph Fair Value within Council's Significant Accounting Policies. Details of fair value classifications and the techniques used to determine fair value are disclosed in note 30, Fair value measurements. Revaluation adjustments Any revaluation increase arising on the revaluation of fixed assets is recognised in other comprehensive income and accumulated within equity, except to the extent that it reverses a revaluation decrease for the same asset class previously recognised in profit or loss, in which case the increase is credited to profit or loss to the extent of the decrease previously expensed. A decrease in the carrying amount arising on the revaluation of fixed assets is recognised in profit or loss to the extent that it exceeds the balance, if any, held in the revaluation surplus relating to a previous revaluation of that asset class. Where an asset is disposed of, that portion of the asset revaluation surplus that relates to that asset remains in revaluation surplus.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Significant accounting policies (continued)

(i)

Property, plant and equipment (continued)

Restrictions on title and property, plant and equipment pledged as security There is neither restriction on title nor has Council pledged any item of property, plant and equipment as security for Council or third party liabilities or debt other than those disclosed in note 25 Property Plant and Equipment. Land under roads Land under roads acquired both before and after 30 June 2008 is recognised as a non-current asset where Council holds title or a financial lease over the asset. Council does not currently have any such land holdings. The land under road network within the council area has been dedicated and opened for public use under the Land Act 1994 or the Land Title Act 1994. This land is controlled by the State pursuant to the relevant legislation. Therefore this land is not recognised in these financial statements. Capital and operating expenditure Wage and materials expenditure incurred for the acquisition or construction of assets is treated as capital expenditure. Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major component of an asset to maintain its service potential is capitalised. Non-current asset threshold An asset acquisition threshold of $5,000 applies to all assets individually except for land and networked assets. The asset acquisition threshold for land is $1 and the $5,000 threshold applies collectively to networked assets. Networked assets are assets that are either not separately identifiable or are networked for operational reasons (e.g. computer cabling). Asset disposals An item of property, plant and equipment is derecognised upon disposal, write off (decommissioning), or when no future economic benefits are expected to arise from the continued use or disposal of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss. Council may decommission part or all of an existing asset during new construction. Where an asset is decommissioned the carrying value of the decommissioned asset is recognised as a capital expense in profit or loss. Depreciation of property, plant and equipment Depreciation is recognised so as to write off the cost or valuation of depreciating assets (i.e. fixed assets other than freehold land, artwork and properties under construction) less their residual values over their estimated useful lives, using the straight-line, reducing balance or a consumption-based method where consumption can be accurately determined. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. 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.

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LOGAN CITY COUNCIL Notes to financial statements

Significant accounting policies (continued)

(i)

Property, plant and equipment (continued)

Asset class Land Buildings

Plant and equipment

Roads and drainage

Water and wastewater Waste landfill Quarry

Asset sub-class Freehold land Administration buildings Residential buildings Sheds Toilet blocks Fencing/ Walls Pools Cultural assets Office and library equipment Parks equipment Operational plant Vehicles Artwork Roads surface Pavements Earthworks Bridges Drainage - Box culverts Drainage - Headwalls Drainage - Pipes Drainage - Pipes large diameter trenches Drainage - Short-lived pits Drainage - Long-lived pits Water infrastructure Wastewater infrastructure Water and sewerage facilities Waste cells Quarry

30 JUNE 2015

Depreciation periods Not depreciated Consumption based Consumption based Consumption based Consumption based Consumption based Consumption based 7 - 75 years (straight line) 2 - 15 years (straight line) 5 - 75 years (straight line) 1 - 36 years (straight line) 2 - 10 years (trucks-straight line; cars and utility vehicles-reducing balance) Not depreciated 14 - 65 years (consumption based) 50 - 75 years (consumption based) Not depreciated 30 - 100 years (straight line) 100 years (straight line) 100 years (straight line) 100 years (straight line) 200 years (straight line) 50 - 100 years (straight line) 200 years (straight line) 15 -90 years (straight line) 40 - 160 years (straight line) 10 - 150 years (straight line) 7 - 11 years (remaining airspace) 15 years (straight line)

Gains or losses on disposals are determined by comparing net disposal proceeds with carrying amount. Council does not transfer amounts accumulated in revaluation surplus to retained earnings on disposal. (j)

Intangible assets

Intangible assets that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Asset amortisation periods for intangible asset classes are; software assets, 4-10 years. Carbon units purchased under the Clean Energy Legislation Package are not amortised. Finite intangible assets with a cost or other value exceeding $5,000 and carbon units purchased under the Clean Energy Legislation Package are recognised as intangible assets in the financial statements. Finite intangible assets with a lesser value are expensed when incurred. Intangible assets with indefinite useful lives that are acquired separately are recognised as intangible assets, are not amortised, and are carried at cost less accumulated impairment losses. Council has no internally generated research and development. Intangible assets comprise purchased software and carbon units purchased under the Clean Energy Legislation Package only. (k)

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership, excluding legal ownership, to the lessee. All other leases are classified as operating leases where substantially all the risks and benefits remain with the lessor. Council as lessor Council had no third party finance leases provided at the reporting date. Council leases land to community sporting bodies as a community service, but retains responsibility for their continued use, maintenance and insurance. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.

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30 JUNE 2015

Significant accounting policies (continued)

(k)

Leasing (continued)

Council as lessee Assets held under finance leases are initially recognised as Council assets at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with Council's general policy on borrowing costs (see note 1(o) below). Contingent rentals are recognised as expenses in the periods in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. (l)

Impairment of non-financial assets

At the end of each reporting period, the Council reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. Any amount by which the asset's carrying value exceeds the recoverable amount is recorded as an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). An impairment loss occurs when an asset's recoverable amount is estimated to be less than its carrying value. Asset carrying values Except for plant and equipment assets measured at cost, non-financial assets carrying values are measured at fair value. Where an active market exists, fair value equates to market value. Where there is no active market for Council assets, Council is unable to determine market value and fair value is measured using a valuation technique. Where the economic benefits of the assets are not primarily dependent on the asset's ability to generate net cash inflows, fair value is determined as the depreciated replacement cost of the asset. Where the economic benefits of the assets are primarily dependent on the assets' ability to generate net cash inflows, as is the case with infrastructure assets held by Council's water business, fair value is determined as the present value of the future cash flows expected to be derived from the assets or cash-generating unit reflecting the assumptions that market participants would use when pricing the asset. Recoverable amount Recoverable amount is the higher of fair value less costs to sell and value in use. Where there is an active market for council assets, as is the case for most land and some buildings assets, but the economic benefits are not primarily dependent on the assets' ability to generate net cash inflows, Council is able to determine fair value less costs to sell, but not value-in-use. In these cases, recoverable amount is based on the assets' fair value less costs to sell. Council monitors expected selling costs to determine whether there is any material difference between asset carrying values and recoverable amount to determine whether any of the assets have incurred an impairment loss. Where there is no active market for council assets, as is the case for council infrastructure assets and specialised building assets, and the economic benefits are not primarily dependent on the assets' ability to generate net cash inflows, Council is unable to determine fair value less costs to sell, but is able to determine value-in-use based on the depreciated replacement cost of the asset. In these cases, recoverable amount id based on value-in-use. As depreciated replacement cost is the same basis used to determine carrying value there is no impairment loss. Where there is no active market for council assets and the economic benefits are primarily dependent on the assets' ability to generate net cash inflows, as is the case for assets held in Council's water business, Council is unable to determine fair value less costs to sell, but is able to determine value-in-use based on the present value of future cash flows expected to be derived from the asset or cash generating unit reflecting assumptions that are specific to Council. In these cases, recoverable amount is based on value-in-use. Due to differing assumptions used in determining asset carrying values at fair value reflecting the assumptions that market participants would use when pricing the asset and valuein-use reflecting assumptions that are specific to Council, there is a possibility that Council may incur an impairment loss, and Council undertakes a comparison of these values annually to determine whether this is the case.

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LOGAN CITY COUNCIL Notes to financial statements

Significant accounting policies (continued)

(l)

Impairment of non-financial assets (continued)

30 JUNE 2015

Impairment loss If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. When an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment on an ongoing basis. If an indicator of impairment exists, Council determines the asset's recoverable amount. (m)

Trade and other payables

Trade and other payables are recognised as a liability at the time the amount owed can be measured reliably and when it is probable the account will have to be paid. This is at the time of the goods being received or the service being performed. The amount recognised for each creditor is based on purchase or contract costs. The amounts are unsecured and are normally settled within 30 working days. (n)

Borrowings

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 QTC book rate methodology. Borrowings are removed from the Statement of Financial Position when the obligation specified in the contract is discharged, cancelled or expelled. The difference between the carrying amount of a financial liability that has been extinguished and the consideration paid is recognised as finance cost expenses charged against Council's net result. In accordance with the Local Government Regulation 2012 council adopts an annual debt policy that sets out council's planned borrowings for the next nine years. Council's current policy is to only borrow for capital projects and for a term no longer than the expected life of the asset. Council also aims to comply with the Queensland Treasury Corporation's borrowing guidelines and ensure that sustainability indicators remain within acceptable levels at all times. (o)

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the capital cost of those assets until such time as the assets are substantially ready for their intended use or sale. An asset is considered to be "substantially ready" once physical construction of the asset is complete. Borrowing costs not directly attributable to the acquisition, construction or production of qualifying assets or incurred subsequent to construction, and finance costs incurred through the discounting of provisions, are recognised as expenses charged against Council's net result in the period incurred. (p)

Provisions

Provisions are recognised when Council has a present legal or constructive obligation as a result of a past event, it is probable that Council will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material). The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value for money and the risks specific to the liability. Any increase in provision due to the passage of time is recognised as a finance cost. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

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LOGAN CITY COUNCIL Notes to financial statements

Significant accounting policies (continued)

(q)

Rehabilitation (restoration) provisions

30 JUNE 2015

A provision is made for the cost of restoration in respect of refuse dumps (landfills) and quarries where it is probable the Council will be liable, or required, to incur such a cost on the cessation of use of these facilities. The provision is measured at the expected cost of the work required; discounted to current day values using the interest rates attaching to Commonwealth Government guaranteed securities with a maturity date corresponding to the anticipated date of the restoration. Increases in provisions for restoration are recognised as finance costs to the extent that these are due to the passage of time. Assets carried under the cost model For asset carried under the cost model, increases in restoration provision are recognised as an increase in asset value and amortised over the life of the asset. Decreases in restoration provision are recognised as a decrease in asset value unless the decrease exceeds the carrying amount of the asset, in which case the excess is recognised immediately as a gain resulting in an increase in Council's net result. Assets carried under the revaluation model For assets carried under the revaluation model increases in restoration provision are recognised as a reduction in revaluation surplus, or if the increase exceeds the balance in revaluation surplus for the asset class, as an expense charged against Council's net result. Decreases in restoration provision are recognised as an increase in revaluation surplus, except to the extent that the decrease in provision reverses a previous revaluation decrease that was recognised as an expense charged against Council's net result. In this case the decrease in provision is recognised as a gain resulting in an increase in Council's net result. Increases in provisions for restoration are recognised as finance costs to the extent that these are due to the passage of time. Landfill restoration The provision represents the present value of the anticipated future costs associated with the closure of the landfill sites, decontamination and monitoring of historical residues and leaching on these sites. The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates, available technologies and engineering cost estimates. These uncertainties may result in future actual expenditure differing from amounts currently provided. Because of the long-term nature of the liability, the most significant uncertainty in estimating the provision is the costs that will be incurred. The provision recognised for landfills is reviewed at least annually and updated based on the facts and circumstances available at the time. Current landfill cells are expected to close in the period between 2022 and 2026. Quarry rehabilitation The provision represents the present value of the anticipated future costs associated with the closure of the Kingston quarry site, decontamination and monitoring of historical residues and leaching on the site. The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates, available technologies and engineering cost estimates. These uncertainties may result in future actual expenditure differing from amounts currently provided. Because of the long-term nature of the liability, the most significant uncertainty in estimating the provision is the costs that will be incurred. The provision recognised for the quarry is reviewed at least annually and updated based on the facts and circumstances available at the time. The quarry site is expected to close in 2027. (r)

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.

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LOGAN CITY COUNCIL Notes to financial statements

Significant accounting policies (continued)

(r)

Employee benefits (continued)

30 JUNE 2015

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 27 as a payable. Leave classifications As Council does not have an unconditional right to defer leave liabilities beyond 12 months, all leave balances 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 oncosts. Amounts not expected to be settled within 12 months are calculated on projected future salary levels and related oncosts discounted to present value. Annual and sick leave Council has an obligation to pay accumulating annual leave, and vested sick leave to qualifying employees, and liabilities have been recognised for these obligations. Council does not recognise a liability for non-accumulating sick leave. Annual and sick leave liabilities represent accrued expenses and are reported in Note 27 as payables. Long service leave Council has an obligation to pay accumulating long service leave to qualifying employees and a liability has been recognised for this obligation based on the probability that employees with different service levels will reach entitlement. As the amount and timing of the obligation depends on the number of years of service, the liability is reported in Note 31 as a provision. Superannuation Payments to defined contribution and to defined benefit retirement benefit plans are recognised as an expense when employees have rendered services entitling them to the contributions. The superannuation expense for the reporting period is the amount of the contribution the Council makes to the superannuation plan which provides benefits to employees. The local government superannuation (LG Super) scheme is a multi-employer plan. As LG Super is unable to account to Council for its proportionate share of any obligation, plan assets or costs associated with the defined benefit plan, the plan is accounted for as if it were a defined contribution plan. Superannuation arrangements are further detailed in note 38. (s)

Components of equity

Council equity consists of a retained surplus and an asset revaluation surplus. As a local government entity, Council has no contributed equity. Retained surplus Retained surplus includes funds set aside for a future purpose in capital and operational reserves and unallocated surplus funds. Asset revaluation surplus The asset revaluation surplus comprises adjustments relating to changes in the carrying value of property, plant and equipment on revaluation to fair value, as described in note 1(i).

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LOGAN CITY COUNCIL Notes to financial statements

Significant accounting policies (continued)

(t)

National competition policy

30 JUNE 2015

Council has resolved to apply the National Competition Policy requirements of the Local Government Act 2009 (the Act) and the Local Government Regulation 2012 (the Regulation) and has undertaken the following steps: i

Determined that Council's Water and Wastewater, and Waste services business activities are significant business activities as defined in the Act, and undertaken public benefit assessments to establish that the benefits of applying competitive neutrality principles to these activities outweighs the cost. Significant business activities are business activities of a local government that are conducted in competition, or potential competition, with the private sector (including off-street parking, quarries, and sporting facilities); and meet expenditure thresholds prescribed under the Regulation.

Commercialised the identified significant business units by applying full cost pricing to their activities and creating separate business units within the Council.

iii

Determined that Council's building certification and plant fleet services activities are prescribed business activities as defined in the Regulation and applied the Code of Competitive Conduct to these activities. A prescribed business unit is defined as a business activity that meets an expenditure threshold prescribed under the Regulation. The competitive code of conduct requires the application of full cost pricing, identifying the cost of community service obligations (CSO) and eliminating the advantages and disadvantages of public ownership within that activity.

Determined that the Roads & Drainage Service Group no longer meets the criteria as a significant or prescribed business activity in terms of competing with external business. In addition, given the new City's requirements, there is no excess capacity to pursue external business opportunities in the short to medium term.

Implemented full cost pricing by pricing the goods and services of significant and prescribed business activities on a commercial basis.

Including activity statements for significant and prescribed business activities. Significant business activity statements and further explanation are provided in note 2, while prescribed business activity statements, consumer cross-subsidies and community services obligations are provided in note 39.

(u)

Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except: i

Where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

For receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified within operating cash flows. (v)

Carbon pricing

Council recognises a liability under the carbon pricing mechanism for emissions from Council's landfill based in Browns Plains as disclosed in note 27. While Council has a carbon tax liability for the 2013/14 financial year, the repeal of carbon tax legislation has meant that Council has no further contingent liability for expected future emissions. (w)

Comparative figures and rounding

Where required by Accounting Standards comparative figures have been adjusted to conform to changes in presentation for the current financial year. Amounts have been rounded to the nearest $1,000 to enhance the readability of the reports.

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LOGAN CITY COUNCIL Notes to financial statements

Analysis of results by function

30 JUNE 2015

Council's Strategy, Leadership and Performance Team (SLPT) have determined Council functions and activities based on service delivery. The streams are Road & Water Infrastructure Services, Community & Customer Services, Strategy & Sustainability, and Organisational Services. Council business units and the Corporate Revenue branch are reported separately as management considers that such disclosures are meaningful to users of Council's financial reports. (a)

The activities of Council are categorised into the following broad functions:

Council business units Council's Water and Wastewater Services, and Waste Services activities are classified as significant business activities under the Local Government Regulation 2012 for National Competition Policy (NCP) purposes and are accounted for as separate business units. Council's building certification and plant fleet services are classified as prescribed business activities under the Local Government Regulation 2012 and Council has applied the Code of Competitive Conduct to these business activities. Council has undertaken an assessment and determined that there were no new significant business activities started in the current financial year. National Competition Policy (NCP) National Competition Policy (NCP) is a set of government policy reforms adopted by all governments throughout Australia in 1995. The purpose of reforms was to remove protection from international and national competition to improve productivity and the international competitiveness of Australian businesses. A key NCP reform was to introduce competitive neutrality so that privately owned businesses could compete with those owned by government. In the past, many government business activities were able to obtain certain advantages over their private sector rivals as a result of their public ownership. These advantages included exemption from taxes, lower costs of finance due to government guarantees and exemption from regulations affecting private sector activity, which gave unfair advantage to government owned businesses and encouraged resources to flow to them regardless of their efficiency. In order to remove unfair advantage, NCP includes a Competition Principles Agreement, which requires governments to adopt a corporatisation model for government business enterprises and apply full taxes or tax equivalent payments, debt guarantee fees and private sector equivalent regulations. Government business units are defined in NCP policy and include activities that earn a substantial part of the operating revenue from user charges. Council has adopted the Local Government Tax Equivalents Regime (LGTER) provided for under NCP whereby business units pay taxes to the Local Government. Tax Equivalent amounts are determined in accordance with the Income Tax Assessment Act 1936, The Income Tax Assessment Act 1997 and the Tax Administration Act 1953. Water and wastewater services Council's water and wastewater services business unit is a commercially focused business unit the principal activities of which are the provision of water and wastewater services. Its business goal is to maximise financial returns and cash flows to support Council's other operations. Water services consist of three key areas comprising asset management, water treatment and quality managed by the water business branch; infrastructure planning, design and construction managed by the water infrastructure branch; and maintenance and supply services managed by the water operations branch. More specific duties are detailed below. The water business branch incorporates water business and customer management, water product quality, water asset management and water treatment. Major focus areas include strategic planning, regulation alignment and planning, business and performance reporting, customer response coordination, customer demand management and water use compliance, meter reading coordination and data management, commercial program liaison, trade waste and strategic asset management. The water infrastructure branch is responsible for water infrastructure planning, delivery and development services. Major focus areas are infrastructure planning, infrastructure design & construction, infrastructure management, capital projects and major programs, development services, systems modeling and technical standards and specifications. The water operations branch undertakes water & wastewater network maintenance and provides mechanical and electrical services including the maintenance and monitoring of pump stations and reservoirs, and business support services.

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2015

Analysis of results by function (continued)

(a)

The activities of Council are categorised into the following broad functions (continued):

Waste services The goal of this function is to protect and support our community and natural environment by sustainably managing refuse. The waste services branch is responsible for the collection of household waste, kerbside clean ups, servicing of litter bins, bulk disposals at landfills, waste transfer stations, the Logan recycling market, gas extraction from landfills, municipal bulk solid waste collection, the management of waste vegetation, maintenance of closed landfills, household hazardous waste services and environmental monitoring of current and former waste disposal facilities. Corporate revenue The objective of the Corporate Revenue stream is to manage corporate revenues and investments. Corporate revenue consists of activities primarily related to the collection of general rates and financial service activities. Financial service activities comprise Council's treasury function which is responsible for the administration of council borrowings and investments. Road infrastructure services The objective of the roads infrastructure services stream is to ensure that the community is serviced by a high quality and effective road and drainage network. The stream consists of the key operational areas of Council that are not classified as large business areas for NCP purposes: Road construction and maintenance Roads construction and maintenance is responsible for road and drainage infrastructure maintenance including the local road network to facilitate pedestrian, cycle and vehicle transport, and road and drainage infrastructure construction and rehabilitation. Road infrastructure delivery Roads infrastructure delivery is responsible for the provision of road and drainage infrastructure and for flood plain and disaster management services. Key focus areas are transportation planning, designing and mapping transport infrastructure, traffic operations management, street and safety lighting and the provision of survey and mapping services. Road infrastructure planning Road infrastructure planning is responsible for public lighting, flood event management, road asset management, and planning trunk roads to cater for future transportation requirements. Key focus areas include road and public space lighting design and practice, river and catchment engineering, flood plain management, asset rehabilitation and renewal programs, and contributions to Council's priority infrastructure plan in areas such as trunk roads, bicycle strategies and public transport infrastructure. Disaster management and specialist engineering support The disaster management unit is responsible for coordinating Logan City Council's response to major emergencies or natural disaster events which may affect Logan residents and neighbouring Local Governments. The unit also undertakes planning and mitigation strategies for these events. The branch also provide specialist engineering support services. Community and customer services The objective of the Community and Customer Services stream is ensure that Logan is a healthy, vibrant, contemporary and connected community. The stream consists of the following services: Marketing Marketing activities include advertising, community engagement, copywriting and proof reading, e-newsletters, graphic design, internal communications, media releases, and promotional items. A key focus is to involve the community in council decision-making or problem solving on issues that affect their lives and uses community input to facilitate an understanding between the decision makers and the community. Major venues and facilities Major Venues and Facilities is responsible for the construction, development and management of major community venues and other facilities including the Logan Entertainment Centre, InSports facilities at Beenleigh, Cornubia and Logan Metro and other community venues and public pools. Community facilities activities prescribed business activities under National Competition Policy. A type 3 business activity is one that competes with the private sector but where current expenditure falls below type 1 and type 2 annual expenditure thresholds.

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30 JUNE 2015

Analysis of results by function (continued)

(a)

The activities of Council are categorised into the following broad segments (continued):

Media and communication The Media and Communication branch is responsible for communicating the decisions, services, vision and plans of Logan City Council to internal and external stakeholders. The promotion and continuous improvement of the Councilâ&#x20AC;&#x2122;s and cityâ&#x20AC;&#x2122;s reputation combined with developing strong, mutually-beneficial relationships with media organisations is a key focus Libraries and cultural services Libraries and Cultural Services encompass the Logan Art Gallery plus libraries at Beenleigh, Greenbank, Jimboomba, Logan Central, Loganholme, Logan North, Logan Village, Logan West and Marsden. Animal and pest services Animal and Pest Services comprises two programs being animal management, which includes animal compliance, response and services; and health operations, which includes graffiti response, immunisation and pest management services. Community services The Community Services branch is responsible for community development and safety, sport and recreation and social planning. Key aspects include arranging strategic relationships with key stakeholders, connecting with the community in the form of visits, meetings, and networks, providing sport and recreation facilities, and social planning. Customer service The Customer Service branch manages customer contact and queries through three major customer service centres. The branch has a continuous improvement focus and provides a link between operational areas and their customers. Parks Parks is responsible for the development and maintenance of Logan's parks, natural area revegetation including programs such as the Bushcare program, which encourages the community to participate in the restoration of bushland, cemeteries and facilities management, fire breaks and park fire management. Strategy and sustainability The goal of the Strategy and Sustainability stream is to support the local business economy to ensure that it is strong and sustainable. Strategy and planning Strategy and Planning is responsible for strategic land use planning, Logan planning schemes, infrastructure charging and facilitating revitalisation of activity centres in Logan to create economic and social vibrancy and environmental sustainability. Development assessment Development Assessment is responsible for the assessment of building and development proposals including statutory town planning, development engineering, building and plumbing and business and performance. Economic development Economic Development undertakes activities to facilitate business growth across the city. Activities are centred on workforce development, business engagement, sustainable growth strategies, creative high value growth and linking community and economic development. Environment and sustainability Environment and Sustainability is responsible for the development of environmental and public health policy and programs; and business licensing and development assessment (from a public health and environmental perspective). City standards City Standards is responsible for the assessment and issue of building approval and compliance permits, development control, regulated parking, licensing, environmental health compliance, plumbing and drainage control and public nuisance control.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Analysis of results by function (continued)

(a)

The activities of Council are categorised into the following broad segments (continued):

Organisational services The objective of the Organisational Services stream is to support Council business units and city services. Governance Governance plays a key role in ensuring that Council conducts its operations in a manner that provides the community with confidence in local government practice, meets legislative requirements, and enhances its accountability to the community. Governance also ensures that the Mayor and Councillors are fully informed on all significant issues affecting the City, legislative responsibilities and corporate governance for effective decision making; and that organisational resources are utilised effectively and efficiently in meeting community and corporate objectives. Finance Finance provides financial strategic direction and operational services in support of Council activities. Key focus areas are Council's budget and capital plan, cash flow and funds management, statutory reporting and taxation, banking, rating and treasury services. People and culture People and Culture focuses on the attraction and retention of staff, career growth and development, employee relations, workplace health and safety, and industrial relations. A major focus is Council's values and cultural programs designed to provide an attractive and rewarding workplace for Council employees. Information services Information Services provides business solutions through the coordination and development of system platforms, software solutions, internet and intranet services, and system integration; and infrastructure and support services through the strategic development of corporate information technology, including network infrastructure, applications and systems to align with business needs. Plant fleet services Plant Fleet Services administers Council's fleet through purchase, maintenance and disposal activities. A key focus is repair and preventative maintenance activities undertaken at workshops located at Marsden and Beaudesert. A 24 hour on-call breakdown service is provided for all Council plant and equipment other than those under a Royal Automobile Club of Queensland (RACQ) arrangement. Administration The Administration branch of Council provides, procurement and purchasing services, stores and property management, security and maintenance services, and manages Council's insurance programs.

155

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

FS - 25

156

STRONGER TOGETHER

197

109,076

153 378,727

707

9,690

Net result

Total expenses

Reconciliation of revenue and expenses to Council's Income Statement Total revenue

Total

Organisational services

1,011

Strategy and sustainability

804 5,445

65,640 3,167

154,674

30,632

$'000 176,775

Rates, fees and charges

397,874

568

12,885

7,695

$'000 31,410

Grants and contributions

131,694

Community and customer services

Roads infrastructure services

Corporate revenue

Waste services

Water and wastewater services

Year ended 30 June 2014 Segments

Total

Organisational services

3,086

Strategy and sustainability

5,517

877

4,636

67,316

30,734 162,773

12,749

Community and customer services

Roads infrastructure services

Corporate revenue

Waste services

Water and wastewater services

$'000 184,520

Rates, fees and charges

$'000 43,710

Grants and contributions

28,240

514

1,255

4,796

923

11,167

2,064

Other recurrent revenue $'000 7,521

37,902

682

10,964

4,104

878

10,978

2,061

Other recurrent revenue $'000 8,235

(26,895) (60,764)

26,935 2,006

(417,318) 99,448

140,572

(57,622)

1614

(427,251)

(28,393)

11,956

2014 $'000 516,766

(54,145)

13,408

2015 $'000 567,823

(110,362)

67,263

(407,903)

(22,672) (13,629)

32,724 174,095

(121,080)

Total recurrent expenditure $'000

215,706

$'000

Total revenue

(419,080)

(55,576)

14,257

567,823

(106,884)

69,032

516,766

240

(104)

559

353

559

(39)

(25,522) (11,425)

32,795 186,333

(132,014)

Total recurrent expenditure $'000

236,465

$'000

Total revenue

723

$'000

(167)

Other capital revenue

$'000

Other capital revenue

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

(b)

Year ended 30 June 2015 Segments

Analysis of results by function (continued)

(9,415)

(50)

(8,040)

Total capital related expenditure $'000 (1,325)

(8,171)

(365)

(177)

(5,375)

167

(272)

Total capital related expenditure $'000 (2,149)

(417,318)

(57,672)

(28,393)

(54,145)

(118,402)

(13,629)

(22,672)

$'000 (122,405)

Total expenses

(427,251)

(61,129)

(26,895)

(55,753)

(112,259)

(11,258)

(25,794)

$'000 (134,163)

Total expenses

FS - 26

99,448

(56,058)

(16,437)

(40,737)

(51,139)

160,466

10,052

$'000 93,301

Net result

140,572

(59,123)

(41,496)

(43,227)

175,075

7,001

$'000 102,302

Net result

30 JUNE 2015

Notes to financial statements

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL

FINANCIAL REPORTING

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

157

(3,629) 90,139 156,743

67,414 155,942

(327,513) 4,321,464

(354,384) 5,023,927

Total liabilities

Reconciliation of assets and liabilities to Council's Statement of Financial Position Total assets

Net assets

(467)

(3,413)

2014 $'000 4,648,977

5,023,927

290,194

284,043

(27,851)

(10,811)

(7,049)

Total liabilities $'000 (277,925)

2015 $'000 5,378,311

(354,384)

(172)

(4,820)

180,898 2,355,820

222,625

49,330

47,312 3,020,466

$'000 1,525,853

Total assets

$'000 1,226,125

Net assets

(327,513)

5,378,311

156,114

72,234

287,672

(27,486)

(17,883)

240,508 3,047,952

(9,466)

(290,928)

56,778

$'000 1,517,053

Total liabilities $'000

4,321,464

156,276

90,142

286,781

2,327,969

170,087

42,281

$'000 1,247,928

Net assets

Year ended 30 June 2014

4,648,977

Total

Organisational services

Strategy and sustainability

Community and customer services

Roads infrastructure services

Corporate revenue

Waste services

Water and wastewater services

Total assets

Year ended 30 June 2015

The financial position of business segments set out in note 2(a) is presented below:

(c)

Segments

Analysis of results by function (continued)

FS - 27

30 JUNE 2015

Notes to financial statements

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Note

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

Analysis of revenue and expenditure from continuing operations 3.

Rates revenue General rates Environmental and community service charge Water access charges Wastewater charges Water consumption Garbage charges Less discounts given and pensioner remissions

9,151 487 159 9,797

4,319 1,737 35 2,071 8,162

3,461 2,192 22 1,607 7,282

35,375 (25,198) 10,177

29,149 15,362 11,896 14,066 857 71,330

26,712 14,943 11,442 8,774 2,288 64,159

Donated assets Roads infrastructure Drainage infrastructure Water infrastructure Wastewater infrastructure Other

158

13,710 520 150 14,380

Profit on sale of land held for development and sale Proceeds on sale Cost of assets sold

19,992 5,419 25,411

Interest received Interest on managed funds investments Interest on short term deposits Interest on bank accounts Interest on overdue rates

23,827 4,957 28,784

Recurrent donations, contributions and grants Unrestricted use General purpose grants Government contributions Other contributions

123,920 45,660 31,404 69,024 69,737 27,679 367,424 (14,108) 353,316

Fees and charges Regulatory fees Usage fees

130,045 48,063 32,833 72,538 72,252 28,254 383,985 (14,895) 369,090

STRONGER TOGETHER

FS - 28

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Note 9.

39,731 39,731

29,901 29,901

Gain on sale of non-current assets Gross proceeds from the sale of property, plant and equipment Less commission on sales Net Proceeds Less carrying value of property, plant and equipment sold Gain on sale of capital assets

11.

2014 $â&#x20AC;&#x2122;000

Capital contributions Government contributions Developer contributions

10.

2015 $â&#x20AC;&#x2122;000

3,781 (45) 3,736 (3,387) 349

2,386 (31) 2,355 (2,224) 131

Employee costs Wages and salaries Leave entitlements Superannuation Councillors' remuneration Other employee related expenses

86,202 16,816 12,386 1,604 10,344 127,352

84,106 16,880 12,029 1,587 8,938 123,540

71,651 2,580 42,342 352 4,577 5,031 126,533

68,002 3,451 36,852 323 5,403 5,909 119,940

11,657 4,829 16,486

10,339 5,318 15,657

14,474 3,020 5,734 441 1,428 2,620 2,286 3,524 6,579 40,106

14,354 4,282 7,312 341 991 2,952 2,089 3,471 5,998 41,790

183,125

177,387

Councillor remuneration represents salary, and other allowances paid in respect of carrying out their duties. 12.

Materials and services Utilities, construction materials and contracts Utilities and water charges Construction materials Contracted services Maintenance and landscaping Minor equipment purchases Other materials and minor contracts Plant hire and running costs Plant equipment and running expenses External plant hire Operational services Solid waste collection services Professional services Consulting services Hospitality and entertainment Advertising and promotions Insurance and damage costs Cleaning and security services Printing, stationery and postage Other services

159

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

FS - 29

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Note 13.

2014 $â&#x20AC;&#x2122;000

3,201 12,444

2,796 11,840

45,639 21,860 8,184 594 91,922 1,661 93,583

51,742 18,313 6,138 749 91,578 1,241 92,819

11,991 840 787 13,618 (639) 12,979

10,705 940 797 12,442 (613) 11,829

Depreciation (property, plant & equipment) and amortisation (intangible assets) Buildings Plant and equipment Infrastructure assets: Roads and drainage Water and wastewater Water and wastewater facilities Landfill & quarry Software

14.

2015 $â&#x20AC;&#x2122;000

25 26

Finance costs Finance costs incurred Queensland Treasury Corporation (QTC) interest incurred Account charges Finance costs due to discounting Finance costs incurred Less borrowing costs capitalised Finance costs expensed

Finance costs incurred Finance costs incurred are the total of finance costs whether capitalised or expensed. These costs include borrowing costs incurred on the discounting of provisions. Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time and the increase is recognised as borrowing cost. Finance costs expensed Finance costs expensed are those finance costs recognised directly in profit or loss. Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the initial cost of an asset. Borrowing costs capitalised during the year amounted to $639,000 (last year $613,000). 15.

Other expenses External audit fees for the review of the financial statements Internal audit fees Accounts receivable impairment Bad debts Restoration expense Donations grants and subsidies paid Stock adjustment

221 420 (356) 86 49 1,596 25 2,041

206 353 268 19 1,441 41 2,328

External audit fees The Auditor-General of Queensland is the auditor of Logan City Council. External audit fees incurred are in relation to the audit of the financial statements. There are no non-audit fees included in this amount. External audit fees includes an amount of $21,659 due to 2013/14 out of scope audit fees incurred. Internal audit fees Council appoints an external audit firm as internal auditor to implement Council's internal audit program managed by Council's audit committee. Council's internal auditor for the 2014/15 financial year was PriceWaterhouseCoopers. Fees are incurred for the ongoing assessment and evaluation of controls adopted by council to manage operational risks.

160

STRONGER TOGETHER

FS - 30

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Note 16.

2014 $â&#x20AC;&#x2122;000

Capital expenses Refund of capital contributions Decommissioning of infrastructure assets

17.

2015 $â&#x20AC;&#x2122;000

8,171 8,171

5 9,410 9,415

Conditions over contributions

Council receives different types of contributions from external parties including infrastructure contributions from developers and grants and subsidies from State and Federal governments. Council's cash and cash equivalents are subject to a number of internal and external restrictions that limit amounts available for discretionary or future use. These include: Restricted contributions recognised as income during the reporting period that were unspent at period end 38,309 38,309

Capital contributions

29,669 29,669

Restricted contributions recognised as income during a previous reporting period that were spent in the current period Operational contributions Capital contributions

232 17,519 17,751

198 23,790 23.988

2,169,887

2,085,152

79,235 130,433 2,379,555

57,507 98,538 2,241,197

Period end reserve balances Capital reserve Operational reserves: Restricted constrained income reserve Unrestricted other operational reserves 18.

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 Managed fund investments Deposits at call Less trust funds Total cash assets

46 204,883 52,039 256,968 (6,870) 250,098

458 125,695 52,022 178,175 (6,128) 172,047

Net gains or losses arising on financial assets designated as at fair value through profit or loss (managed fund investments) amounted to $4,319,000 (last year $3,530,000) and are included in interest on investments in note 6. 19.

Trade and other receivables Current Rates and utility charges Trade receivables Goods and services taxation recoverable Less receivables impairment

es and Utility Charg Other debtors

20,682 38,702 112 59,496 (696) 58,800

20,704 38,501 2,728 61,933 (1,082) 60,851

A prompt payment discount of 5% is offered on rates that are paid by due date provided all arrears rates have also been paid. Interest at 11% per annum compounded daily is charged on all rates and charges which remain unpaid at the end of each rating quarter. No interest is charged on other debtors.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

FS - 31

161

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Note 19.

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

Trade and other receivables (continued)

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 29. There is no concentration of credit risk for rates and utility charges and other receivables other than by geographical location. Movement in receivables impairment Balance at the beginning of the year Amounts written off during the year as uncollectible Additional provisions raised during the year Amounts recovered during the year Closing balance at the end of the year 20.

1,082 400 (786) 696

827 1,168 (913) 1,082

1,558 8,901 17 10,476

1,500 34,100 21 35,621

Inventories Inventories held for distribution Land held for development and sale Inventories held for sale

Inventories recognised as expense during the year amounted to $25,197,721 (last year $0). Inventories recognised as expense during the year and included in cost of providing services amounted to $2,881,596 (last year $3,573,901). Write downs of inventories to net realisable value during the year amounted to $0 (last year $0). 21.

Prepayments Current Insurance Computer leases Other miscellaneous

22.

1,263 1,824 672 3,759

1,491 1,950 730 4,171

180 10 190

Other financial assets Non-traded shares in SEQ Regional Recreational Facilities Pty Ltd Non-traded shares in the Logan Country Financial Services Limited

The entity SEQ Regional Recreational Facilities Pty Ltd was incorporated as a company limited by shares effective on 18 October 2010. The entity has issued 8 unquoted ordinary shares and 1,100,000 unquoted non-redeemable preference shares at original cost of $1. Logan City Council holds 1 ordinary share and 180,000 preference shares in the entity. The Logan Country Financial Services Limited investment was transferred from the former Beaudesert Shire Council to Logan City Council on 14 March 2008 as part of Local Government Reform and is unquoted and measured at original cost. Logan City Council holds 10,000 ordinary shares at $1. Total issued share capital is $626,108. 23.

Investment in subsidiary

On 24 December 2008, Invest Logan Pty Ltd was registered as an Australian Company with the object to advise Council on matters related to regional economic and tourism development and commercial/ industrial development opportunities in Logan City. Invest Logan Pty Ltd is a wholly owned non-trading subsidiary company of Logan City Council. The issued share capital of the company comprises 2 ordinary shares. Full details of the company are: Name of subsidiary Invest Logan Pty Ltd

162

Country of incorporation Australia

Principal activity Development advice

Equity holding 30/06/15 30/06/14 100% 100%

STRONGER TOGETHER

FS - 32

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Note 24.

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

Investment in joint venture

Council has an investment in a joint venture entity called the Greenbank Commercial Centre Pty Ltd (the centre) in which Council and Pub Lane Investments Pty Ltd each have a 50% share in the development of a shopping centre and certain small business premises on Lot 202 on RP184971, in the Parish of Perry. The centre is a limited liability company and as such there is a legal separation between the parties to the joint arrangement and the joint arrangement itself. There are no contractual or other arrangement, or circumstances which indicate that Council, or any of the joint venturers, have rights to the assets or obligations for the liabilities of the centre. The investment is not considered material to the Council. The following information has been extracted from the Centre's financial statements, which were prepared in accordance with Australian Accounting Standards. No profit distribution was made in this financial year (last year $0). Name of entity Greenbank Commercial Centre Pty Ltd

Country of incorporation Australia

Principal activity Development

Summarised financial information in respect of Council's joint venture entity is set out below: Financial position Current assets Non-current assets Current liabilities Non-current liabilities Net assets Council's share of the net assets Council loan Council current account Council's share of joint venture entity's net assets Financial performance Revenue Expenses Profit/ (loss) Add increase in Council current account Council share of joint venture entity's profit/ (loss) Changes in joint venture entity investment carrying value Opening investment carrying value Plus share of profit/ (loss) Plus increase in council current account Closing investment carrying value

Ownership interest % 2015 2014 50

742 (598) (830) (686) (343) 415 435 507

782 (562) (830) (610) (305) 415 393 503

(75) (75) (38) 42 4

(144) (144) (72) 76 4

503 (38) 42 507

499 (72) 76 503

Current assets include Lot 5 on Survey Plan 214051, which is classified as "held for sale" and measured at a cost of $677,000 (last year $677,000).

163

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

FS - 33

164

STRONGER TOGETHER

Property, plant and equipment

16 32

Revaluations

(253,550)

(1) Relates to purchased land and construction assets in financial year 2015.

221,926

Total additions

675

566,828

$'000

158,960

566,828

$'000 62,966

(10,897)

Land

Additions other than renewals

Renewals (1)

Additions comprise:

Additions for 2014/15 financial sustainability statement

675

(660)

Total

5,048,339 Note

Revaluations

(22,172)

Carrying value 30 June 2015

Write off/ decommissioning

(5,087)

91,922

1,822,291

Disposals by sale

2,011,178

6,870,630

307,618

(30,343)

(8,474)

221,926

71,330

1,121

149,475

577,710

$'000

$'000 6,379,903

Land

Total

Balance at 30 June 2015

Depreciation

Opening balance (1 July 2014)

Accumulated depreciation

Balance at 30 June 2015

Reclassifications

Write off/ decommissioning

Note

Disposals by sale

Total additions

Increase/ (decrease) in restoration provision Donated assets

Transfers from work-in-progress

Additions

Opening balance (1 July 2014)

Gross carrying amount

25.

259 3,083

2,824

$'000

Buildings

279,580

36,675

2,566

(470)

3,201

31,378

316,255

5,273

(1,301)

3,083

2,866

217

309,200

$'000

Buildings

18,513

858

17,655

$'000

Plant and equipment

76,890

87,842

(398)

(5,087)

12,444

80,883

164,732

(48)

(653)

(7,814)

18,513

858

9,170

8,485

154,734

$'000

Plant and equipment

101,617

69,238

32,379

$'000

Roads and drainage infra

2,651,156

1,079,649

(233,621)

(20,077)

45,639

1,287,708

3,730,805

427,212

(25,384)

101,617

44,510

57,107

3,227,312

$'000

Roads and drainage infra

112,834

102,115

10,719

$'000

Water and wastewater Infra

1,199,982

505,954

(22,080)

(1,005)

21,860

507,179

1,705,936

(107,366)

(2,484)

112,834

25,962

86,872

1,702,952

$'000

Water and wastewater Infra

16,082

8,028

8,054

$'000

Water and wastewater facilities

181,162

93,711

(3,867)

(222)

8,184

89,616

274,873

(16,681)

(521)

16,082

275,993

$'000

Water and wastewater facilities

3,329

$'000

Landfill & Quarry

15,858

18,460

3,452

594

14,414

34,318

10,077

3,329

1,121

2,208

20,912

$'000

Landfill & Quarry

FS - 34

(1)

(34,207)

(28,107)

(6,100)

$'000

Work in progress

76,883

(34,207)

(174,305)

140,098

111,090

$'000

Work in progress

30 JUNE 2015

Notes to financial statements

NOTES TO FINANCIAL STATEMENTS 30LOGAN JUNE 2015 CITY COUNCIL

FINANCIAL REPORTING

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

165

Property, plant and equipment (continued)

211,025

Total additions

73,548

$'000

$'000 137,477

Land

3,914

277,822

31,378

(2,070)

2,796

30,652

309,200

4,109

5,025

491

4,361

173

300,066

$'000

Buildings

Total

577,710

(2,100)

(429)

Additions other than renewals

Renewals

Additions comprise:

Note

4,368,725

Carrying value 30 June 2014

Additions for 2013/14 financial sustainability statement

2,011,178

Balance at 30 June 2014

106,394

Revaluations

(3,036) (13,265)

Disposals by sale

Write off/ decommissioning

91,578

1,829,507

Depreciation

Opening balance (1 July 2013)

Accumulated depreciation

6,379,903

266,313

Balance at 30 June 2014

Revaluations

(5,260) (22,675)

3,914

211,025

(826)

3,914

576,325

64,159

147,692

5,930,500

$'000

Write off/ decommissioning

Disposals by sale

Total additions

Increase/ (decrease) in restoration provision Donated assets

Transfers from work-in-progress

Additions

Opening balance (1 July 2013)

Gross carrying amount

Land

Total

Property, plant and equipment comparatives at 30 June 2014

25.

$'000

5,025

2,709

2,316

Buildings

73,851

80,883

(262)

(3,036)

11,840

72,341

154,734

(414)

(4,831)

17,890

1,797

11,360

4,733

142,089

$'000

Plant and equipment

$'000

17,890

Plant and equipment

1,939,604

1,287,708

31,953

(11,787)

51,742

1,215,800

3,227,312

44,875

(19,719)

116,127

41,655

74,472

3,086,029

$'000

Roads and drainage infra

116,127

81,947

34,180

Roads and drainage infra $'000

1,195,773

507,179

63,632

(1,119)

18,313

426,353

1,702,952

200,105

(2,356)

54,351

20,216

34,135

1,450,852

$'000 Infra

Water and wastewater infra

54,351

41,995

12,356

Water and wastewater Infra $'000

186,377

89,616

12,903

(97)

6,138

70,672

275,993

19,324

(186)

44,142

212,713

$'000

Water and wastewater facilities

6,498

14,414

(24)

749

13,689

20,912

955

(826)

1,781

19,957

44,142

43,207

935

Water and wastewater facilities $'000

cells $'000

Landfill Quarry

$'000 955

955

Landfill & Quarry

111,090

(31,379)

(170,251)

138,872

142,469

$'000

Work in progress

$'000

FS - 35

(31,379)

(37,250)

5,871

Work in progress

30 JUNE 2015

Notes to financial statements

NOTES TO FINANCIAL STATEMENTS 30LOGAN JUNE 2015 CITY COUNCIL

FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

25.

30 JUNE 2015

Property, plant and equipment (continued)

Restrictions on title and property, plant and equipment pledged as security Council has entered into a Bill of Mortgage agreement with the Queensland State Department of Communities (the department) as security over grant funding of $1,210,000 provided by the department for the purpose of building a respite centre on land owned by Council at 36 Fawkner Street, Slacks Creek. The Bill of Mortgage would only have effect if Council was to breach certain clauses in the funding agreement (e.g. allowing the facility to be used for a purpose other than that stipulated in the lease) and failed, when required, to remedy the breach. The Bill of Mortgage is held by the State Government over the Logan Central Respite Centre situated at 36 Fawkner Street, Slacks Creek and expires in 2032. 26.

Intangible Assets

Note

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

Gross carrying amount 12,823

10,449

Additions

1,265

2,374

Carbon permits surrendered

(331)

13,757

12,823

5,954

4,713

1,661

1,241

Closing balance

7,615

5,954

Carrying value

6,142

6,869

42,075 12,762 7,379 1,359 63,575

50,513 13,024 7,566 1,405 248 72,756

Opening balance

Closing balance Accumulated depreciation Opening balance Amortisation

27.

Trade and other payables Current Creditors and accruals Annual leave Sick leave Other leave entitlements Carbon tax liability

166

STRONGER TOGETHER

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

28.

30 JUNE 2015

Borrowings Note Current Non-current Total borrowings

2015 $â&#x20AC;&#x2122;000 12,426 247,992 260,418

2014 $â&#x20AC;&#x2122;000 10,546 217,661 228,207

Details of borrowings are provided in note 29. The Local Government Regulation 2012 requires that a local government prepares and adopts a debt policy for the financial year, including planned borrowings for the current and the next 9 financial years and the period over which the local government plans to repay existing and new borrowings. Council borrows from the Queensland Treasury Corporation (QTC) at a fixed interest rate for periods of between 3 and 20 years. Borrowings are used principally to finance the cost of new capital works and asset acquisitions. Movements in borrowings Queensland Treasury Corporation Book value at beginning of the financial year Loans raised Market value realisation Loans transferred from AllConnex Water Interest accrued Capital repayments Book value at year end

228,207 42,704 55 270,966 (10,548) 260,418

195,681 41,945 (11) (700) 30 236,945 (8,738) 228,207

Market value at end of year

284,883

247,183

Market value represents the value of debt if Council repaid the debt at balance date including interest and penalties classified as level 1 under the fair value hierarchy. Expected final repayment dates vary from 8 March 2021 to 7 June 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. 29.

Financial risk management

Logan City Council's activities expose it to a variety of financial risks: interest rate risk, credit risk and liquidity risk. Exposure to financial risks is managed in accordance with Council policies on financial risk management, which focus on managing the volatility of financial markets and minimising potential adverse effects on Council performance. Council uses different methods to measure the different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate risk, ageing analysis for credit risk and short term investment strategies to ensure sufficient funds are available to meet short term liquidity requirements. (i) Credit risk Credit risk exposure refers to the situation where Council may incur financial loss as a result of another party to a financial instrument not discharging their obligations. In the case of rate receivables, Council has the power to sell property to recover any defaulted amounts, which protects Council against credit risk. In other cases, Council assesses the credit risk before providing goods or services and applies normal business credit protection procedures to minimise the risk including an age analysis of outstanding receivables. Council is exposed to credit risk through its investments with Queensland Treasury Corporation (QTC) and deposits held with other financial institutions. The QTC Cash Fund is an asset management portfolio that invests with a wide variety of high credit rating counterparties. Deposits are capital guaranteed. Other investments are held with highly rated financial institutions and whilst not capital guaranteed, the likelihood of credit failure is remote. By the nature of Council's operations, there is a geographical concentration of risk in Council's area. The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is the gross carrying amount of those assets net of any impairment. No collateral is held as security relating to the financial assets held by Council. The following table represents Council's maximum exposure to credit risk:

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

29.

Financial risk management (continued) Financial assets

Note

Cash and bank Cash National Australia bank account (City) National Australia bank account (Trust) Commonwealth bank account (City) Commonwealth bank account (Trust)

Effective interest rate

2015 $'000

2014 $â&#x20AC;&#x2122;000 45 (84) 85 46

47 342 69 458

176,254 6,532 13 22,084 204,883

98,733 5,525 21,437 125,695

15,000 11,000 1,039 10,000 2,000 1,000 8,000 1,000 3,000 52,039

2,000 7,000 10,022 10,000 16,000 7,000 52,022

20,682 38,118 58,800

20,704 40,147 60,851

Equity instruments

190

Joint venture entity

507

503

316,465

239,719

2.28% 2.28%

18 Managed funds investments QTC (City) QTC (Trust) UBS cash account Perennial

3.28% 3.29% 3.13% 18

Deposits at call Term deposits AMP Bendigo Citibank National Australia Bank CPG ING RaboDirect Bank of Queensland Westpac ME Bank Rural

3.70% 2.99% 3.00% 2.99% 3.00% 3.60% 2.95% 2.90% 3.20% 18

Loans and receivables Fixed interest rate maturing in 12 months Trade receivables

11.00%

Total financial assets

Managed funds are investments in the Queensland Treasury Corporation's (QTC) and Perennial Investment cash funds and are classified and measured at fair value. Unless otherwise noted, deposits are held with managed funds with a maximum call term of two days. Managed funds and deposits include trust fund monies (see note 34) of $6,870,000 (last year $6,128,000). No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired and are stated at the carrying amounts as indicated. No receivable amounts have been impaired. The following table represents an analysis of the age of Council's receivables that are either fully performing, past due or impaired at balance date:

Type Rates receivables Accounts receivable Sundry debtors Goods and services tax Total Percentage

168

Ageing of receivables as at 30 June 2015 - $'000 Fully Past due performing >30 days >60 days 31,671 4,143 248 62 112 35,926 248 62 61% -

>90 days 20,682 250 2,328 23,260 39%

Total 20,682 31,921 6,781 112 59,496 Note 19

STRONGER TOGETHER

FS - 38

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

29.

30 JUNE 2015

Financial risk management (continued)

Type Rates receivables Accounts receivable Sundry debtors Goods and services tax Total Percentage

Ageing of receivables as at 30 June 2014 - $'000 Fully Past due performing >30 days >60 days 32,968 3,211 445 276 2,728 38,907 445 276 63% 1% -

Total 20,704 33,179 5,322 2,728 61,933 Note 19

>90 days 20,704 211 1,390 22,305 36%

Rates are levied quarterly in advance and are secured against the property under section 95 of the Local Government Act 2009. Council's receivables impairment at balance date was $696,000 (last year $1,082,000). Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value. (ii) Liquidity risk Liquidity risk refers to the situation where Council may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Council is exposed to liquidity risk through its trading in the normal course of business and borrowings from the Queensland Treasury Corporation for capital works. Council manages its exposure to liquidity risk by maintaining sufficient cash reserves to cater for unexpected volatility in cash flows and by undertaking maturity analysis. Financing facilities are disclosed in note 33. The following table sets out the liquidity risk of financial liabilities held by Council in a format as it might be provided to management. The amounts disclosed in the maturity analysis are provided by the Queensland Treasury Corporation and represent the contractual undiscounted cash flows at balance date: Financial liabilities

Note

Financial liabilities measured at amortised cost 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

Effective interest rate

5.11% 5.11% 5.11% 27

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

25,502 101,605 249,373 376,480 63,575 440,055

22,485 89,327 224,869 336,681 72,756 409,437

The outflows in the above table are not expected to occur significantly earlier and are not expected to be for significantly different amounts than indicated in the table. (iii) Interest rate risk Interest rate risk arises on interest-bearing financial instruments recognised in the statement of financial position (e.g. Council investments and borrowings) and on some financial instruments not recognised in the statement of financial position (e.g. borrowing commitments). Borrowing risk is managed by borrowing only from the QTC and having access to a mix of floating and fixed funding sources such that the desired interest rate exposure can be constructed. Interest rate risk in other areas is minimal. Council does not undertake any hedging of interest rate risk. Sensitivity analysis undertaken based on managed funds and term deposits balances at reporting date, which are subject to floating interest rates, indicates that were market interest rates increased or decreased by 1% the net result attributable to Council in respect of cash assets and cash equivalents would be increased or decreased by $2,570,000 (last year $1,782,000). As the QTC long term debt is at fixed interest rate no variation is expected on existing borrowings and sensitivity analysis is based on floating interest rate managed funds and deposits only. Council's Treasury function manages cash allocations daily to maximise Council return and minimise risk exposure.

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS LOGAN CITY COUNCIL 30 JUNE 2015 Notes to financial statements 30 JUNE 2015

30.

Fair value measurements

(i) Recognised fair value measurements The following table presents Council's assets and liabilities measured and recognised at fair value at balance date. All fair value measurements are recurrent and categorised as either level 2 or level 3 fair value measurements. There have been no transfers between level 1 and level 2 or level 2 and level 3 during the current financial period. Council has no assets and liabilities measured at fair value on a non-recurring basis. The fair values of financial and non-financial assets that are not traded in an active market are determined using valuation techniques. These valuation techniques maximise the use of observable data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an asset are observable, the asset is included in level 2. If one or more of the significant inputs are not based on observable market data, the asset is included in level 3. This is the case for Council infrastructure assets, which are of a specialist nature and where there is no active market for the assets. At 30 June 2015

Note

Level 2 (Significant other observable inputs) $'000

Level 3 (Significant unobservable inputs)

Total

$'000

Financial assets Managed fund investments

204,883

25 25 25 25 25 25 25

566,828 1,755 568,583

277,825 2,651,156 1,199,982 181,162 15,858 4,325,983

566,828 277,825 1,755 2,651,156 1,199,982 181,162 15,858 4,894,566

Non-financial assets Land Buildings - Commercial Buildings - Residential Roads and drainage infrastructure Water and wastewater infrastructure Water and wastewater facilities Landfill & quarry At 30 June 2014

Note

Level 2 (Significant other observable inputs) $'000

Level 3 (Significant unobservable inputs)

Total

$'000

Financial assets Managed fund investments

125,695

25 25 25 25 25 25 25

577,710 2,021 579,731

275,801 1,939,604 1,195,773 186,377 6,498 3,604,053

577,710 275,801 2,021 1,939,604 1,195,773 186,377 6,498 4,183,784

Non-financial assets Land Buildings - Commercial Buildings - Residential Roads and drainage infrastructure Water and wastewater infrastructure Water and wastewater facilities Landfill & quarry

170

STRONGER TOGETHER

FS - 40

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

30.

Fair value measurements (continued)

30 JUNE 2015

(ii) Disclosed fair values Council borrowings are measured at amortised cost with interest recognised in profit or loss when incurred. The fair value of borrowings disclosed in note 28 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. (iii) Valuation techniques used to derive fair values and transfers between levels The values of transfers between the different levels of the fair value hierarchy are disclosed below. Transfers between levels will occur where inputs used in making individual asset and liability fair value measurements no longer satisfy the current level of classification. There have been no changes in valuation techniques used for fair value measurement during the year. Specific valuation techniques used to value Council assets include: Managed funds Managed funds are investments in the Queensland Treasury Corporation's (QTC) cash fund measured at fair value based on the current redemption value of the fund advised by the QTC and are included in level 2. Land Land fair values were determined by independent valuer, Australian Pacific Valuers (APV) based on a full inspection of the assets effective 30 June 2015. Depending upon the unique circumstances of each lot, land has been valued using a range of approaches. Where there is an active market, the market approach has been adopted. If its value is primarily dependent on its income generating capability, the income approach was used. For other types of land the cost approach was adopted. Details of each approach are provided below: Level 2 valuation inputs The market approach has been applied to land held in freehold title and has been assessed on the basis of the estimated amount which the interest in each property being valued might reasonably be expected to realise on the date of the valuation in an exchange between market participants given the highest and best use or highest and best alternate use. This was determined by comparison to recent sales of land with similar characteristics. This was then adjusted to reflect condition and comparability. As this was based on observable evidence they have been classified as level 2. The cost approach has been applied to some restricted or otherwise non-saleable land. This approach was used where, assuming if Logan City Council needed to purchase the land or acquire additional land from an adjoining neighbour, the value of that land could be determined based on known zoning and town planning restrictions. This was determined by comparison to recent sales of land with similar characteristics adjusted to reflect condition and comparability. As this was based on observable evidence they have been classified as level 2. Level 3 valuation inputs In some cases the cost approach required the use of hypothetical analysis involving a detailed analysis of a hypothetical highest alternative land use. Typically this included estimating the number of potential residential or commercial lots that could be developed on the site. These are observable based on existing Town Planning rules and have been classified as level 2. The third input is the developer's interest which effectively is the rate of return the developer requires based on the existing market conditions. This requires the valuers to exercise professional judgement and according has been classified as level 3. Buildings Buildings fair values were determined by independent valuer, Australian Pacific Valuers (APV) based on a full inspection of the assets effective 30 June 2015. Where there is an active market, the market approach has been adopted. Where there is no active market, as is the case for specialist buildings, the cost approach was adopted. Details of each approach are provided below: Level 2 valuation inputs The market approach has been applied to residential properties where the relevant inputs were able to be observed from current market evidence. In these cases fair value has been derived from the sales prices of comparable properties after adjusting for differences in key attributes such as property size.

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

30.

Fair value measurements (continued)

The cost approach has been applied to new specialist commercial buildings constructed during the financial year. As the costs were current, it was considered that the actual costs provided observable market evidence of the replacement cost. Level 3 valuation inputs For all other specialist buildings and some residential buildings where there was no evidence to support a market approach, the buildings were valued under the cost method using professionally qualified registered valuers. Under this approach the cost to replace the asset was calculated and then adjusted to take account of accumulated depreciation. The valuer disaggregated the building into different components and for each component determined a value based on the interrelationship between relevant valuation factors including asset condition, legal and commercial obsolescence and the determination of key depreciation-related assumptions such as residual value and the pattern of consumption of the future economic benefits. Inputs to the valuation include the design and construction, average cost of construction, and condition and consumption scores for each component. As these are supported by observable evidence obtained via inspection and market evidence they have been classified as level 2 inputs. The unobservable inputs, such as estimates of residual value, pattern of consumption and its relationship to the assessed level of remaining service potential of the depreciable amount (based on the asset consumption score) required extensive professional judgement and impacted significantly on the final determination of fair value. As such these assets were classified as having been valued using level 3 valuation inputs. Consumption rating scales were allocated to assets based on the experience of the valuation firm, industry standards and on consultation with Logan City Council engineering and financial staff. 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 2015, water and wastewater infrastructure assets were valued using a discounted cash flow (DCF) valuation technique, while all other infrastructure assets were valued using a depreciated replacement cost (DRC) valuation technique. Full details are provided under the infrastructure categories below. For DRC valuations, the DRC used was the asset's current replacement cost (CRC) less accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. Council first determined the gross cost of replacing the full service potential of the asset and then adjusted this amount to take account of the expired service potential of the asset. CRC was measured by reference to the lowest cost at which the gross future economic benefits of the asset could currently be obtained in the normal course of business. Where existing assets were over designed, had excess capacity, or were redundant an adjustment was made so that the resulting valuation reflected the cost of replacing the existing economic benefits based on an efficient set of modern equivalent assets to achieve the required level of service output within the council's planning horizon. The unit rates (labour and materials) and quantities applied to determine the CRC of an asset or asset component were based on a "Greenfield" assumption meaning that the CRC was determined as the full cost of replacement with a new asset including components that may not need to be replaced, such as earthworks. The DRC was determined using methods relevant to the asset class as described under individual asset categories below. Roads Roads and associated infrastructure fair values were determined by Council asset management officers effective 30 June 2015. As the Queensland Construction and Bridges index decreased from 106.7 to 105.3 between March 2014 and March 2015, Roads inventory carrying values were determined to be not materially different from that which would be determined using fair value at the end of the reporting period, and were not revalued. Current replacement cost (CRC) Council categorises its road infrastructure into urban and rural roads and further sub-categorises these into sealed and unsealed roads. Urban roads are managed in segments of around 200m, while rural roads are managed in segments up to 1km in length. All road segments are then componentised into formation, pavement and seal (where applicable). Council assumes that environmental factors such as soil type, climate and topography are consistent across each segment. Council also assumes each segment is designed and constructed to a specific pavement design based on traffic volumes, predicted vehicle type usage and material types. The vast majority of new roads built within Logan are through subdivisional work. These roads are gifted to Council by the developer, so while the pavement design is known, the construction cost of these roads is not known to Council.

172

STRONGER TOGETHER

FS - 42

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

30.

Fair value measurements (continued)

30 JUNE 2015

CRC was calculated by reference to asset linear and area specifications, whether the segment is in a Rural or Urban environment, the road hierarchy and surface type of the segment. The combination of these factors is mapped to a suite of LG stereotypes developed by the Roads Alliance Valuation Project (RAVP). The RAVP stereotypes are based on TMR Work Breakdown Schedules (WBS) that consider Terrain, Environment, Soil Type and Region. The RAVP project analysed the TMR data and developed stereotypes relevant for Local Government based on the TMR information and assumptions. The last full valuation of road infrastructure was undertaken effective 30 June 2010. CRC at 30 June 2015 was determined by Council engineers using the Roads Alliance Valuation Project schedule of unit rates. It is Councilâ&#x20AC;&#x2122;s intention to align the rates with the Roads Alliance Valuation Project rates annually. A full valuation of roads and associated infrastructure is planned in 2015/16. Accumulated depreciation In determining the level of accumulated depreciation, roads were disaggregated into significant components which exhibited different useful lives. A consumption assessment was undertaken based on four Austroads pavement health indices, each expressed as a percentage and incorporated into the World Bank's HDM deterioration model to provide an estimate of current health, the proportion of health remaining, and the remaining useful lives of assets. The four health indices used were: 1) The Pavement Health Roughness Index (PHNI), which is a function of both the surface roughness and of lane average annual daily traffic (AADT). Perfect health (as indicated by roughness) is retained for all traffic levels up to a roughness of 40 NAASRA (National Association of Australian State Road Authorities) per roughness counts per kilometre. 2) The Pavement Health Rutting Index (PHRI), which is a function of mean rut depth, annual rainfall and lane AADT. Perfect health (as indicated by rutting) is retained for all levels of traffic and rainfall until mean rut depth is 2mm. 3) The Surface Health Cracking Index (SHCI), which is a function of the percentage area of cracking, the annual rainfall and the lane-AADT. A larger percentage cracking and annual rainfall combined with high traffic levels causes a migration of base and sub base material resulting in damage to the underlying pavement from the ingress of water. 4) The Surface Health Texture Index (SHTI), which is a function of the percentage of road affected by texture distresses, rainfall and lane AADT. The index covers surface distresses caused by ravelling and stripping, leading to the loss of stone, which affects the waterproofing provided by the road surface Bridges Current replacement cost (CRC) A full valuation of bridges assets was undertaken by independent valuers, Australian Pacific Valuers (APV) effective 30 June 2013. Each bridge was assessed individually, with the valuation varying according to the material type used for construction, the deck area, condition and size. As the Queensland Construction and Bridges index decreased from 106.7 to 105.3 between March 2014 and March 2015, Bridges carrying values were determined to be not materially different from that which would be determined using fair value at the end of the reporting period, and were not revalued. Accumulated depreciation In determining the level of accumulated depreciation, remaining useful lives were calculated based on condition assessments. The condition assessments were made using a seven point scale with 0 being the lowest and 6 being the highest. A 0 condition assessment indicates an asset with a very high level of remaining service potential. A 6 condition assessment indicates an asset has reached its end of life. Drainage Current replacement cost (CRC) A full valuation of drainage infrastructure was undertaken by independent valuers, Jeff Roorda and Associates (JRA), effective 30 June 2015. The revaluation process reviewed the currency and accuracy of the asset register and updated unit rates and useful lives using evidencedbased techniques and in accordance with Australian Accounting Standards. JRA has revalued the assets against the material revaluation categories of pipes, pits, channels, box culverts and headwalls. Asset values have been reduced, primarily due to a review of unit costs. All asset categories are further subdivided into material components and separate useful lives applied where relevant. There have been minor additions to the asset register since the previous financial report and these have not had a material impact on the valuation.

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

30.

Fair value measurements (continued)

30 JUNE 2015

A summary of the major factors affecting the valuation results are (1) a review of unit costs - JRA has applied a full set of first principles based unit costs linked to the latest edition of Rawlinsons cost estimating guide. JRA rates have been cross-checked and found to be materially comparable with the drainage cost matrix prepared in 2014 by aQuenta consulting for the LGAQ roads alliance, (2) adjustment to components and useful lives to reflect current service standards and renewal practice, pits have been separated into a short-life component, the upper section of the pit that requires partial renewal and a long-life component, the concrete submerged chamber that does not require renewal, and (3) large diameter pipes (>600mm diameter) have been split into pipe and trench components to reflect the lower cost of pipe relining for large pipes in line with Council's modern equivalent renewal practice. Accumulated depreciation Asset useful lives for depreciable components such as pipes and the upper component of pits, have not materially changed. The valuer has provided a full table of unit costs and comparisons with the past valuation, and some of the unit rates have reduced causing a material reduction in asset values. As part of the revaluation process, Council firstly reviewed and defined its current and projected levels of service. Useful lives were reassessed based on the current interpretation of the actual life expected from the assets based on the current capital commitment by the Council and the ongoing maintenance regime and intervention levels. This ensured that useful lives were reflective of the period of time that the asset would be in service. Remaining useful life was determined based on asset condition, where available, or age, where no condition data was available. Where the calculated remaining life from year of construction is negative, the remaining life has been set to two years and two years has been added to the useful life, providing an opportunity to determine if the asset is still in service and the useful life or condition to be assessed. As it is unlikely that any material value will be recoverable from Council's infrastructure assets when they reach the end of their useful lives, no allowance has been made for residual values to be applied to these assets. Waste landfill cells Current replacement cost (CRC) Waste landfill cells fair values were determined by Council engineers effective 30 June 2015. CRC was calculated by reference to landfill cell area and volume specifications, estimated labour and material inputs, services costs, and overhead allocations. Material and services costs were determined by reference to existing supplier contracts and labour costs by reference to Council's EBA. Accumulated depreciation DRC 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. Water and wastewater Council's water business is treated as a single cash-generating unit for asset valuation purposes. Council's water and wastewater infrastructure assets were valued effective 30 June 2015 using a discounted cash flow (DCF) income approach. The DCF approach estimated the price at which an orderly transaction to sell the assets would take place between market participants at the measurement date under current market conditions. The valuation was based on cash flows and efficiencies that could reasonably be expected to be earned by a market participant under current market conditions, and is the potential exit price that could be expected at the measurement date. In using the DCF model, land, buildings, plant, equipment and work-in-progress asset values were deducted from the DCF valuations to determine water and wastewater infrastructure and facilities carrying values. Land and buildings assets values were determined independently at market value or using a depreciated replacement cost where there is no active market, while plant and equipment and work in progress assets are valued at cost. For DCF purposes, post-tax nominal cash flows were estimated for a period of 10 years and the Gordon growth model used to determine cash flows from year 11 to "in perpetuity" (terminal value). Cash flows were discounted to present value using a calculated weighted average cost of capital (WACC) determined using an assumed 60% debt and 40% equity capital structure. WACC rates and other key data are tabled below. Cash flow projections were effectively earnings before interest and tax (EBIT), instead of earnings before interest, taxation, depreciation and amortisation (EBITDA) as it is necessary for capital expenditure (CAPEX) to equal depreciation when applying a perpetuity model. Changes in working capital were considered to be a cash flow requirement.

174

STRONGER TOGETHER

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

30.

30 JUNE 2015

Fair value measurements (continued)

The long-term growth rates tabled below were used to determine terminal value, which was calculated using a rate from the Reserve Bank of Australia's target inflation rate, which is deemed to be reflective of the long-term growth rate. The discount rate reflects the risk of the cash flows and has been calculated using the WACC and Capital Asset Pricing Model. Water and wastewater valuations are included in level 3 of the fair value hierarchy. Key unobservable inputs and sensitivity analyses are tabled below: Significant unobservable input

Variables used 30 Jun 15 40% 60% 2.89% 7.00% 1.99% 7.91% 4.88% 5.21% 2.50%

Equity funding percentage Debt funding percentage Risk-free rate for debt and equity Market-risk premium Debt-risk premium Cost of equity Cost of debt Post-tax nominal discount rate (WACC) Long term growth rates

30 Jun 14 40% 60% 3.70% 7.00% 2.01% 8.72% 5.71% 5.89% 2.50%

(iv) Changes in level 3 assets The following table presents the changes in level 3 assets for the years ended 30 June 2013 and 30 June 2014: Buildings

Closing balance 30 June 2013 Transfers into level 3 Additions Disposals Reclassifications Gain/ (losses) recognised in other comprehensive income Gain/ (losses) recognised in comprehensive income Closing balance 30 June 2014 Transfers into level 3 Additions Disposals Reclassifications Gain/ (losses) recognised in other comprehensive income Gain/ (losses) recognised in comprehensive income Closing balance 30 June 2015

5,025 -

Roads and drainage infra $'000 1,870,229 116,127 -

Water and wastewater infra $'000 1,024,497 54,351 -

Water and wastewater facilities $'000 142,041 44,142 -

6,101

12,922

136,473

(2,745) 275,801 3,083 -

(59,674) 1,939,604 101,617 48

2,718 (3,777) 277,825

$'000 267,420

Landfill & Quarry

Total

$'000 6,268 955 -

$'000 3,310,455 220,600 -

6,421

161,941

(19,548) 1,195,773 112,834 -

(6,227) 186,377 16,082 -

(749) 6,498 3,329 -

(88,943) 3,604,053 236,945 48

660,833

(85,286)

(12,814)

6,625

572,076

(50,946) 2,651,156

(23,339) 1,199,982

(8,483) 181,162

(594) 15,858

(87,139) 4,325,983

(v) Uncertainty The valuation techniques used in the determination of fair values maximise the use of observable data where it is available, are based on past actual outcomes and rely as little as possible on entity specific estimates. Where estimates are used, these represent the most probable outcome in management's judgement and are subject to annual review against actual outcomes in subsequent periods. The disclosure of valuation estimates is designed to provide users with an insight into the judgements that management has made in the determination of fair values. (vi) Valuation processes Council's valuation policies and procedures are set by the Governance and Finance Committee of the executive management team, which comprises the Deputy CEO: Organisational Services and Finance Manager. They are reviewed annually taking into consideration an analysis of movements in fair value and other relevant information. Council's current policy for the valuation of property, plant and equipment (recurring fair value measurements) is presented in note 1(i).

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FINANCIAL REPORTING

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

31.

30 JUNE 2015

Provisions Note Employee benefits Restoration provisions Third party claims Current Non-current

2015 $'000 21,485 6,048 375 27,908

2014 $â&#x20AC;&#x2122;000 19,565 5,493 608 25,666

18,289 9,619 27,908

20,054 5,612 25,666

2.69% 2.70%

3.31% 3.30%

Average discount rates used in estimating provisions Employee benefits Restoration provisions Total Council full-time equivalent employees at 30 June 2015 were 1,336 (last year 1,370) (i) Employee benefits The provision for employee benefits represents vested long service leave entitlements accrued on behalf of employees. Council estimates the probability, amount and timing of leave payments based on Council's leave policy stipulations, current pay levels, and leave settlement trends to determine expected future costs, which are then discounted to present value at a discount factor based on Commonwealth bond yields rates over the relevant period. Council reclassified $13,755,741 long service leave, previously classified as a non-current provision to a current provision, as Council does not have an unconditional right to defer settlement of these amounts after the reporting period. Long service leave that has been recognised, but is not an entitlement at the reporting date, is classified as a non-current provision. (ii) Restoration provisions Council has a legal obligation to restore quarry sites used in Council operations and has prepared site management and post closure plans to deal with the filling and future use of quarry sites. The provision is the present value of the estimated cost of restoring the quarry site to a useable state at the end of its useful life. Council also holds an Environmental Protection Agency licence to operate a number of landfills. The licence includes a legal obligation to restore any affected area. Standard landfill practice is to progressively level the site through use of top soil and then re-grass the affected area. Council estimates and discounts expected future costs to restore landfill cells to present value at a discount factor based on Commonwealth bond yields rates over the relevant period. (iii) Third party claims Council raises provisions based on the expected amount and timing of valid third party compensation claims. Where compensation claims are subject to adjudication through the courts or there is uncertainty in terms of the validity or amount of a claim, amounts may be disclosed as a contingent liability.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015

LOGAN CITY COUNCIL Notes to financial statements

31.

30 JUNE 2015

Provisions (continued)

(iv) Movements on provisions

Carrying amount at 30 June 2013

Employee benefits $'000 17,772

Additional provisions made in the period Unused amounts reversed in the period Amounts incurred and charged against the provision Increase (decrease) in discounted amount Carrying amount at 30 June 2014 Additional provisions made in the period Unused amounts reversed in the period Amounts incurred and charged against the provision Increase (decrease) in discounted amount Carrying amount at 30 June 2015

32.

Restoration provisions $'000 6,728

Third party claims $'000 530

Total provisions $'000 25,030

3,708

760

4,468

(1,400)

(37)

(1,437)

(2,547)

(645)

(3,192)

632

165

797

19,565

5,493

608

25,666

2,477

1,170

603

4,250

(149)

(1,238)

(721)

(687)

(2,646)

681

106

787

21,485

6,048

375

27,908

2,072,404

1,912,485

(10,897) 2,707 660,833 (85,286) (12,814) 6,625 561,168

(2,100) 6,179 12,922 136,473 6,421 24 159,919

723

2,634,295

2,072,404

313,486 118,685 2,127,378 65,535 9,211 2,634,295

324,383 115,978 1,466,545 163,635 1,863 2,072,404

Asset revaluation surplus Movements in the asset revaluation surplus were as follows: Balance at beginning of period Net adjustment to capital non-current assets at end of period to reflect a change in fair value: Land Buildings Roads and drainage infrastructure Water and wastewater infrastructure Water and wastewater facilities Landfill & Quarry 25 Change in value of future rehabilitation cost: Landfill & Quarry Balance at the reporting date Closing revaluation surpluses by asset class: Land Buildings Roads and drainage infrastructure Water and wastewater infrastructure & facilities Landfill & Quarry

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Note 33. (a)

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

Cash flow information Reconciliation of net result attributable to Council to net cash flow from operating activities Net result attributable to Council

140,572

99,448

93,583 (270) 25 8,171 331 49 841

92,819 287 41 9,410 827

(728) 25,198 (71,330) (349) (4) -

(1,088) (64,159) (131) (4) (575) (11) (700)

(39,731) (6,253)

(29,901) (5,219)

Add: non-cash expenses: Depreciation Bad and doubtful debts Stock adjustment Capital expenses Carbon tax permits Increase in restoration provision Borrowing costs accrued/ due to discounting

13 15 15 16

Less: non-cash revenues: Interest revenue accrued Cost of goods sold Donations of assets (Gain)/ loss on sale of property, plant and equipment Share of joint venture entity comprehensive income Reduction in restoration provision Gain/ (loss) on market value realisation Gain/ (loss) on local government reform

7 8 10

Less: Capital contributions, grants and subsidies classified as cash inflows from investing activities: Capital contributions Capital grants and subsidies

Decrease/ (increase) in operating assets net of non-cash revenues and expenses and non-cash amalgamation transactions: 3,050 411 (78)

Receivables Inventories Prepayments

(78) 522 (379)

Increase/ (decrease) in operating liabilities net of non-cash revenues and expenses and non-cash amalgamation transactions: Payables Provisions Other liabilities Net Cash from operating activities (b)

1,606 (9,186) 1,008

1,125 1,240 282

146,916

103,756

260,418 260,418

228,207 228,207

Financing facilities Amount used Amount unused

Council does not have an approved bank guarantee facility and has no credit standby facilities or bank overdrafts.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Note 34.

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

Trust fund Monies paid to the local government Security deposits 18

2,123 4,747 6,870

2,740 3,388 6,128

Council is required by statute to establish a trust fund, the purpose of which is to hold funds collected or held on behalf of other entities yet to be paid out to or on behalf of these entities. The Council performs only a custodial role in respect of these monies. Trust funds are included in Council's gross managed funds investments in note 18, but are then deducted. As these funds are held in trust and are not Council funds, the Trust fund disclosure note is provided for information purposes only. 35. (a)

Commitments for expenditure Operating lease commitments 685 1,824 10 2,519

No later than 1 year Later than 1 year but not later than 5 years Later than 5 years

(b)

394 1,274 15 1,683

Capital commitments At the reporting date the local government had entered into contracts for the following capital expenditures of a material nature: Plant, equipment and infrastructure assets These expenditures are due for payment: Not later than one year Later than 1 year but not later than 5 years Later than 5 years

(c)

61,407 61,407

36,627 36,627

61,407 61,407

36,627 36,627

280 36 107

293 36 107

491 30 3,816 5,046 9,806

5 795 4,816 5,960 12,012

9,806 9,806

12,012 12,012

Contractual commitments Contractual commitments at balance date not recognised in the financial statements are as follows: Waste contracts Waste and recyclables collection Recyclables processing Green waste management Operational contracts Maintenance Transport Water Water These expenditures are due for payment: Not later than one year Later than 1 year but not later than 5 years Later than 5 years

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 30 JUNE 2015 Notes to financial statements 30 JUNE 2015

Note 36.

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

Contingent liabilities Details and estimates of maximum amounts of contingent liabilities are as follows: Liability claims Infrastructure credits Local Government Workcare maximum exposure

1,053 32,174 2,775 36,002

2,118 14,558 3,488 20,164

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. Details and estimates of liability claims are as follows: In process Under appeal Resumption claim Under judicial review

1,053 1,053

2,118 2,118

Infrastructure credits Council has agreed to provide infrastructure credits for additional work undertaken by developers. These credits may be redeemed against future development applications. 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 2014 and show accumulated member funds (equity) of $27,397,130 (2013: $19,864,786) meaning that the likelihood of a claim against Council's guarantee is remote. Local Government Mutual liability self insurance pool Logan City Council is a member of the local government mutual liability self-insurance pool, Local Government Mutual (LGM) Queensland. LGM provides claims and risk management services, insurance placement, fund management and consulting services to collectively exercise control over and manage the legal liability exposures confronting local government. In the event of the pool being wound up or if it is unable to meet its debts as they fall due, the trust deed and rules provide that any accumulated deficit will be met by the individual pool members in the same proportion as their contribution is to the total pool contributions in respect to any year that a deficit arises. The latest audited financial statements for LGM Queensland are as at 30 June 2014 and show accumulated member funds (equity) of $26,013,447 (2013: $22,557,143) meaning that the likelihood of a claim is remote.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

Note 37.

2015 $’000

2014 $’000

Contingent assets

In January 2013, the Logan City Council region was subject to flooding as a result of Cyclone Oswald an event that has been recognised by the Queensland Government as a disaster and subject to disaster relief funding. The table below provides a summary of the total value of disaster relief claims submitted, approved and contingent on future approval by the Queensland Reconstruction Authority: Total claims amounts Claims approved Claims contingent on future approval 38.

5,885 (4,754) 1,311

5,067 (2,451) 2,616

Superannuation

Local Government Superannuation Scheme The Council contributes to the Local Government Superannuation Scheme (Qld) (the scheme). The scheme is a Multi-employer Plan as defined in the Australian Accounting Standard AASB119 Employee Benefits. The Queensland Local Government Superannuation Board, the trustee of the scheme, advised that the local government superannuation scheme was a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation. The scheme has three elements referred to as the City Defined Benefits Fund (CDBF) which covers former members of the City Super Defined Benefits Fund, the Regional Defined Benefits Fund (RDBF) which covers defined benefit fund members working for regional local governments and the Accumulation Benefits Fund (ABF). Council does not have any employees who are members of the CDBF and therefore is not exposed to the obligations, assets or costs. The ABF is a defined contribution scheme as defined in AASB 119. Council has no liability to or interest in the ABF other than the payment of the statutory contributions as required by the Local Government Act 2009. The RDBF is a defined benefit plan as defined in AASB119. The Council is not able to account for the RDBF as a defined benefit plan in accordance with AASB119 because the scheme is unable to account to the Council for its proportionate share of the defined benefit obligation, plan assets and costs. The funding policy adopted in respect of the RDBF is directed at ensuring that the benefits accruing to members and beneficiaries are fully funded as they fall due. There are currently 72 entities contributing to the RDBF plan and any changes in contribution rates would apply equally to all 72 entities. Council has made 4.81% of the total contributions to the plan for the 2014/15 financial year. Any amount by which either fund is over or under funded would only affect future benefits and contributions to the RDBF, and is not an asset or liability of the Council. Accordingly there is no recognition in the financial statements of any over or under funding of the scheme. To ensure the ongoing solvency of the RDBF, the scheme's trustee can vary the rate of contributions from relevant local government employers subject to advice from the scheme's actuary. As at the reporting date, no changes had been made to prescribed employer contributions, which remain at 12% of employee assets and there are no known requirements to change the rate of contributions. As at reporting date the assets of the scheme are sufficient to meet the vested benefits. The most recent actuarial assessment of the scheme was undertaken as at 1 July 2012. The actuary indicated that “the RDBF is currently in a satisfactory but modest financial position and remains vulnerable to adverse short and medium term experience." Following the previous actuarial assessment in 2009, councils were advised by the trustee of the scheme, following advice from the scheme's actuary that additional contributions may be imposed in the future at a level necessary to protect the entitlements of RDBF members. In the 2012 actuarial report the actuary has recommended no change to the employer contribution levels at this time. Under the Local Government Act 2009 the trustee of the scheme has the power to levy additional contributions on councils which have employees in the RDBF when the actuary advises such contributions are payable; normally when the assets of the RDBF are insufficient to meet members' benefits. The next actuarial investigation will be made as at 1 July 2015. Superannuation contributions The amount of superannuation contributions paid by Logan City Council during the reporting period was $12,667,000 (last year: $12,747,000) in respect of employees and $181,000 (last year: $179,000) in respect of elected members.

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2015 LOGAN CITY COUNCIL Notes to financial statements

30 JUNE 2015

39.

Statement of activities to which the code of competitive conduct applies

National competition policy note Logan City Council applies the code of competitive conduct to the following prescribed business activities: Plant fleet services workshop and Plant fleet services fleet. The competitive code of conduct requires the application of full cost pricing, identifying the cost of community service obligations (CSO) and eliminating the advantages and disadvantages of public ownership within that activity. • The CSO value is determined by Council and represents an activity's costs which would not have been incurred if the primary objective of the activities was to make a profit. The Council provides funding from general revenue to the business activity to cover the cost of providing non-commercial community services or costs deemed to be CSO's by the Council. Activity statements are for activities subject to the competitive code of conduct • •

Revenue for services provided to the Council Revenue for services provided to external clients Less expenditure (excluding return on capital) Surplus/ (deficit)

Logan Water $'000 418 238,072 238,490 (172,920) 65,570

Community service obligations

Logan Waste $'000 846 32,836 33,682 (31,288) 2,394

Workshop $'000 4,311 132 4,443 (4,395) 48 Logan Water $'000

Cleansing remissions to eligible pensioners Water, sewerage and cleansing remissions to eligible community organisations Household hazardous waste Free tipping for community organisations Animal removal Natural disasters/ emergencies Total 40.

566 566

Fleet $'000 20,293 625 20,918 (17,221) 3,697 Logan Waste $'000 300 10 99 33 123 5 570

Change in accounting estimates

Roads unit costs for revaluations The valuation of roads is often complex and requires management to make significant assumptions, judgements and estimates. With effect from 1 July 2014 Council has revised the unit rates used for the valuation of roads assets by adopting Roads and Transport Alliance (Queensland) unit rates for the purpose of valuing road components, now including earthworks, which were previously not assigned values. Council has adopted unit rates that are relevant to Local Government and based on the road type, terrain, environment, soil type and region. The change in valuation estimate has resulted in an amendment to roads carrying values as tabled below. The change has no impact on Council's current year statement of comprehensive income. Impact on the statement of financial position: Item Increase in property, plant and equipment due to recognition of earthworks Increase in asset revaluation surplus

2014/15 $000's 887,435 887,435

Residual Values With effect from 1 July 2014, Council has amended its determination of residual value. Whereas residual value in the past included the cost savings from the re-use of in-situ materials, Council now only recognises residual value in circumstances when Council expects to receive consideration for an asset that is at the end of its useful life. Only the buildings and bridges asset classes were impacted by this amendment. The change has no material impact on Council financial performance or financial position. 41.

Events after reporting period

On 28 May 2015 Council resolved to sell its 50% share in the property described as Lot 5 SP900079 as joint venture partner in the Greenbank Commercial Centre Pty Ltd at a sale price of $2,149,637 with a settlement date of 20 October 2015 and a loan repayment amount of $850,263. Details of the joint venture arrangement are disclosed in note 24.

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MANAGEMENT CERTIFICATE LOGAN CITY COUNCIL 30 JUNE 2015 Management certificate 30 JUNE 2015

Management certificate

These general purpose financial statements have been prepared pursuant to sections 176 and 177 of the Local Government Regulation 2012 (the Regulation) and other prescribed requirements. In accordance with section 212(5) of the Regulation we certify that: 1) the prescribed requirements of the Local Government Act 2009 and the Local Government Regulation 2012 for the establishment and keeping of accounts have been complied with in all material respects; and 2) the general purpose financial statements, as set out on pages 2 to 54, present a true and fair view, in accordance with Australian Accounting Standards, of the Council's transactions for the financial year ended 30 June 2014 and financial position at the end of the year.

_________________________

Mayor Pam Parker Date __________________________

Chief Executive Officer Chris Rose Date __________________________

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FINANCIAL REPORTING

AUDIT REPORT 30 JUNE 2015

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AUDIT REPORT 30 JUNE 2015

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FINANCIAL REPORTING

APPROPRIATION STATEMENT FOR THE YEAR ENDED 30 JUNE 2015 LOGAN CITY COUNCIL Appropriation Statement

For the year ended 30 JUNE 2015 ADDITIONAL INFORMATION The Appropriation and Capital Funding Statements do not form part of the audited financial statements. They have been included to provide further transparency to readers of the financial statements on the allocation of funding to capital projects and debt repayment.

Note

Retained surplus from prior years (excluding reserves) Net result for the period from the income statement Transfers (to)/from capital reserve: Capital grants and subsidies Gain on fair value and sale of assets Assets decommissioning General revenue Donated assets Net capital reserve transfers Transfers (to)/from operating reserves: Constrained income reserve Community assets reserve Environment initiatives reserve Wastewater reserve General reserve Other operating reserves Net operating reserve transfers Retained surplus

16 8

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

7,863 140,572 148,435

2,537 99,448 101,985

(6,253) (353) 8,171 (15,583) (71,330) (85,348)

(5,219) (135) 9,410 (15,883) (64,159) (75,986)

(39,439) (1,463) (1,176) 892 (11,823) (53,009)

(30,570) (1,647) (155) (1,199) 18,771 (3,336) (18,136)

10,078

7,863

Statement of Appropriations Council receives contributions in the form of grants and subsidies from State and Federal Government. Most contributions are for specific purpose and are either used as a funding source in the current period or set aside in reserves until related expenditure has been incurred. Accounting Standard AASB1004 Contributions provides that contributions be recognised as revenue irrespective of whether restrictions are imposed on the use of contributions. Council records all State and Federal Government contributions as revenue in the Statement of Financial Position and then transfers funds either as a source of capital funding in the Capital Funding Statement or to reserve. The Statement of Appropriations provides a record of these transfers. The preparation of the Statement of Appropriations is not a requirement of the Australian Accounting Standards, but has been prepared because Council believes it provides valuable information to users of the financial statements on the sources and application of funding.

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CAPITAL FUNDING STATEMENT FOR THE YEAR ENDED 30 JUNE LOGAN2015 CITY COUNCIL Capital funding statement

For the year ended 30 JUNE 2015 Note

2015 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

Sources of capital funding Capital sources Gross proceeds from sale of non-current assets Loan monies expended Revenue sources Depreciation charges funded Capital grants and subsidies General revenue used for capital purposes Donated and contributed physical assets Reserve sources General reserve Community assets reserve Environmental initiatives reserve Water reserve Other reserves Developer contributions (Constrained income reserve)

10 28

3,781 42,704

2,386 41,945

93,583 6,253 15,631 71,330

92,819 5,219 15,883 64,159

(18,470) 3,616 467 (1,613) (2,183) 17,519 232,618

(23,071) 1,236 223 (1,626) 23,790 222,963

675 3,083 18,513 101,617 112,834 16,082 2,208 (34,207) 1,265 222,070 10,548 232,618

3,914 5,025 17,890 116,127 54,351 44,142 1,781 (31,379) 2,374 214,225 8,738 222,963

Applications of capital funding Acquisitions of non-current assets Land Buildings Plant and equipment Roads and drainage infrastructure Water and wastewater infrastructure Water and wastewater facilities Waste and quarry infrastructure Movement in capital work in progress Intangible assets

25 25 25 25 25 25 25 25 26

Loan redemption

Capital Funding Statement The Capital Funding Statement shows the approved sources of funding for the acquisition of physical assets (land, buildings, infrastructure, plant and equipment). Funding of acquisitions can be from loan borrowings, leasing, funding of depreciation, proceeds from sales of assets, contributions, grants and subsidies, capital reserves and general revenues. The preparation of the Capital Funding Statement is not a requirement of the Australian Accounting Standards, but has been prepared because Council believes it provides valuable information to users of the financial statements on the sources and applications of capital funding.

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FINANCIAL REPORTING

SUSTAINABILITY REPORT

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SUSTAINABILITY REPORT

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

189

FINANCIAL REPORTING

AUDIT REPORT 30 JUNE 2015

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AUDIT REPORT 30 JUNE 2015

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

191

LONG-TERM FINANCIAL SUSTAINABILITY REPORT

FINANCIAL REPORTING

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LONG-TERM FINANCIAL SUSTAINABILITY REPORT

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

193

APPENDICES

APPENDICES This section includes background information relevant to the main report, indexes and contact information for our organisation and elected representatives.

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Stronger together: our business community provides jobs for our residents to support a growing economy.

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APPENDICES

EXPENSES REIMBURSEMENT POLICY Document #: 6627712

POLICY

CP ID: Date Adopted: File No: Minute Number:

OS 18/11/2014 888737‐1 344/2014

Policy Title:

EXPENSES REIMBURSEMENT

Stream:

ORGANISATIONAL SERVICES

Branch:

GOVERNANCE

Policy Objective:

To meet the requirements of section 250 (Requirement to adopt expenses reimbursement policy or amendment) of the Local Government Regulation 2012 that requires Council to have an expenses reimbursement policy for its Councillors.

Policy Scope: This policy is the Council's expenses reimbursement policy as required by the Local Government Regulation 2012 and is consistent with section 4 (Local government principles underpin this Act) and section 104 (Financial Management Systems) contained in the Local Government Act 2009. This policy excludes Councillors cash remuneration which is determined by the Local Government Remuneration and Discipline Tribunal. Definitions: TERM

DEFINITION

Council business

Business conducted on behalf of Council and/or approved by Council. Council business includes attending an event or function to perform official duties or as an official Council representative at an industry, corporate or civic event.

Councillors

Includes the Mayor and 12 Councillors of the Logan City Council.

Policy Statement: The following are the arrangements in place for expenses reimbursement for the Councillors of Logan City Council. 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. Further information is provided for in the following Council adopted policies: (a)

Corporate Travel and Accommodation;

(b)

Councillor Conferences and Professional Development; and

(c)

Conference and Seminar Attendance

Last printed 19/11/2014 2:44:00 PM Refer to the electronic document to ensure you have the latest version of this document.

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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.

Civic Allowance Council currently has an existing policy titled Mayor's and Councillors' Civic Allowance. This policy allows the reimbursement of civic related expenses while a Councillor is conducting Council business. Further information is contained in the policy titled Mayor's and Councillors' Civic Allowance.

Daily Meals and Refreshments Councillors have access to meals and refreshments provided by Council's canteen provider at no cost.

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.

(e)

Smart Phones & Tablets Councillors are provided with a council landline telephone in the Council Administration Centre and a smart phone. Smart phones are provided to assist Councillors undertaken their roles and responsibilities under the Local Government Act 2009, however councils 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. Tablets are available to the Councillor in accordance with the Management Directive titled 'Portable Personal Computing Devices'.

(f)

Fax and/or scanner

(g)

Printer, photocopier, paper shredder

Councillors are provided with access to a facsimile and scanner for business use. Councillors are provided access to a printer, photocopier and paper shredder for business use.

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APPENDICES

EXPENSES REIMBURSEMENT

(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 Governance Manager. Council will provide Councillors a copy of the electoral roll for their division in hard copy or electronically. The Governance Manager will provide six (6) monthly updates or as necessary. The Mayor is provided with the entire City voters roll. Blue Cards will be arranged upon request of the Councillor.

Safety Equipment and Council Uniforms Councillors will be provided with personal protective equipment when required for a relevant site inspection. Councillors will be provided a uniform allowance of $165 per annum for any Council approved uniforms. Councillors will be provided with a name badge.

Vehicles Councillors are provided with a Council owned and maintained vehicle for full and unrestricted use. Fuel cards and an E‐toll transponder are also provided. Further terms and conditions are provided for in the vehicle lease agreement which outlines the Councillors obligations in terms of ensuring the vehicle is appropriately used and maintained. Individual car parking allocations are provided at the City Administration Centre for Councillor vehicles.

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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.

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% can be paid.

Related Policies/Legislation/Other Documents: DOC ID 6290313 6288459 6577300 5985245 7080047 6694453 8248376

DOCUMENT TYPE Policy Policy Policy Policy Management Directive Administration Management Directive

DOCUMENT NAME Corporate Travel and Accommodation Councillor Conferences and Professional Development Conference and Seminar Attendance Mayor's & Councillor's Civic Allowance Portable Personal Computing Devices Vehicle Leasing Scheme Terms and Conditions Vehicle Leasing Scheme

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APPENDICES

LEGISLATIVE INDEX LOCAL GOVERNMENT ACT 2009 Requirement

Chapter

Section

Page

N/A*

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 A local government’s annual report for each financial year must— (a) contain a list of all the business activities that the local government conducted during the financial year; and

153–155

(b) identify the business activities that are significant business activities; and

110, 151

(c) state whether or not the competitive neutrality principle was applied to the significant business activities, and if the principle was not applied, the reason why it was not applied; and

182

(d) state whether any of the significant business activities were not conducted in the preceding financial year, i.e. whether there are any new significant business activities.

152

Annual report must detail remuneration

201

(1) The annual report of a local government must state— (a) the total of all remuneration packages that are payable (in the year to which the annual report relates) to the senior management of the local government; and

(b) the number of employees in senior management who are being paid each band of remuneration

*Logan City Council did not conduct any beneficial enterprises during the 2014/2015 financial year.

200

STRONGER TOGETHER

LOCAL GOVERNMENT REGULATION 2012 Requirement Financial sustainability statements

Chapter

Section

Page

178

125–129

(1) A local government’s current-year financial sustainability statement must state the relevant measures of financial sustainability for the financial year to which the statement relates. (2) A local government’s long-term financial sustainability statement must state— (a) the relevant measures of financial sustainability for the 9 financial years following the year to which the statement relates; and

108, 190

(b) an explanation of the local government’s financial management strategy that is consistent with the long-term financial forecast.

108, 193

Community financial report

179

117–129

(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

120, 129

(b) be consistent with the general purpose financial statement for the financial year; and

117

(d) be written in a way that can be easily understood by the community.

117

Financial statements The annual report for a financial year must contain—

183

(a) the general purpose financial statement for the financial year, audited by the auditor-general; and

184–185

(b) the current-year financial sustainability statement for the financial year, audited by the auditor-general; and

188–189

192–193

(d) the auditor-general’s audit reports about the general purpose financial statement and the current-year financial sustainability statement.

184–185 188–189

Community financial report

184

The annual report for a financial year must contain the community financial report for the financial year. Administrative action complaints

117–129

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

111

(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.

111

(2) The annual report must also contain particulars of— (a) the number of the following during the financial year—

111

(i) administrative action complaints made to the local government;

111

(ii) administrative action complaints resolved by the local government under the complaints management process;

111

(iii) administrative action complaints not resolved by the local government under the complaints management process; and

111

(b) the number of administrative action complaints under paragraph (a)(iii) that were made in a previous financial year.

111

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201

APPENDICES

Requirement Overseas travel

Chapter

Section

Page

188

(1) The annual report for a financial year must contain the following information about any overseas travel made by a councillor or local government employee in an official capacity during the financial year— (a) for a councillor—the name of the councillor;

113

(b) for a local government employee—the name of, and position held by, the local government employee;

113

(d) the purpose of the overseas travel;

113

(e) the cost of the overseas travel;

113

(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

113 5

189

The annual report for a financial year must contain a summary of— (a) the local government’s expenditure for the financial year on grants to community organisations; and

112

(b) expenditure from each councillor’s discretionary fund, including—

112 112

(i) the name of each community organisation to which an amount was allocated from the fund; and (ii) the amount and purpose of the allocation. Other contents

112 5

190

(1) The annual report for a financial year must contain the following information— (a) the chief executive officer’s assessment of the local government’s progress towards implementing its 5-year corporate plan and annual operational plan; (b) particulars of other issues relevant to making an informed assessment of the local government’s operations and performance in the financial year; (c) an annual operations report for each commercial business unit; (d) details of any action taken for, and expenditure on, a service, facility or activity— (i) supplied by another local government under an agreement for conducting a joint government activity; and

7–13 96–103, 209–212 67

(ii) for which the local government levied special rates or charges for the financial year;

N/A

(e) the number of invitations to change tenders under section 228(7) during the financial year;

108

(f) a list of the registers kept by the local government; (g) a summary of all concessions for rates and charges granted by the local government; (h) the report on the internal audit for the financial year;

202

109 107–108 45–47

(i) a summary of investigation notices given in the financial year under section 49 for competitive neutrality complaints;

110

(j) the local government’s responses in the financial year on the QCA’s recommendations on any competitive neutrality complaints under section 52(3).

N/A

STRONGER TOGETHER

PUBLIC SECTOR ETHICS ACT 1994 Requirement Reporting

Chapter

Section

Page

12M

(1) The commission chief executive must ensure that each report of the commission under the Public Service Act 2008, section 46(1)(fa) includes a statement about the following— (a) the implementation during the reporting period of the code of conduct for public service agencies;

(b) details of the action taken during the reporting period to comply with section 12A.

(2) The chief executive officer of a public service agency must ensure that each annual report of the agency includes a statement about the following— (a) the implementation during the reporting period of the code of conduct for public service agencies and any standard of practice applying to the agency;

31, 36

(b) details of the action taken during the reporting period to comply with sections 12K and 12L.

31, 36, 45

QUEENSLAND PLAN ACT 2014 Requirement Annual report—local governments

Chapter

Section

Page

A local government’s annual report for each financial year must include a statement about the local government’s actions, during the financial year, in relation to matters in its corporate plan that relate to the Queensland Plan.

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

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APPENDICES

GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX The Global Reporting Initiative (GRI) is a not-for-profit organisation that promotes and guides public and private sector organisations in the use of sustainability reporting.

We are using the GRI reporting framework for the second time this year and will continue to use it to enhance our reporting processes.

The GRI framework is used by both large and small organisations to report their economic, environmental, social and governance performance and impacts.

The below table shows the number of GRI framework components that are disclosed in our Annual Report this year.

PERFORMANCE INDICATORS GRI reference number and description Economic performance EC1 Direct economic value generated and distributed EC2 Financial implications and other risks and opportunities for the organisation’s activities due to climate change

65, 71–75 79

EC4 Significant financial assistance received from government

11, 16, 19, 20, 60–61, 67, 79, 85–86, 91

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro-bono engagement

11–12, 19–21, 39–40, 60–61, 65, 70–72, 77, 81, 83, 85–86, 90, 95

Environmental EN5 Energy saved due to conservation and efficiency improvements EN6 Initiatives to provide energy efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives EN7 Initiatives to reduce indirect energy consumption and reductions achieved EN13 Habitats protected or restored EN14 Strategies, current actions and future plans for managing impacts on biodiversity EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved EN22 Total weight of waste by type and disposal method EN26 Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation Labour practices and decent work LA1 Total workforce by employment type, employment contract, and region broken down by gender LA2 Total number and rate of new employees hired and employee turnover LA7 Rates of injury LA8 Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases LA11 Programs for skills management and lifelong learning that support the continued employability of employees Society SO2 Percentage and total number of business units analysed for risks related to corruption SO3 Percentage of employees trained in organisation’s anti-corruption policies and procedures SO4 Actions taken in response to incidents of corruption Product responsibility PR5 Practices related to customer satisfaction including results of surveys measuring customer satisfaction

204

Pages

STRONGER TOGETHER

79 9, 11, 65, 68, 73, 76, 101 11, 65, 79 76–77 20, 76, 83, 94, 98–99, 101 79, 101 102–103 65, 68, 79, 101 43–44 44 42, 209–210 37, 42, 87 31, 37–38, 41, 45, 49, 111 31, 45–47 31, 36 31 18, 71, 76, 80, 82, 84, 212

REPORT PROFILE GRI reference number and description

Pages

Strategy and analysis

16–17

1.1 Statement from the most senior decision-makers of the organisation Organisational profile

135

2.1 Name of the organisation 2.2 Primary brands, products and/or services

15, 26, 56–66, 98, 100, 152–155

2.3 Operational structure of the organisation

26, 152–155

2.4 Location of organisation’s headquarters

135

2.6 Nature of ownership and legal form

26–30

2.7 Markets served (including geographical breakdown, sectors served and types of customers/beneficiaries)

6, 14–15, 30

2.8 Scale of the reporting organisation

26–30

2.10 Awards received in the reporting period

22–23, 39

Report parameters

3.1 Reporting period for information provided

3.3 Reporting cycle

3.4 Contact point for questions regarding the report or its contents

213

3.5 Process for defining report content

3.7 Limitations on the scope or boundary of the report

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities

138, 142

3.12 Table identifying the location of the standard disclosures in the report

112–113

3.13 Policy and current practice with regard to seeking external assurance for the report

Governance, commitments and engagement 4.1 Governance structure of the organisation, including committees under the highest governance responsible for specific tasks, such as setting strategy or organisational oversight 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives and the organisation’s performance

26–27, 30, 33–34, 45 18, 37–42 32, 196–199

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided

30–31

4.8 Internally developed statements of mission or values, codes of conduct and principles relevant to economic, environmental, and social performance and the status of their implementation

6, 31, 36–37

4.12 Externally developed economic, environmental and social charters, principles or other initiatives to which the organisation subscribes

34–35, 42, 180

4.13 Memberships of associations with national/international advocacy organisations

11, 34–35, 42, 180

4.14 List of stakeholder groups engaged by the organisation

6, 18

4.15 Basis for identification and selection of stakeholders with whom to engage

18–21

4.16 Approaches to stakeholder engagement including frequency of engagement by type and by stakeholder group

18–21

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns

18–21

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APPENDICES

GLOSSARY OF TERMS Achievement Planning and Review (AP&R)

The AP&R is an opportunity for supervisors and team members to have an honest and meaningful conversation in relation to: • How the team member has taken up their role and their achievements over the past 12 months • The team member’s key projects and priorities for the next 12 months • Any training and development the team member may need.

206

Advocacy

The act of speaking or arguing in favour of something, such as a cause, idea, or policy. In the context of the strategic priorities, it refers to another sphere of government or organisation delivering a service or outcome for the city.

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.

Audit

An examination of the records, statements, systems, and procedures of an organisation, together with its stated claims for performance.

Asset

An economic resource owned or controlled that enables services to be provided and that has a useful life of greater than 12 months.

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 four key operational departments, known as streams. Each stream then contains a number of branches, which deliver a series of programs and services to the community. There are 28 branches within our organisation (refer to the organisational structure on page 26). Each branch manager reports to a Deputy Chief Executive Officer.

Budget (annual)

Council’s annual budget identifies the planned expenditure and revenue approved by Council for a financial year. This includes 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 the 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 Council’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 branch’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 City Pride Video, Hidden Gems photobook, street banners and a handy guide. To watch Logan’s City Pride Video or to find out more about the ‘City of Logan Pride Program’, visit the website: http://www.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.

STRONGER TOGETHER

Financial year

The financial year we are reporting on in this report is the period from 1 July 2014 to 30 June 2015.

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 Queenslandâ&#x20AC;&#x2122;s local government sector.

Local Government Boundary Reform

The 2008 restructure of Queensland local government authorities, including Logan City Council, which was enforced 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 grow and prosper into a connected, sustainable city. The initiative is being delivered through the City of Choice Two-Year Action Plan 2013-2015. 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, government agencies, community organisations, a wide range of child development service providers and whole of 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 Ministersâ&#x20AC;&#x2122; Council endorsed national frameworks for assessing financial sustainability, asset planning and management and financial planning and reporting. According to the frameworks, a councilâ&#x20AC;&#x2122;s long-term financial performance and position is 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.

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.

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APPENDICES

208

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.

Price Waterhouse Coopers (PWC)

Council’s internal auditors.

Priority Area

Areas that Council will give priority to over the life of the Corporate Plan 2014–2018. Council has seven priority areas; building our major infrastructure, building our city’s image, building our economic base, building our environment, building our service excellence and, building the wellbeing of our communities.

Program

Council is divided into four key operational departments, known as streams. Each stream then contains a number of branches, which deliver a series of programs and services to the community. There are more than 70 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.

SLPT

Council’s executive management team, known as the Strategy, Leadership and Performance Team. It is made up of the CEO and four Deputy CEOs.

South-East Queensland Water Reform

A range of structural and regulatory reforms proposed for urban water supply arrangement 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.

Stream

Council is divided into four key operational departments. Each department contains a number of branches and is headed by a Deputy Chief Executive Officer. Council’s four streams are: Road and Water Infrastructure, Organisational Services, Community and Customer Services and Strategy and Sustainability.

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, usually in an upwards or downwards direction.

Vision

A statement that embraces the desired future the organisation is working towards.

STRONGER TOGETHER

WATER BRANCHES ANNUAL PERFORMANCE PLAN REPORT This is a summary of performance against the 2014/2015 key performance indicators for our water and wastewater services.

Netserv focus area

Performance area

2014/2015 target

2014/2015 actual

Achieved

Safety focused

Safety management

Lost Time Injury Frequency Rate (LTIFR)

<10

Customer service excellence

Drinking water quality management

Number of water quality complaints per 1,000 properties

7.6

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

90%

99.98%

Yes

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

98%

100%

Yes

Compliance with NHMRC microbiological guidelines

98%

99.94%

Yes

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

<100

98.275

Yes

<3.5 hours

2.65

Yes

<5 hours

2.46

Yes

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

Within plus or minus 5% estimated budget of $49,698,000

0.26% *

Yes

Variance against budgeted water purchases

Within plus or minus 5% annual target of 21,230 ML

-3.72%

Yes

<95 litres/day/ connection

Yes

Network operations management

Average duration of water supply unplanned interruptions (time for restoration) Average sewerage interruption Financial and business efficiency

Environmentally responsible

Financial management

Demand and leakage management

System water loss

Environmental management

Compliance with the Department of Environment and Heritage Protection (DEHP) licenses (number of infringement notices received)

No infringement notices received

Yes

Notifiable wastewater overflows reported to DEHP per 100km of main

0.38

Yes

Percentage of major incidents reported to DEHP within 24 hours

100%

Yes

Number of wastewater odour complaints per 1,000 properties

1.231

Yes

100%

97%

Odour and emissions management

Long-term effluent standards

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

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APPENDICES

Netserv focus area Deliver and maintain our assets

2014/2015 target

2014/2015 actual

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

<16

11.85

Yes

Number of water main breaks per 100km of main

<20

6.35

Yes

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

1.53

Yes

Number of dry weather wastewater overflows per 1,000 properties

3.96

Yes

>90%

97.7%

Yes

Performance area Network maintenance management

Infrastructure delivery

Percentage of capital program delivered to budget

* Please note that the EBIT KPI is subject to external audit review.

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210

KPI

Annual Target

Year to Date Target

Year to Date Actual

Achieved

% branch sick leave - 12 month rolling average

1.88%

Yes

Staff with annual leave balance over 40 and 80 days

Lost time injury frequency rate per million hours worked

Yes

Number of hazard inspections completed on schedule

Branch-specific

Six carried out as required

Yes

Respond to written correspondence in accordance with Council's customer service charter

<10 days (monitored quarterly)

100% compliance for all four audits conducted in September and December 2014 and March and June 2015.

On track

STRONGER TOGETHER

<10 days

Achieved

KPI

Annual Target

Year to Date Target

% variance against branch budget

+/-5%

Year to Date Actual

Achieved

Operating revenue at 30 June 2015 was 1%

Yes

Operating expenses expenditure at 30 June 2015 (1)%

Yes

Staff overtime ($)

$154,680

$186,502

No (this is due to cover for staff on leave)

Delivery of waste capital works program on time

90%

Achieved

Yes

Delivery of waste capital works program on budget

90%

100%

Yes. All capital projects have been delivered within budget. Some reprovisions required due to timing issues.

Return on assets

> budget estimate of 10.77%

7.08%

6.81%

Not achieved (due to rate of fill being lower than anticipated)

EBIT

> budget estimate of $5.586m

$3.408m

YTD actual $3.242m

Not achieved (due to $272,000 in capital related expense of the write-off of the old Waste Operations building replaced by the new administration building at Browns Plains)

Gross margins

> budget estimate of $19.935M

$18.428m

$18.848m

Yes

Aged debtors - over 90 days - Actual ($)

No standard

$519

N/A

Aged debtors - debt to revenue ratio

No standard

8.53%

N/A

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

Favourable variance of less than 10%

Achieved (due to slightly higher than anticipated revenue)

Overdue audit issues

Zero

Achieved

Extreme and high risks not managed on time

Zero

Achieved

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

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APPENDICES

212

Year to Date Target

Year to Date Actual

Achieved

Proportion of missed services is to be less than 0.05%

N/A

0.007%

Achieved (The actual number of services carried out in 2014/2015 has been 21,678,450. There have been 1,608 reported missed services due to contractor error during the period)

Timeliness of returning to collect missed bin services

98% by close of business of the next working day

N/A

99.1%

Achieved (5,134 requests have been received for missed bins during 2014/2015. 5,091 requests were actioned within the timeframe)

Timeliness of repair of damaged wheelie bins

98% repaired or replaced within two working days

N/A

99.6%

Achieved (7,074 requests have been received, of which 7,048 were actioned within two working days)

Timeliness of replacement of stolen wheelie bins

98% of replacements provided within one working day

N/A

98.8%

Achieved (2,460 requests have been received for stolen bins, of which 2,431 requests were actioned within one working day)

Timeliness of completion of kerbside clean-up services

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

N/A

100%

Achieved (The 18 services were completed on time)

Level of customer satisfaction with wheelie bin collection service

80%

N/A

84.8%

Achieved (Combined garbage and recycling result from the most recent Residents Survey)

Quality of kerbside recycling

25%

N/A

Average rate for March 2015 quarter is 36.9%. A number of measures are in place to address this issue.

Not achieved

Landfill cost efficiency

$36.50/tonne

$34.33

Achieved

Number of odour complaints

No standard

30 year to date for 2014/15.

Level of compliance with environmental licence conditions

No more than one exceedance per quarter

Not achieved (In all cases, DEHP were advised of the exceedances and proposed corrective action)

Proximity of waste facilities

90% of residents travel no longer than 20 minutes

N/A

Approximately 94%

Achieved

KPI

Annual Target

Proportion of missed bin services

STRONGER TOGETHER

CONTACT INFORMATION LOGAN CITY COUNCIL Mailing address: PO Box 3226 Logan City DC Qld 4114 Phone: 1300 1 LOGAN* (1300 156 426) *Councilâ&#x20AC;&#x2122;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. Fax: 07 3412 3444 Email: council@logan.qld.gov.au Website: www.logan.qld.gov.au Social media: www.facebook.com/logancitycouncil www.twitter.com/logancc

Customer service centres 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 58-60 Manila St, Beenleigh 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 2014/2015 Annual Report. Please feel free to contact us through one of the methods listed above.

Logan City Councillors Cr Pam Parker, Mayor E mayor@logan.qld.gov.au T 07 3412 4226 F 07 3412 3444

Cr Laurie Smith, REPRESENTING DIVISION 7 E lauriesmith@logan.qld.gov.au T 07 3412 5507 F 07 3412 3444

Cr Lisa Bradley, REPRESENTING DIVISION 1 E lisabradley@logan.qld.gov.au T 07 3412 5501 F 07 3412 3444

Cr Cherie Dalley, REPRESENTING DIVISION 8 E cheriedalley@logan.qld.gov.au T 07 3412 5508 M 0411 869 117 F 07 3412 3444

Cr Russell Lutton, REPRESENTING DIVISION 2 DEPUTY MAYOR E russelllutton@logan.qld.gov.au T 07 3412 5502 M 0411 869 099 F 07 3412 3444

Cr Phil Pidgeon, REPRESENTING DIVISION 9 E philpidgeon@logan.qld.gov.au T 07 3412 5509 M 0411 869 109 F 07 3412 3444

Cr Steve Swenson, REPRESENTING DIVISION 3 E steveswenson@logan.qld.gov.au T 07 3412 5503 M 0411 869 114 F 07 3412 3444

Cr Darren Power, REPRESENTING DIVISION 10 E darrenpower@logan.qld.gov.au T 07 3412 5510 M 0411 869 119 F 07 3412 3444

Cr Don Petersen, REPRESENTING DIVISION 4 E donpetersen@logan.qld.gov.au T 07 3412 5504 M 0412 120 210 F 07 3412 3444

Cr Trevina Schwarz, REPRESENTING DIVISION 11 E trevinaschwarz@logan.qld.gov.au T 07 3412 5511 M 0411 658 066 F 07 3412 3444

Cr Graham Able, REPRESENTING DIVISION 5 E grahamable@logan.qld.gov.au T 07 3412 5505 F 07 3412 3444

Cr Jennie Breene, REPRESENTING DIVISION 12 E jenniebreene@logan.qld.gov.au T 07 3412 5512 M 0411 658 297 F 07 3412 3444

Cr Luke Smith, REPRESENTING DIVISION 6 E lukesmith@logan.qld.gov.au T 07 3412 5506 M 0403 246 187 F 07 3412 3444

LOGAN CITY COUNCIL ANNUAL REPORT 2014/2015

213

APPENDICES

INDEX Administrative action Complaints Animals Desex Microchip Registration

111 111 28–29, 33, 82, 84, 89, 109 61, 82, 89 89 82

Arts and culture Logan Art Gallery Logan Entertainment Centre

60 21, 45, 83, 154 21, 45, 57, 60, 83, 88, 153

Executive leadership team Profiles Oberhardt, John Rohl, Todd Rose, Chris Simon, Oliver Trinca, Silvio Remuneration

26 34–35 35 35 34 35 35 34

Finance 7, 26, 28–29, 33, 35, 45, 60, 62, 71, 80, 101, 106–108, 112, 122, 124, 128, 131–132, 134, 136, 146–149, 152, 155, 160, 167, 175 Financial summary 13 Global Reporting Initiative (GRI)

142

Graffiti

12, 21, 60–61, 84, 90, 154

Asset management 12, 35–36, 52, 54–58, 68, 125, 152–153, 167, 172 Total Assets and Services 11–12, 57 Management Plan

Growth

9, 20, 26, 35–36, 54, 57, 63–65, 67, 75, 92, 94–95, 99, 116, 124, 154, 174–175

History

14, 18, 23, 60, 67

Awards Council awards Employee Excellence Awards

Immunisation

Beenleigh Town Square Budget

4, 11, 22–23 22 22, 39, 41 22, 91–92, 95

10, 12, 15, 18, 36, 52–54, 62, 66, 76, 82, 98, 100, 107–109, 136, 155

Business continuity planning Business plans

45, 49, 63 7, 36, 52–53

City image 8, 11, 61, 69–70 Campaign 8, 61, 69 City Pride 2, 70 Events 2, 9, 11–12, 20–21, 42, 50, 57, 60–61, 66, 71, 76, 83–84, 88, 90, 95, 105 Logan: City of Choice 2, 9, 11–12, 19, 37, 60–61, 70, 75, 81, 83, 85–86, 90 Code of competitive conduct

110, 112, 131, 151–152, 182

Community engagement 18, 20, 40, 60–61, 80, 83, 90, 153 Events 50, 57, 60, 76, 83–84, 88, 90, 95 Logan Listens: Residents’ Survey 11, 18, 36, 52, 57, 82 Corporate governance 34, 45, 52, 117, 155 Corporate Plan 6–7, 34, 36, 52–54, 57, 119, 124 Operational Plan 7–9, 34, 36, 50, 52–53, 56–58, 60, 62, 64, 66, 69, 71, 76, 80, 83, 92 Customer service

7, 9–10, 26, 29, 35, 39, 45–46, 60, 80, 82, 110–111, 113, 152–154, 156, 159

Development assessment 9, 26, 64, 92, 110, 154 Disaster management 21, 26–27, 35, 58, 60, 153 Economy BizConnect Businesses Employment Export Investment

6, 15, 73, 75, 98, 154 65, 71 6, 8, 15, 63, 65, 71, 73–75, 92, 94, 98, 152 8, 19, 37, 44, 63, 65, 71, 74–75, 83, 98, 137, 149 71, 73 7, 10–12, 19, 35, 64–65, 68–69, 71, 73, 75, 85, 91, 94–95, 127, 131, 133, 138, 140–143, 153, 158, 161–163, 167–171, 179

Tourism

8, 11, 162

Environment 6, 9, 11–12, 20–21, 26, 28–29, 33, 35–37, 39–40, 64–65, 68, 72, 76, 78, 83, 92, 94, 98–101, 107, 109, 113, 124, 149, 153–154, 158 Conservation 2, 65, 70, 77, 94, 107 EnviroGrants 78 Logan Eco Action Festival (LEAF) 11, 65, 78 Sustainability 11, 22, 26, 28–29, 33, 35, 40–41, 64–65, 72, 76, 101, 124 Ethnicities

60, 82, 87, 154

Infrastructure 8–10, 12, 19, 26, 28–29, 33, 35, 54, 58–61, 63–67, 68, 72, 80, 83, 90–92, 94, 96, 98–99, 107, 109, 113, 117–121, 124–127, 135–137, 139–140, 144 Bikeways 15 Cemeteries 15, 60, 80 Charges 64–65, 92, 107, 109 Capital works program 8, 10, 59–60, 66, 76, 106, 120–121, 123–124 Footpaths 15 Parks 2, 9–10, 12, 15, 21, 25–26, 29, 33, 39, 45, 57, 60–61, 66, 68, 74, 76, 78, 80, 82, 92 Roads and drainage 13, 15, 29, 58, 66, 68, 120 Transport 28, 37, 58, 72, 75, 83, 85, 91, 94 Water and wastewater 15, 43, 58, 68, 82, 98–99, 118, 120, 125 Water rates 8, 66 Internal audit

26, 36, 45–47, 62

Koala

9, 65, 76

Leadership Development Program Libraries

9, 15, 21, 26, 39, 60, 63, 74, 83

Local Government Finance Standards Logan Entertainment Centre

Mayor and councillors Code of conduct Expenses reimbursement Meeting attendance Profiles Able, Graham Bradley, Lisa Breene, Jennifer Dalley, Cherie Lutton, Russell Parker, Pam Petersen, Donald Pidgeon, Phillip Power, Darren Schwarz, Trevina Smith, Laurence Smith, Timothy (Luke) Swenson, Steven Remuneration Expenses Reimbursement Policy National Competition Policy Organisational structure

112

21, 45, 57, 60, 83, 88, 110 26–33 31 32 33 27–29 28 28 29 29 28 27 28 29 29 29 29 28 28 32 32, 134 112 26, 61

Performance 4, 6–8, 10–11, 18, 21–22 Definitions 8 Framework 7, 52 Key Performance 7, 36, 53, 56, 58, 60, 62, Indicator (KPI) 64, 66, 69, 71, 76, 80, 83, 92, 97, 98, 100 Scorecard 7 Summary 7, 13, 56, 58, 60, 62, 64, 129 Pest management Planning scheme

21, 60, 61 9, 11, 18–19, 36, 40, 64–65, 92, 95

Policies 26, 34, 37, 45–48, 60,65, 104, 109 Borrowing 106 Revenue 106

214

STRONGER TOGETHER

Privacy

62, 82, 94

Purpose

Quality assurance

113

Rates 8, 10, 62, 66, 82, 106–108, 119, 123 Collection of 107, 117 Concessions 101, 107, 168 Discounts 101, 107 Interest on 107 Pensioner concessions 101, 108 Registers open for inspection

109

Right to information

62, 80

Risk management

11, 36, 45, 47–48, 62–63

Road maintenance

26, 58–59, 66, 68

Rivers

9, 20, 65, 76

Safety 11–12, 19, 22, 28, 32–33, 37, 39–40, 42, 45–46, 58, 60–63, 68, 82–86, 88, 90–91, 98, 119 RU1m 40 Safety cameras 12, 60–61, 91 Workplace health and safety 22, 45–46, 62 Service charges Community infrastructure Consumer Environment Garbage

106–107 12, 107 8, 66, 98–99, 107 64, 107 101, 107–108

SouthWest 1

8, 11, 13, 65, 71

SouthWest 2

8, 11, 13, 65, 71, 75

Strategic review

Sport and recreation 60–61, 83, 84 Aquatic centres 15, 21, 60, 84, 89 Community centres 15, 28, 91 Indoor sports centres 15, 89 KRANK School Holiday Sports Program 21, 91 Live Well Logan 21, 90 Police-Citizens Youth Clubs (PCYC) 90 Sustainability 6–7, 9, 11, 22–23, 26, 28–29, 33, 35–36, 40–41, 52, 54–55, 64–65, 72, 76, 94, 101, 104, 108, 116–117, 120, 124–126, 128–129 Environmental 11, 26, 28–29, 33, 35, 41, 64–65, 72, 76, 101 Financial 52, 104, 108, 117, 124–125, 128 Tenders

108

Training

31–32, 36–37, 41, 45, 49, 62, 74–75, 84, 98, 111

Twin goals

Values Values-based culture

6 38

Vaccinations Community vaccination program School vaccination program

87 87 87

Vegetation

9, 20, 64, 76, 102, 153–154

Vision, city

7, 36, 52

Volunteers

45, 70, 90

Waste 12, 15, 20, 26, 28, 35, 40, 64, 66, 79, 82, 97–98, 100 Education 20 Kerbside collection 20, 100, 102 Landfills and transfer stations 39–40, 66, 100–102 Recycling market 100, 102 Tip vouchers 101 Waste services performance plan 100 Water 8–10, 12–13, 15, 26, 28–29, 33, 35, 40, 43, 46, 54, 58–59, 65–66, 68, 76, 82, 94, 97–99, 107, 109–110, 112–113, 116, 118, 120–123, 125–126, 129–130 Logan Water Alliance 22, 68, 98 NetServ 99 Pressure and leakage management 22 Quality 9, 39–40, 76, 94 Rates 8, 66, 82, 107, 158, 161 Supply 58, 98–99 Wastewater 15, 43, 58, 68, 82, 98–99 Water performance plan 98 Wetlands 2, 9, 11, 15, 20, 22, 40–41, 65, 69–70, 76, 94 Catchment Recovery 20, 65, 76

150 Wembley Road Logan Central QLD 4114 PO Box 3226, Logan City DC QLD 4114

Phone 07 3412 3412 Email council@logan.qld.gov.au Visit www.logan.qld.gov.au

ISSN 1837-6142