2013/14 Annual Report by Logan City Council

Annual Report 2013/2014

BUILDING OUR

PRIDE BUILDING OUR

BUSINESSES BUILDING OUR

COMMUNITIES

The City of Logan is a dynamic, diverse and proud community and is a perfect place for young families to grow. More than 300,000 people already call Logan home. The city is made up of 63 suburbs and covers 957 square kilometres. The cityâ&#x20AC;&#x2122;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 80 per cent of our city being rural, semi-rural or conservation, Logan has more than 900 parks as well as world-renowned wetlands and bike trails.

OUR ANNUAL REPORT

Contents Our annual report

Commercial business units

Introduction 6

Logan Water

Our vision, purpose, twin goals and values

Logan Waste Services

Performance summary

2013/2014 in review

Additional statutory information

2013/2014 financial summary

Revenue Policy

Our city

Borrowing Policy

Logan City in profile

Service charges

Mayor’s message

Financial sustainability

CEO’s message

Tenders and expressions of interest

How we engage our community

Community service obligations

Awards received in 2013/2014

Registers open for inspection

Code of Competitive Conduct for business activities 99

Our council

Administrative action complaint

Organisational structure

Democratic governance

Corporate governance

Working at Logan City Council

Internal audit, risk management and business

100

disclosures 2013/2014

National Competition Policy reforms

100

Local Government Finance Standard disclosures

101

Quality assurance

101

Financial reporting

continuity planning

Performance reporting

Financial performance highlights

104

Community financial report

104

Our framework

Income statement

105

Road and Water Infrastructure

Statement of comprehensive income

108

Statement of financial position

108

Statement in changes of equity

112

Statement of cash flows

113

stream summary 2013/2014 Community and Customer Services

stream summary 2013/2014 Organisational Services

stream summary 2013/2014 Strategy and Sustainability

stream summary 2013/2014

Summary 117 Annual financial statements

118

Priority area: Building our major infrastructure (MI)

Appendices

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

Legislative index

190

Priority area: Building our economic base (EB)

Global Reporting Initiative (GRI) Content Index

192

Priority area: Building our environment (E)

Glossary of terms

194

Priority area: Building our service excellence (SE)

A snapshot of Council and community events

196

Priority area: Building the wellbeing of our

Water branches annual performance plan report

198

Waste branch annual performance plan report

199

Contact information

209

Index

210

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

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR ANNUAL REPORT

Building our communities: Logan City has a mix of rural and urban lifestyles, which are woven together by open green spaces and a dynamic, diverse and proud community.

OUR ANNUAL REPORT

Our annual report This introductory section of the 2013/2014 Annual Report outlines information about our organisation and the city, gives a summary of our operational and financial performance for the 2013/2014 financial year, introduces our Mayor and Chief Executive Officer, and highlights the awards won.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR ANNUAL REPORT

Introduction This Annual Report details our performance during the financial year of 2013/2014 in meeting the strategic priorities outlined in our Corporate Plan 2013-2018 and our long-term financial planning.

On the cover This year’s Annual Report is themed ‘Building our communities, building our businesses and building our pride’. This links to our new city vision in the Corporate

We provide more than 70 programs and services to the

Plan 2013-2018, which came into effect for Logan City

community and this report details our successes and the

Council on 1 July 2013, thus making this the first annual

challenges faced over the past 12 months to ensure we

report to report against the new Corporate Plan.

remain open and accountable to our stakeholders. This information is relevant to Logan residents and

Building our communities

ratepayers, local business owners, potential investors,

Our communities have a strong sense of belonging

community groups, government agencies, funding bodies,

because we know and care for our neighbours. Our

and current and potential staff.

neighbourhoods have green places and spaces where

The objectives of the Annual Report include:

we can protect our biodiversity, connect with each other and celebrate. Our streets are shaded by native trees

• 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

and are linked to bikeways and pathways so we can move easily and conveniently. We have energy-efficient homes that are affordable, attractive and accessible so that regardless of age, ability or circumstance, we have a place to call home. Our people choose to remain in Logan throughout their lives because of the access to quality lifestyle opportunities. We work together to make decisions to enhance the wellbeing and quality of life within our neighbourhoods so that our people are healthy, safe and connected.

investors for economic development • creating sustainability and stimulating the economy by

Building our businesses

building state and federal partnerships, or obtaining

Our business and civic leaders have worked together to

grants or funding for projects

create a strong, vital and dynamic local economy. We

• building confidence and satisfaction in the partnerships

have a reputation of innovation and diversity and our

that are being created with community groups, local

people have access to a significant range of employment

authorities and others

opportunities. Our business leaders and educational

• 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.

institutions are strongly connected, creating valuable and diverse local employment pathways for our people. We have planned well to leverage emerging business markets and equipped our city with state-of-the-art infrastructure and transport corridors, making Logan highly accessible to the South-East and beyond.

Building our pride Our city is attractive and our people are welcoming and tolerant. We have a rich and diverse community with different cultures and our communities appreciate our unique qualities. We acknowledge that our environment is crucial to sustaining life and wellbeing. Our climate, waterways, vast green spaces and rural landscapes are protected and preserved, and we are proud to pass them on to future generations. Our facilities, green infrastructure, spaces and parks are admired within our region and beyond. In times of adversity, we work together and remain committed to promoting Logan as a liveable and sustainable city of choice.

OUR ANNUAL REPORT

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

Our purpose To make a positive difference in peopleâ&#x20AC;&#x2122;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

ce Suc

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.

City Vision

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.

Purpose

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

Twin Goals

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,

Values

for all that we do.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR ANNUAL REPORT

Performance summary We are reporting against Logan City Council’s 20132018 Corporate Plan, which targets seven priority areas. We deliver on our priorities by implementing our annual Operational Plan, which includes outcomes, strategies and priority focus areas directly from the Corporate Plan (refer to our planning and performance management framework on page 48 for more information). Our Corporate Plan 2013-2018 identifies the elected representative’s long-term city vision and priority areas over a five-year period. Development of our annual budget

2013/2014 scorecard We produce a quarterly Operational Plan performance report (available on our website), which provides a more detailed analysis of our performance and identifies any projects that are deferred or cancelled during the year. The following is a summary of our performance in delivering our 2013/2014 Operational Plan which consisted of 84 projects and/or key performance indicators (KPIs): • Seventy-one per cent of projects progressed as

and Operational Plan focuses on identifying key projects

planned or results for KPIs were within the acceptable

and key performance indicators that directly respond to

range.

the Corporate Plan and the seven priority areas.

• A total of 24 projects/KPIs did not meet set

Additional projects and key performance indicators that

performance targets. Of these, 12 have been listed as

do not directly align to one of the seven priority areas but

‘concern’, indicating that it is unlikely that performance

still have a strategic focus were included in the 2013/2014

will get back on track by the end of the first quarter of

Operational Plan, listed under the relevant stream and

the new financial year. Projects assessed as ‘concern’

branch.

will be carried forward to the 2014/15 Operational Plan

We focus on developing meaningful performance

for completion in the new financial year.

measures in all branch business plans and creating key

On the following pages is a summary of our performance

performance indicators at branch and organisational

against the 2013/2014 Operational Plan. A more detailed

levels. This will continue over the coming years as we

analysis of performance is provided for each priority

strive to continuously improve both our internal and

area and stream (pages noted at the end of each priority

external reporting processes and accountability.

summary).

We produce a corporate performance report card every three months. Our organisational leadership team uses this information in guiding the business, and the report is one

On track/completed:

completed, or all milestones due

of the improvements made to performance reporting and

this financial year have been

accountability across the organisation in recent years.

completed. The key performance indicator is meeting or exceeding

The report card provides a set of approximately 20

the target level.

high-level key measures that enable the organisational leadership team to track achievement against priority

Monitor:

The project is slightly behind

outcomes in the Corporate Plan and monitor key

schedule, but will be completed

organisational sustainability indicators, such as investment

within the first quarter of the new financial year and carries a

returns against industry benchmarks, working capital ratio,

low risk. The key performance

etc.

indicator is below the target level,

The balanced scorecard approach enables us to apply

but is still within the acceptable

critical perspectives to the performance areas we most

performance variance.

want to measure: customer service delivery, finance,

Concern:

The project has not progressed

internal business processes and culture, innovation and

as planned and it is unlikely

learning.

that the project target will be

Performance against our 2013/2014 Operational Plan is

met within the first quarter of the new financial year. The key

measured against project milestones and targets set at

performance indicator result

the beginning of the financial year. This results in more

is outside the acceptable

meaningful quarterly operational performance reporting to

performance variance.

Council and the community.

The project has either been fully

OUR ANNUAL REPORT

On track/completed Monitor

Operational Plan priority areas

Concern

Building our major infrastructure (MI)

Building our environment (E)

Priority focuses

Priority focuses 6

E1: Enhance our rivers and wetlands with

maintenance and upgrade of local roads

our community

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

Projects/KPIs

MI1: Increase emphasis and funding for

E2: Build our future wildlife corridors through vegetation, koala and water 2

MI3: Consider and adopt plan for

quality offsets and focused community 1

harmonisation of water rates, including

Projects/KPIs

partnerships E3: Reduce our energy costs and carbon footprint through

assessment of trickle feed consumers

innovation and new technology

See page 60 for more details.

See page 70 for more details.

Building our cityâ&#x20AC;&#x2122;s image (CI)

city image campaign

Priority focuses 1

SE1: Enhance our quality customer service practices

See page 64 for more details

SE2: Enhance community communication and engagement

Projects/KPIs

CI1: Adopt and implement a three-year

Building our service excellence (SE) Projects/KPIs

Priority focuses

2 1

SE3: Pursue alternative sources of

Building our economic base (EB)

revenue to diversify Councilâ&#x20AC;&#x2122;s income streams SE4: Subject to the necessary resourcing being available,

Priority focuses

commit to maintaining the programs and services listed in

EB1: Support existing businesses

this plan at or near current levels

EB2: Attract new businesses

See page 74 for more details.

EB4: Enhance focus on tourism, including eco-tourism opportunities EB5: Proactively market SouthWest 1 and SouthWest 2 developments

Building the wellbeing of our communities (WC) Priority focuses

WC1: Consider the Two-Year Action Plan

See page 66 for more details. 1

compiled from the Logan: City of Choice Summit, agree on appropriate roles and determine appropriate responsibilities for Council in response WC2: Prioritise healthy and active

Projects/KPIs

opportunities and local jobs containment

Projects/KPIs

EB3: Enhance local employment

lifestyle initiatives WC3: Enhance focus on city events See page 76 for more details.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Monitor

Operational Plan priority areas

Concern

Priority focuses MG1: Adopt and implement a new citywide planning scheme

Projects/KPIs

Managing growth in our city (MG)

Road and Water Infrastructure stream Projects relating to these branches: 3

3 2

• Disaster Management and Specialist Engineering Support • Road Infrastructure Planning

MG2: Ensure our development assessment function is best practice

• Water Business

MG3: Be proactively involved in the review of

See page 52 for more details.

Projects/KPIs

OUR ANNUAL REPORT

On track/completed

infrastructure charging philosophies for Queensland See page 82 for more details.

Projects relating to these branches:

• Growth Management and Urban

Design (previously known as Strategy

• Animal and Pest Services

and Planning)

• Community Services • Libraries and Cultural Services • Major Venues and Facilities

Projects/KPIs

• City Standards

See page 58 for more details.

See page 54 for more details. 1

The 2013-2018 Corporate Plan identifies priorities and service delivery commitments, which are then broken down each year through our Operational Plan and Budget.

Projects/KPIs

Strategy and Sustainability stream

Community and Customer Services stream

3 2 0

OUR ANNUAL REPORT

Other performance indicators Financial perspective

Customer perspective

Investment returns (actual) against benchmarks (UBS Bank Bill Index)

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

We have consistently achieved at or above the benchmark

Ninety-two per cent of our planned capital works projects

over the three-year period from June 2011 to June 2014.

were completed in 2013/2014. This result includes

The 2013/2014 year position for investment returns (3.80

projects by the Parks, Road Infrastructure Delivery, Water

per cent) was a significant outperformance of the UBS

Infrastructure and Major Venues and Facilities branches.

Bank Bill Index benchmark (2.63 per cent). This can be

This result is below the target of 100 per cent, however,

attributed to the use of term deposits in our portfolio and

it is still above the lowest acceptable performance limit

the stance of investing over a longer maturity term to lock

of 90 per cent. Capital works projects can include the

in rates before they fell.

construction of new or upgraded community facilities, roads, drainage systems, and water and sewerage networks.

5.13% 4.54% 93% 86%

Target = 100%

Benchmark = 2.63%

2013/2014

Target = 100%

Benchmark = 3.19%

2012/2013

Target = 100%

Benchmark = 5.13%

3.8%

2011/2012

92%

2011/2012

2012/2013

2013/2014

Lowest acceptable performance (90%)

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

Customer calls answered within timeframes

Our percentage of arrears figure of 5.18 per cent is an

years, the target – which was for the call centre to answer

improvement of 0.2 per cent on the 2012/2013 year figure

80 per cent of calls within 20 seconds – was achieved. The

of 5.38 per cent. While this improvement appears minimal,

national benchmark for calls answered within a call centre

this is the first time that the end of year target has been

is 44 seconds.

While this year’s result was below those of the past two

achieved across the three-year period since 2011.

90% 5.38%

87%

2013/2014

Target = 80%

2012/2013

Target = 80%

Target = 5.38%

2011/2012

80%

Target = 80%

Target = 5.14%

5.18%

Target = 4.8%

5.14%

2011/2012

2012/2013

2013/2014

Lowest acceptable performance (70%)

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR ANNUAL REPORT

2013/2014 in review Highlights • We completed the Logan Planning Scheme public consultation process. • We finalised the harmonisation of water and wastewater charges. • We successfully launched Logan’s Tourism Strategy. • We implemented the Slacks Creek Catchment Recovery Project. • We developed our Koala Conservation Strategy. • We developed an Arts, Culture and Heritage Strategy 2014-2017. • We updated our Pest Management Plan for 2014-18. • We conducted the fourth citywide ‘Logan Listens: Residents’ Survey’. The survey results play a key role in our annual budgeting and planning process. • We delivered more than $100 million of capital infrastructure to the community, including $65 million worth of roads and drainage, $47 million worth of water and wastewater, and $9 million worth of parks.

• $8 million for the Logan Metro Sports Park • $5.4 million to complete the Cusack Lane, Jimboomba, upgrade • $5.2 million towards the Chambers Flat wastewater pump station • $4 million towards stage one of the Chambers Flat Rd upgrade, which will focus on the intersections with Bumstead and Park Ridge roads • $3.4 million for improvements to Andrew Rd, Greenbank • $2.2 million to replace or improve our park assets such as toilets, lighting, car parks, pathways, playgrounds and shade structures • $1.8 million towards the signalisation of Browns Plains Rd at the entrance of Logan Metro Sports Park • $1.3 million to fund the monitoring, maintenance and ongoing operations of fixed and mobile safety cameras throughout the city • $1 million towards the Logan City Development Incentive Fund • $762,000 to continue our traineeship program

Challenges • We finalised amendments to our adopted infrastructure charges resolution. • We developed and began implementing a new Leasing Policy for playing fields/facilities, complemented by a Maintenance Strategy and water and wastewater remissions guidelines. • We upgraded our flood forecasting system. • We finalised the Logan: City of Choice Two-Year Action Plan and implemented the 2013/2014 year actions • We worked hard to improve efficiencies and deliver a

• $617,000 to help ensure the important work done by the city’s park rangers continues across our 924 parks • $593,00 towards the continued operations and maintenance of Logan’s cemeteries • $580,000 to continue our successful graffiti management program • $500,000 towards widening narrow roads and sealing gravel roads • $380,000 to continue implementing the Logan: City of Choice Two-Year Action Plan • $230,000 towards finalising the Logan Planning

budget in line with our current rate of consumer price

Scheme associated policies, maps and supporting

index, minimising rate increases for Logan ratepayers.

materials • $156,000 to help subsidise the cost of Live Well Logan

Looking ahead We have set aside key funding allocations for major projects, including: • $12.76 million to complete the duplication of 6.4km of wastewater pipelines to Alfred St pump station • $6.4 million towards Bethania’s Church Rd wastewater pump station • $5.9 million towards the revitalisation of Beenleigh Town Centre • $5.7 million towards park and roadside mowing • $25 million for road rehabilitation projects

activities • $120,000 towards Logan City’s Police and Citizen Youth Clubs • $107,000 for our school-based traineeship program • $87,000 towards the well-recognised and respected Local Area Multicultural Partnership program, which aims to ensure that Logan is an inclusive and accessible city for people from all culturally and linguistically diverse backgrounds • $80,000 to continue our award-winning Logan McDonald’s School Holiday Sports Program

OUR ANNUAL REPORT

2013/2014 financial summary Operating surplus ratio

Net financial liabilities ratio

The operating surplus ratio measures the extent to which

The net financial liabilities ratio measures the extent to

revenues raised to cover operational expenses only are

which net financial liabilities can be serviced by operating

available for capital funding and other purposes and is

revenues and is a short-term liquidity measure. The ratio

calculated as net operating result (presented in the income

determines how well placed we are to pay our liabilities out

statement) divided by operating revenue.

of current operating revenue and is calculated as the value

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.

of net financial liabilities (assets) divided by operating revenue. Net financial liabilities (assets) are calculated as total

We have provided an operating surplus (deficit) trend over the past five years and a forecasted ratio.

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

Operating surplus (deficit) ratio

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

Operating surplus (deficit) ratio: %

compares current assets to current liabilities rather than all 2.1

2009/2010

2010/2011 (2.7)

2.3

2012/2013

We have provided a net financial liability trend over the 2013/2014

2011/2012

liabilities, and is presented in the body of this report.

past five years.

(2.0)

Net financial liabilities (assets) ratio

(10.1)

Net financial liabilities (assets) ratio: %

Working capital ratio

13.2

The working capital ratio provides an indication of short-

11.7

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.

2009/2010

2010/2011 2011/2012

(2.2)

2012/2013

2013/2014

(10.3)

We had, on average over the past five years, 3.42 times the amount required in current assets to pay our short-

(12.5)

term liabilities. In 2014, the ratio was 3.15:1, which was an increase from 3:1 in 2013.

Working capital ratio

4.37 4.10

3.00

3.15

2.45

2010

2011

2012

2013

2014

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR ANNUAL REPORT

Caboolture

Our city

Esk

Logan City

AUSTRALIA

The City of Logan is ideally located in SouthEast Queensland with more than 300,000 residents across 63 suburbs. Our population is

Strathpine

expected to grow to 473,000 by 2031. Our city has a mix of rural and urban lifestyles – woven together by open green spaces, a

Gatton

Brisbane

dynamic, diverse and proud community, and a range of educational, industrial and business opportunities that are connected by distinct urban, economic and cultural hubs.

Ipswich

Our history The Logan region was originally inhabited by

Beenleigh

Aborigines from two major language groups: the

Logan City

Yugambeh and the Jaggera. Their first contact

Warrill View with Europeans occurred when the Commandant of the Moreton Bay Penal Settlement, Captain Patrick Logan, explored the river in 1826. He described the river as running through the finest

Gold Coast

tract of land he had seen in this or any other country and he named it the Darling, in honour

Boonah

Beaudesert Nerang

of the Governor. However, the Governor returned

Surfers Paradise

the complement by renaming it Logan River, in recognition of Logan’s enthusiasm and efficiency. The first leases of land in the Logan area were issued from 1849 and immigration was encouraged following the separation from New South Wales in 1859. Irish, English and German settlers initially settled the area. Cotton, sugar and dairying were the major industries in the region’s first 100 years.

Tweed Heads Logan City in profile divisions 12 council incorporating 105,853

rateable properties

19,490 businesses

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.

An economy worth

The Logan local government area was created in 1979 and Logan was declared a city in 1981. In 2008, parts of the former Beaudesert Shire and Gold Coast City joined Logan City, creating the fifth-most populated local government area in Australia.

$18.89 billion

with a gross regional product of Assets worth more than

$2.6 $3.2

$9.6 billion

$6 billion

water and billion wastewater assets and worth of roads and billion drainage assets

including

worth of

Logan City Council 2013/2014 budget:

$775.5 million 14

2,178 km

suburbs covering

957 km

2,083 km

of water mains

of roads

171 km

of unsealed roads

216,505 tonnes

1,027 km of footpaths

of waste handled each year:

55,400 tonnes is recycled

924 parks 116

of the cityâ&#x20AC;&#x2122;s area has wooded vegetation cover

5,000 ha of

300,667

and

26.1% of

Rochedale South

Underwood

residents were

born overseas

Woodridge

Forestdale Hillcrest

Daisy Hill Shailer Park

Berrinba Kingston

Browns Plains

Cornubia

Meadowbrook

Tanah Regents Marsden Loganlea Merah Park Heritage Bethania Park Crestmead Boronia Loganholme Waterford Heights West Eagleby Edens Landing Park Ridge Waterford Beenleigh Logan Reserve Holmview

Greenbank

Park Ridge South Buccan

Bahrs Scrub

Chambers Flat

Munruben New Beith

Priestdale

Springwood

Slacks Creek

Logan Central

Median age:

Lyons

aquatic centres

55 community and 4,590 ha neighbourhood centres of wetlands, 2,406 km 4 major city of waterways community venues 28,277 ha 6 cemeteries ecological corridors 9 libraries

215

comprising ethnicities

sporting facilities

4 indoor sports centres

environmental parks

residents

of wastewater mains

91 km

of bikeways

More than

2,053 km

OUR ANNUAL REPORT

Logan City in profile

Belivah

North Maclean Logan Village

Stockleigh

Carbrook

Mount Warren Park Windaroo Bannockburn

Wolffdene

South Maclean

Yarrabilba

Jimboomba Undullah

Cedar Creek

Kagaru Tamborine Cedar Grove Cedar Vale Woodhill Veresdale

Veresdale Scrub

Mundoolun

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR ANNUAL REPORT

Mayor’s message The mark of a progressive and responsible council is that it is attuned to the needs and expectations of its residents and communities, while being able to make the important decisions that will ensure a sustainable future for all.

“I believe we have met the community’s needs and expectations for that vision over the past year.”

When we delivered our budget for 2013/2014 in July 2013, we were also introducing our new Corporate Plan 20132018, which sets a vision of “building our communities, our businesses and our pride” for the City of Logan over the coming five years. I believe we have met the community’s

And finally, we are building our pride.

needs and expectations for that vision over the past year.

The Logan: City of Choice initiative is delivering positive

We are building our communities.

impacts for our city. We are working with the community,

Our new draft planning scheme became public as we invited the community to have its say about the future of our city. In planning for 70,000 new dwellings and 130,000 new residents over the next 20 years, it was important that

our city’s key challenges and make actions from our TwoYear Action Plan a reality. We are proud of what has been achieved so far and I know there is more to come.

all stakeholders had the chance to comment on what our

We are planning a revitalised central business district for

city will look like in the future. Interest was high and I am

Beenleigh. Construction on the $9.7 million Beenleigh

sure this will continue as the scheme is adopted.

Town Square project will begin in late 2014 to inject

We are also fulfilling community requests. We introduced

significant economic and social benefits.

tip vouchers for the community – an idea residents had

We also launched our Rediscover Logan publications

been discussing for a couple of years. The project was a

to spread the word about our city’s successful people,

success and we are continuing with it in 2014/2015.

businesses and organisations. The inspirational

We created an equitable community by harmonising our water charges and service fees across the city for the first

publications aim to boost community pride and spirit here in Logan and have been well received in the community.

time since our boundaries changed in 2008. Harmonised

I would like to record my sincere appreciation to my fellow

charges were not applied between 2010 and 2012 when

councillors, our Chief Executive Officer, Chris Rose, and

Allconnex Water was responsible for providing these

his management team for their continued support and

services, so this became our responsibility after July 2012.

leadership over the past 12 months. Additionally, the

I am pleased to say we were able to implement equal

remarkable achievements of our staff play a big part in

charges from 1 July 2013.

delivering quality programs and services to the community.

We are building our businesses.

We are well on the journey of building our communities,

Developing our economy through international investment remains a high priority. Our city’s economic output is nearing $19 billion, and in 2013 the Logan/Redlands region saw employment growth of 15,600 jobs – all this in spite of ongoing economic uncertainties in global markets. We signed an amended sister city agreement with Suzhou, China, to recognise the importance of creating business opportunities to benefit both regions. We also participated in a trade mission to Singapore, South Korea, China and Hong Kong to directly pitch to Chinese investors. Increased investment from international companies creates export opportunities and, most importantly, it grows employment and job opportunities for our residents today, and in the future. In June 2014, we hosted the inaugural Queensland Investment Expo to showcase major projects and investment opportunities for the region to Australian and international delegates. We know our efforts will boost our economy for the city’s long-term prosperity.

State and Federal governments and businesses to address

businesses and pride.

The 2013/2014 financial year has been a successful one for our organisation and our city. This is our first Annual Report reporting against the Corporate Plan 2013-2018 adopted in May 2013 by our Council. That plan identified priority areas of roads, city image, economic development and safety, and I am

...we will continue to strive to deliver the best services and facilities possible to our residents and customers, that being fundamental to the way we do business here at Logan City Council.

OUR ANNUAL REPORT

CEO’s message

pleased to advise that we have made important progress in each of these areas during this financial year, as evidenced throughout this Annual Report. As Council’s Chief Executive Officer, I continue to be proud of the feedback we receive from our residents through our annual Logan Listens survey. Both the overall satisfaction with our services and facilities and resident satisfaction with our customer service increased again this year, for the

this year. Our assets, which are ultimately the community’s, are valued at more than $6 billion, and we have a great responsibility to our ratepayers and residents, current and future, to ensure these are well-managed throughout their life, and to ensure adequate provision is made for their replacement.

fourth year in a row. That said, we will continue to strive

In terms of our growth agenda, significant progress was

to deliver the best services and facilities possible to our

made this year in drafting a new planning scheme for

residents and customers, that being fundamental to the

our city. Following consideration of community feedback

way we do business here at Logan City Council.

and State interest checks, we expect this new planning

As an organisation we face many financial challenges,

scheme to be adopted during the next financial year.

including lingering effects of the global financial crisis, the

We began a 2014 Year of Organisational Safety throughout

need to plan for and fund growth, ever-increasing business

the organisation to ensure all members of the Logan City

costs, and decreases in funding and grants received from

Council team, and anyone who visits our workplaces,

other levels of government.

stay safe. Our focus has also been on educating and

I am pleased to report that we remain in a sound financial position. The Queensland Treasury Corporation’s mid-

encouraging our staff to stay safe and heathy in their outof-work lives.

2013 review of our credit capacity gave us a moderate

The award-winning Logan: City of Choice initiative has

rating with a neutral outlook – the same results received

been instrumental in delivering real outcomes for our city

in the previous review. Underpinning this, we will continue

during this financial year, built around the Two-Year Action

to commit to increased efficiencies and savings whilst

Plan that has been adopted. In particular, we were pleased

maintaining services and managing growth across the city.

to announce a new partnership with the Queensland Music

As a key component of our long-term sustainability, strategic asset management was given an increased focus

Festival that will culminate in a major community event in 2015 that celebrates everything great about Logan City. I would like to record my appreciation to Mayor Pam Parker and our 12 councillors for their direction and support during this year. They are setting an exciting direction for the future of our city and the results can be seen throughout this Annual Report. This snapshot of achievements, and the other significant achievements detailed throughout this Annual Report, could not be possible without great staff. I express my sincere appreciation and thanks to each and every member of our staff for the splendid job they do to ensure that the services our community requires and values continue to be provided at a high standard and in a costeffective way.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR ANNUAL REPORT

How we engage our community Logan Listens: Residents’ Survey

Community events

In 2013, we conducted our fourth annual Logan Listens:

We are proud to host events for the community that instil

Residents’ Survey, a city-wide survey that has been run

community pride and enhance the city’s image. Council

since 2010.

sponsors or runs many events throughout the year that aim

In addition to playing a key role in our annual planning and budgeting process, the results help us gauge our overall performance in providing services to our residents. In 2013, seven out of 10 residents (72.5 per cent) indicated that they were either ‘satisfied’ or ‘very satisfied’ with our services and facilities.

to increase our residents’ participation in the community through healthy activity, learning programs and workshops and the opportunity to “have your say” on Council decisions that affect the community. These programs, services and events include:

Community events sponsored by Council

The chart below shows an increase in residents’ satisfaction across all areas of Council services every year for the four-year period from 2010 to 2013.

Council sponsors many externally-run events and festivals. We provided more than $187,000 towards community events in 2013/2014.

Overall satisfaction rating

Council-run events and activities Council funds and hosts many events throughout the year. In 2013/2014, Council 3.54

3.71

3.75

hosted the the 2013 Logan Mayor’s Christmas 3.88

Carols (December 2013), Jazz and Shiraz (April 2014) and The Time Before Festival (May 2014).

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

Free trees All Logan City ratepayers can beautify their

Logan Listens: Residents Survey satisfaction level with Council services and facilities 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.

properties by accessing three free trees each financial year under our Free Trees program. 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.

Council-run Have your say opportunities Residents can spend ten minutes and have a one-on-one chat and complimentary cuppa with the Mayor and divisional councillors each month.

We also provide many other opportunities for residents to have their say on specific Council projects during the year. Public consultation on the draft Logan Planning Scheme was a major focus in 2013/2014.

OUR ANNUAL REPORT

Council-run educational events Environmental workshops We are committed to protecting, managing

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.

and enhancing our natural environment and offer a variety of environmental programs, workshops, events and activities for residents to increase environmental awareness and understanding. Business development opportunities

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

The Logan Office of Economic Development

with a range of quality acts – from classic love songs to

provides information, business workshops and

broadway hits.

networking opportunities to make it easier to do business in Logan City. Environmental health services We support a healthy environment for

Council-run active and healthy activities Active Logan

our community. We aim to minimise our

This initiative offers low-cost physical activity

community’s exposure to health risks by

programs throughout Logan for people of

providing specific intervention-based preventative

all abilities and fitness levels. The program

measures. We provide vaccination services, pest

enables residents to try a new activity, explore a park or

management, graffiti removal services and encourage

community facility, meet new people and feel fantastic.

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

Healthy Logan The Healthy Logan program is an exciting initiative providing physical activity and healthy eating programs to encourage residents to make healthy lifestyle choices.

and collaborative library spaces, services, programs and collections to engage, inspire, empower and inform our diverse communities. Disaster management

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

We encourage our residents to be ready

only encourages active lifestyles but reduces the risk of

for natural disasters and emergencies. In

childhood drownings in the city.

2013/2014, we hosted two Get Ready Logan! events – one at Greenbank and one at Daisy Hill. These events enabled residents to meet with emergency services providers to learn more about how to be prepared to protect life and property.

KRANK The KRANK school holiday program is a lowcost program for Logan residents aged 13-17 years that offers a broad range of activities, including sports, recreation, entertainment and cultural

Council-run cultural events Logan Art Gallery Logan Art Gallery celebrates the diverse

activities at venues throughout the city. See a detailed calendar of events from 2013/2014 in the appendices.

practices of visual artists, craft workers and designers, and presents a dynamic exhibition program for residents and visitors to the region. Exhibitions

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR ANNUAL REPORT

Awards received in 2013/2014 Our organisation received the following awards during

Australian Road Safety Awards (Australian Road Safety

2013/2014, recognising the excellent contributions our

Foundation): Finalist - presented for the Patrick Pace Car

staff make to the community.

initiative

Information about our internal Employee Excellence

J Eddis Linton National Award for Excellence in

Awards can be found on page 37.

Records Management (Records and Information Management Professionals Australasia): Winner: Most

Logan City Council Parks and Leisure Australia’s Regional (Queensland)

disestablishment records transition project

Awards (Parks and Leisure Australia – Queensland):

Australian Learning Impact Awards (Institute for

Award for Excellence: Parks and Open Space

Learning Practitioners): Winner – Learning and

Development – presented for Shailer Pioneer Park

Development Internal Practitioner

Healthy Waterways Awards (Healthy Waterways):

Queensland Tourism Awards (Queensland Tourism

Government Award – presented for the Slacks Creek

Industry Council): Gold Award – presented for the

Catchment Recovery Project

development of our tourism strategy, the introduction of

Australasian Reporting Awards (Australasian Reporting Awards Ltd): Silver award – presented for the 2012/2013 Annual Report Water Industry Operators Association of Australia Queensland Conference Awards (Water Industry

the Visit Logan website, the creation of the Logan Tourism Association and a dedicated Tourism Officer position Big Ideas Award (Queensland Public Libraries Association): Winner – presented for the Mayor’s Reading in Schools initiative

Operators Association of Queensland): Second place –

SES Week Area Awards (Logan City, Gold Coast, Scenic

Best Paper by an Operator

Rim, Somerset and Ipswich State Emergency Services):

Local Government Managers Australia Queensland

Winner – Unit of the Year

Awards for Excellence (Local Government Managers

SES Week Area Awards (Logan City, Gold Coast, Scenic

Australia Queensland): Finalist: Excellence in Innovation –

Rim, Somerset and Ipswich State Emergency Services):

presented for the outreach immunisation service

Winner: Operational Response of the Year – presented for

Local Government Managers Australia Queensland

the unit’s response to a fatal gas explosion in Beenleigh

Awards for Excellence (Local Government Managers

Australian Health and Fitness Industry Quality Awards

Australia Queensland): Finalist: Excellence in

(Fitness Australia): Gold award – presented for Insports

Collaboration – presented for the Mayor’s Reading in

Health and Fitness’s unique focus on community programs

Schools initiative

and chronic disease management programs, as well as the

Local Government Managers Australia Queensland

commitment to running high-quality fitness facilities

Awards for Excellence (Local Government Managers

Jenny Reeve Quiet Achiever Award (Biosecurity

Australia Queensland): Winner: Excellence in

Queensland): Winner – presented for outstanding efforts

Collaboration – presented for the Logan: City of Choice

in the eradication of water mimosa in waterways within

initiative

Logan City

Government Communications Australia Awards for

Records and Information Management Professionals

Excellence (Government Communications Australia):

Australasia Queensland Branch Records Management

National Award – presented for the Logan: City of Choice

(Records and Information Management Professionals

initiative

Australasia Queensland Branch): Winner:

Government Communications Australia Awards for Excellence (Government Communications Australia): Best Communications/Engagement (City Council) – presented for the Logan: City of Choice initiative Queensland Road Safety Awards – Local Government (QUT’s Centre for Accident Research and Road Safety): Winner – presented for the Patrick Pace Car initiative

Outstanding Group – presented for the Allconnex Water

Outstanding Group – presented for the Allconnex Water disestablishment records transition project

OUR ANNUAL REPORT

Individual SES Week Area Awards (Logan City, Gold Coast, Scenic Rim, Somerset and Ipswich State Emergency Services): Winner: Area Member of the Year – presented to Julie Casey SES Week Area Awards (Logan City, Gold Coast, Scenic Rim, Somerset and Ipswich State Emergency Services): Recipient: SES Week Award – presented to Christopher Holloway SES Week Area Awards (Logan City, Gold Coast, Scenic Rim, Somerset and Ipswich State Emergency Services): Recipient: Director’s Commendation Award – presented to Elizabeth Chapman AustSwim Queensland Awards (AustSwim): Winner: Queensland Swim Teacher of the Year – presented to Leesa Langdon Australian Water Association Queensland Branch Awards (Australian Water Association Queensland Branch): Recipient: Distinguished Service Award – presented to Chris Pipe-Martin

The Logan: City of Choice initiative, which started in 2013, received several awards in 2013/2014, recognising the positive change it is having in our city.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR COUNCIL

Building our pride: Logan City is home to 924 parks, including the 80ha Berrinba Wetlands.

This section highlights how Logan City Council works for its community, including information about our elected members, executive management and our staff.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR COUNCIL

Our council

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Organisational structure As an organisation, Logan City

These roles, which are partially

The CEO also provides executive

Council has two roles under the

separated at State Government level,

leadership to the organisation.

Local Government Act 2009: a law-

are combined in one body at the

making role and an executive role.

local government level.

This means a local government

However, it is important to note that

the community through its elected

authority, such as Logan City

individual councillors do not have the

members. Council’s administration

Council, has a law-making role for

authority to make decisions – they

is headed up by the CEO and four

local laws and an executive role for

are made collectively when sitting as

Deputy CEOs as our leadership

adopting and implementing policy,

a Council.

team, delivering services through

administering local government and

This diagram illustrates how Council receives its authority from

the four streams of operations. The

The operational arm of a local

enforcing its local laws.

Internal Audit Committee acts as an

government authority consists of the

By analogy with the State

Chief Executive Officer (CEO) and

Government, Council is the ‘local

other staff. They are charged with

parliament’ when making laws, and

implementing Council’s resolutions

the ‘local cabinet’ when exercising

(decisions) and reporting on the

executive government powers.

outcomes of those resolutions.

(Audit Committee)

objective reviewer of our operations.

Council • Mayor

• Councillors

• Standing committees

(Internal Audit)

Chief Executive Officer • Strategy, Leadership and

• Office of the CEO

Performance Team

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

Road and Water (See page 52) Infrastructure

Community and Customer Services (See page 54)

Organisational Services (See page 56)

Strategy and Sustainability (See page 58)

• Deputy CEO

• Disaster Management and Specialist Engineering

• Animal and Pest Services

• Administration

• Development Assessment

• Marketing

• Finance

• Economic Development

• Major Venues and Facilities

• Governance

• Community Services

• Information Services

• Environment and Sustainability

• Customer Service

• People and Culture

• Libraries and Cultural Services

• Plant Fleet Services

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

• Parks • Media and Communication

• Growth Management and Urban Design • Waste Services • City Standards

• Water Infrastructure

Community outcomes • Building our major infrastructure

• Building our economic base

• Building the wellbeing of our communities

• Building our city’s image

• Building our environment

• Managing growth in our city

• Building our service excellence

Democratic governance Logan City Council, comprising the Mayor and 12

participating in Council meetings, developing policy and

councillors, is the elected body responsible for the good

making decisions that are in the interests of the whole

rule of Logan City. The elected body has legal obligations

community. Elected members are bound by a Code of

requiring members to represent the current and future

Conduct, which is their public commitment to open,

interests of the residents of Logan. They are democratically

accountable and ethical standards of behaviour.

elected and accountable to their communities for the

The community also plays a role in good democratic

decisions they make and the services they provide.

governance by participating in elections, being actively

Their role also includes other responsibilities such as

involved in engagement programs, and providing feedback

providing high quality leadership to the community,

on current issues and the services provided.

MAYOR - Pam Parker Representing the whole of Logan City

DIVISION 2 - Cr Russell Lutton

DIVISION 3 - Cr Steve Swenson

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

DIVISION 7 - Cr Laurie Smith 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)

Representing Daisy Hill (part of), Kingston (part of), Slacks Creek, Springwood (part of) and Underwood (part of)

DIVISION 5 - Cr Graham Able

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)

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

DIVISION 10 Cr Darren Power

DIVISION 8 - Cr Cherie Dalley DIVISION 11 Cr Trevina Schwarz

Rochedale South

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

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

Priestdale

Div 2

Springwood

Browns Plains

Hillcrest

Kingston

Shailer Park

Loganlea

Marsden Heritage Park

Boronia Heights

Cornubia

Crestmead

Bethania

Waterford West

Eagleby

Holmview

Beenleigh

Park Ridge South Bahrs Scrub

Buccan

North Maclean

Chambers Flat

Mount Warren Park

Windaroo Belivah

Div 9

Bannockburn

Lyons

Logan Village

Stockleigh

Div 11

Div 12

Waterford

Logan Reserve

New Beith

Carbrook

Loganholme

Edens Landing

Park Ridge

Munruben

Div 10

Tanah Merah

Div 6

Div 8

Greenbank

Daisy Hill

Meadowbrook

Div 5

Regents Park

Div 7

Div 3 Slacks Creek

Logan Central Berrinba

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

Div 1

Underwood

Woodridge

Forestdale

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The elected Councilâ&#x20AC;&#x2122;s responsibilities

Wolffdene

South Maclean

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

Div 4 Cedar Creek Yarrabilba

DIVISION 6 Cr Luke Smith

Jimboomba Undullah

Kagaru Tamborine Cedar Grove

DIVISION 9 - Cr Phil Pidgeon Representing Chambers Flat, Crestmead, Jimboomba (part of), 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)

Cedar Vale

DIVISION 4 - Cr Don Petersen

Woodhill

Veresdale

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), Logan Village (part of), Mount Warren Park, Mundoolun, Tamborine (part of), Waterford, Windaroo, Wolffdene and Yarrabilba

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Democratic governance Elected members Mayor Pam Parker After 11 years as a Logan OUR COUNCIL

City councillor, Pam Parker was elected as Logan’s first female mayor in 2008 and re-elected unopposed in the 2012 Local Government election. Logan City is now Australia’s fifth largest local government area by population, and Cr Parker is dedicated to making Logan a city for families, lifestyle and business where people matter and can live, learn, work and play. With the city’s annual economic output of $18.9 billion and the population set to boom over the next two decades, Cr Parker is confident about Logan’s exciting future.

Cr 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, Cr 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 Logan 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.

Councillor Steve Swenson

Representing Division 1

Representing Division 3

Councillor Lisa Bradley

Councillor Steve Swenson

was elected to Logan

was elected to Logan City

City Council in 2008 after

Council in 2012. He has

19 years as a registered

worked in the not-for-

nurse, including 14 years

profit sector for more than

as an intensive care nurse. She has a Bachelor of Applied

20 years and also served as one of Logan’s honorary

Science (Nursing) and post-graduate qualifications in

ambassadors since 2010. His previous work includes time

intensive care and psychiatric nursing, and has been

spent as a youth worker, church minister and community

involved in quality improvement, education and research.

relations officer. Cr Swenson believes the city’s enviable

Cr Bradley is a patron of a number of organisations and

location, lifestyle and abundance of green space are the

has passionately volunteered for a number of clubs,

city’s biggest attractions, but its people are the jewel

charities and organisations. Cr Bradley chaired the

in Logan’s crown. He became a councillor to make an

Environment and Sustainability Committee in the 2008-

effective contribution to the community and ensure the

2012 term of Council, and the Health, Environment and

concerns of residents are heard and acted upon – put

Sustainability Committee in 2012/2013. Cr Bradley has

simply, find a need, find someone who can meet it and

three children and enjoys the gym and cycling as part

put the two together. He feels humbled to work on behalf

of her daily exercise routine. She is a member of the

of the city and its residents to influence how Logan grows

Australian Institute of Company Directors and achieved a

and develops. Cr Swenson is married to Sherry and

Company Directors Course Diploma in 2011.

they have two school-aged children. He loves all sports,

OUR COUNCIL

Councillor Lisa Bradley

especially cricket and rugby league.

Councillor Russell Lutton

Councillor Don Petersen

Representing Division 2, Deputy Mayor

Representing Division 4

Councillor Russell Lutton

was elected to Logan City

is one of the city’s longest-

Council in 2012. He was a

serving councillors, after

councillor with the former

first being elected in 1985.

Beaudesert Shire Council

Before becoming a full-time councillor, he worked for

for 14 years until 2008 when Local Government Boundary

Queensland Rail and was Woodridge Station Master.

Reform dissolved the local government area. He currently

Cr Lutton is currently the Deputy Mayor and has served

chairs the Roads and Water Infrastructure Committee, a

on every standing Council committee, including six

role he has held since 2012. He is interested in bringing

years as chair of the Town Planning and Environment

transportation and social infrastructure matters to the

Committee and four years as chair of the Development

forefront and is keen to see positive changes in the Logan

and Environment Committee. He currently serves as the

community. Cr Petersen believes in building communities

chair of the Safe City Advisory Committee, Logan Road

from the ground up. As an active member of many

Safety Advisory Committee and Logan Bicycle Advisory

organisations over many years, he knows social change

Committee. Cr Lutton became a councillor to help people

cannot be imposed on a community – it has to be a grass-

in the community and make a difference. Cr Lutton is a

roots, long-term process by the community. He and his

father of three and has lived in Logan since 1982. He has

wife Nola have lived at Jimboomba since 1990 and have

an active interest in all sports.

two adult children.

Councillor Don Petersen

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Democratic governance

OUR COUNCIL

Elected members Councillor Graham Able

Councillor Laurie Smith

Representing Division 5

Representing Division 7

Councillor Graham Able is

Councillor Laurie Smith

one of the city’s longest-

was elected to Logan

serving councillors after first

City Council in 2012, after

being elected in 1985. Cr

a career in the printing

Able, who has lived locally

industry, most recently

since 1975, describes himself as self-educated. He spent

as business development manager, and nine years in

his childhood at Nudgee orphanage, St Vincent’s Home

the Australian Defence Force. He was previously area

— a time of which he is proud. After working as a farm

coordinator of his local Neighbourhood Watch for 15 years

hand and travelling extensively around Australia with book

and involved with surf lifesaving for the past 12 years,

companies, Cr Able worked for PMG (now Telstra) and in

including time spent in committee and official roles – he is

1978 set up his own commercial cleaning business. He

a former chairman of the Nippers at Southport and was on

was Mayor of Logan from 2006 to 2008, Deputy Mayor

the senior Southport Lifesaving Club and Supporters Club

from 1997 to 2004, and has chaired the Health Committee

committees. He now spends his time on the beach as an

and City Works Committee during his time on Council.

official at surf lifesaving carnivals. Cr Smith is assistant

He is currently serving as chair of the Animals and City

chairperson of Council’s Roads and Water Infrastructure

Standards Committee, a role he also held in the 2008-2012

Committee. As a councillor, he is inspired to change

term. Cr Able and his wife Margaret have four children.

people’s lives and surroundings and their engagement with the local community. Cr Smith is married with three children, aged 16 to 25. He has lived in Logan, and Division 7, since 1983.

Councillor Luke Smith

Councillor Cherie Dalley

Representing Division 6

Representing Division 8

Councillor Luke Smith

Councillor Cherie Dalley

was elected to Logan City

was elected to Logan

Council in 2006 as the

City Council in 1997. She

Division 5 Councillor, and

operated a commercial

in 2008 he was elected to

tiling business with her

represent Division 6. Born and raised in Logan City, Cr

husband Stewart until 1999, and is committed to helping

Smith has a professional background in the media, having

small businesses thrive in Logan. Cr Dalley is president

worked for Network 10 and in film production. Cr Smith

of the Queensland Consumers’ Association and she is

is passionate about his work in the local community,

heavily involved in community groups; she is a Legatee

having worked as a Senior Minister for Impact Christian

and treasurer of the Logan Beaudesert Crime Stoppers

Community Church and later as a community worker at the

Committee. She has previously chaired Council’s Finance

Loganlea Community Centre. Cr Smith chairs a number

Committee and is currently chair of the Planning and

of committees across Council, including the Governance,

Development Committee, a role she also held in the 2008-

Finance and Economic Development Committee and

2012 term. A divisional community consultation committee

Council’s Audit Committee, and is a member of several

advises Cr Dalley on the small and large issues within

internal and external boards. Cr Smith previously chaired

Division 8 — she says the feedback is invaluable and helps

the Logan Enterprises Board and Council’s Water and

her make decisions that benefit the whole community. Cr

Waste Committee. He is married and has three daughters.

Dalley has lived in Logan since 1980, and she has three grown children and three grandchildren.

Representing Division 9

Councillor Phil Pidgeon

Councillor Trevina Schwarz Representing Division 11

was elected to Logan City

Councillor Trevina Schwarz

Council in 1997. Born

was elected to Logan City

and bred in Queensland,

Council in 2012. With 13

he grew up in Central

years’ experience in the

Queensland and Brisbane and worked as a trainee

accounting profession, Cr Schwarz also managed her

manager at Woolworths, obtained a trade as a sheet

family’s mechanical workshop before being elected to

metal worker and welder, and spent time as a professional

Council. She has lived in Logan since 1989 and believes

photographer. Cr Pidgeon is patron of several groups,

the unique rural lifestyle of Division 11 should be protected

including the Queensland Bird Breeders Club (based in

as it is a popular place for families. As a councillor, she

Logan), the Crestmead 40+ Club and Logan City Square

aims to ensure residents’ interests are served. Cr Schwarz

Dancers, and is an honorary member of the Logan

grew up on acreage and has a lifelong love of horses; she

District Orchid Society. Cr Pidgeon currently chairs

has ridden at Royal level equestrian competitions. With her

the Sport and Community Services Committee and is

husband, she also imports American muscle cars and they

Council’s representative on the Council of Mayors SEQ

have also been keen drag racing fans. Cr Schwarz and her

Rural Communities Taskforce. He has previously chaired

husband have two children.

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Councillor Phil Pidgeon

Council committees that managed roads and drainage, health, parks, and animals and city standards. Cr Pidgeon is married with four children and has four grandchildren.

Councillor Darren Power

Councillor Jennie Breene

Representing Division 10

Representing Division 12

Councillor Darren Power

Councillor Jennie Breene

was elected to Logan

was elected to Logan City

City Council in 1997.

Council in 2012 and is the

He previously worked in

assistant chairperson of

Council’s Environmental

the Sport and Community

Health Department for five years; was a qualified graphic

Services Committee. Prior to being elected, Cr Breene

reproductionist with the Herald Sun in Melbourne; served

worked in her parents’ Brisbane-based business,

three years in the Australian Army, qualifying as a Special

managing the finances and customer service. Her previous

Forces Commando and earning his green beret; and

work experience has been in office administration and

served as a Federal Officer working in consulate patrol,

customer service. She is extremely passionate about

close personal protection and policing of the Melbourne

Logan City and in particular Division 12. She enjoys

Airport. Cr Power believes that living in Logan and working

working with residents and having a positive impact on the

at Council has provided him with an understanding of

services provided by Council. Cr Breene is a local and has

residents’ needs and an essential knowledge of Council’s

lived in Beenleigh for more than 20 years. She has been

operations. His vision is for Logan to become a brighter

married to Michael for 20 years and they have two teenage

and more appealing city that continues to provide better

children, Geoffrey and April.

facilities for all residents, along with its existing enviable natural environment. Cr Power lives in Shailer Park with his wife and family.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Democratic governance 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

OUR COUNCIL

Sector Ethics Act 1994. The following information details the action undertaken during the year relating to the various codes.

Councillor Code of Conduct disclosures 2013/2014 We are required to disclose figures relating to the Councillor Conduct Complaints received and actioned in accordance with the Local Government Act 2009 (the Act). Total number of orders and

Public Sector Ethics Act implementation statement

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

During the year, we undertook the following actions to fulfil

The name of each councillor for whom an

No breaches

our obligation under section 23 of the Public Sector Ethics

order or recommendation was made under

or orders to

Act 1994:

section 180 or 181 of the Act, a description

report for

of the conduct engaged in by each

2013/2014

• The code of conduct was updated as required and is reviewed every three years. • The code was made available upon request to all staff and the public online and internally via our electronic document management system. • We provided all new permanent staff with online training and access to a copy of the code of conduct. • No external inspections of the code were requested during 2013/2014.

councillor and a summary of the order or recommendation made for each councillor. The number of complaints about the

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

or Deputy Mayor referred to the Department of Local Government 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 Department of Local Government 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.

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 OUR COUNCIL

2013 Local Government Remuneration and Discipline Tribunal Report, remuneration paid to councillors between July 2013 and June 2014 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

$183,630.20

$22,035.62

Bradley

Lisa Catherine

Full year

$110,178.12

$13,221.37

Lutton

Russell Bruce

Full year

$124,868.12

$14,984.17

Swenson

Stephen Frederick

Full year

$110,178.12

$13,221.37

Peterson

Donald Christian

Full year

$121,195.88

$14,543.51

Able

Graham John

Full year

$121,195.88

$14,543.51

Smith

Timothy Luke

Full year

$121,195.88

$14,543.51

Smith

Laurence William

Full year

$110,178.12

$13,221.37

Dalley

Cherie Marie

Full year

$121,195.88

$14,543.51

Pidgeon

Phillip Wayne

Full year

$121,195.88

$14,543.51

Power

Darren Ross

Full year

$110,178.12

$13,221.37

Schwarz

Trevina Dale

Full year

$121,195.88

$14,543.51

Breene

Jennifer Rachael

Full year

$110,178.12

$13,221.37

Expenses Reimbursement Policy for councillors

A full copy of

We adopted a new Expenses Reimbursement Policy for councillors in April 2014 in

our Expenses

accordance with section 250 of the Local Government Regulation 2012. Our new policy

Reimbursement Policy

considers the ‘24/7’ nature and community expectation of a modern councillors’ role and

is available online at

makes arrangements for reimbursing expenses for our councillors:

www.logan.qld.gov.

• conferences and seminars, including travel and accommodation

• publications and newspapers

au/policies

• 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

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Democratic governance Attendance at committee and Council meetings RW Roads and Water Infrastructure HS Health, Environment and Sustainability PD Planning and Development AS Animals and City Standards PC Parks, Sport and Community Services GF Governance, Finance and Economic Development CNCL Ordinary Council SCN Special Council LRSC Logan Road Safety Advisory SCAC Safe City Advisory LBAC Logan Bicycle Advisory

Councillors must attend 75 per cent of the duration of each meeting to have attendance recorded. All councillors are members of all

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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.

1 JULY 2013 TO 30 JUNE 2014 NUMBER OF MEETINGS HELD

COMMITTEE MEETINGS RW

ADVISORY COMMITTEE MEETINGS AS

CNCL

SCN

TOTAL

LRSC

SCAC

LBAC

TOTAL

113

Cr Russell Lutton (Deputy)

101

Cr Lisa Bradley

Cr Steve Swenson

Cr Don Petersen

Cr Graham Able

100

Cr Luke Smith

Cr Laurie Smith

112

Cr Cherie Dalley

Cr Phil Pidgeon

Cr Darren Power

106

Cr Trevina Schwarz

105

Cr Jennie Breene

113

Cr Pam Parker (Mayor)

Barry Fitzpatrick, Democracy Sphere, 2007, steel ballot boxes, epoxy paint, bitumen. Public art installation at Logan City Council Central Administration Centre.

Corporate governance For Council, governance involves open and transparent adherence to legislation, policies, processes and practices that

Principle 1: Culture and vision

Principle 2: Roles and relationships

Objective

A positive culture exists, promoting innovation, openness and honesty, in which questioning is encouraged and accountability is clear. There is also a clear vision and strategic plan, produced through a comprehensive and inclusive process owned by all parts of the organisation.

Clarity exists about roles and responsibilities in the organisation, which are defined and implemented with sophistication. Effective working relationships are promoted and supported within and between the Mayor, Councillors, CEO and staff.

Outcomes

• We continued work on the new Logan Planning Scheme, structure plans and master plans, developing local area plans to ensure our city's growth is well planned, provides a range of lifestyle choices and is sustainable.

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

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

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

• We continued to provide a constructive work environment through our leadership and development programs, employee initiatives and branch culture journey projects.

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ensure effective direction setting, decision-making, management and control to achieve organisational objectives.

• We provided Code of Conduct training to councillors and staff. • We introduced a new 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. Robust and transparent financial management processes have been established and maintained to meet local government’s accountability requirements now and into the future. Risk is effectively identified, assessed, monitored and managed.

Active performance management systems are in place to enable elected members and staff to be openly accountable for their performance. Internal structures enable independent reviews of processes and decision-making, and appropriate public consultation is undertaken as required.

Outcomes • With the evolution of the new planning and performance framework, all branches are required to produce business plans and report meaningful data in the quarterly Operational Plan performance reporting. • We continued to implement a new risk management policy and framework. • We increased our focus on asset management through the development of a new Asset and Services Management Strategy. As part of this strategy, we will continue to enhance our development of asset management plans for all classes of our assets.

Outcomes • We continued our requirement that all branches have business plans and develop key performance indicators. • We continued the new approach to developing the Operational Plan and quarterly performance reports, resulting in increased transparency and accountability. • Our Corporate Performance Report Card continued to help our organisational leadership team monitor and evaluate our performance as an organisation. • We continued the internal audit review function. • Our annual Logan Listens Residents' Survey gathered feedback from the community on our services and how they are being delivered. This data is used to inform our budgeting and planning process.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Organisational leadership team Logan City Council’s senior executive team, known as the Strategy, Leadership and Performance Team (SLPT),

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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.

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

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

benchmarks.

EMPLOYEE

This ensures remuneration levels for executives are

One senior contract employee with

appropriate and that Council is well-placed to retain and

a total remuneration package in

attract executives with the skills necessary to help deliver

the range

value-for-money services to the community. Executive staff members (the CEO and Deputy CEOs) are engaged under fixed-term, performance-based contracts.

Four senior contract employees

REMUNERATION

$400,000 – $450,000

$225,000 – $275,000

with a total remuneration package in the range

From time to time, Council engages appropriately-qualified

external expertise to provide benchmarking data on the

The remuneration levels shown include a cash-base

remuneration of management. This provides an objective

salary but do not include allowances, minor non-

process for aligning remuneration with established market

monetary benefits (e.g. professional memberships), or

data.

superannuation.

Oliver Simon

Deputy CEO — Road and Water Infrastructure: joined Council in 2008

Deputy CEO — Community and Customer Services: joined Council in 2000

Silvio is a civil engineer with

Oliver has a strong focus

qualifications in business

on change management,

and company directorship.

infrastructure development

Before joining Logan City

and community planning.

Council, he spent 23 years in local government in Western

He was previously Community Services Manager at

Australia, the final 10 as the Executive Engineering and

Caboolture Shire Council and a senior executive manager

Technical Services/Deputy CEO at the City of Canning.

with the State Government. He was Logan’s Director of

Silvio’s stream is responsible for the planning, delivery

Community Services for six years before becoming Deputy

and construction of road and water infrastructure, and

CEO – City Services (later Deputy CEO – Community and

Council’s disaster management capabilities. He has a

Customer Services) in a realignment in 2006. Instrumental

strong interest in providing and managing quality public

in driving reforms in major projects at Logan, he is focused

infrastructure and services. He is also committed to

on infrastructure, establishing strong partnerships with

ensuring sustainability of assets and services throughout

other levels of government and developing innovative

Council, and leads the strategic asset management

policy solutions. He has a Bachelor of Applied Science in

functions across the organisation. Silvio holds a Bachelor’s

Planning and a Graduate Diploma in Urban and Regional

Degree in Engineering, a Graduate Diploma in Business,

Planning. He is a Fellow Member of the Australian Institute

and a Diploma of Company Directors. He is a member of

of Company Directors and a member of Local Government

the Institution of Engineers Australia, and is a Fellow of the

Managers Australia and Regional Development Australia

Institute of Public Works Engineering Australia.

Logan and Redlands.

John Oberhardt

Todd Rohl

Deputy CEO — Organisational Services: joined Council in 1984

Deputy CEO — Strategy and Sustainability: joined Council in 2009

John celebrated 30 years

Todd oversees development

with Logan City Council in

approvals, town planning

February 2014. He joined

policy, investment and

Council in 1984 after working

attraction, property

with the Commonwealth Bank. He has worked in all areas

development, environment management and waste

of local government, particularly finance, governance

management, and works with residents and customers

and administration, as well as with many industry and

to ensure compliance with the rules and regulations of

community groups, and inter-government working parties

the organisation. He became Deputy CEO in July 2012

and committees. He is committed to the performance

and has worked in the private sector and all three tiers

and reputation of Council, its staff, the industry and the

of government: local, state and federal. Todd has been

community of Logan. John holds a Bachelor in Commerce

involved in planning for more than 20 years and held

and a Masters in Public Administration, is a Certified

senior executive management positions for more than 10

Practising Accountant (CPA) and holds a Queensland

years. He is also involved in planner education in his role

Local Government Clerk’s Certificate. He is a Fellow of

as adjunct lecturer in planning practice at James Cook

Local Government Managers Australia (LGMA), a National

University.

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Silvio Trinca

Director on the Australian Board of LGMA, and LGMA Queensland’s immediate 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).

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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Working at Logan City Council Our People Plan

Building our values-based culture

We are implementing our People Plan 2013-2016, which

Having the right culture and providing strong leadership

covers the challenges we must embrace to maintain our

is an integral part of being an effective organisation that

position as one of the leading councils in Australia.

recognises ‘people make the difference’.

Logan City is ideally located between Brisbane City

We began our leadership and culture journey in 2003.

and the Gold Coast, offering outstanding lifestyle and

It is based around the internationally-recognised

business choices. We take advantage of highly regarded

Human Synergistics model, where staff are involved,

educational facilities, well integrated transport networks,

consulted and supported in identifying and enhancing

major shopping centres, and modern cultural and sporting

positive styles of behaviour. Many iconic organisations

facilities. We pride ourselves on the natural and built

such as Lion Nathan, Yarra Valley Water, Fairfield City

environment of our city.

Council, Kennards Australia and Adshel use the Human

While acknowledging the significant assets, attributes and

Synergistics model.

opportunities in our city, we understand that it is excellent

In 2010, we embarked on a fresh

service delivery by our staff that is critical to Logan

process designed to set the

continuing to develop as a city of choice.

direction for a focused and

The People Plan 2013-2016 will help shape our city’s future by striving to create a culture of excellence, innovation, trust and respect among our staff.

rejuvenated organisation. After much analysis and discussion, the latest evolution of the

The plan places significant emphasis on developing a

leadership and culture

workplace where our staff strive for excellence and enjoy

journey was born as

high levels of personal job satisfaction.

‘Building our values-based

It is a plan to: • ensure a safe and healthy working environment • attract and keep the right staff, who are focused on

culture’. We conduct an organisation-wide culture survey every two years to determine the ‘actual culture’

service excellence and share our values for a positive

compared to the ‘preferred

workplace culture

culture’. The survey results

• develop and empower staff • encourage the best outputs, with the emphasis on staff productivity and value for money • enable staff to learn and grow both professionally and personally. The key areas to be addressed over the life of this plan are: • safety, health and wellbeing • leadership and culture

feed back into our culture program and help us to gauge whether what we are doing on our cultural journey is making a positive difference. Our most recent survey was conducted in October 2013. Results for this survey indicated an overall positive shift in the organisational culture. We recognise that there is always room for

• workforce planning

improvement and are working

• contemporary work practices

closely with branch managers to

• achievement planning and review.

identify strategies and initiatives to continuously improve the

It is a plan to create a place where our staff want to work

culture within our workplace. Our

and choose to stay.

next survey is due to be completed in October 2015.

In 2003, we introduced our Employee Innovation Awards

As an organisation, we value excellence, and fundamental

as a way to encourage staff to find better ways of doing

to achieving that is fostering enquiry, innovation and

things in the workplace. The awards are hosted annually

creativity with a focus on continuous improvement. These

and over the years the event has grown in popularity, with

awards acknowledge those who have excelled in this area.

an increase in the number and quality of submissions.

Announced in March 2014, the 2013 winners were:

In 2013/2014, we marked the 10th anniversary of the awards. The name of the awards and some award

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Employee Excellence Awards

categories changed this year based on staff feedback.

Corporate Innovation Award

Customer Service Innovation Award

PROJECTS

TEAM MEMBERS

PROJECTS

TEAM MEMBERS

Winner: Logan Sports Facility Development Program

Cameron Bechaz,

Winner: Becoming an EcoEfficient Logan Food Business

Brendan Ling,

The Logan Sporting Clubs Facility Development Program is a successful new and innovative

Francis Mills, John Taylor, Brendan McNally, Lars Waalder

The program expanded our role to include proactive education and advice to remove barriers and

process that engages with sporting

help local food businesses achieve

clubs and the State Government

multiple benefits by improving their

to ensure Logan City takes full

energy, water and waste efficiency

advantage of external funding

(also known as eco-efficiency) and

opportunities in the current

improve their food safety.

economic and political environment.

Runner-up: Loganâ&#x20AC;&#x2122;s Offsets

Anna Markula, Rodney Adam,

Runner-up: Destination Website - Visit Logan

We rehabilitated 11 hectares of

Lauren Crosse,

The Community Engagement and

offset sites, which enabled us to

Renee Domalewski,

Marketing branch (now called

trade offsets and receive an income

Fatih Dur,

Marketing branch) collaborated

which can be used to expand green

Trevor Graham,

with the local tourism industry to

space in Logan.

Darrell Kraehenbuehl,

develop the Visit Logan website

Our Environmental Offset Policy is

Mike Mayo,

(www.visitlogan.com.au). The

Peter Massey,

website provides visiting friends

Larissa Nicholas,

and relatives, day trippers and

Jim McDonnell,

locals with a modern, dynamic and

James Allan,

comprehensive online guide to what

Adam Bell,

Logan has to offer.

the result of intensive research and consultation.

Ajit Dias, David Spolc, Vicky Fraser, Storm Iti

Cody Duschka, Kate Dalton, Kareen Duncan, Nicole Barclay

Brendan Jackson, Jim Napier, Kerry Perrett

Special mention: Productivity

Mindy Nguyen

Initiatives - The Power of One Former animal management officer, Mindy Nguyen, understood the aspects of operations management that would need to be reported on. With her previous skills as a data analyst, Mindy offered her skills to create databases with data in an easier and manageable form.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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Teamwork Award

Collaboration/Engagement Award

PROJECTS

TEAM MEMBERS

PROJECTS

TEAM MEMBERS

Winner: The Anaconda Pipe Replacement System

Mark Considine,

Winner: Logan: City of Choice Summit and Draft Two-Year Action Plan

Luke Baker,

Over the years, the team has been looking for better ways to carry out pipeline replacements beneath driveways. After much research and experimentation, the team devised a relatively simple method of pulling pipes underneath driveways using

Peter Hogan, Bernie Reiser, James Anderson, Sam Perera, James Luu, David Fell, Mark Cygan, David Parker

In January 2013, Logan Mayor Pam Parker and Queensland Premier Campbell Newman jointly announced a partnership approach to deliver the Logan: City of Choice Summit. This joint government announcement resulted in a whole-

steel plates and chains – called

of-government approach to deliver

the Anaconda Pipe Replacement

a three-day summit, which was held

System (APRS). This system is now

Jane Frawley, Francis Mills, Michelle Griffin, Cara Powdrell, Alex Bereznai, Jennifer Fredericks, Jill Provins, Natalia De Faveri, André Brits, Eva Hallam, Sandra Brain, Lana Lockett,

used to simultaneously both extract

in February 2013.

the old pipes and pull in the new

The summit brought together

Oliver Simon,

community, business

Nick McGuire,

representatives and all levels

Tracey Finlay,

of government to identify

Sophie Head,

opportunities to develop an action

Karen Tattersall,

plan around the five themes of

Marion Lawie,

education, employment, housing,

Alice Sherring,

safety and social infrastructure.

Andrea Lomax,

replacement pipe into the same annular space, all without causing any soil heaving or disturbing adjoining structures.

Runner-up: Payroll Tax Rebate

Rob Howes,

Project

Brendan Jackson

Tina Wittke,

The project was initiated to request

Nigel Brown,

a refund of overpaid monies from

Peter Murphy,

the Office of State Revenue on

Natalie Newell,

agency-provided temporary staff

Kate Dalton,

between 2008 and 2013, totalling

Zoe Krieg

$930,000.

Runner-up: Journey Blong Yumi (Our Journey): Australian South Sea Islander 150 ‘Journey blong yumi’ was a collaborative project between Council and the Australian South Sea Islander (ASSI) community. It was Logan’s contribution to a state-wide project that recognised

Robyn Daw, Michael Wardell, Chelsi Foskett, Lesley Nicholson, Jillian Beardsworth, Reuben Friend, Peter Penwarn, Caitlin Frisby, Vicky Fraser

150 years since the first South Sea Islanders were brought to Australia.

The winners of the Teamwork Award, pictured with Cr Luke Smith (second from left) included Mark Considine, James Anderson and Sam Perera. They were recognised for their Anaconda Pipe Replacement System, which allows crews to replace pipework under driveways without causing soil heaving or disturbing adjoining structures.

Leadership and staff development Sustainability Award

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

PROJECTS

TEAM MEMBERS

Winner: Munruben Enterprises

Phil Peters,

– Material Recycling Project

Peter Olive,

combination of individual coaching, group workshops and

Ricky Baker

mentoring. This intense program challenges participants

refines leadership competencies of our staff through a

The sustainability initiative

to increase their levels of self-awareness and to push

involved key Road Construction

boundaries that may be restricting their leadership

and Maintenance operational staff

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Our Leadership Development Program develops and

potential.

identifying an opportunity for us to reduce waste, reduce costs, reduce

Leadership Development Program

consumption of natural resources and optimise the recovery and

The Leadership Development Program is highly regarded

recycling of materials.

throughout the organisation and is in popular demand.

Operational staff had identified

Enrolment has been capped to ensure participants and

a significant portion of the construction materials being

mentors get optimum support throughout the program and

disposed as waste product could

gain the most from this experience.

have the potential to be recycled reducing the need to draw on our

Staff participation in our annual Leadership Development Program: five-year trend

natural resources, reducing filling of valuable space at disposal sites and reducing overall material costs associated with construction and maintenance activities.

Runner-up: Large-Scale Solar Power Installations The project entailed the installation of a total of 60kW of solar power at two Council sites, including a website interface and equipment to monitor power output, potential power output and a live performance display. The project allows us to save on considerable energy costs and emissions, and monitor performance while demonstrating a working business case for large-scale solar installations.

2010

2011

2012

2013

David Spolc, 2009

Brendan Ling, Michael Asnicar, Carolyn Johnson, Steve Searle

Other development and training opportunities We are committed to investing in the professional and personal development of our employees and provide opportunities for staff to develop a successful career through: • formal professional and personal goal setting and action planning through the annual achievement planning and review process • access to high-quality corporate training courses through the corporate development program • financial and study leave assistance towards recognised qualifications • branch-specific training and skill development • access to industry-leading speakers and seminars.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Our Year of Organisational Safety In the second half of 2013/2014, we launched our Year of Organisational Safety, an organisation-wide initiative

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aiming to advance the understanding and motivation of our staff to think and act safely every day. ‘Always Safe: Me | You | Us’ is the vision for the initiative. This vision communicates 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.

Measuring workplace safety 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 of 10 similar-sized Queensland councils. As the number of lost time injuries per hour worked is always very small, a multiplier of 1 million is used for ease of interpretation. Therefore, LTIFRs are reported as the number of lost-time injuries per million hours worked. This

A series of events and initiatives were planned for the year, which focused on four key areas: FOCUS AREA

PURPOSE

Leadership and values:

Create a culture in which

‘Leading the way’

people are empowered to demonstrate leadership in

is calculated as follows: (Number of lost time injuries in accounting period) (Total hours worked in accounting period)

x 1,000,000

Comparable data is not available for five years due to a change in methodology in the way LTIFR data was

safety at all levels and at

reported three years ago. While we are unable to identify

all times. It also serves to

any definitive trends based on only three years of data, it is

show the commitment of

positive to see that our LTIFR has progressively decreased

Council’s leaders to the

over the past three years and continues to be significantly

vision.

lower in comparison to the benchmark group.

Prioritisation of safety:

Create a culture in which

‘Safety first’

safety is the highest priority at all levels and across all branches at Council.

Communication: ‘Talking

Create a supportive

safety’

culture in which open

Lost Time Injury Frequency Rate (see calculation above) in comparison to benchmark for similar-sized councils in Queensland

17.33

communication about safety

17.21

16.47

becomes ‘the way we do things around here’.

take personal responsibility for the safety of themselves

Benchmark = 19

people feel empowered to

home’

Benchmark = 19

Create a culture in which

safety: ‘Bringing safety

Benchmark = 18

Personal responsibility for

and those around them.

2011/2012

2012/2013

2013/2014

Safe workplaces have been the focus of the 2014 Year of Organisational Safety project.

Workforce statistics Staff numbers by age profiles: five-year trend

1,274

2010/2011

2011/2012

403 28

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363 76

16 2009/2010

1,409

1,273

226

215

192

180

173

195

213

201

1,585

1,394

304

356 297

321 344 355

338

318 339 352

1,705 1,703

405

403 414

Staff numbers by employee types: five-year trend

2012/2013

2013/2014

15-24 years

1,215

25-34 year 35-44 years 45-54 year 1,014

55-64 year

1,002

65+ years

Rolling average percentage of staff separation: fiveyear trend For 2013/2014, our average staff turnover was at a record low. While the global economic crisis may have had some impact, this is not considered to be the only influence, as our economy has suffered worse crises historically. As an organisation, we pride ourselves on having much to offer our employees and the results for the 2013/2014 year are indicative of the satisfaction of employees with working at Council. 10.4% 8.56%

9.6%

8.27% 6.35%

2009/2010

2010/2011

106 40 2011/2012

127

117 32 2012/2013

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

32 2013/2014

Years of service: Total staff Full-time staff Part-time staff

90 (6%) 61 (4%)

Temporary staff Councillors = 13 every year

Our staffing numbers in 2010/2011 and 2011/2012

40 (3%) 24 (2%) 170 (12%)

132 (9%)

132 (9%) 274 (20%)

618 (44%)

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

90 (6%) 61 (4%)

2011/2012

274 (17%)

40 (3%) 24 (2%)

106 (8%) 62 (4%)

48 (3%) 41 (3%) 81 (6%)

170 (16%)

166 (12%) 618 (43%)

2012/2013

446 (32%) 450 (32%) 2013/2014

Number (percentage) of staff per service bracket <1 year

10-15 year

25-30 years

1-5 years

15-20 year

30+ years

5-10 years

20-25 years

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Our volunteers Residents wanting to make a contribution to the community are able to participate in voluntary work

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through Council and we recognise the diversity it brings to the organisation, including background, skills, expectations and motivations. Voluntary positions are available in the home library service, at Logan Art Gallery, Mayes Cottage House Museum, Logan Entertainment Centre, our parks (through the Bushcare, Trailcare and honorary park ranger programs), the animal management centre (as foster carers and in-house volunteers), and the State Emergency Service. All volunteers receive a briefing on our expectations

A full copy of our

and of their rights and

Volunteer Policy is

responsibilities as volunteers,

available online at

including health and safety

www.logan.qld.gov.

requirements and Code of

au/policies

Conduct training.

We recognise our cityâ&#x20AC;&#x2122;s volunteers each year by hosting an event to say thank you for the tireless contributions they make to our community.

Internal audit, risk management and business continuity planning Internal audit 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 serves to review and monitor our corporate assurance, audit, risk management and corporate governance activities and arrangements. The committee

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

Privacy

The review considered processes and key controls to assess understanding of

reports to Council through the Governance, Finance and

the privacy legislation and whether we

Economic Development Committee.

have established effective management processes across the 11 principles.

Members of the Audit Committee for 2013/2014 year were: • Councillor Luke Smith (Governance, Finance and Economic Development Committee Chair)

OUR COUNCIL

Council’s Audit Committee serves as an advisory

Human

The review focused on the communication

resources

processes in place between the human

processes

resources and payroll functions; specifically the communication related to changes in

• Councillor Steve Swenson (Governance, Finance and

employee status and awards were reviewed

Economic Development Committee Assistant Chair)

for timeliness.

• Councillor Trevina Schwarz (proxy member in the absence of either of the above elected representatives) • John Oberhardt (Deputy CEO – Organisational

Contract

The review considered contract

management

management processes and controls related

framework

to monitoring of performance and benefits

Services)

realisation by reviewing a selection of key contracts. This review assessed consistency

• Oliver Simon (Deputy CEO – Community and Customer

of application and identified better practices

Services)

for key performance indicator reporting

• Len Scanlan (community representative).

measurements.

Representatives of both of our external and internal

Lease

The review considered the restructuring of

auditors also attend Audit Committee meetings. A

management

lease management policies and procedures for better practice and compliance.

Queensland Audit Office representative has a standing invitation and regularly attends Audit Committee Meetings

Long-term

The review focused on processes and key

in an advisory capacity.

financial

controls to be put in place for the inputs,

planning

assumptions and timing of financial data in

framework

relation to the long-term financial planning

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.

process. State

The review considered the collection of

Penalties

fine revenue processes between the City

Enforcement

Standards and Finance registers and the

Registry

external State Penalties Enforcement

revenue

Registry, the effectiveness of the current

review

process and consideration for recognising fine revenue on an accruals basis.

Revenue

The review focused on key financial

and debtors

processes and controls in relation to the

review

generation of revenue and management of debtors.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

OUR COUNCIL

REVIEW

OBJECTIVE

Risk management

Fraud risk

The review followed on from a previous

We recognise that risks are an integral part of any

management

risk assessment in the previous year and

organisation and understand the importance of managing

focused on the development of a staff fraud

risks at the appropriate level. Our Risk Management

awareness training package via online

Policy promotes a standard approach to risk management

training based on the identified risks from

throughout the organisation and ensures risks are

the previous review.

identified, assessed and treated to an acceptable level.

Information

The review focused on a post

technology

implementation review of the new Pathway

We use the Australia/New Zealand Risk Management

security

system in relation to the realisation of expected benefits of the implementation

as our risk management methodology. This standard

and assessed achievement of these through

describes the main elements of the risk management

consultation with relevant branches.

process as:

Tendering

The review considered our current

• Step 1 – establish the context • Step 2 – identify risks

and

procurement and tendering framework for

procurement

consistency of practices and compliance

review

with our policies and with the Local

• Step 3 – analyse risks

Government Act, including consistent

• Step 4 – evaluate risks

application. Travel

The review focused on the legal and

expenditure

regulatory alignment of policy and reporting

review

application of our policy to current practices through a sample basis and data analytics profiling for travel expenditure and general purpose order usage to present relevant insights.

Overall, the reviews noted sound control procedures, with only two high-risk areas of concern being identified.

• Step 5 – treat risks • Step 6 – monitor and review risks. We developed and introduced an organisation-wide risk management framework to promote a consistent approach 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.

Management immediately enacted strategies to address

Integration of our framework is guided by our four-year

these issues. In all other cases, recommendations were

staged implementation schedule. The 2013/2014 year

made to further develop and improve the respective

represents year three of the schedule. We internally

governance, risk management and control processes.

measure our success in meeting this schedule and

These recommendations were accepted by management and endorsed by the Audit Committee for implementation. We will pursue implementation of actions through our audit issues monitoring process, which involves the internal auditors validating all issues by running the follow-up process prior to closure. The outcome of this process is reported to the Audit Committee on an ongoing basis.

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 on request.

Standard ISO31000:2009 (or any subsequent successors)

evaluate our risk management maturity with the use of our award-winning Risk Management Maturity Model.

PERCENTAGE OF RISK MANAGEMENT INTEGRATION

DESCRIPTION

Embryonic

0 – 10

No evidence of risk

master business continuity

BUSINESS CONTINUITY

plan and supporting stream SU

management or compliance

documents will guide our

recovery plans. These

E AG

business and constructed a RISK MANAGEMENT MATURITY LEVEL

MA N

RE PA

OUR COUNCIL

threats to Council’s core

We have identified potential

following table:

response, recovery and

The six categories used in our model are detailed in the

PR E

Business continuity planning

resumption should a crisis 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

event affect our core business operations. The plan is split into three main sections which correspond to key phases of a crisis: PHASE

DESCRIPTION

Phase 1:

This section provides a protocol for stabilising

manage

the situation. It includes a list of immediate

the crisis

crisis actions, impact assessment tolls, contact lists and key roles and responsibilities.

reports and compliance can be validated Integrated

70.1 – 90

Risk management practices are interactive

Highly

90.1 – 100

Risk management activities

integrated

are embedded; regular monitoring and review of risk maturity occurs

Since introducing our organisation-wide risk management framework in 2010, we have seen continuous improvement

Phase 2:

This section includes a series of strategies

recover

designed to enable the recovery of critical

critical

business functions for each stream within

business

the organisation immediately following a

functions

business disruption.

Phase 3:

This section contains a series of actions and

resume

steps designed to return the organisation

normal

to its pre-disruption status. This includes

business

restoration or relocation of facilities and

operations

resumption of operations. Business resumption protocols will begin as soon

in our risk management maturity. It is evident that

as possible after the business recovery

prior to the introduction of our framework, we already

protocols are activated without interfering

had established risk management practices within the

with critical tasks or diverting key personnel

organisation.

from the initial recovery process.

The review and update of our business continuity plans 69.30

72.81

63.16

is an integrated part of our annual strategic planning and review process.

2011/2012

2012/2013

business disruption and coordinating our recovery and Integrated

Established

which is responsible for responding to a significant Established

Ranking

We have a committed crisis management team,

2013/2014

business resumption operations. Key roles on the crisis management team are assigned an alternate in the event that an officer is not available. We test the reliability of our plans and prepare our crisis

Risk management maturity levels

management team for a potential business disruption annually through a business continuity scenario test exercise. We also build resilience across the organisation by providing annual training and awareness sessions.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

PERFORMANCE REPORTING

Building our communities: we are providing the necessary infrastructure for the community as our city grows.

This section explains how we manage our reporting within the organisation, introduces the four streams of services that we provide for the community, and outlines how we performed against the Corporate Plan 2013-2018, including comparative trends.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

PERFORMANCE REPORTING

Performance Reporting

Our framework Our strategic planning and performance management

It integrates the performance management process so

framework (below) sets the context for our reporting

progress against our plans is measured, tracked and

requirements and comprises:

reported to the right audiences and at the right times. It

• a set of linked planning documents • a process explaining how these documents are developed and reviewed • what the focus is of each document • how each document influences others in the set.

is an important initiative in delivering our commitment to 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

PERFORMANCE REPORTING

Planning Ministers’ Council in 2007.

Implementation of the framework Strategic planning ensures that our city remains sustainable for current and future generations and that

Our planning process

Our planning documents

Set long-term

City Vision

all key stakeholders are aware of, and have a say in, the development of the area. The new Logan City Corporate Plan 2013-2018, which became effective from 1 July 2013, is the city’s key

vision

strategic plan as it translates the needs and expectations of our communities into priorities. This plan identifies the new long-term city vision and priorities for the organisation for the five-year period. Significant community consultation played a key part of developing the Corporate Plan.

Identify priorities and service delivery

Five-year Corporate Plan

commitments

The diagram at right represents the strategic planning framework used by Council and illustrates where the Corporate Plan fits within that framework.

Determine and

In October 2013, we conducted the fourth citywide survey

implement

of Logan residents, the Logan Listens: 2013 Residents’

operational

Survey, seeking the community’s views to help us plan

projects

effectively for our growing city’s needs. We plan to

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

continue the annual survey as it plays an important role in informing our strategic planning process. Monitor and report on performance

Quarterly Performance Assessments and Annual Report

The Operational Plan and Budget

Branch Business Plans

Our work commitments are identified every year through

Although all elements of the strategic planning and

an Operational Plan, which identifies priority actions to

performance management framework are equally

achieve the strategies of the Corporate Plan. The budget is

important, we believe requiring each branch to have

then developed based on the agreed priority actions.

approved business plans has had the most significant impact on our organisation. All branch business plans are

The Operational Plan then becomes an accountability

reviewed each year to ensure they remain aligned with our

document that reports progress on important projects

emerging organisational priorities. The business plans are

and initiatives on a quarterly basis to Council and the

required to have meaningful targets and measures, which

community during the year. The accountability for

has led to an overall and ongoing improvement in the

delivering these projects and initiatives, and the ongoing

across the organisation.

our desired longer-term outcomes, will remain a key focus over the coming years.

These business plans are strongly linked upwards to the Corporate Plan and in turn will provide strong planning direction to the Operational Plan and Budget.

Strategic review

Quarter 2 Operational Plan and stream reports

We held our fourth annual strategic review process in 2013/2014, building on the methodology and

Jan

processes introduced over the past three years. managers and the Strategy, Leadership and

No v

Budget review 1

external influences. The annual strategic review process consisted of three phases: • reviewing the previous year’s performance • identifying the emerging issues, drivers and trends

• Corporate financials

Quarter 3 Operational Plan and stream reports

• Stream issues

manner to changes created by internal and

Monthly • Branch reports

and activities are able to adapt in a timely

Budget review 2

Apr

basis, we can ensure the strategic objectives

Quarter 1 Operational Plan and stream reports

Oct

current situation and determine a position

By undertaking this exercise on an annual

r Ma

establishing a methodology to assess our

objectives.

Annual Corporate Plan Fe review b

Community survey

Performance Team (SLPT), with the goal of

for moving forward in line with our strategic

c De

Annual Report

The annual strategic review process involves

PERFORMANCE REPORTING

quality of planning and accountability at the branch level

development of better measures against achievement for

g J ul Quarter 4 Operational Plan and stream reports

Operational Plan adoption

Budget adoption

• setting organisational priorities. These priorities were incorporated into the annual

goals and values, and the initiatives that we will give

business planning cycle, which fed into the Operational

particular attention to in 2014/2015.

Plan and budget development for 2014/2015.

The diagram above shows how the annual planning,

In addition to the Corporate Plan 2013-2018, SLPT

budgeting and reporting cycle is integrated and driven by

endorsed priorities that detail our organisation’s mission,

our Corporate Plan priorities, and updated each year.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Asset management Why do we have assets and services management plans?

Our asset management service delivery coordination team involves all relevant Council branches and is chaired by the Deputy Chief Executive Officer – Road and Water

• There are legislative obligations:

Infrastructure.

• Local Government Act 2009 – section 104 (5) (a) (ii)

The team takes responsibility for the continual review of

• Local Government Regulation 2012 – sections 167,

the Assets and Services Management Policy, strategy and

168, 202 (5).

various plans. It also provides effective communication between elected members, staff and the executive

• It is good business practice because:

leadership team to promote and raise awareness of asset

• the plans help protect our assets, which have a

PERFORMANCE REPORTING

management principles.

current replacement value of more than $6 billion

Our Assets and Services Management Strategy has led

• our assets exist to serve the community so we

to the development of third generation long-term asset

need to ensure they are managed well

management plans for all our asset custodians.

• the plans ensure sustainability by predicting future

These plans provide a critical link between our policy and

financial commitments and what is needed to

plans, the Corporate Plan and strategic documents. The

address these in the medium to long term. This

strategy guides the management of the various asset

helps Council make informed decisions during the

groups under our control, and takes a whole-of-life-cycle

Budget and long-term financial planning process.

approach to ensure all assets are well managed throughout their life, from creation to disposal.

External influences on asset management International Standard ISO 55000

National Framework

Internal influences on asset management

Legislation, regulations, standards and State Government Expectations

Growth Management and Settlement Patterns

Long-term Financial Management Strategy

Corporate Plan

Assets and Services Management Strategic

Policy

Asset Management

Levels of Service

Growth Management

Strategy Asset Management Improvement Program

Capital and Operational Major Projects Enhancements Schedule (COMPES)

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

Operational

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

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

Looking ahead to 2014/2015

• These are developed using a strategy template provided by the Institute of Public Works Engineering Australia. • They address six key elements of asset management:

The Local Government Act 2009 and supporting regulations (effective 1 July 2010) focus on the four pillars of sustainability: economic viability, environmental responsibility, social equity and cultural vitality. Councils, including Logan, are required to demonstrate long-term financial sustainability by

• levels of service

developing and maintaining a key set of integrated

• future demand

planning and reporting documents, primarily:

• life cycle management

• Financial Plan (details financial forecasts and

• financial summary • asset management practices • improvement plan. • They provide critical asset information, including: • asset values and depreciation • asset sustainability analysis • what is required to manage the assets • service deficiencies

policies for managing the local government’s finances) • Long-Term Asset Management Plan (provides strategies to ensure the sustainable management of the local government’s assets and infrastructure)

PERFORMANCE REPORTING

What information is in an assets and services management plan?

• Corporate Plan (details how the community’s needs and expectations will be translated into priorities) • Operational Plan and Budget (states how the local

• what is spent on managing the asset

government will progress and fund the priorities

• condition data (where possible).

identified in the Corporate Plan each year) • Annual Report (informs stakeholders of the local government’s performance during the

Council’s major infrastructure assets include 2,178 kilometres of roads, 171 kilometres of bikeways, 1,027 kilometres of footpaths, 2,083 kilometres of water mains, 2,053 kilometres of wastewater mains and 924 parks

year through financial statements and other performance-related detail) • Our own performance reporting regime, the State of the Organisation report, delivered by the CEO to Council each quarter. Developing and maintaining these documents enables councils to be in a much stronger position of knowing what their strategic priorities are, and, if they have the financial capacity, to proceed with their established plans to deliver infrastructure and other services to the community. We will once again survey the community in October 2014 to determine customer satisfaction levels at an organisational level. The results obtained and the community views will help us determine service levels and plan for the city’s future. We will hold our annual strategic review process in 2014/2015, building on the methodology and processes introduced and developed over the past four years.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Road and Water Infrastructure stream summary 2013/2014 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 tasks.

Branches • Disaster Management and Specialist Engineering PERFORMANCE REPORTING

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

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan On track/completed • Complete planned flood modelling and mapping as part of flood response preparation • Upgrade the flood forecasting system • Develop a new roads and drainage asset management plan • Deliver the water conservation education program to local schools • Develop the Water Netserv Plan to plan delivery of water and wastewater services

• Water Infrastructure • Water Operations

Monitor

Core services

• Implement the priorities of the Disaster Management Improvement Action Plan

• Disaster management coordination • Specialist engineering advice • Road and infrastructure planning, design, construction and maintenance • Land surveying, mapping and aerial photography

Concern • Complete information and procedures for our emergency flood management response as part of flood response preparation*

• Transport planning, traffic operations and road safety • Flood and stormwater planning • Water and wastewater infrastructure planning, design, construction and maintenance

* Resources for this project were required to progress mapping for the new Planning Scheme project. As a result this project was not delivered by the due date, however this project will be completed by October 2014. (Scorecard definitions can be found on page 8).

We allocated $65 million to road capital projects in 2013/2014.

Looking back

Looking forward

Key achievements and challenges

Key issues for the next 12-18 months • We will plan and manage current and future assets by

rehabilitation of the local road network, allocating an

delivering our Asset and Service Management Strategy,

additional $1.52 million for road maintenance and $4

which includes completing all 2014/2015 Asset and

million for road rehabilitation.

Services Management Plans.

• We received an additional $2.7 million from the Natural Disaster Relief and Recovery Arrangements for repairs to local roads as a result of the 2013 Australia Day disaster event. • We delivered large capital works programs, providing $65 million worth of road projects (99 per cent of allocated budget), and $47 million of water and wastewater projects (92 per cent of allocated budget). • We harmonised our water and wastewater charges across the city. • We had to redesign a component of the Slacks Creek to Loganholme wastewater pipeline duplication, which set the project back nine months.

• We will continue to deliver our road pavement rehabilitation program in an efficient and timely manner. • We will deliver our road and water infrastructure capital works programs to meet the city’s growing infrastructure demands. • We will commit to delivering the 2014/2015 Transport Portfolio actions from the Logan: City of Choice TwoYear Action Plan. • We will work with the Department of Transport and Main Roads Queensland to review our Transport Strategy, ensuring that it aligns with State Government priorities.

PERFORMANCE REPORTING

• We increased funding for maintenance and

• We will continue to push for safer roads in Logan by implementing our 2014-2016 Road Safety Strategy. The previous strategy achieved a remarkable decrease of 11.4 per cent in injury crashes and our aim is to continue reducing the number of serious crashes by 10 per cent. • We will complete the duplication of 6.4km of sewerage pipelines to Alfred St pump station. • We will upgrade Bahrs Scrub wastewater mains and pump station. • We will continually improve disaster management practices for the city to minimise the impact on residents and businesses within Logan from disasters

The Logan Water Alliance is working on a 6.4 kilometre duplication of wastewater pipeline between Slacks Creek and Loganholme.

such as storms, floods and bushfires.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Community and Customer Services stream summary 2013/2014 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.

Branches • Animal and Pest Services

PERFORMANCE REPORTING

• Marketing • Media and Communication • Major Venues and Facilities • Community Services • Customer Service • Libraries and Cultural Services • Parks (The City Standards branch moved to the Strategy and Sustainability stream in January 2014 during an organisational structure realignment).

Core services • Animal management, including customer requests, impounds, cat and dog sales and re-homing, and community education • Health operations, including immunisation, graffiti and pest and weed control

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan On track/completed • Conduct a community education program to promote responsible pet ownership • Review and update the Pest Management Plan 2014-2018 to ensure declared pests are managed in the city • Action graffiti removal services to maintain our city image • Align local law amendments with State Government requirements and the new Logan Planning Scheme • Develop a leasing policy for playing fields/facilities, complemented by a maintenance strategy and water/wastewater remissions guidelines • Develop the Arts, Culture and Heritage Strategy 2014-2017 • Implement the eSmart libraries initiative aimed to promote smart, safe and responsible use of digital technology • Implement the Jimboomba Park and Glenlogan Park master plans • Implement a sporting field maintenance strategy to achieve desired levels of service

• Community engagement, events, marketing and media for Council programs and services • Social planning, including youth, seniors, safety and sport and recreation

Monitor • Increase the percentage of desexed dogs released from the Animal Management Centre*

• Customer service for the organisation • Libraries and cultural services, including history, public art programs and international relations • Facilities planning, construction, maintenance and management, including community venues, aquatic centres and sports facilities • Parks planning, construction, maintenance and

* This result is based on the percentage of all dogs released and includes dogs impounded that were already desexed.

Concern • Develop the Logan Metro Sports Park facilities*

management * The original scope for this project changed during the year to include the construction of additional facilities after the Waterford West Sports Park was absorbed into this project. Due to the increased scale, it was not completed by the target date, however the remaining aspects of this project will be completed during 2014/2015. (Scorecard definitions can be found on page 8).

Looking back

Looking forward

Key achievements and challenges

Key issues for the next 12-18 months

campaigns. • We held monthly Logan: City of Choice leadership team meetings and launched the State of the City Report, along with a range of other Logan: City of

• We will continue to coordinate the Logan: City of Choice initiative, supporting the delivery of the 2014/2015 Action Plan and communicating progress to key stakeholders. • We will implement a new parks bookings and events

Choice initiatives, including a forum with the Aboriginal

management plan to improve the booking process for

community and a multicultural soccer competition.

residents interested in using one of our many parks

• We started planning for the Queensland Music Festival Logan event, which will be held in 2015. • We sought funding for our safety camera program, and awarded a tender for the new safety camera monitoring facility. • We realigned our Active Logan and Healthy Logan programs to provide a better range of programs for the community. • We helped 11 local clubs seek funding through the State Government’s Get in the Game funding program. • We continued work on the Logan Metro Sports Park upgrade project, which will include the Logan Broncos Junior Rugby League Academy. • We completed community research and began using this information for future projects. • We continued to build positive relationships with local and metropolitan media. • We delivered the Logan McDonald’s School Holiday Program to local chlidren. • We hosted several successful community events, including the Logan Mayor’s Christmas Carols, the BDS Sports Awards, the Time Before festival (previously Mayes in May), Logan Loves Volunteers and Jazz and Shiraz. • We trialled a ‘Passport to Logan’ to highlight the variety of events held across the city. • We implemented a review of our leasing policy for community facilities. • We began work on a strategy for affordable sports infrastructure.

throughout the city. • We will continue to provide services and quality facilities for vital sports and recreational needs across the city. • We will progress the development of the Logan Metro Sports Park, including the redevelopment of sporting fields and the construction of new clubhouse facilities. • We will continue to deliver a variety of events such as Jazz and Shiraz, Mayor’s Christmas Carols and Logan

PERFORMANCE REPORTING

• We featured in Brisbane Marketing tourism

Loves Seniors. • Construction will begin on the Jimboomba Park and Glenlogan Park master plans to improve current facilities. • We will continue our annual Desexpo campaign to encourage local animal owners to have their pets desexed to reduce the number of unwanted animals in the community. • We will focus on promoting Logan as a tourism destination through the delivery of our Tourism Strategy. • We will continue to focus on providing quality and efficient customer service to our community by conducting our annual Logan Listens: Residents’ Survey. • We will continue to focus our attention on creating a safer environment by installing additional safety cameras across the city and building a new safety camera monitoring facility. • We will continue our efforts to improve the appearance of our neighbourhoods through our free graffiti removal service.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Organisational Services stream summary 2013/2014 The Organisational Services stream delivers the services necessary to support Council’s business units and city services, including property management, finance, legislative requirements, information technology and human resourcing.

and support • People management, including training, workplace health and safety and workforce planning • Plant and fleet management, purchasing and repairs

Branches

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan

• Administration • Finance PERFORMANCE REPORTING

• Information communications and technology services

• Governance

On track/completed

• Information Services

• Not applicable

• People and Culture • Plant Fleet Services

Monitor

Core services

• Not applicable

• Intergovernmental advocacy and grants administration • Property and equipment purchasing and maintenance • Insurance and risk management

Concern • Not applicable

• Financial management, planning and compliance, including rates administration

(Scorecard definitions can be found on page 8).

• Records management, legal services and decisionmaking management, including information privacy

Our Plant Fleet Services branch manages our fleet of vehicles and plant equipment.

Looking back

Looking forward

Key achievements and challenges

Key issues for the next 12-18 months

implementation of our risk management framework. Our overall risk management maturity result was ‘integrated’ this year. • We successfully developed and implemented a new insurance claims management system. • We implemented recycling initiatives to reduce the amount of general waste at the City Administration Centre. • We retained our ‘moderate’ Queensland Treasury Corporation credit rating with a ‘neutral outlook’ for the third consecutive credit review, despite a number of financial challenges. • We prepared our first regulatory submission to Queensland Competition Authority (QCA) in relation to the price monitoring investigation into monopoly distribution and retail water and sewerage activities. QCA’s final report found that water and sewerage

• We will implement cost savings associated with stationery purchasing. • We continue to review our business continuity plans and scenario testing. • We will develop our risk management framework for 2015-2019. • We face an ever-increasing and ageing asset base that poses financial sustainability challenges, despite a significant effort being put into asset management. • We will manage the financial implications of infrastructure planning and charges reform. • We will review the city’s divisional electoral boundaries in the lead up to the 2016 elections to ensure they comply with Queensland electoral laws. • We will work on introducing the Modern Award, which will focus on improved efficiencies and productivity. • We will finalise a Certified Agreement, which is

revenue was below QCA’s estimate of prudent and

planned to take effect from January 2015 and

efficient costs in 2013-2015, and there was no

includes measures to position us as a leading council

evidence of an exercise of monopoly power.

in Queensland, and aims to improve efficiency and

• We developed online training modules for the staff code of conduct and fraud prevention. • We increased safety awareness through our Year of Organisational Safety campaign. This campaign aims to reduce workers compensation premiums and workplace incidents and accidents. • We introduced workforce planning across the

PERFORMANCE REPORTING

• We completed the third year of our four-year staged

productivity. • We will implement a health and safety management system to reduce risk for our workers. • We will improve our safety responsibilities and reduce our workers’ compensation premium. • We continue to address the challenge of maintaining an economical fleet while addressing the critical

organisation to ensure future staff resource demands

safety risks in a changing workplace health and safety

are identified well in advance of market changes.

environment.

• We continued to employ 41 trainees to assist school leavers find their place in the employment market. The majority of the trainees are from within our community. • We completed an upgrade to Windows 7, Office 2013, Exchange 2013 and the 270 software applications that support our services. • We enhanced access to information to improve the level of services our officers can get through mobile and web-based systems while working in the community. • We enhanced and expanded our geographical information systems to ensure mapping and locationbased information is available at all times. • We implemented improved life cycle management in the vehicle fleet to achieve measurable cost savings for vehicles.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Strategy and Sustainability stream summary 2013/2014 The Strategy and Sustainability stream delivers development assessment, planning policy, economic development, environment and waste services. These are key focus areas for Logan, currently Australia’s fifth largest

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan

local government area by population and expected to be

On track/completed

home to more than 450,000 people by 2031.

• Make a submission to the SEQ Regional Plan

Branches

Review • Finalise the Logan Central Master Plan and

PERFORMANCE REPORTING

• City Standards

implementation program

• Growth Management and Urban Design

• Develop the draft Meadowbrook Master Plan

• Development Assessment • Economic Development

Monitor

• Environment and Sustainability

• Nil

• Waste Services (The City Standards branch moved to the Strategy

Concern

and Sustainability stream in January 2014 during an organisational structure realignment. Growth Management

• Implement the Beenleigh Town Centre

and Urban Design is also the new name for the branch

redevelopment program*

previously known as Strategy and Planning).

Core services • Building, land use and environmental compliance • Licensing related to local laws

• Deliver the Springwood program* * The implementation of the Springwood Program and Beenleigh Town Centre redevelopment has been postponed until the adoption of the new Logan Planning Scheme to ensure alignment.

• Strategic land acquisition and development • Development assessment services, including building

(Scorecard definitions can be found on page 8).

and plumbing, development application approvals and town planning advice • Economic development, including business support,

Have your say

investment attraction and city promotion • Environmental health planning and licensing • Environmental planning and management, including vegetation, waterways, energy and climate change • Strategic land use planning, including planning schemes and infrastructure charges • Waste and recycling planning and management

Draft Logan Planning Scheme 2014 Expressions of Interest: Local Residents Reference Group Logan City Council has prepared a draft planning scheme which guides development and plans for Logan’s expected growth over the next 20 years. The draft scheme replaces Logan’s three existing planning schemes, creating a single scheme for the whole city. Pending state government approval, the draft planning scheme will be released for community feedback in early 2014. Council is hosting a Local Residents Reference Group to give us feedback on the draft scheme. Places are limited so to express your interest in taking part in the Local Residents Reference Group, please go to logan.qld.gov.au, click on ‘Have your say’ and follow the links, or call Council on 3412 4247 for an application pack. Expressions of interest close on 10 January 2014.

Our draft Logan Planning Scheme 2014 was released for public consultation in early 2014.

Looking back

Looking forward

Key achievements and challenges

Key issues for the next 12-18 months • We will finalise the new Logan Planning Scheme after

skills requirements of local industries and facilitated

completing the draft and public consultation phase of

training programs for local people.

the project during 2013/2014.

• We implemented our Global Connections Strategy to connect local businesses to investment opportunities, including one major trade and investment mission. • We delivered the Queensland Investment Expo, resulting in commitments for a further $660 million worth of investment in the city. • We participated in a mission led by the State Treasurer to South Korea, China, Singapore and Malaysia. • We finalised the Loganholme Tourism Precinct Master Plan. • We completed a preliminary land use plan for the Village at SouthWest 1. We also facilitated an option agreement over nine lots and sold three lots, and completed the tender process for the development of a hotel and associated uses. • We prepared tender documents for the sale of SouthWest 2. • We started work on the Slacks Creek Catchment Recovery project, including the completion of the Allgas St stormwater improvement system and the Timothy Park creek restoration project. This project has attracted significant external investment, including $1.6 million from the Federal Government through the Caring for our Country program. • We worked with more than 100 landholders who own property along 11km of the Logan River, to provide demonstrations, workshops, training and property management planning. • We also revegetated 11ha of land near the Logan River as strategic biodiversity corridor offset planting. • We developed our Koala Conservation Strategic Plan after extensive community consultation. • We established a solar power system at the Browns Plains waste and recycling facility and the Beenleigh Waste Transfer Station. • We conducted public consultation on the new Logan Planning Scheme over 60 business days from February

• We will start implementing the Loganholme Tourism Precinct Master Plan. • We will continue delivering a range of events and programs to support existing businesses including: • the Digital Connect program to build the digital capacity of Logan businesses • one-on-one mentoring/business advice sessions for the small business sector • export-focused events for local businesses • BizConnect business support programs for the small and home-based business community. • We will continue promoting Logan City as a business

PERFORMANCE REPORTING

• We began our Skills for Industry initiative to identify the

location of choice to encourage investment and the creation of new jobs. • We are committed to enhancing our waterways through key restoration projects, including the Slacks Creek Restoration Project and Logan River and Wetlands Recovery Plan. • We will continue increasing community awareness about food safety through the Eat Safe Logan program and also provide free food safety workshops. • We will continue our commitment to developing our Global Connections Strategy, which focuses on providing clear directions on international relations over the next four years. • We will develop an Environmental Education Strategy, focused on developing conservation partnerships and continue to deliver quality environmental events and workshops including the Logan Eco Action Festival. • We will begin implementing our Environmental Offset Policy and Framework. • We will complete the draft Meadowbrook Master Plan. • We will amend our local laws to align with State legislation and emerging trends in legal precedent, public policy and community expectations. • We will continue to explore new opportunities and

to April 2014; with staff speaking to approximately

technologies to enhance recycling and reduce

2,600 residents at meetings, on the phone and at face-

wastage.

to-face meetings. • We trialled mobile computing for our plumbing and drainage inspectors.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Priority area: Building our major infrastructure (MI) Priority focus

Highlights

MI1: Increase emphasis and funding for maintenance and

Council delivers on water harmonisation

upgrade of local road networks

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

All residents throughout the city, regardless of whether they live in rural or urban areas, now pay the

MI3: Consider and adopt plan for harmonisation of water

same water charges and service fees

rates, including assessment of trickle feed consumers

after we harmonised the fees in July 2013.

PERFORMANCE REPORTING

As part of Local Government Boundary Reform in 2008,

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan

our city boundaries were expanded to include areas that were previously part of the Gold Coast City Council and the former Beaudesert Shire Council. To ensure residents and customers were not

On track/completed • Implement the traffic signal rehabilitation program • Deliver the road and drainage maintenance program in accordance with agreed levels of service • Complete the parks capital works program on time and within budget • Deliver the road infrastructure capital works program within budget • Deliver the waste capital works program within budget • Harmonise the water and wastewater rates

disadvantaged at the time of boundary reform, we continued to apply the water and sewerage charges which aligned with the charges of their previous council, leaving the former Allconnex Water to harmonise rates across its customers. This was not achieved before water and wastewater services returned to our responsibility in July 2012, so the onus fell back to us to meet the 30 June 2012 deadline. We received an exemption from the Department of Local Government, Community Recovery and Resilience to meet this deadline on the basis that a harmonisation plan would be developed in 2012/2013.

Traffic congestion busted in Beenleigh with final link in road completed A $6.75 million project to complete

Monitor • Implement the Road Safety Strategy 2013-2016 • Deliver the water infrastructure capital works program within budget

the Beenleigh ‘ring road’ has eased traffic congestion in the suburb. The need for the road was first flagged by the Albert Shire Council before the responsibility shifted to the Gold Coast City Council and then to Logan City Council in 2008 following

Concern

the city’s boundary changes.

• Deliver the major venues and facilities capital works

The road, known as Showgrounds Dr, opened to traffic

program on time and within budget*

in August 2013, and was completed $600,000 under the allocated budget.

* The delay of two large projects in the Major Venues and

The new two-lane 360m road is built through the existing

Facilities capital works program resulted in under-budget

Beenleigh Showgrounds and connects Alamein to Zander

spend and the performance target not being achieved.

streets and provides a crucial link to the Beenleigh area.

Remaining funds will be carried forward to 2014/2015. (Scorecard definitions can be found on page 8).

It follows our previous upgrade and signalisation of the James and Zander streets intersection, which was valued at $1.85 million. A key part of our vision for Beenleigh is to create a town centre that is easy to get to and enjoyable to move around.

Investment in capital projects ($m) Completing the ring road was an important step 61

towards achieving this vision and the revitalisation

64.65

strategy for the Beenleigh Town Centre. The project also involved the construction of 358m of 150mm diameter water main along the southern

boundary of Showgrounds Dr to help resolve some issues relating to fire flows and water pressure in the

Beenleigh CBD.

Loganholme Wastewater Treatment Plant gets a new lease on life A vital infrastructure upgrade at Logan’s largest wastewater treatment plant was completed in April 2014, enabling the facility to operate efficiently for the long term.

17.1 12 7.7

8.3

2009/2010

2010/2011

2011/2012

7.9

9.3

2012/2013

2013/2014

PERFORMANCE REPORTING

Roads and drainage

The $22.5 million upgrade at the Loganholme

Water and wastewater

Wastewater Treatment Plant involved construction

Parks

of a new inlet works structure and the installation of mechanical equipment, including wastewater

Responsibility for water and wastewater services lay with

screens, grit tanks and a grit conveyance system.

the former Allconnex Water in 2010/2011 and 2011/2012.

Five existing and future incoming wastewater

We resumed responsibility for those services on

pipelines will connect to the new inlet works, while

1 July 2012.

an odour control facility was constructed, and pump station and bypass network modifications were made at the plant.

The Wineglass water tower at Hillcrest is a popular landmark.

The upgrade was needed to improve the capacity and operational efficiency of the 30-year-old treatment plant and provide environmental enhancements. At its ultimate capacity, the inlet works will be able to receive and effectively screen 8,800 litres of wastewater per second, which would fill an Olympic swimming pool in under four minutes. We have an obligation to ensure essential services, such as the wastewater network, can keep pace with the rapid population growth occurring across the city. Growth in the city’s population is expected to increase by nearly 40 per cent by 2026, and 70 per cent by 2051, which is a major reason we invested in this upgrade now rather than in 10 years’ time. The project, delivered by Logan Water Alliance, was completed ahead of schedule, within budget and without any significant safety incidents.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Crestmead Park undergoes an upgrade

Record roads and drainage projects delivered

We provided a new pedestrian

We delivered a $64.65 million road

bridge, footpath, water bubbler and

and drainage capital program,

landscaping at Crestmead Park in

which exceeded the largest previous

August 2013.

capital delivery year of $61 million in

The pedestrian bridge was installed after we received PERFORMANCE REPORTING

feedback from people wanting to be able to cross the creek to access facilities, including the nearby community centre, PCYC and school. Crestmead Park is already a popular place for families, with barbecues, playground, skate and basketball facilities and a dog off-leash area. This project further enhanced the area and made it easier for more people to access.

2012/2013. Major projects included: • Pioneer Dr, Logan Village, reconstruction • Third Ave, Kingston, construction of new road to Bardon Rd • Laughlin St, Kingston, extension • Wuraga Rd, Bahrs Scrub, reconstruction • Juers St and Polaris Ave, Kingston, intersection upgrade

Underwood Park playground brings fairytales to life

• Passerine Park, Rochedale South, drain rehabilitation

The new adventure playground at

• Logan Reserve Rd, Logan Reserve, reconstruction.

Underwood Park – the largest of its kind in the country – was completed in June 2014. The highly-anticipated Peter Pan-style playground in Priestdale is known as FUNderwood Hollow, a name developed by the community.

Road maintenance keeps Logan’s roads safe Road maintenance continues to be a priority, with about $17.8 million spent on a range of road

The castle-themed towers create a different adventure

services, including pothole and

experience for children to play among the trees, some five

minor pavement repairs, road sweeping, line marking and

metres from the ground, while the lush landscaping and

drainage maintenance.

picnic facilities make it a place parents can equally enjoy.

Our road maintenance area received 7,825 service

The $700,000 project was designed for children between

requests across the city, with 91.7 per cent actioned within

the ages of five and 16, and incorporates physically

target timeframes. We also identified and repaired 4,007

challenging equipment, scramble nets, rope, bridges and a

maintenance issues.

flying fox.

New facilities at Greenbank park

Water infrastructure prepares for growing city

A new skate bowl has been the

Providing essential infrastructure for

centrepiece of the redeveloped

a growing population is a key priority

Greenbank Recreation Reserve, which

for us, and we continued this work in

was completed in November 2013.

2013/2014.

The $758,000 project also included an upgraded and

Through our award-winning infrastructure delivery team,

expanded carpark, streetlights, barbecues, picnic seats

Logan Water Alliance, we delivered $47 million of water

and landscaping.

and wastewater infrastructure across the city, including:

Play equipment, including a sandpit with backhoe,

• Slacks Creek to Loganholme wastewater network

climbing frames, spider webs, and a play fort with slide, was also installed.

upgrade

Looking ahead to 2014/2015 • Construction on the high performance junior

• Travis Rd reservoir outlet main • Loganholme Wastewater Treatment Plant upgrade • Logan East pressure and leakage management and fire flow project. Logan Water Alliance is responsible for planning, designing and constructing new and improved water, wastewater and

rugby league academy, in partnership with the Brisbane Broncos, will begin in 2014/2015, at Logan Metro Sports Complex. • We will begin the $2.8 million replacement of the Edward O’Neill Bridge at Undullah. The project will be jointly funded by us and Scenic Rim Regional Council. • We have allocated $43 million for a range of key

recycled water infrastructure throughout Logan City. It is

park projects and activities, including park and

one of the largest water infrastructure delivery programs of

roadside mowing, park and landscape maintenance,

its type in Australia. The alliance is a public/private sector

and replacement of ageing park assets.

enterprise involving three engineering service providers.

• Our Bushcare and Trailcare programs will continue with $551,000 allocated to ensure our

Council clues up on child safety in cars We helped make car travel safer for children by coordinating a twoday accredited training course for volunteers and community liaison officers on installing child car safety restraints. The course, run by Kidsafe Queensland and funded through Department of Transport and Main Roads Community Road Safety Grants, trained several Logan community members who regularly work with local families, including policing volunteers, Council employees, Queensland Police Service liaison officers and volunteers at the Ethnic Communities Council of Logan Inc.

city’s greenspace is maintained. • We will improve safety at the intersection of Browns Plains Rd and the entrance to the Logan Metro Sports Park and Browns Plains Waste and Recycling Facility by installing traffic signals. The $1.8 million project also includes street lighting, widening and extension of the existing turning facilities, service relocations, new pedestrian access facilities and fencing. • We will widen Chambers Flat Rd, Chambers Flat, to four lanes between Entrance St and Park Ridge Rd over the coming years to cater for the city’s growth. The first stage will focus on the intersections of Chambers Flat Rd with Bumstead and Park Ridge roads, with work to start on-site

The training was held in response to data showing the

late in 2014/2015. We have allocated $4 million to

majority of child injuries and fatalities on local roads was

the project this year, with funding to continue in

due to children not being restrained properly.

future years.

The two-day course trained participants in how to

• We are improving the safety of Cusack Lane,

competently fit and check child restraints in vehicles and

Jimboomba, by rebuilding and widening a 2.7km

provide advice to the community on correct child car

section in a $5.4 million project.

restraint use. The course included practical training on different types of restraints and installing them in different car models thanks to the generosity of Auto Outlet Centre owner Michael Vogelsang, who provided his business as a classroom for the participants.

PERFORMANCE REPORTING

• New Beith Rd water trunk main

• We will complete the 6.4km duplication of wastewater trunk mains through Slacks Creek, Meadowbrook, Tanah Merah and Loganholme, thanks to a $12.6 million allocation. • We will lay 3.4km of wastewater pipeline between Crestmead and Kingston, and build a new pump station in Logan Reserve in a $16.8 million project, as well as building almost 2km of wastewater pipeline between Bethania and Tanah Merah in a $6 million project.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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 2013/2014 Operational Plan On track/completed

PERFORMANCE REPORTING

• Deliver a three-year city image campaign

Engaging with the media We appointed a Media and Communication Manager in August 2013, separating our media and communication activities from the events, marketing and community engagement programs. The new branch has focused on relationship building and this is proving beneficial with a wide range of proactive news coverage being generated about our organisation and activities happening in the city. Local, metropolitan and national media promoted Logan

Monitor • Nil

Concern • Nil

extensively over the past 12 months by covering 2013 X-Factor winner Dami Im and boxer Alex Leapai, who both come from the city. Additional coverage promoting the city’s economic credentials, environmental achievements and community initiatives such as our immunisation clinics was also achieved.

(Scorecard definitions can be found on page 8).

Highlights

Rediscover Logan publications spread the word about city’s successes Logan City’s heroes and stars,

Hidden Gems attracts hundreds of happy snaps Some of Logan’s best kept secrets have now been revealed thanks to the passion of local photographers. The winners of the Logan Hidden Gems online photo competition, conducted in early 2014, showcased just some

businesses and glimpses of the past, present and future were captured in a new series of inspirational publications launched in September 2013. The Rediscover Logan publications spread the word about the great people and places in Logan City.

of the city’s natural beauty, active recreation and cultural

The city has many unsung heroes, including International

pursuits and the people that make up the heart of the city.

Volunteer of the Year, Ada Banks, stars such as Sonia

Photos were posted on Instagram or Twitter using the #loganhiddengems hashtag and submitted online through the Visit Logan website. The judges had a tough job, with the competition attracting more than 1,000 entries from local residents, visitors, keen hobby snappers and professional photographers. The People’s Choice Award went to Jaydon Cabe, who received the most votes for his photo titled BMX Bandits.

Kruger, who has become an Australian television identity, and sporting greats such as Cameron Smith and Michael Voss, who have led their teams to victory at the highest levels in their respective football codes. We are also proud to claim former Woodridge State High School student Wesley Enoch, who is the first Indigenous Australian to head a state theatre company in Australia and the Snap Fresh plant at Crestmead, which produces 14 million world class frozen meals a year for airlines, and the

The winners shared in a prize pool of more than $5,000,

healthcare, defence, food service and catering industries,

including a Canon digital SLR camera, GoPro camera,

with an annual turnover of $50 million.

Cable Ski Logan party for 10 people, five-hour Angel Eyes photo booth hire and a two-week exhibition in the Logan Art Gallery with an exclusive launch event. The People’s Choice Award winner also received $1,000 in a Bendigo Bank account.

amazing volunteers, thriving

The publications aimed to boost community pride and spirit in Logan City. They have been distributed to schools and various community groups across the city and are also available online.

Looking ahead to 2014/2015 • We are developing a city image strategy in 2014/2015

enhancing our focus on tourism, and will be based on

to form the basis of all marketing, communication and

the results of community attitude research conducted

media products over the next three years. The strategy

in early 2014.

PERFORMANCE REPORTING

will focus on building the city’s economic base and

We launched the Rediscover Logan publications in August 2013 to promote the city’s unsung heroes.

A coffee table book has been produced to showcase the entries of the Hidden Gems photography competition.

CITY OF LOGAN

A collection of images showcasing our great city through the eyes and lenses of local residents and visitors

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Priority area: Building our economic base (EB) Priority focus EB1: Support existing businesses EB2: Attract new businesses EB3: Enhance local employment opportunities and local jobs containment

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

EB5: Proactively market the SouthWest 1 and SouthWest

Monitor • Deliver the Bizconnect Centre programs (number of programs delivered) • Support Logan’s business networks and associations through membership of three local chambers of commerce and the 4118 Club

Concern

PERFORMANCE REPORTING

2 developments • Facilitate the Future Leaders in Export program in

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan

partnership with Export Council of Australia (number of events)* * Five of the six planned workshops were delivered during 2013/2014 – the sixth workshop was not delivered because

On track/completed • Deliver the Bizconnect Centre programs with a satisfactory satisfaction level for attendees • Provide one-on-one mentoring/business advice

of reduced attendance and interest. Resources were instead used to host the two-day Queensland Investment Expo. (Scorecard definitions can be found on page 8).

sessions • Facilitate the Future Leaders in Export program in partnership with Export Council of Australia with a satisfactory satisfaction level for attendees • Deliver the Digital Connect program (number of programs delivered)

International trade mission bears first fruit A direct pitch to Chinese

• Deliver the Digital Connect program with a

entrepreneurs looking to invest in

satisfactory satisfaction level for attendees

South-East Queensland has paid

• Promote Logan City at targeted industry trade shows and events (number of national industry events attended) • Promote Logan City at targeted industry trade

dividends. Governance, Finance and Economic Development Committee Chair, Councillor Luke Smith, participated in a trade mission with the State Government through

shows and events (number of business leads

Asia in mid-2013, which included visits to Singapore,

generated)

Seoul, Guangzhou, and Hong Kong and a meeting with a

• Proactively promote Logan City as a business location of choice • Participate in overseas delegations and trade missions • Partner with industry bodies

group of prospective investors from the China-Australia Entrepreneurs Association Incorporated (CAEAI), based in Fujian Province, China. Impressed by the opportunities highlighted by Council, prospective international investors from Fujian Province then travelled to Logan City in September 2013 to

• Host the 2013 Logan Youth Jobs and Career Expo

investigate further. The reciprocal visit showed a vote of

• Implement the Logan Tourism Strategy

confidence in our city’s economic potential and was a sign

• Progress the sales campaign of the remaining lots in the SouthWest 1 development • Prepare the SouthWest 2 development for sale

Highlights

that international investors were serious about Logan.

Australia’s first Skills for Industry agreement signed in Logan City

New business investment attracted to Logan City ($m) 446.9

All Logan City job services providers will work with us and local businesses to train jobseekers and place them into employment following the signing of an Australian-first

The agreement, part of the Skills for Industry pilot program, meets a priority outcome identified at the Logan: City of Choice Summit in February 2013; to have job services providers work with industry to encourage entry level positions be filled by people

108

59.7

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

from high unemployment areas. A training program, coordinated by the Logan Office

The figures for 2011/2012 are based on announcements

of Economic Development (LOED) and facilitated by

and projections, including the $300 million Jeta Gardens

registered training organisations, is being provided to

expansion, which will develop over a number of years.

PERFORMANCE REPORTING

Memorandum of Understanding in December 2013.

job seekers to ensure they are job-ready. The organisations signed on to the program are:

Growing a strong economy

• Logan City Council • Access Community Services • BoysTown

1,420 plus 320 retained

• Break Thru People Solutions • Campbell Page • Max Employment • Mission Australia Employment Solutions

598

to identify the gaps in workforce skills needs, with

662 plus 106 retained

LOED had previously surveyed local businesses 480

knowledge of a trade or the industry, good work ethic, reliability, math and literacy skills high on the wishlist. The survey also revealed that reliability and responsibility were the most important attributes

plus 421 retained

• Sarina Russo Job Access.

191 94

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

in a candidate when recruiting for entry level roles, followed by a willingness to learn, enthusiasm, punctuality, team work and motivation.

New business leads generated New jobs created

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 are 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.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

PERFORMANCE REPORTING

Economic opportunities the focus of improved Sister City agreement

includes two floors of hotel accommodation, nine floors

A greater focus on business

shops, function rooms and commercial services.

opportunities and economic

The approval clearly demonstrated how our new

development has been included in an

development assessment processes are securing

amended sister city agreement adopted in July 2013.

important projects for the city while maintaining

We signed an improved agreement with our sister city

community expectations around density and appropriate

Suzhou, China, that recognises the importance of creating

development.

business opportunities and economic coordination to

The development will generate jobs during construction

benefit the two regions. This was a direct result of our

and provide significant ongoing economic benefit for the

trade mission to China in April 2013. Suzhou became our

city through job creation and tourism accommodation.

sixth sister city in 2009.

Call goes out for hotel developers for SouthWest 1

of strata apartments, and more than 480 square metres of commercial space on the ground floor, including restaurants,

Construction is expected to start by the end of 2014.

Logan Youth Jobs and Careers Expo showcases opportunities

Our multi-award winning SouthWest 1 precinct could soon be home to a

More than 2,000 students from 21

hotel, tavern, cafĂŠ and retail outlets.

schools across Logan, plus school

In May 2014, we advertised for tenders to finance, design, build, operate and manage stage one of the Urban Village to sit within the master-planned enterprise precinct in Berrinba. Demand for accommodation in the area has skyrocketed in recent years, especially with people travelling for business, and the first stage of SouthWest 1 will address the strategic need for short-term accommodation. Extensive

third Logan Youth Jobs and Careers Expo in July 2013. The event is designed to help young people between 15 and 24 years learn about the opportunities available after they leave school. Exhibitor stalls included educational and training institutions, employment agencies, and a range of employers and trade skills providers.

market research has generated significant interest in the

With many TAFE facilities, a Griffith University campus and

prime development opportunity.

a range of training institutions, including Evocca College

SouthWest 1 is made up of 40 hectares of developable land with an adjoining 80 hectares of parkland. The Urban Village is eight hectares with approximately half that

which has its national headquarters here in Springwood, our cityâ&#x20AC;&#x2122;s young people can train at first-class facilities here at home.

space dedicated to the first stage. Future stages of the

We also offer one of the biggest trainee programs in the

Urban Village site could include the development of a

area. Every year we employ more than 30 trainees from

supermarket, commercial office, childcare centre, service

the local area to provide them with a qualification, job

station and gym.

readiness training and on-the-job experience.

Hotel approval a major landmark in Logan Central renewal progress

BizConnect Centre supports local small businesses

In a first for the city, we approved

start-up, home-based and existing

the development of a multi-storey

small businesses in Logan to provide

mixed-use commercial development,

business workshops, business

including eateries, commercial space, a hotel and

counselling and tailored support services.

apartments, in a record 42 days in October 2013.

staff and exhibitors, attended the

Our BizConnect Centre works with

We support our small businesses because not only do they

Ideally located on Charles Ave directly opposite Woodridge

make up the majority of Loganâ&#x20AC;&#x2122;s business community, they

Railway Station, the multi-million dollar development

also make up the largest employment base.

Since the centre was introduced in 2008, hundreds of

The Development Incentive Fund specifically targets

Logan’s 19,490 small businesses have benefitted from its

development projects that are shovel-ready and will

range of workshops, mentoring and training services. The

improve the visual amenity of the city; provide commercial

centre also supports businesses that are developing online

opportunities; directly increase economic development;

marketing strategies through our Digital Connect program.

enhance street appeal and the ability of pedestrians

Considerable importance is placed on helping local businesses succeed and in encouraging those wanting to

to move around; and contribute positively to the transformation of areas from residential to commercial.

start a small business to follow their dream. Building the will strengthen our community.

Investment in Logan grows

Investment expo attracts national and international delegates Hundreds of delegates from around

Queensland Investment

2014 Hosted by Logan City Council

Despite ongoing economic

the country and overseas attended

uncertainties in global markets,

our inaugural Queensland Investment

we attracted $59.7 million worth of

Expo at Logan Entertainment Centre in June 2014.

investment and created 191 jobs while retaining 412 jobs.

The event showcased major projects and investment

PERFORMANCE REPORTING

capacity and long-term sustainability of these businesses

opportunities from across the region under one roof and was designed to foster long-lasting relationships between

Development incentive fund encourages investment

investors and proponents, especially with Australia’s

Our new Development Incentive

Participating organisations included councils from the

Fund created employment

Gold Coast, Lockyer Valley, Moreton Bay, Redland and

opportunities for the city. Last

Toowoomba, plus industry and government groups such

year, we approved a $96,509

as Commonwealth Bank of Australia, Australia-China

investment into Strategix Training Group’s development of

Chamber of CEO Inc, Cardno HRP, LendLease, Trade and

a three-storey commercial premises at 3946 Pacific Hwy,

Invest Queensland, Regional Development Australia and

Loganholme, which created 22 construction jobs and will

the Port of Brisbane.

generate a wages bill from its increased employment of $1.4 million when it opens in October 2014 (initially 40 jobs and increasing to 55), as well as a value-added effect on the Logan City economy of an estimated $7 million.

neighbours in Asia.

Keynote speakers included Queensland Treasurer and Minister for Trade, the Hon Tim Nicholls MP, and the Chinese Consul General, Dr Yongchen Zhao.

Looking ahead to 2014/2015 • We have allocated $1 million for the Logan City Development Incentive Fund. The program targets investors who are ready, willing and able to construct desirable developments that will have an immediate

Connect, Global Connections and a Business Events and Trade Show program. • We will invest $762,000 in providing full-time

positive impact on the city, focused on the Beenleigh

traineeships and $107,000 for school-based

Town Centre area, Greater Springwood Master

traineeships.

Plan area, Logan Central Master Plan area and Meadowbrook Master Plan area. • The Logan Office of Economic Development will

• Our city will take centre stage at industry events across the country, with $80,000 budgeted to enable the Logan Office of Economic Development to raise

continue to implement a host of its successful

Logan’s profile in target industries and markets and

programs, including its Bizconnect Centre, Digital

promote the city as a business destination.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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,

Highlights Koala surveys track species numbers

koala and water quality offsets and focused community

Tracking koalas and their habitat was

partnerships

a high priority this year.

E3: Reduce our energy costs and carbon footprint through

In April 2014, we employed Maya the

innovation and new technology

koala scat-detecting dog to complete an on-ground survey

PERFORMANCE REPORTING

across approximately 457 hectares of bushland.

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan

GPS data was captured to build a picture of koala distribution across the city, with the results to be known in July 2014. Maya is the only known koala scat-detecting dog in

On track/completed • Implement the Slacks Creek Catchment Recovery Program • Implement the vegetation offset policy, reporting and marketing system • Develop a Koala Conservation Strategy • Deliver environmental events and workshops

the world and has been trained to leave native wildlife, including koalas, alone. Meanwhile, Logan residents were encouraged to keep an eye out for koalas during the third annual community koala survey held in October 2013. The survey aimed to raise awareness of the region’s most iconic residents and the importance of maintaining koala habitat corridors across the city.

• Deliver the Logan Eco-business Cluster Twenty-one koala sightings were recorded, and the suburb of Berrinba received the most sightings.

Monitor • Nil

Koalas inhabit many areas within Logan City, so it is essential that we continue to build our knowledge of their distribution and numbers. We urge residents to report as

Concern • Review the Climate Change and Peak Oil Strategy* * A new Climate Change and Peak Oil Strategy was completed, however we are yet to consider whether to

much information as they can, including size, location, health, behaviour, sex and species of tree, and provide photographs if possible.

Envirogrants help care for wildlife carers

adopt the strategy in light of federal changes relating to climate change policy.

Wildlife carers are now eligible for assistance through our Envirogrants

(Scorecard definitions can be found on page 8).

program, following a decision to open a specific wildlife carers grant this year. The grant program will help ease some of the financial pressure on wildlife carers by providing assistance with purchasing specialist feed and equipment, and some fuel costs. Wildlife carers play a critical role in rescuing sick and injured wildlife across the city, and they are all volunteers, being on-call 24 hours a day, often seven days a week, feeding, nursing, and cleaning to bring the animals in their care back to health.

Seeds of sustainability sown at LEAF

The project focused on creating a natural wetland in the existing creek channel, including basins to slow and retain incoming water, a weir, overflow channels

Thousands of locals and visitors

and natural filtration systems, based on native plant

learned about the quiet revolution

species.

taking root in houses around the country, attending the annual Logan Eco Action Festival (LEAF) in June 2014.

Funding comprised $3.6 million from Council and $948,000 from the State Government.

The event showcased wildlife experts, chicken keepers, on tips on more sustainable living.

Looking ahead

The event also honoured Logan’s dedicated environmental

to 2014/2015

advocates and champions, with the winners of the 2014 Eco Awards, Enviro Grants, and World Environment Day poster competition announced.

• We have allocated $65,000 to help ratepayers do their bit for the environment by planting a tree through our popular free tree scheme. All

Path to sustainability well lit Turning on major electricity savings is as easy as L-E-D, thanks to a suite of newly-installed energy-efficient lighting systems across a number of our venues and parks. The technology now means park lights can be brighter, use significantly less energy, and can last up to 10 times longer. Work included a major retrofit of the Beenleigh Events Centre, where much older, outdated and inefficient technology was replaced with LED lights, fluorescents, and a range of other upgrades to bring the facility up to a higher standard. Other work included replacing park lamps running pressurised sodium bulbs with compact fluorescent lights or LEDs where possible. The project was valued at $397,000, with $252,975

ratepayers have access to three free trees each

PERFORMANCE REPORTING

mulchers, urban gardeners and solar experts, who passed

financial year while schools and community groups based on Council-owned and crown land are eligible for 50 free plants every financial year. • Our pest and weed control program will provide free rodent bait, continue to treat Singapore Daisy and lantana on Council land, introduce chemicalfree weed treatments and continue to operate our successful mosquito control program. • We will use the anticipated $7 million collected through the 2014/2015 environment levy to fund initiatives such as waterways and catchments, Bushcare, bushland maintenance, environmental weed control, the Blackwell St Wetland project, and continue land acquisitions where appropriate. We will also continue our Rebuilding the Rivers and Wetlands initiative.

contributed by the Federal Government.

New wetland named after local legend We opened an innovative storm water management system that

Koala survey sightings

also created a new wetlands area in 20

November 2013. The Blackwell St

wetlands project, valued at $4.5 million, was also renamed Jimmy Phillips Park in honour of the late Mr Phillips, a stalwart of the nearby Greenbank RSL Club. The project demonstrated how natural watercourses were

2011/2012

2012/2013

2013/2014

better solutions to storm water management, with local residents already reporting significantly lower localised

The survey was held for the first time in 2011/2012,

flooding when it rains.

so no data is available for 2009/2010 or 2010/2011.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Accumulated avoided costs - solar PV and building retrofits YEAR

SAVINGS BY END 2008/2009

2008/2009 initiatives

SAVINGS BY END 2009/2010

$11,437

2009/2010 initiatives

SAVINGS BY END 2010/2011

SAVINGS BY END 2011/2012

SAVINGS BY END 2012/2013

SAVINGS BY END 2013/2014

$22,874

$34,311

$45,747

$57,184

$68,621

$45,003

$90,006

$135,008

$180,011

$225,014

N/A

$12,743

$25,487

$38,230

$210,575

$421,150

2010/2011 initiatives 2011/2012 initiatives 2012/2013 initiatives

$11,928

PERFORMANCE REPORTING

2013/2014 initiatives

$764,943 total

We have 16 operational solar PV systems resulting in a combined capacity of 145 kilowatts. Animal management centre

$473,257 total

• 30kW system

Greenbank Community Centre $193,498 total

• 5.5kW system

$124,317 total $11,437 total 2008/2009

$67,877 total

Slacks Creek Progress Hall 2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

• 4kW system

2008/2009 initiatives 2009/2010 initiatives 2011/2012 initiatives 2012/2013 initiatives 2013/2014 initiatives

Logan Art Space • 3.5kW system

We continue to forge ahead in reducing our energy costs and emissions. Initiatives with solar

Underwood Park

energy and building retrofits saved $12,000 during

Hall

2013/2014, bringing the accumulated avoided costs from such initiatives to approximately $765,000

• 5.5kW system

over the past six years. The management of Logan Water’s assets is now supported by an energy management plan, which includes equipment upgrades, process optimisation, and improved demand, maintenance and account management.

Tudor Park Community Centre • 22kW system

Delivery of compliance services across Logan City KEY SERVICE OUTPUTS

PERFORMANCE MEASURES

KPI

PERFORMANCE JUNE 2013/14

PERFORMANCE 2012/12013

90%

95%

91%

95%

98%

84%

95%

98%

92%

95%

100%

95%

100%

80%

100%

93%

87%

DEVELOPMENT AND ENVIRONMENTAL COMPLIANCE SERVICES

Respond to or resolve land use

Voluntary compliance (resolution of a case at the

compliance community requests

first stage of the standard operating procedure) KPI Initial customer request response time (risk

Initial customer request response time (risk category R3) KPI within 14 days Initial customer request response time (risk category R4) KPI within 21 days Initial customer request response time (risk categories R5 and 6) KPI within 36 days Provide planning and

Provide service KPI (information provided in time

development certificates

frame)

PERFORMANCE REPORTING

categories R1 and 2) KPI within seven days

Our Environment and Sustainability branch has a range of programs that help enhance our cityâ&#x20AC;&#x2122;s biodiversity.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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, PERFORMANCE REPORTING

commit to maintaining the programs and services listed in this plan at or near current levels

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan On track/completed • Develop a customer service excellence plan • Conduct mobile customer service centres for improved service accessibility • Establish the Logan Entertainment Centre volunteers program

Highlights Survey results certainly satisfy We recorded our most impressive results yet in the 2013 Logan Listens: Residents’ Survey, conducted in October 2013. The results revealed a significant jump in the satisfaction level of residents, both rural and urban, for our wide range of services and facilities. The overall satisfaction level of our delivery of services and facilities increased 5.8 per cent from the 2012 survey to 72.5 per cent, moving it even further into the “high” level of satisfaction category.

Desexpo campaign returns Our Desexpo program was held again in September 2013 to encourage local animal owners to have their pets desexed. Desexing a pet provides many benefits, including reducing the occurrence of reproductive cancers, as well as reducing the number of unwanted animals in the

• Review the Media and Communication Strategy

community.

• Investigate the sale or development of Council-

Pet owners also receive a significant 76 per cent discount

owned land

on registration fees if their cat or dog is desexed.

• Investigate leasing of advertising space on waste and recycling collection vehicles

Monitor • Investigate funding to redevelop the Beenleigh Aquatic Centre

Credit review proves positive for Council Our financial future remains positive following a review of the organisation’s credit capacity by Queensland Treasury Corporation in mid-2013.

Concern • Develop Culturally and Linguistically Diverse (CALD) engagement guidelines and Aboriginal and Torres Strait Islander (ATSI) engagement guidelines* • Consider introducing fees and charges for commercial use of parks✣ * CALD engagement guidelines have been completed. The ATSI guidelines will be finalised by October 2014. ✣

We looked at options for fees and charges for parks and

identified that further analysis is required in 2014/2015. (Scorecard definitions can be found on page 8).

The review gave us a moderate rating and neutral outlook – the same results received in 2011. The credit review assessed our capacity to service our current debt portfolio and any proposed increases, as well as the likelihood of any risks that could affect that capacity. The moderate rating was a positive outcome, considering the current economic environment has included reduced government funding and increased financial pressure on local government across the board. We will continue to increase efficiencies and savings while maintaining services and managing growth across the city.

Mobile customer service offices trialled

Number of Right to Information access applications processed

We trialled a mobile customer service 52

office throughout the year, attending

all community chats with the mayor and the divisional councillors. The project aimed to help customers to access our

services and information, but was underutilised, with only being served on several other occasions.

The initiative is no longer operating.

Tip vouchers well-received A trip to the tip was less onerous for

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

our ratepayers after we introduced a tip voucher system this year. We are committed to making the task

PERFORMANCE REPORTING

four people attending one particular event and no one

Number of Information Privacy access applications processed

of removing household waste as convenient as possible 69

and wanted to give our community more options after receiving mixed feedback to the kerbside clean-up service. We reduced the number of kerbside clean-up services in each

suburb from two to one and introduced the voucher service.

Each ratepayer received four general waste vouchers with their July 2013 rates notice. Data gathered from July to December 2013 highlighted a decrease in illegal dumping across the city for the period.

11 2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

There were 428 requests to clean up illegal dumping from July to December 2012, which dropped to 370 for the same period in 2013. Residents and ratepayers can still dispose of green waste at any of our waste facilities free of

Volume of calls taken by our customer service contact centre

231,154

229,983

240,040

228,578

264,357

charge.

2010/2011

2011/2012

2012/2013

2013/2014

Looking ahead to 2014/2015 2009/2010

• We will continue our tip voucher system in 2014/2015 after they were introduced in 2013/2014. • We limited the increase for desexed pet registration to $1 in 2014/2015 to encourage responsible pet ownership.

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

• We have provided $2.9 million to boost our information

consistency over time with rates, animal registrations

communication and technology services to ensure

and other services, which means we have stabilised

improved services for our customers.

call volumes and are now slightly decreasing in customer contacts. LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Priority area: Building the wellbeing of our communities (WC) Priority focus WC1: Consider the Two-Year Action Plan compiled from the Logan: City of Choice Summit, agree on appropriate roles and determine appropriate responsibilities for Council in response

WC2: Prioritise healthy and active lifestyle initiatives WC3: Enhance focus on city events

Highlights Logan: City of Choice initiative delivers change for the city The Logan: City of Choice initiative continued to build momentum in 2014/2015, driven by the Logan: City of Choice Two-Year Action Plan.

PERFORMANCE REPORTING

The plan was the result of the Logan: City of Choice

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan On track/completed • Support the outcomes of the Logan: City of Choice Summit • Provide food safety training for community organisations • Develop a healthy city plan • Implement the Active Logan Strategy • Deliver a school holiday sporting program with satisfactory customer feedback results

Summit held in February 2013, when more than 1,000 people from the community, local businesses, Council and the State and Federal governments came together in a spirit of cooperation to address key challenges facing our city. A number of actions were rolled out immediately after the summit, with the formal Two-Year Action Plan then coming together over a number of subsequent months. It was formally endorsed by Council in December 2013. Councillors have also taken on responsibilities to drive and support the actions for which we have responsibility. They are supported by key Council staff who have accepted roles as internal portfolio leaders in addition to their regular roles and responsibilities. To ensure appropriate governance structures were in place to guide the City of Choice initiative, we formed the Logan:

• Deliver a school holiday sporting program with

City of Choice Leadership Team in 2013, comprising

satisfactory participation rates for the schools-

three levels of government, business and community

based program

representatives. This team now drives and supports the

• Deliver the Regional Events Strategy agreed

Action Plan, which is a priority in the Logan City Council

program of events, including Jazz and Shiraz,

Corporate Plan 2013-2018.

Christmas Carols and Seniors Expo

Actions are now being delivered by the Federal Government, State Government, community and non-

Monitor • Deliver the Regional Events Strategy, including Jazz and Shiraz, Christmas Carols and Seniors Expo with satisfactory feedback results from attendees

government agency stakeholders and us. Highlights from our Update Report on the Logan: City of Choice Action Plan (January-July 2014) are: • coordinating more than 60 engagements for Council and Leadership Team representatives with key

Concern • Deliver a school holiday sporting program with satisfactory participation rates at Cornubia Sports Centre*

State and Federal Government Ministers and senior government executives to seek support and explore partnership opportunities for City of Choice actions • the signing of an Australian-first memorandum of understanding by Job Services Australia providers, helping link job seekers with employers – because of

* Participation rates were not within the acceptable range

this, Netherlands textile company Vadain chose Logan

due to the winter school holiday program having a lower

City over Victoria for its Australian base

occupancy. This has been identified as an annual trend. We will identify strategies to boost numbers for the winter program in 2014/2015. (Scorecard definitions can be found on page 8).

• the formation of working groups with Lendlease, Logan Country Chamber of Commerce and Bendigo Bank to discuss employment initiatives for the Flagstone and Yarrabilba communities

• supporting the development and progression of the Logan Together collective impact model, which aims

More information about the Logan: City of Choice initiative can be found at www.logan.qld.gov.au/cityofchoice

to close the gap, so that by the age of eight, Logan children are as healthy as any other group of Australian children • working in partnership with the community and the Queensland Minister for Education, Training and Employment to successfully advocate for changes PERFORMANCE REPORTING

to the Higher Education Logan Program, making it available to eligible New Zealand Special Category Visa holders • the announcement that Logan’s largest and most inclusive music event, Logan’s Musical Celebration, will be presented as the signature event of the 2015 Queensland Music Festival • the continued growth of the Mayor’s Reading Program at Woodridge North, Woodridge and Harris Fields state schools • the funding in our budget of $1 million to upgrade

The Logan Indigneous and Multicultural Soccer Program, a Logan: City of Choice initiative, has been successful, with around 50 students taking part in the tournament in April 2014.

the safety camera monitoring room (and sourcing an extra $250,000 towards this project from the State Government, plus $1.4 million from the Federal Government to expand the safety camera network in Logan; another $134,000 was also sourced from the State Government for Woodridge/Logan Central CCTV) • the successful launch of Our Aunties and Uncles Digital Stories Project, documenting stories of local Aboriginal and Torres Strait Islander Elders (a partnership project with our libraries, funded by the Australian Government’s Your Community Heritage Program) • the formation of the new Aboriginal and Torres Strait Islanders Partnership Group in Logan • the provision of $50,000 by Queensland Theatre Company for arts-based youth programs in Logan • the delivery of the Logan Indigenous and Multicultural Soccer Program and an expanded Krank youth program (including skateboarding and circus workshops), which engaged more than 1,500 young people; this was funded by the Queensland Department of National Parks, Recreation, Sport and Racing and delivered by us • the launch of banners in Station Rd, Woodridge, which represent the cultural diversity of local students • the compilation of hundreds of stunning images of Logan taken by the community as part of the Hidden

Events bring community together We hosted several community events during 2013/2014. The threat of a summer storm did not deter an enthusiastic crowd of almost 10,000 people at the 2013 Logan Mayor’s Christmas Carols in December 2013. The star-studded night of entertainment was headlined by internationallytones

recognised act Timomatic and locally-produced dance crew, Academy of Brothers. Likewise, the wet weather did not dampen the mood at Jazz and Shiraz event in April 2014, when more than 550 people turned out to see acclaimed jazz singer Grace Knight from the Eurogliders and other performers, despite a last-minute venue change. Gourmet food providers and local wineries added to the event’s great atmosphere. And, more people than ever before turned out to enjoy our heritage festival in May 2014, held at two of the region’s most iconic locations for the first time. A record 5,000 people attended The Time Before – previously known as Mayes in May – at Mayes Cottage and the Kingston Butter Factory. The event was supported with funding from the Australian Government’s Your Community Heritage Program.

Gems photo competition, which will now be compiled into a photo book to be launched in October 2014.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

We are top of the game in grant funding We secured almost $1 million worth of funding from the State Government, thanks to a new program to engage, assist and

Development Program, we invited interested sporting clubs to meet and work with our sport and recreation officers, development assessment officers, and State Government sport and recreation advisors to further develop their submissions.

support funding applications from our sporting and

The new approach attracted 24 local sporting club

recreational clubs.

applications, of which 11 received Get in the Game

Sport plays a vital role in the cityâ&#x20AC;&#x2122;s fabric and the funding PERFORMANCE REPORTING

By establishing the Logan Sporting Clubs Facility

funding through the State Government.

will assist us in responding to the growing needs of our

We will also contribute additional funds towards a number

thriving sporting community.

of these projects, bringing the total investment towards sporting facilities across the city to approximately $1.5 million.

The successful applicants were: PARK

ORGANISATION

PROJECT DESCRIPTION

GRANT

Underwood Park

Underwood Park Netball

Upgrade six courts to support netball

$100,000

Construct an all-weather riding surface to support

$76,800

Association Merv and Ollie Musch

Logan Village Riding Club

Park Newstead Park

Tansey Park

equestrian activities Waterford Equestrian and Pony

To install lighting to the dressage and show

Club

jumping arena

Tansey Park Sports Club

Construct a senior oval to support cricket and

$100,000

$58,244

Australian football Greenbank Recreation

Greenbank Sport and Recreation

Reserve

Club

Park Ridge High School

Hubner Park

Upgrade lighting to support a range of sports

$100,000

Park Ridge Junior Australia

Install new field lighting to support Australian

$100,000

Football Club

football

Park Ridge Panthers

Upgrade lighting for two playing fields to support

$100,000

football Homestead Park

Springwood Suns Cricket Club

Install synthetic wickets to support cricket

$18,335

Usher Park

Slacks Creek Rugby League

Install three new light poles and upgrade one light

$100,000

Football Club

pole to support rugby league

Beenleigh and Districts Baseball

Construct two junior back nets and dugouts to

Club

support baseball

Beenleigh Multi Sports Association

Install irrigation to support touch football

Hammel Park

Bill Norris Oval

$100,000

the community’s growing

2,101,048

ensure it continues to meet

2,180,365

2,243,745

Active Logan program to

2,346,200

We reviewed our popular

requirements. Introduced in 2008, the healthy lifestyle initiative

1,840,245

Our libraries

2,289,199

Active Logan program undergoes a health check

1,123,833

spaces and had just four activities, but now, more

1,222,326

originally intended to activate our community than 40,000 participants enjoy more than 45 regular activities.

1,239,844

and fitness levels throughout the city. It was

PERFORMANCE REPORTING

1,420,900

provides free and low cost activities for all abilities

The program has now been rebadged as Live Well Logan and will continue in 2014/2015.

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

Looking ahead to 2014/2015

Visits Loans

• We have allocated $380,000 to continue implementing the Logan: City of Choice TwoYear Action Plan, while a further $182,000 has been ear-marked from the 2015/2016

Visitors to our community spaces

• We have allocated $1.3 million to fund

58,429

the monitoring, maintenance and ongoing

60,300

65,033

long-term benefits to the community.

71,416

partnership projects to deliver immediate and

71,388

Budget. The funding will help us contribute to

operations of our fixed and mobile safety cameras throughout the city. This includes $1 million for the construction of a new safety camera CCTV monitoring room. • Logan children aged six to 12 years will continue to share in the fun of the Logan

4,030

17,345

3,620

14,600

It is held at Cornubia Park Sports Centre and

3,755

sponsored by McDonald’s Logan Restaurants.

15,264

winning program is delivered by Council and

16,759

thanks to an allocation of $80,000. The award-

16,014

McDonald’s School Holiday Sports Program

at high schools in Beenleigh, Browns Plains, Marsden and Springwood. We have also

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

provided $77,000 to the KRANK Logan Holiday Activity Program for youth aged 13 to 17 years. • We have allocated $120,000 to be shared between the four PCYC facilities across the city.

Logan Entertainment Centre Logan Art Gallery Mayes Cottage

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

8,352

4,335

4,479 2012/2013

5,567

5,164

5,477 2011/2012

2,287

3,168

3,248

117,420

106,476

5,970

5,277

7,864

8,390

8,228

213,916

197,761 152,059 100,418

PERFORMANCE REPORTING

8,961

Indoor sports centres: number of hours occupied

Attendance at our aquatic centres*

2009/2010 2011/2012

2012/2013

2010/2011

2013/2014

Cornubia Park Sports Centre (four courts) Total for Beenleigh, Bethania, Eagleby and Logan

Logan Metro Sports Centre (three courts)

North aquatic centres (managed by Council)

Mt Warren Sports Centre (four courts)

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

*Our Aqualogan Laurie Lawrence Swim School started

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

31.14

32.18

2011/2012

2012/2013

22.76

30.93

40.00

10,738

49.18

50.26

60.00

64.38

56.49 52.16

Graffiti customer requests received

56.86

59.11

60.27

in 2011/2012.

16.43

6,117 5,169 3,589

3,778 2009/2010

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

* The data for 2012/2013 and 2013/2014 includes instances of graffiti that were proactively identified and removed by our team without a request from an external

customer.

2010/2011

Cornubia Park Sports Centre (four courts) Logan Metro Sports Centre (three courts) Mt Warren Sports Centre (four courts)

2013/2014

Community members who received immunisations

Animals desexed at our Combined Vets of Logan City clinic

Total 27,705

Cats

School

Dogs Total 27,705

8,665

Total 14,123

6,182

3,848

2,774

2,912

469

At riskinfluenza influenza Staff

from our animal management centre. The 2009/2010 bars

Cats Dogs 1,296

11,561

11,603

11,561

535

299

5,361

469

2011

251

307 233

11,603

7,338

9,974 9,974 5,361

5,872 5,872

622

2009/2010 7,338

11,611

Total 15,753

11,611

12,084

Total Total 15,753 20,899

12,084 2,799 2,799 2009

940

895

388

2010/2011

2011/2012

2012/2013

175 2013/2014

493 2,183

418 1,479 133 308 2012 2013 493 388 2,183 469 418 1,479 133 308 2010 2011 2012 2013 2010

2013/2014

Animals microchipped at our Combined Vets of Logan City clinic

Total 20,899

Total 17,952

2012/2013

as well as animals desexed before being sold or released

At risk influenza

2009

2011/2012

This includes animals brought to the clinic by the public,

Outreach

Total 14,883

2010/2011

30,055

Staff influenza School Outreach Community

2009/2010

30,055

Community

Total 14,883

303

show data for September 2009 to June 2010 only.

Total 44,642

School

Total 17,952

388

355

335

6,182

346

493 388 1,498 418 1,089 133 307 2009 2010 2011 2012 2013 493 388 1,498 1,533 469 418 1,089 133 307 2009 2010 2011 2012 2013 Total Number of vaccines provided to the community 44,642 1,533

988

757

8,665

8,276 2,774 8,276

6,884

Total 11,468

8,890

6,884

6,884 Total 8,417

Total 12,271

2,912

Total 8,417

8,890

12,271

Total 14,123

3,848

Total 11,468

1,091

PERFORMANCE REPORTING

At riskinfluenza influenza Staff AtTotal risk influenza

1,035

19,225

Staff influenza School Outreach Community Outreach

1,307

19,225

Community

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. The 2009/2010 bars show data for September 2009 to June 2010 only. LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Priority area: Managing growth in our city (MG) Priority focus

Highlights

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

Community has its say on new Logan Planning Scheme

MG2: Ensure our development assessment function is

It is official: the draft planning

best practice

scheme consultation was the biggest

MG3: Be proactively involved in the review of

PERFORMANCE REPORTING

infrastructure charging philosophies for Queensland

Significant key performance indicators/ projects as included in the 2013/2014 Operational Plan

public engagement exercise we have undertaken since the Logan: City of Choice Summit. Approximately a third of the city’s population viewed planning scheme material during the three-month consultation period, which began in February 2014. Once adopted, the planning scheme will shape growth in

On track/completed

the city for the next 20 years. Our population is expected

• Progress the new Logan Planning Scheme (public

city’s long-term sustainability to preserve and enhance the

consultation)

to reach 430,000 by 2031, so the scheme is critical to the prized quality of life Logan residents and visitors enjoy.

• Expand development assessment interaction and

More than 100,000 people visited the website and saw our

feedback mechanisms with the private sector

Facebook posts, while a further 2,600 people attended in-

• Make the required amendments to the Logan Adopted Infrastructure Charges Resolution

person events or made phone inquiries. We received 719 submissions during the consultation period.

Monitor • Develop a customer service charter for development assessment • Develop a marketing and communication strategy

The feedback is now being reviewed before a final scheme is adopted towards the end of 2014. The State Government will also review the scheme before it is adopted.

for the Development Assessment branch • Achieve statutory timeframes for development applications

Infrastructure charges reduce to drive economic development Our infrastructure charges became

Concern • Progress the new Logan Planning Scheme (final document)* • Upgrade the PD online system to include the new planning scheme✣

less expensive from July 2013 after changes to our adopted infrastructure charges. We reduced residential development costs in areas with high levels of existing service or capacity to help drive economic development by reducing the costs for applicants, and ultimately to end purchasers.

* This project fell behind schedule during the year, however the final draft planning scheme document will be presented to Council in 2014/2015 for endorsement. The planning scheme will then be sent to the State Government to start the approval process. ✣

The upgrade of the PD online system has been

by is significantly less complicated than a greenfield development that requires building major trunk infrastructure, so charges will now closely reflect actual costs, up to the State Government-mandated cap on infrastructure charges.

completed but implementation cannot be finalised until the

Developments will be able to use spare capacity in the

adoption and implementation of the new planning scheme.

networks by connecting to existing infrastructure.

It is anticipated that this will occur during 2014/2015. (Scorecard definitions can be found on page 8).

Developing lots with existing services in place or close

Previously, we applied a standard charge across all developments.

Looking ahead Housing on the agenda at development assessment forum We hosted our 10th development assessment forum in September 2013, with Queensland Housing and Public Works Minister Tim Mander speaking to development industry stakeholders. The forum focused on economic opportunity in the

to 2014/2015 • We have allocated $230,000 to cover the costs of finalising the new Logan Planning Scheme. • The first sod will be turned on the $9 million Beenleigh Town Centre redevelopment, with $5.9 million allocated from this year’s budget. The Federal Government has allocated $3 million, with the State Government contributing $250,000.

development sector in Logan and provided an opportunity for us to share information, engage with the development PERFORMANCE REPORTING

sector and answer questions.

The Woodlands development at Waterford is fast becoming home to many people. It will contain 13,560 homes, five parks and seven kilometres of trails for walking and cycling when completed.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

COMMERCIAL BUSINESS UNITS

Building our communities: Proceeds from the Logan Recycling Market are donated back to the community via the Logan Mayoressâ&#x20AC;&#x2122; Community Service Committee.

This section summarises the performance of our two commercial business units – Logan Water and Logan Waste – in achieving their key performance indicators during 2013/2014. This is a requirement under the Local Government Act 2009. Also highlighted in this section are key achievements for 2013/2014 and a summary of projects planned for the year ahead.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

COMMERCIAL BUSINESS UNITS

Commercial business units

Logan Water We own, operate and maintain water and sewerage assets that currently have a replacement value of approximately $2.6 billion. Planning for the future is critical to ensure we continue to provide a safe and secure water supply to keep pace with Logan’s forecast population growth: it is predicted that close to half a million people will call Logan home by 2031.

Our services

Investment continues in city’s sewerage network Logan Water Alliance is upgrading the city’s water and wastewater infrastructure. The improvements are crucial to ensure essential services in Logan operate efficiently and continue to do so as the city grows.

We are responsible for providing safe, reliable and efficient

Due to be completed in 2014/2015, with a total value of

water and wastewater (sewage) services, including

$57 million, the Alfred St pump station to Loganholme

drinking water supply, recycled water supply and trade

Wastewater Treatment Plant rising main augmentation

waste management, to consumers in Logan.

project is an extremely exciting project and will service

We provide community service obligations in accordance with our Community Organisations and Community Service

growth in the Park Ridge, Springwood, Logan Village and Yarrabilba areas.

Obligations Policy, which ensures our business unit,

Other significant projects currently underway or

Logan Water, will be paid in full for all water and sewerage

commencing in 2014/2015 include:

charges. COMMERCIAL BUSINESS UNITS

Highlights

• Chambers Flat Rd pump station to Princess St,

We provide water free of charge to the Queensland Fire

Marsden, pump station and mains upgrade: $14.62

and Emergency Services for firefighting as a public safety

million

contribution. The value of this service cannot be measured because fire hydrants are not metered. The Logan Water Alliance is responsible for planning, designing and constructing new and improved water, wastewater and recycled water infrastructure throughout the city. The alliance is made up of Logan City Council, Tenix, Cardno, and Parsons Brinckerhoff, and is one of the largest water infrastructure delivery programs in Australia. Logan Water Alliance’s activities benefit the local economy, environment and community by: • providing new and improved infrastructure to support the region’s population growth over the next 50 years • extending water services to communities that have not previously had access to them • installing sustainable infrastructure to minimise lifecycle costs, greenhouse gas emissions, overflows, odours and other environmental impacts • providing local employment and training opportunities for staff, subcontractors and suppliers.

• water network renewals program to maintain service standards and efficiencies: $6.15 million • upgrade to Church Rd rising main and pump station, Bethania: $5.56 million • Loganholme Wastewater Treatment Plant inlet works and bypass construction: $3.13 million • upgrade of Bahrs Scrub mains and pump station: $2.87 million • implementation of demand metered areas in the Logan East water supply network at Bethania, Beenleigh, Waterford and Windaroo: $1.96 million • construction of 1.36km of water main along Showgrounds Dr, Beenleigh: $1.5 million • Logan East pressure leakage management and fire flows project: $1.95 million • provision of a dedicated 600m trunk main between Southern Regional Water Pipeline off-take to supply into the Round Mountain reservoir: $3.4 million • minor augmentations to the South Maclean Wastewater Treatment Plant: $1.2 million.

Key performance indicators A summary of performance against 2013/2014 key performance indicators for water and wastewater services is presented below: MEASURE

Financial

TARGET

Total operating expenditure

PERFORMANCE

$107,556,000

Within plus or minus 10% of annual estimate budget of $108,319,000.

Earnings before interest and tax, excluding capital adjustments Water supply

$34,162,000

$52,171,000

< 100

< 3.5 hours

2.52 hours

< 20

Number of dry weather wastewater overflows per 1,000 properties

Number of wastewater odour complaints per 1,000 properties

Number of wastewater reticulations main breaks and chokes per

<16

> 80%

78.5%

90%

99.52%

100%

98.8%

100%

Average number of unplanned water supply interruptions per 1,000

Average duration for unplanned water supply interruptions Number of water quality complaints per 1,000 properties Number of water main breaks per 100 kilometres of mains Wastewater

1,000 properties Infrastructure

Percentage of capital program delivered to budget

Environment

Percentage of wastewater compliance with Department of Environment and Heritage Protection licence standards (calculated average long-term compliance) Percentage of wastewater compliance with Department of

COMMERCIAL BUSINESS UNITS

properties

Environment and Heritage Protection licence standards (calculated average short-term compliance) Percentage of major incidents reported to Department of Environment and Heritage Protection within 24 hours Logan Water Alliance is upgrading the cityâ&#x20AC;&#x2122;s water and wastewater infrastructure. The improvements are crucial to ensure essential services in Logan operate efficiently and continue to do so as the city grows.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Looking ahead to 2014/2015 Strategic planning underway with NetServ Plan This plan will provide information to customers and other stakeholders about our particular water and wastewater network and its services. It is a statutory requirement under the South East Queensland Water (Distribution and Retail Restructuring) Act 2009. The 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

COMMERCIAL BUSINESS UNITS

• 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

• We have allocated $287.5 million to water and sewerage services, including $72.3 million set aside for infrastructure projects. • Work will continue on a $5.4 million project on New Beith Rd to ensure security of water supply and cater for forecast population growth. We have earmarked $3.4 million to complete the project, which is scheduled for completion in June 2015. • We have set aside more than $2 million to help ensure our wastewater assets continue to run smoothly. Included in this allocation are: $950,000 for the pipeline rehabilitation program, $512,000 for replacing mechanical assets including pumps and motors, $316,100 to renew electrical switchboards and $290,000 on our annual wastewater pump station civil assets renewal/ refurbishment program. • To continue to cater to the growing population and maintaining service levels, we are investing $1.28 million in the Eagleby pump station rising main. The total cost of the project is $1.5 million. • We will finalise and adopt the Water Netserv Plan.

Queensland Regional Plan 2009-2013 and the expectations of our local community. It comprises two parts: • Part A sets out Council’s commitments to our community and provides general information about our water and wastewater services. It explains our commitment to the community, 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 we will achieve the commitments made in Part A. It is an internal planning document for use by our officers. All submissions received from the community consultation stage will be taken into account before we revise the draft plan as necessary. It will then be provided to our elected members and the Minister for State Development, Infrastructure and Planning to ensure it aligns with regional planning strategies. Once endorsed by Council, the Water Netserv Plan becomes a part of our organisation’s strategic planning and management framework.

Work on the new Round Mountain reservoir was completed in 2013/2014.

Logan Waste Services Our services We provided these services and facilities during

Ratepayers said they preferred the convenience the tip

2013/2014:

vouchers gave them, allowing them to visit the tip when they needed to and not dictated to by the kerbside

• household waste collection

collection schedule.

• transfer stations at Carbrook, Greenbank, Logan Village and Beenleigh

The tip voucher scheme has also resulted in a decrease in illegal dumping of almost 15 per cent across the city.

• Browns Plains landfill • Logan Recycling Market • municipal bulk solid waste collection (kerbside collection)

E-waste recycling service introduced A new dedicated e-waste recycling

• maintenance of closed landfills

service was introduced at our four

• community service obligations.

transfer stations, providing residents with the opportunity to dispose of items such as televisions and computers, including

Key performance indicators

mouse devices, and hard drives.

We produced strong operating results for the financial

During 2013/2014, 303 tonnes of e-waste was removed

year:

from our waste and recycling facilities.

Revenue

RESULT

BUDGET VARIATION

$33.580 million

$548,000 (2%) over

Waste education continues across the city

budget target of $33.032 million Operating

$26.946 million

$479,000 (2%) under budget target of

expenditure

$27.425 million Net profit

$4.643 million

after tax

$719,000 (18%) over budget target of $3.924 million

We have been proactively educating the community about appropriate waste disposal since recycling

COMMERCIAL BUSINESS UNITS

printers and computer products, such as keyboards,

services began in the city in 1995. During this time, schools and the general community have been offered access to a variety of free presentations and events, as well as information provided through brochures, media releases and events.

See the appendices for the complete Logan Waste

For schools, the free Watch Out Waste program includes

2013/2014 Performance Plan Report.

hands-on activities that are age appropriate, and teachers receive free resources and student worksheets.

Highlights

It includes tailored in-class presentations, ranging from 30

New tip voucher scheme well-received

farming and composting, litter and the environment, food

The annual distribution of four

During 2013/2014, our waste education contractors

general waste tip vouchers free

delivered presentations to 337 school classes and 17

of charge to more than 96,000

community groups.

residential rateable properties was introduced as a trial in July 2013.

minutes to one hour, based on waste and recycling, worm and wastage, and SmartTiP tours.

In order to gauge the effectiveness of the Watch Out Waste School Program, teachers were asked to rate various

Positive feedback from the community on the scheme,

aspects of the presentation (content, age appropriateness,

which replaced one of the two citywide kerbside collection

activities, duration, resources and compatibility with

services, has motivated Council to continue the tip

curriculum) on a scale from Excellent to Poor. Ninety-one

voucher system in 2014/2015.

per cent of teachers rated each aspect of the program as either ‘Excellent’ or ‘Very Good’. Teachers were also asked

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

to rate the educator on the same scale, with 97 per cent of teachers rating the educator as either ‘Excellent’ or ‘Very Good’.

Community service obligations were provided in

Other highlights for the year included:

Organisations and Community Service Obligations Policy.

• Two public displays at the Logan Hyperdome and

The following community service obligations, their

accordance with Council’s Remissions to Community

Grand Plaza shopping centres. • Learning resource kits were provided to early learning centres following two professional development workshops held in April 2014.

cost and the functional area of Council responsible for specifying the level of service required and paying for the service for 2013/14 were as follows: COMMUNITY SERVICE OBLIGATION

BRANCH RESPONSIBLE

ACTUAL

Free tipping for

Community

$37,845

community organisations

Services

Clean Up Australia Day

Community

campaign

Services

schools in Logan invited to enter a competition aimed

Disposal of motor

City Standards

Nil

at reducing the amount of packaging waste in school

vehicles received from

Environment and

$78,689

• Throughout the year, 10 schools and 29 early learning centres participated in a Nature’s Recyclers lesson and received a worm farm or compost bin as part of the organics program. • National Nude Food Day was promoted through the Watch Out Waste school program, with all primary

COMMERCIAL BUSINESS UNITS

Community service obligations

lunchboxes. Expressions of interest in the competition were received from nine Logan primary schools,

City Standards Dead animal removal

including 163 classes and 4,027 students. • Letterbox drops promoting proper recycling practices were undertaken in suburbs where audits had shown there were contamination issues. • Weekend composting workshops were offered in March, May and June 2014. Two of the workshops were at the Browns Plains waste and recycling facility and the other was at the Beenleigh Craft and Farmer’s

$5,671

Sustainability Household hazardous

Environment and

waste services

Sustainability

Natural disasters/

Community

emergencies

Services

Pensioner discounts for

Community

waste collection services

Services

$95,868

Nil

$286,710

Market.

Looking ahead to 2014/2015

Residents can dispose of green waste free of charge at any of our waste facilities.

• We will continue to provide four general waste tip vouchers free of charge to our residential rateable properties. Introduced last year as part of a trial, positive feedback from the community has motivated us to continue with the system. • We will continue to investigate options for waste disposal after the closure of the Browns Plains landfill, including alternative waste technologies. • Traffic signals will be installed at the intersection of Browns Plains Rd and the entrance to the Logan Metro Sports Park and the Browns Plains waste and recycling facility to improve safety for motorists. • We will continue to allow residents and ratepayers to dispose of green waste free of charge at any of our waste facilities.

Composition of recyclable waste by percentage

16.4 15.8

15.9

1.34% 7.92 %

13.9

3.1

2.69

2.1

2010/2011

2012/2013

37.28 %

1.41% 0.98% 1.42% 1.99%

Recyclables per household per week (kilograms)

52.90 %

2010/2011

42.31 %

2011/2012

12.14% 2.47%

29.08 % 52.92 %

3.70% 1.78% 2.56% 2.62% 3.36%

2012/2013

3.99%

2013/2014

Waste per household per week (kilograms)

2009/2010

7.8 %

32.03 %

2011/2012

53.37 %

1.40%

33.60 %

Former Logan

Former Beaudesert

Former Gold Coast

Former Logan

Former Beaudesert

Former Gold Coast

2009/2010

2.1

based on 74,070.26 tonnes from 102,086 properties

2.85

2.58

0.50% 1.20% 1.40% 1.20%

based on 14,260.59 tonnes from 101,733 properties

3.5

based on 73,061.12 tonnes from 101,733 properties

based on 73,290.58 tonnes from 100,292 properties

Former Logan

4.9

33.01 %

13.95

13.81

based on 15,055.21 tonnes from 101,733 properties

5.0

14.05 Former Beaudesert

Former Gold Coast

Former Logan

Former Beaudesert

13.7

based on 13,432.8 tonnes from 100,292 properties

13.7 Former Gold Coast

0.57% 1.15% 1.38% 1.26%

COMMERCIAL BUSINESS UNITS

Household waste and recycling in Logan

2.31% 0.99% 2.71% 1.26% 3.70%

48.68 %

2013/2014

4.95%

Paper and cardboard

HDPE

* From 2011/2012, we are no longer recording separate data

Glass

Aluminium

for the former Logan, Beaudesert and Gold Coast areas.

PET

Steel

Mixed plastics

Waste

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

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Tonnes of waste processed at Logan Waste disposal sites and transfer stations by category (waste to landfill) FINANCIAL YEAR

DOMESTIC (CONTRACT) WASTE

2009/2010

53,349.44

KERBSIDE CLEAN-UP WASTE TO LANDFILL

SELF-HAULED (TRANSFER STATION WASTE) AT BROWNS PLAINS FACILITY

COUNCILGENERATED WASTE (SELFHAUL)

COMMERCIAL AND INDUSTRIAL WASTE

WASTE TRANSFERRED FROM CARBROOK TRANSFER STATION

28,032.03

5,925.44

30,734.26

5,784.45

3,938.80

WASTE TRANSFERRED FROM BEENLEIGH TRANSFER STATION

data

TOTAL WASTE TO LANDFILL

128,953.38

unavailable 2010/2011

54,535.02

4,219.80

27,242.39

4,722.61

37,751.29

4,853.31

data

134,576.62

2011/2012

57,738.11

4,593.28

25,198.68

3,173.74

30,527.26

3,447.86

2,976.65

130,850.96

2012/2013

63,610.70

5,750.52

25,288.63

2,136.75

39,485.40

2,881.94

4,176.31

146,575.30

2013/2014

64,841.05

3,814.54

24,645.59

2,402.59

46,223.38

3,002.34

4,226.16

152,773.96

46,223.38

63,610.70

24,645.59

2012/2013

2013/2014

Domestic (contract) waste

See table above for numeric

Commercial and industrial waste

figures of smaller bars.

Self-hauled (transfer station waste) at Browns Plains facility Waste transferred from Carbrook transfer station Council-generated waste (self-haul) Kerbside clean-up waste to landfill Waste transferred from Beenleigh transfer station (data unavailable prior to 2011/2012)

39,485.40

30,527.26 2011/2012

25,288.63

2010/2011

25,198.68

27,242.39

30,734.26 28,032.03

37,751.29

54,535.02

57,738.11

134,576.62 total

128,953.38 total

2009/2010

130,850.96 total

152,773.96 total 64,841.05

146,575.3 total

53,349.44

COMMERCIAL BUSINESS UNITS

unavailable

Tonnes of waste material diverted from landfill at Logan Waste disposal sites and transfer stations by type FINANCIAL YEAR

MATERIAL SOLD AT RECYCLING MARKET

WASTE VEGETATION

NET QUANTITY KERBSIDE RECYCLATE

COMIX (COLLECTED FROM YELLOW-LID WHEELIE BINS) RECYCLED AT LANDFILL

CARDBOARD RECYCLED AT LANDFILL

METAL RECYCLED AT LANDFILL

TOTAL QUANTITY OF MATERIAL DIVERTED

2009/2010

1,259.24

33,880.18

7,081.80

96.11 (glass only)

639.75

4,403.91

47,360.99

2010/2011

1,356.45

32,893.47

4,810.49

105.05

751.24

4,378.69

45,295.39

2011/2012

1,165.58

23,132.02

13,432.80

127.81

635.41

3,519.46

42,013.08

2012/2013

924.38

37,067.36

15,055.21

110.65

662.40

3,026.86

56,846.86

2013/2014

1,045.30

35,031.05

14,260.59

107.34

613.24

3,362.15

54,419.67

54,419.67 total

35,031.05

37,067.36

45,295.39 total 32,893.47

33,880.18

47,360.99 total

COMMERCIAL BUSINESS UNITS

56,846.86 total

7,081.80

14,260.59

15,055.21

4,810.49

13,432.80

23,132.02

42,013.08 total

2009/2010

2010/2011

Waste vegetation Net quantity kerbside recyclate Metal recycled at landfill

2011/2012

2012/2013

2013/2014

See table above for numeric figures of smaller bars.

Material sold at recycling market Cardboard recycled at landfill Comix (collected from yellow-lid wheelie bins) recycled at landfill

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

ADDITIONAL STATUTORY INFORMATION

Building our businesses: We are planning for growth across Logan City.

This section contains a range of information important to Council as an organisation, including statutory information required under the Local Government Act 2009 and general information relating to staff policies and other information considered of interest in an annual report.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

ADDITIONAL STATUTORY INFORMATION

Additional statutory information

Revenue Policy Our Revenue Policy provides a framework for the

Rateable values of properties are based on averaged

organisation to structure an income portfolio and derive

valuations over the past three years. This recognises the

strategies to provide for the financial resource needs of our

varying impact of property revaluations on rates, especially

functional programs.

variances that occur when valuations of some properties

Revenue derived from rates must be sufficient to meet the difference between outlays for our functional programs

reduce and others significantly increase through State Government valuations.

(net of any ordinary business or trading income, grants,

Council also resolved to make

A full copy of our

subsidies or contributions received) and any internal

a special charge for Rural

Revenue Policy is

financial accommodation arranged with our financial

Fire Service for the purpose

available online at

entities.

of funding rural fire brigades

www.logan.qld.gov.

to assist them in providing a

au/policies

This policy applies wherever we consider the levy or imposition of rates and service charges, fees and other

rural fire service.

revenue raising strategies. Rates are levied on rateable land values in accordance with our Revenue Statement and Policy, and the Local Government Act 2009 and the Local Government Regulation 2012.

The policy enables us to deliver our capital expenditure program by borrowing funds, both externally and

In 2013/2014, we had the following differential general

internally, at the minimum rate of interest obtainable in

rates categories:

the money market for the applicable term at the time of

• commercial • drive-in shopping centres and car parks • commercial mushroom farming

drawdown. The policy has been developed in accordance with section 192 (Debt policy) of the Local Government Regulation 2012, and will apply when

• poultry (less than one million birds)

we wish to borrow funds to

A full copy of our

• poultry (greater than one million birds)

finance our capital works

Borrowing Policy is

program, particularly,

available online at

• farming ADDITIONAL STATUTORY INFORMATION

Borrowing Policy

new road works, library

www.logan.qld.gov.

• hotels and licensed clubs

construction and community

au/policies

• industrial

and sporting facilities.

• multi-residential dwellings • not allocated land • offices

Service charges

• oil depots and offensive industries

Service charges apply in situations where we have ongoing

• outdoor sales

contact with the public as part of our responsibilities and

• residential and other land • non-owner occupied residential • residential institutions (up to 50 sites)

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

• residential institutions (51 to 100 sites)

relevant reserves.

• residential institutions (101 to 210 sites)

Ordinary or trading income, grants, subsidies or

• residential institutions (211 to 275 sites)

contributions received in respect of the service programs,

• residential institutions (greater than 275 sites)

and any internal financial accommodation arranged within our own financial entities, are regarded as service charges.

• retail warehouses • service stations • transformers.

SERVICE

Garbage

NUMBER OF ASSESSMENTS

102,639

VALUE ($M)

$27.679

Separate charges

Precepts and government levies

In levying separate charges, such as the environmental

We complied with appropriate legislation in the levying

levy and community infrastructure charge, it is our policy

collection and remittance of precepts and charges payable

that certain appropriately-identified groups of costs or

to the State Government.

outlays are to be recovered via a uniform charge on each rateable property within the city. This policy ensures that the impact of those costs is equal across the cityâ&#x20AC;&#x2122;s rate base on the grounds that the function or service is available, and for the benefit of all residents. CHARGE

It remained our policy to encourage the prompt payment of rates and charges by offering discounts for payment

NET VALUE 2013/2014 ($M)

Environmental charge

7.192

Community infrastructure charge

Discounts and concessions

35.051

by a designated due date and to further encourage early payment incentives according to guidelines and within limits provided by statute.

Discounts Discounts offered included five per cent of current rates and charges (excluding the State Governmentâ&#x20AC;&#x2122;s

Consumer charges

emergency levy, sewerage and water service charges and

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

including all outstanding arrears, was made by 30 days after the date of issue of the rates notice.

Concessions VALUE 2013/2014 ($M)

Application fees

9.836

Permit, licence, and registration fees

3.148

Property searches

1.238

Total

14.222

Our policy in 2013/2014 was to provide assistance by way of a rate concession to property owners in receipt of a pension from the Federal Government and to offer concessions to achieve specific objectives, such as the conservation of environmentally sensitive land.

Pensioner concessions Remissions are available on general rates of $307 per

Interest on rates and charges

annum for maximum-rate pensioners and $153.50 per

We continued to impose the maximum rate of interest

offer a remission on garbage charges of up to 10 per cent

permissible by statute on outstanding rates and charges

per year to eligible pensioners on a maximum rate pension

in an effort to discourage any avoidance of rates and

and a remission of up to 5 per cent per year to non-

charges debts. In this respect, we continued to comply

maximum rate pensioners.

with statutory requirements and guidelines regarding the

The State Government provides a 20 per cent subsidy on

imposition of fines and penalties.

annum for part-rate pensioners, upon application. We also

ADDITIONAL STATUTORY INFORMATION

SERVICE

water consumption charges), where full payment of rates,

Council rates and charges to a maximum of $200 per year for approved pensioners. They also provide an additional

Collection of outstanding rates and charges At the close of the financial year, the balance of outstanding rates and charges was $20.803 million, or 5.18 per cent of the gross rates and charges levied for the year (compared to $19.794 million and 5.38 per cent in 2012/2013). While we continued our policy of assisting ratepayers to budget payments, we also continued to pursue debtors.

subsidy on water charges for approved pensioners to a maximum of $120 per year, and a 20 per cent subsidy on the Emergency Levy. CONCESSION

NUMBER OF PROPERTIES

VALUE 2013/2014 ($M)

State Government

13,470

2.581

Council

13,470

3.713

Total

6.294

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Financial sustainability Financial Management Strategy We measure actual revenue and expenditure trends

We ensure that our financial management strategy is

over time as a guide to future requirements and to make

prudent and that our long-term financial forecast shows a

decisions about the efficient allocation of resources to

sound financial position while also being able to meet the

ensure the most effective provision of services.

community’s current and future needs.

Financial sustainability ratios RATIO

BUDGET 2013/2014

ACTUAL 2013/2014

BUDGET 2014/2015

BUDGET 2015/2016

BUDGET 2016/2017

BUDGET 2017/2018

BUDGET 2018/2019

BUDGET 2019/2020

BUDGET 2020/2021

Operating surplus

3.3%

2.1%

0.0%

0.6%

1.2%

1.5%

2.5%

3.2%

4.0%

Asset sustainability

44.7%

80.3%

87.6%

65.7%

58.9%

60.9%

60.4%

56.6%

71.0%

Net financial liabilities

33.9%

13.2%

28.9%

31.5%

36.1%

40.0%

39.7%

37.4%

41.3%

Tenders and expressions of interest There were no requests for changes to a tender pursuant to section 177(7) of the Local Government Finance, Plans and Reporting Regulation 2010. No expressions of interest were requested during

ADDITIONAL STATUTORY INFORMATION

2013/2014.

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

COMMUNITY SERVICE OBLIGATIONS

Cleansing remissions to eligible

282,392

pensioners

public interest grounds (as per section 24 of the Local

Water, sewerage and cleansing

Government Regulation 2012).

remissions to eligible community

The information at right highlights the categories for

ACTUAL VALUE 2013/2014 ($)

543,379

organisations

which we believe assistance is required on public interest

Household hazardous waste

95,868

grounds.

Free tipping for community

43,036

organisations (includes Clean Up Australia Day and disposal of motor vehicles) Dead animal removal Natural disasters/emergencies Total

105,170 0 1,069,845

Registers open for inspection To allow people to inspect decisions and disclosures made

• Environmental management programs

by Council and councillors, the following registers are

• Environmental protection orders

open for inspection: • Annual budget • Certificate classification under the Building Act 1975

• Environmental reports • Fees and charges (regulatory fees and schedule of commercial and other charges)

• Council minutes

• Health licences

• Councillors’ material personal interests

• Impounding

• Council policies

• Licences and approvals under the Environmental

• Delegations of authority

Protection Act 1994

• Development applications

• Local law and subordinate local laws

• Development approvals

• Monitoring program results

• Development permits • Disclosure of election gifts

Code of Competitive Conduct for business activities In accordance with section 45 and 47 of the Local

which to base its assessment. The financial information

Government Act 2009, Council resolved that the Code of

for these activities highlights their non commercial

Competitive Conduct (the code) be applied to Plant Fleet

nature and the main reason for supplying these

Services (workshop and fleet).

services is to increase access and social benefit. • Development assessment building services ceased

venues, sport centres, aquatic centres, Logan

marketing external private certification service on

Entertainment Centre and development assessment

30 June 2010, and is primarily focused on providing

building services.

a customer service obligation in the finalisation of

The reasons for not applying the code to the above are as follows: • One argument often advanced for applying the code

the historical backlog of building approvals from the transferred local government areas, as part of boundary reforms. If any future requests are made under section 51 of the Building Act 1975 for Council

to business units is that the commercial culture will

to provide a certification service, Council has general

drive efficiencies in both the business unit and the

certification requests, customer service provides

Council administration as a whole. In Logan’s case, the

a register of external providers and also refers the

internal support service providers work on an ongoing

requester to the Yellow Pages.

ADDITIONAL STATUTORY INFORMATION

Council resolved not to apply the code to community

basis in conjunction with the business units and other streams within Council to drive efficiencies for the business units and Council as a whole. The application of the code to these activities would not increase this pressure for change. • It has been the view of Council that the code not be applied until such time as the business activities can demonstrate that they are efficient and competitive, and Council has accurate financial information on

Summary of investigation notices for complaints and reference There were no complaints received in regard to competitive neutrality. Currently, no business activities are accredited. Significant business activity undertaken by Council in 2013/2014 related to Logan Waste Services and Logan Water.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

Administrative action complaint disclosures 2013/2014 We aim to ensure excellent standards of service and have

We are required under section 187 of the Local

a policy in place to efficiently and effectively investigate,

Government Regulation 2012 to disclose the number of

and where appropriate, take corrective actions and/or

complaints made and resolved through our administrative

revise a decision made when a customer is dissatisfied.

action complaints process.

We are committed to dealing fairly with administrative

Please note the below figures are estimations due to the

actions complaints. To demonstrate this commitment, we

document management system available to collect the

have:

information.

• provided good decision training (including online training) to relevant officers and customer service training

OUTCOME OF ADMINISTRATIVE ACTION COMPLAINTS

Number of complaints made under the

NUMBER

135

administrative action complaints (AAC) process

• implemented a system where administrative action complaints are dealt with by the relevant manager and (where required) internally reviewed by the relevant

Number of AAC resolved under the complaints

Deputy CEO. If the complaint still remains unresolved,

Number of on-hand (or unresolved complaints)

the complainant is advised of their appeal option to the

under the AAC process during 2013/2014

Queensland Ombudsman.

119

management process

Number of unresolved complaints under the AAC

process from 2012/2013 (previous financial year)

National Competition Policy reforms In the late 1990s, the Local Government Act was amended

• Logan Water (T1 - commercialised significant business)

as a result of an Australian Government study, titled the

• Logan Waste Services (T2 - commercialised significant

ADDITIONAL STATUTORY INFORMATION

Hilmer Report. This report aimed to increase competition

100

and efficiency of trade and commerce. These principles were then translated across to Council business activities. Significant business activities of our local government business entities during 2013/2014 were:

business) • Plant Fleet Services - Workshop (T3 - code of competitive conduct business) • Plant Fleet Services - Fleet (T3 - code of competitive conduct business).

Local Government Finance Standard disclosures The Local Government Regulation 2012 requires certain matters to be disclosed to improve awareness about how we use money for the following: CATEGORY

EXPENDITURE 2013/2014 ($’000)

Grants to community organisations

1,441

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 http://www.logan.qld.gov.au/benefitfund Overseas travel and accommodation costs are detailed below: NAME

POSITION

DESTINATION

PURPOSE

COST ($)

John Oberhardt

Deputy CEO – Organisational

Hong Kong / Korea / China /

Queensland Treasurer’s

17,792.85

Services

Malaysia / Singapore

Trade Mission

Taiwan

2013 Asia Pacific Cities

Luke Smith

Councillor – Division 6

Nick McGuire

Economic Development Manager

Russell Lutton

2,856.00

Summit

Councillor – Division 2

ADDITIONAL STATUTORY INFORMATION

Quality assurance Logan Waste Services maintained certification to quality standard ISO 9001:2000 and environmental management ISO14001:2004. Logan Water maintained certification to quality standard ISO 9001:2000 and environmental management ISO14001:2004.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

101

FINANCIAL REPORTING

Building our businesses: We provide a range of services to support our cityâ&#x20AC;&#x2122;s 19,000 businesses.

102

Financial reporting This section outlines our financial performance and standing during 2013/2014, including a summary in plain language as well as the financial statements that have been prepared in accordance with relevant legislation and accounting standards. 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. • 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

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

FINANCIAL REPORTING

financial standing at the end of a period.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

103

Financial performance highlights • We reported an operating surplus of $8.86 million and

• Our low debt levels result in a favourable debt

an operating surplus ratio of 2.1 per cent against an

to equity percentage of 5.3 per cent (debt as a

industry standard of between 0 and 10 per cent for

percentage of equity).

2013/2014.

• We have a low net financial liabilities ratio (total

• Our total assets have grown by $294 million over the

liabilities less current assets as a percentage of

past 12 months to $4.649 billion net worth (as at 30

operating revenue) of 13.15 per cent, indicating that

June 2014).

we have a large capacity to borrow if required.

• We remain in a sound financial position at 30 June

• Our interest-bearing debt has increased by $369 per

2014 in terms of both short-term liquidity and long-

capita since 2010 due to boundary and water reform

term sustainability:

changes. Our capital expenditure over the five-year

• We have a 3.1:1 working capital ratio (ratio of

period was $591 million, a 14 per cent growth of our

current assets to current liabilities), meaning that

asset base.

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

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

Income statement

It can often be difficult for stakeholders to

Revenue - expenses = net result

interpret formally-presented financial

Council has to collect sufficient revenue in order to fund current and future expenditure

statements that have been prepared in accordance with accounting standards. The community financial report highlights key areas of performance and financial sustainability by focusing on the six key elements to

FINANCIAL REPORTING

the financial statements. The links between the

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

six key elements and

Statement of comprehensive income Notes to the financial statements

Council discloses other changes to the value of the business

Additional information to support key financial statements

brief explanations of each element are provided below.

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

104

Net result + or - other equity changes = comprehensive income

Statement of financial position Assets - liabilities = equity Management ensures that Council’s business is financially sustainable

What is financial sustainability? The Local Government Regulation 2012 requires councils

local government is financially sustainable if the local

to prepare both current year and long-term financial

government is able to maintain its financial capital and

sustainability statements and publish these in their annual

infrastructure capital over the long termâ&#x20AC;&#x2122;.

report. The current year financial sustainability statement is

The regulation requires councils to report on three financial

also included in the community financial report.

sustainability measures: an asset sustainability ratio, a

The financial sustainability statement and the associated

net financial liabilities ratio and an operating surplus ratio.

measures (ratios) provide evidence of our ability to

We have included these in this section. These ratios are

continue operating and to provide an acceptable standard

reported in addition to the annual financial statements

of service to the community both currently and in the

and are designed to provide an indication of our financial

longer term.

sustainability.

The Local Government Act 2009 s102 (2) states that â&#x20AC;&#x2DC;a

Income statement The income statement displays the revenues recognised for a period, and the costs and expenses charged against

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

those revenues, and measures our operating performance during the financial year. Our net result is measured as the

Net result 99.4

net of total revenues and expenses.

Comparative trend analysis: revenue and expenses The presentation of a single set of data can be misleading

Net result 49.4 Net result 55.1

516.8

458.4 Net result 48.9

395.9

319.7

Net result 45.6 339.5

(409.0)

(417.3)

(340.8)

and is considerably enhanced through trend analysis.

(270.8)

All key measures in this report provide a five-year trend

(293.9)

and relevant explanations to enhance stakeholdersâ&#x20AC;&#x2122; understanding of our financial performance and position. The graph to the right excludes any gain or loss incurred Allconnex Water, as these amounts are not due to normal Council operations. This is explained on the next page.

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

Revenue Expenses

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

FINANCIAL REPORTING

on the transfer of assets and liabilities in and out of

105

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

Interpreting the figures Council has been able to continually provide increasing

ITEM

2010/2011

Loss on transfer to

AMOUNT

(186.5)

Allconnex Water 2011/2012

Loss on transfer to

(8.7)

Allconnex Water 2012/2013

Gain on transfer from

services to the community while maintaining a surplus of funds from its yearly operations, in order to ensure our long-term financial stability is maintained. The net result includes developer and other contributions that are disclosed as revenue but then set aside to fund current and future infrastructure costs. Each approved

42.5

Allconnex Water

development is required to contribute either completed assets (called donated assets) or cash towards the building of current and future infrastructure necessary to

The transfer of our water and wastewater business to

support increased population levels. We carefully monitor

Allconnex Water on 1 July 2010 meant we did not earn

city expansion and plans for priority infrastructure needs.

revenue from these services in 2010/2011 and 2011/2012,

We also receive grants and subsidies from the State and

although we earned interest and tax revenue from

Federal governments, which are used to fund identified

Allconnex Water totalling $39.1 million and $8.4 million

operational and asset (capital) projects.

respectively in 2011/2012 ($31.6 million and $8.3 million in 2010/2011). We resumed control of the water and wastewater operations on 1 July 2012 and this is the major reason for increases in both revenues and expenses in

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.

2012/2013 and 2013/2014. Our city’s population has increased from 275,000 in 2009 to more than 300,000 in 2014, representing a nine per cent increase over the five-year period. The net result reported includes funding provided for future operational and capital expenditure, which we transfer to reserve until spending is incurred. These funds are

Sourcing our revenue: where our money came from We receive revenue from a number of different sources.

2013/2014 revenue sources

essential for the maintenance and development of our assets as the city grows.

Asset donations – 12% $64.1m Grants and subsidies – 9% $44.9m Fees and charges – 5% $25.4m Recoverable works and sales – 4% $21.0m

FINANCIAL REPORTING

Interest and other – 2% $8.0m

Total revenue $516.8m Rates - 68% $353.3m

Our revenues are used to fund both operational and asset development expenditure and are based strictly on the recovery of costs incurred to provide the levels of service expected by the Logan community. Many of our revenue sources have a base charge, used to partly recover infrastructure costs, and a usage element,

106

linked to consumption. This ensures a fair distribution of costs across the community.

Key expenditure statistics include: • Our total operating costs amounted to $417.3 million,

Key revenue statistics for 2013/2014 include: • Our recurrent revenue increased by $30.3 million (7.8 per cent) over the year. The bulk of the increase came

an increase of $8.3 million (two per cent) over last year. There were no material increases in any expense categories during the year.

from water and wastewater revenues, which accounted

• We spent $150 million on expanding and replacing

for an additional revenue amount of $21.9 million from

city assets. Such expenditure is accumulated in

mainly rates and usage charges.

capital projects and then recognised as assets on

• Grants and subsidies and developer contributions represented 9 per cent of our total revenue. Of this,

commissioning of the work. • Thirty-eight per cent of our operating cost was incurred

$9.8 million (last year $12.4 million) was used for

for purchasing materials and services. Materials and

operational purposes while $35 million (last year $35

services expenditure is necessary to maintain asset

million) was used for targeted capital programs such

service levels and for the achievement of community

as the correction of road black spots and other safety

objectives portrayed in our Corporate Plan.

initiatives.

• The value of assets under our administration is $4.649

• Developers provided $64.2 million (last year $36.6

billion net worth, which means we have set aside $92.8

million) in completed assets as part of approved

million in depreciation for the year. These funds are

development applications. This represents an increase

used to improve and replace our infrastructure and

of 175 per cent on last year.

other assets.

Total expenses: where we spent the money We incur both operational and capital expenditure. The following information shows operational spending only, because capital spending is added to the carrying value of assets when incurred.

2013/2014 expenditure Depreciation – 22% $92.8m Plant costs – 4% $15.7m Borrowing costs – 3% $11.8m

Total expenses $417.3m

FINANCIAL REPORTING

Other costs – 3% $11.8m

Materials and services – 38% $161.7m

Employee costs – 30% $123.5m

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

107

Statement of comprehensive income The statement of comprehensive income summarises

We manage the deterioration of asset conditions through

changes to the value of a business other than those in the

planned maintenance programs, while we provide for

income statement.

changes in the replacement costs of assets through

During 2013/2014, we increased the carrying value of our

revaluation.

assets by $158 million through revaluation. As part of our sustainability management, we undertake regular reviews of the condition and carrying value of assets.

Statement of financial position Our assets have increased by $294 million over the year.

What are our assets?

The main change is in property, plant and equipment assets due to $150 million worth of new and replacement

The bulk of our assets are in the form of infrastructure

assets and $158 million worth of revaluations, as reported

assets such as roads and drainage, and water and

above, as well as $64 million in donated assets received

wastewater, which collectively represent 71 per cent of our

from developers and a $102 million reduction in asset

total asset base. Total assets are made up as follows:

values due to depreciation and asset reworks incurred during the year. Our cash balance has increased by $24

Asset types

million over the year due to new loan drawdowns to be used for upcoming capital works.

Cash – 4% $172m

2013/2014 net worth ($m)

Inventory – 1% $36m

ITEM

Assets (what the community owns) LESS liabilities (what the community owes) Community equity

Debtors – 1% $61m Other assets – 0% $11m

AMOUNT

4,649 (327) 4,322

Total assets $4,649m*

Roads and drainage – 42% $1,940m

FINANCIAL REPORTING

Water and wastewater – 30% $1,382m Property, plant and equipment – 22% $1,047m *net worth

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

108

What are our liabilities?

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

The bulk of our liabilities are in the form of loans, which

4,321

4,282 4,100

The major components of our liabilities are as follows:

3,929

4,024

sites as well as for employee entitlements.

4,062

We set aside funds to rehabilitate our landfill and quarry

4,093

ensure inter-generational equity in the allocation of cost.

4,203

projects are financed through loan borrowing in order to

4,355

4,649

represent 78 per cent of our total liabilities. Certain

Liability types Creditors – 22% $73m Provisions – 8% $26m Other liabilities – 0% $1m

Total liabilities $328m

Loans – 70% $228m

(179)

(164)

2009/2010

2010/2011

Our financial strategy has been to reduce loans over the

Assets (net worth)

past few years to provide funding for future replacement of

Liabilities

key infrastructure assets. This strategy was evidenced by

(182)

2011/2012

(293)

(328)

2012/2013

2013/2014

Equity

a reduction in debt per capita from $398 to $367 over the four-year period from 2007/2008 to 2010/2011. In 2011/2012, we had to borrow to fund certain capital projects due to a reduction in development activity in the city. In 2012/2013, we received an additional $58.6 million

Our net assets grew by 6.4 per cent during 2013/2014 due to the changes in asset carrying values as described above.

in borrowings transferred from Allconnex Water. Due to grown to $759 by 30 June 2014.

What is our debt strategy? Like other councils, we undertake a loan borrowing program to fund new major facilities that are constructed to service community needs. The following information outlines important measures of debt management.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

FINANCIAL REPORTING

these changing circumstances, our debt per capita has

109

Debt and capital expenditure trends

Debt per capita

The debt and capital expenditure graph reflects our total

The debt per capita graph presents the value of our debt

outstanding debt and capital works expenditure program

per resident over the past five years. Our debt per capita

over the past five years.

has increased from $390 to $759 over the five-year period.

Between 2010 and 2014, our debt increased from $107.3 million to $228.2 million, an increase of $120.9 million,

Approximately $200 of this increase is due to the debt transferred from Allconnex Water.

including $58.6 million in additional debt in 2012/2013,

We manage financial assets and liabilities to progressively

which transferred from Allconnex Water.

optimise cash and debt levels. Our strategy is to reduce

Between 2010 and 2014, we spent $540 million ($591 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

debt levels to provide borrowing facility in preparation for future asset upgrades and replacements.

Debt per capita ($)

reticulation. 759

228.2

Outstanding debt and capital expenditure ($m)

2011

FINANCIAL REPORTING

Outstanding debt

110

381

2010

2011

150

120

2010

417

390

Capital expenditure

76.7

105.6 66

132.4

107.3

165.8

195.7

668

2012

2013

2014

2012

2013

2014

Percentage of assets funded by debt

How healthy is our liquidity?

Sound financial management also requires a balance of

Another important indication in determining the financial

affordability to fund debt while increasing our asset base

health of an organisation is to measure its ability to

to meet community needs.

meet commitments when they fall due. This indicator

The percentage of assets funded by debt has remained consistent at two to three per cent between 2008 and 2012, but then increased to 4.5 per cent in 2012/2013

is commonly known as the working capital ratio and examines the value between short-term assets and liabilities.

and 4.9 per cent in 2013/2014 due to the additional debt

A result of better than a one-to-one ratio reflects a strong

transferred from Allconnex Water.

ability by an organisation to have sufficient funds to continue to maintain its cash flows and hence meet its commitments.

Percentage of assets funded by debt

4.91 4.49

Working capital ratio We had, on average over the past five years, 3.42 times the amount required in current assets to pay our shortterm liabilities. In 2014, the ratio was 3.15:1, which was an

2.55

2.59

2.80

increase from 3:1 in 2013.

Working capital ratio

2010

2011

2012

2013

4.37

2014

4.10

3.00

Percentage of revenue required to fund debt repayments

3.15

2.45

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.

2010

2011

2012

2013

2014

The percentage of revenue to finance debt repayments has been between two per cent and five per cent in the past five financial periods.

FINANCIAL REPORTING

Debt servicing ratio Debt servicing ratio

4.22 3.75

2.21

2010

2011

2012

2.02

2.09

2013

2014

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

111

Statement in changes of equity The statement of changes in equity measures the change

Community wealth

in our net wealth and considers such items as retained earnings, revaluations of our asset base and reserves held

Community wealth, or community equity, is measured as

for future capital works

the net of our assets less liabilities. Comparative trends show that we have a healthy community equity position,

We have also elected to voluntarily include an appropriation statement and capital funding statement in

which has grown steadily over the past five years.

the financial statements. While not required by Australian

Community equity

Accounting Standards or the Local Government Act, these statements provide further transparency of our management of community funds by disclosing funds transfers to and from revenue and reserves and details of

4,024

3,930

2010

2011

capital funding.

4,100

4,062

2012

2013

4,322

We have incurred capital expenditure and loan repayments of $223 million in the year, which were partially funded from transfers from reserves, developer contributions, planned loan funding and provisions included in our rates charges. Gross transfers to capital and operational reserves amounted to $128.8 million in 2013/2014, although this is

2014

offset by $37.3 million in transfers from reserves to fund asset write-offs and operational expenditures. Part of reserves funds have been used to fund the $223 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

Our equity has increased by $259 million over the past

reserves and operations over the past five years, but it

year due to increases in asset values.

excludes any gain or loss on water reform.

Revenues transferred to reserve to fund asset expenditure ($m)

FINANCIAL REPORTING

112

projects, which, with financial planning, can place less community.

The following table presents net transfers between

2009/ 2010

2010/ 2011

2011/ 2012

55.1

48.9

45.6

49.3

99.4

Transfer

(54.9)

(46.1)

(42.1)

(46.81)

(91.5)

Surplus

0.2

2.8

3.5

2.5

7.9

2012/ 2013

2013/ 2014

The 2013/2014 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.

appropriate level of reserves held to plan for future reliance on loan borrowing in meeting the needs of the

capital funding to fund capital projects.

Net result

A portion of community wealth is cash-backed by an

Statement of cash flows The statement of cash flows identifies how we received

All of these priorities require both an immediate and longer

and spent our money during the year, resulting in what

term focus, and we have included both legislated and

cash is available at the end of the year.

additional measures below that provide an indication of our sustainability.

Cash flows 2013/2014 ($m)

The Local Government Act 2009 s102 (2) states that ‘a Opening balance

147.6

PLUS cash received

494.6

LESS cash spent

(470.2)

Cash available at year end

172.0

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 provided a trend analysis of the required

Major sources of cash received and spent ($m) 2012/2013

Net cash received from trading

measures plus additional measures of financial

2013/2014

110.2

103.8

24.4

41.9

(109.3)

(112.6)

Repayment of debts

(7.8)

(8.7)

Net cash received/(spent)

17.5

24.4

New loans Purchase of assets (net)

Cash available While our current cash balance is $172 million, it is

sustainability, such as an interest cover ratio, a working capital ratio and an asset consumption ratio, each of which is relevant in the determination of financial sustainability.

What is financial capital and infrastructure capital? Financial capital This 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.

important to note that this amount is restricted for specific

We need to maintain sufficient long-term financial capital

purpose such as future capital works.

to continue operating and do this by extensively planning

We started the financial year with $147.6 million as the current cash balance and ended with $172 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.

our operations and taking account of current and future asset maintenance, renewals, upgrades and expansions, as well as related operational costs required to service a growing city. 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

Sustainability measures Council’s Corporate Plan identifies seven priority focus areas:

Infrastructure capital This refers to the physical assets that we construct and then maintain. All of these assets need to be in a

• Building our major infrastructure (MI)

condition that provides a level of service acceptable to

• Building our city’s image (CI)

the community. Our extensive maintenance, renewals and

• Building our economic base (EB) • Building our environment (E)

upgrade programs provide the roads, stormwater drainage,

FINANCIAL REPORTING

in the city.

landfill, and water and wastewater assets necessary to service the city.

• Building our service excellence (SE) • Building the wellbeing of our communities (WC) • Managing growth in our city (MG)

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

113

What are the measures and what do they mean?

could lead to a change in depreciation expense in the

Sustainability measures focus on both the present and

the rate of depreciation.

the future. We present long-term financial sustainability measures, which are based on our budget and longterm planning processes, as well as short-term financial sustainability measures.

Sustainability measures required by legislation

future, as the methodology will take account of both the stage of life and condition of the asset to determine

• Council’s assets are ‘relatively new’ and are wellmaintained. Newer and well maintained assets tend to depreciate at a slower rate. Inclusion of our extensive maintenance expenditures would provide a more accurate determination of asset sustainability. The asset sustainability ratio was introduced in the past three years.

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

Asset sustainability ratio: three-year trend

Asset sustainability ratio

2011/2012

The asset sustainability ratio is an approximation of the

Asset renewals

extent to which our property, plant and equipment assets

($m)

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

Depreciation ($m)

2012/2013

2013/2014

21.4

61.7

76.2

56.6

74.4

91.6

The ratio is calculated as the value of property, plant and equipment renewals capital expenditure divided by property, plant and equipment depreciation expense.

Asset sustainability ratio: %

The theory is that depreciation expense represents the

80.3

extent that an asset has ‘worn out’ over the financial year 73.2

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.

37.8

The following additional information should be considered: • The majority of our property, plant and equipment comprises infrastructure assets.

2011/2012

2012/2013

2013/2014

• Our infrastructure assets have very long useful lives, often in excess of 50 years. Infrastructure assets do not wear out uniformly over their lives and are not replaced uniformly either. The ratio does not take FINANCIAL REPORTING

account of 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. • Our depreciation is mainly based on a straight line

infrastructure assets only, although from 2013/2014, the amounts used are based on all of our property, plant and equipment. An acceptable target is a ratio greater than 90 per cent and our 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

methodology. Our road pavement depreciation is

conjunction with the factors mentioned above to obtain a

based on asset condition assessments undertaken

clearer measure of asset sustainability.

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 actively review depreciation methodologies for other infrastructure assets, which

114

The 2010/2011 and 2011/2012 amounts were based on

Net financial liabilities ratio

The ratio indicates that we are well placed to meet our

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

financial obligations. Current assets in all cases, except for the past two financial years, have exceeded total liabilities meaning that there are expected to be more cash inflows in the short term than are needed to pay all of our liabilities. The position of the past two years has resulted from shortterm borrowings transferred from Allconnex Water. The Department of Local Government and Planningâ&#x20AC;&#x2122;s

revenue.

Financial Management (Sustainability) Guideline 2011

Net financial liabilities (assets) are calculated as total liabilities minus current assets, and a negative measure means that our current assets exceed total liabilities.

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

This ratio does not take account of liability repayment

capability to increase its loan borrowings if necessary.

periods, which include longer-term borrowings and may

This endorses our strategy to maintain low borrowings in

be misleading. A more accurate measure of short-term

anticipation of future infrastructure assets replacement

liquidity is provided through the working capital ratio which

expenditures (see asset sustainability ratio).

compares current assets to current liabilities rather than all liabilities, and is presented in the body of this report.

Operating surplus ratio

We have provided a net financial liability trend over the

The operating surplus ratio measures the extent to which

past five years.

revenues raised to cover operational expenses only are available for capital funding and other purposes and is

Net financial liabilities (assets) ratio

Current

calculated as net operating result (presented in the income

2009/ 2010

2010/ 2011

2011/ 2012

2012/ 2013

2013/ 2014

185.4

194.5

212.2

247.6

272.7

178.8

163.6

182.4

292.9

327.5

assets ($m) Total

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.

liabilities ($m) Net financial

statement) divided by operating revenue.

(6.6)

(30.9)

(29.8)

45.3

54.8

liabilities

Operating surplus (deficit) ratio

(assets) ($m) Operating

298.2

248.0

289.4

386.5

revenues

2009/ 2010

416.8 Operating

($m)

2010/ 2011

2011/ 2012

2012/ 2013

2013/ 2014

298.6

248

289.4

386.5

416.8

(29.8)

(6.6)

6.8

(7.9)

8.9

revenues ($m) Net result ($m)

13.2

Operating surplus (deficit) ratio: % 11.7 2.1 2009/2010

2009/2010

2010/2011 2011/2012

(2.2)

2012/2013

2010/2011 (2.7)

2013/2014

2.3

2012/2013

FINANCIAL REPORTING

Net financial liabilities (assets) ratio: %

2013/2014

2011/2012 (2.0)

(10.3) (10.1) (12.5)

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

115

We incurred an operating surplus in 2013/2014. Some of

Interest cover ratio

this is because we are progressively reviewing our asset 2009/ 2010

depreciation and revaluation methodologies and have switched the water and wastewater valuation methodology from a depreciated replacement cost to a discounted cash

Interest

flow basis.

expense ($m) Interest

Additional sustainability measures Interest cover ratio

2010/ 2011

2011/ 2012

2012/ 2013

2013/ 2014

4.7

6.8

6.5

9.8

10.7

4.8

6.9

7.6

8.5

7.3

(0.1)

(1.1)

1.3

3.4

298.2

248

289.4

386.5

416.8

revenue ($m) Net interest expense

The interest cover ratio is an important short-term liquidity

(revenue)

measure that provides a measure of the extent to which

($m)

operating revenues are committed to funding interest

Operating

expense on current loan borrowings and leases.

revenues

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

Interest cover ratio: %

council may not be able to meet its interest commitments. A high interest cover ratio may also mean a restriction on future borrowings and, as such, is an important sustainability measure. The ratio is calculated as net

0.8 0.3 0

2009/2010

2010/2011

2011/2012 (0.4)

2012/2013

2013/2014

interest expense (revenue) divided by operating revenue. Net interest expense (revenue) is interest expense minus interest revenue.

In most cases, our interest received for the year exceeds

We have provided an interest cover trend over the past five

operating revenue. Recent increases in borrowings have

years.

resulted in an interest expense that exceeds interest

interest paid and hence there is no further impost on

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 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 Councilâ&#x20AC;&#x2122;s current assets over current liabilities. A ratio in excess of 1:1 is a strong indicator of short-term

FINANCIAL REPORTING

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 and is dependent on the depreciation methodologies used for assets (see asset sustainability ratio comments). It is calculated as the written down value of property, plant and equipment assets divided by the gross current replacement cost of property, plant and equipment assets. The ratio indicates

116

Summary the extent that property, plant and equipment assets are

We ended the 2013/2014 financial year in a sound financial

through their lives on average, and a high ratio indicates

position.

that assets are still new.

Our current position provides the building blocks for

We have provided an asset consumption trend over the

stability that our long-term financial strategy provides for

past five years.

and allows us to meet our future obligations and demands of our community in the foreseeable future.

Asset consumption ratio ($m)

Property,

2009/ 2010

2010/ 2011

2011/ 2012

2012/ 2013

2013/ 2014

3,489

2,259

2,400

3,525

3,791

5,391

3,444

3,647

5,355

5,802

plant and equipment written down value Property, plant and equipment gross

Asset consumption ratio: %

64.7

2009/2010

65.6

65.8

2010/2011 2011/2012 2012/2013

65.3

2013/2014

Our total property, plant and equipment assets were impacted 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

FINANCIAL REPORTING

2012.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

117

LOGAN CITY COUNCIL Annual financial statements 30 JUNE 2014 TABLE OF CONTENTS

FINANCIAL REPORTING

Page(s) Key financial statements Statement of comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows 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 Capital grants and subsidies 11 Gain/ (loss) on sale of non current assets 12 Share of jointly controlled entity profit 13 Reduction in rehabilitation provision 14 Employee costs 15 Material and services 16 Depreciation and amortisation 17 Finance costs 18 Other expenses 19 Capital expenses 20 Conditions over contributions 21 Cash and cash equivalents 22 Trade and other receivables 23 Inventories 24 Prepayments 25 Other financial assets 26 Investment in subsidiary 27 Investment in jointly controlled entity 28 Property, plant and equipment 29 Intangible assets 30 Trade and other payables 31 Borrowings 32 Financial risk management 33 Fair value measurements 34 Provisions 35 Other liabilities 36 Asset revaluation surplus 37 Retained surplus/ (deficiency) 38 Cash flow information 39 Trust fund 40 Commitments for expenditure 41 Contingent liabilities 42 Contingent assets 43 Superannuation 44 Statement of activities to which the code of competitive conduct applies 45 Reincorporation of Council's water business 46 Voluntary change in accounting policy and prior period adjustment 47 Events after the reporting period Management and audit certificates Management certificate Audit report Unaudited Statements of appropriation and capital funding

9130032

118

FS FS FS FS

2 3 4 4

FS 5 - 21 FS 22 - 27 FS 28 FS 28 FS 28 FS 28 FS 28 FS 28 FS 29 FS 29 FS 29 FS 29 FS 29 FS 29 FS 30 FS 30 FS 31 FS 31 FS 32 FS 32 FS 32 FS 33 FS 33 FS 33 FS 34 FS 34 FS 35 FS 36 - 38 FS 38 FS 38 FS 39 FS 39 - 41 FS 42 - 48 FS 49 - 50 FS 50 FS 50 FS 51 FS 52 FS 53 FS 53 FS 54 FS 55 FS 55 FS 56 FS 57 FS 58 - 59 FS 59 FS 60 FS 61 - 62 FS 63 - 64

LOGAN CITY COUNCIL Statement of comprehensive income For the year ended 30 JUNE 2014 Note

2014 $â&#x20AC;&#x2122;000

2013 Restated $â&#x20AC;&#x2122;000

Revenue Recurrent revenue Rates revenue Fees and charges Recurrent donations, contributions and grants Interest received Profit on sale of assets held for 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 jointly controlled entity profit Reduction in rehabilitation provision Gain on market value realisation on borrowings Gain on net asset transfers from AllConnex Water

3 4 5 6 7

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

324,681 21,685 12,436 8,529 2,048 10,564 6,559 386,502

8 9 10 11 12 13

64,159 29,901 5,219 131 4 575 11 100,000 516,766

36,576 28,081 6,875 227 112 42,477 114,348 500,850

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

14 15 16 17 18

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

116,653 173,087 90,840 11,421 2,371 394,372

Capital expenses Capital expenses

9,415

14,667

9,415 417,318 99,448

14,667 409,039 91,811

8,863 90,585 99,448

(7,870) 99,681 91,811

159,919 159,919

(129,434) (129,434)

259,367

(37,623)

Total expenses Net result Net result attributable to: Net recurrent revenue/ (expense) Net capital revenue/ (expense) Net result for the year Other comprehensive income

Revaluation of property, plant and equipment Other comprehensive income for the year Total comprehensive income for the year

FINANCIAL REPORTING

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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LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

119

LOGAN CITY COUNCIL Statement of financial position As at 30 JUNE 2014 Note

2014 $â&#x20AC;&#x2122;000

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

Non-current assets Other financial assets Investment in jointly controlled entity Investment in associate Property, plant and equipment Intangible assets

2013 Restated $â&#x20AC;&#x2122;000

2012 Restated $'000

21 22 23 24

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

147,675 59,972 36,187 3,792 247,626

130,197 34,729 44,404 2,874 212,204

25 27

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

190 499 4,100,993 5,736 4,107,418

502,045 499 626,285 2,938,501 2,565 4,069,895

4,648,977

4,355,044

4,282,099

28 29

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

30 31 34 35

72,756 10,546 2,473 884 86,659

71,615 8,716 1,611 621 82,563

39,921 5,523 1,961 1,168 48,573

Non-current liabilities Borrowings Provisions

31 34

217,661 23,193 240,854

186,965 23,419 210,384

114,507 19,299 133,806

327,513

292,947

182,379

4,321,464

4,062,097

4,099,720

2,072,404 2,249,060

1,912,485 2,149,612

2,041,919 2,057,801

4,321,464

4,062,097

4,099,720

Total liabilities

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

36 37

FINANCIAL REPORTING

This statement should be read in conjunction with the accompanying notes and significant accounting policies. The 2012 and 2013 Statements of Financial position have been restated following a prior period adjustment due to an error in 2011/12 and 2012/13 roads and drainage depreciation, an adjustment to water and wastewater asset carrying values due to a voluntary change in accounting policy, and a reclassification of leave balances. Details of these changes are provided in note 46.

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120

LOGAN CITY COUNCIL Statement of changes in equity and Statement of cash flows For the year ended 30 JUNE 2014 Statement of changes in equity for the year ended 30 June 2014 Balance at 1 July 2012 Net result from continuing operations restated Other comprehensive income for the year restated Balance at 30 June 2013 restated Net result from continuing operations Other comprehensive income for the year Balance at 30 June 2014 Note

Statement of cash flows for the year ended 30 June 2014

Asset revaluation surplus $'000 2,041,919 (129,434) 1,912,485 159,919 2,072,404 36

Note

Retained surplus $'000 2,057,801 91,811 2,149,612 99,448 2,249,060 37

Total community equity $'000 4,099,720 91,811 (129,434) 4,062,097 99,448 159,919 4,321,464

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax)

399,195

374,687

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

(275,251) 99,436 8,529 (10,227) 12,436

103,756

110,174

28 29 11 9 10

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

(161,577) (4,210) 2,125 28,081 6,875 19,429

(112,591)

(109,277)

41,945 (8,738)

24,382 (7,801)

Net cash provided by/ (expended on) financing activities

33,207

16,581

Net (decrease)/increase in cash and cash equivalents held

24,372

17,478

147,675

130,197

172,047

147,675

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 Receipts from AllConnex Water due to water reform Net cash used in investing activities

Proceeds from borrowings (loans raised) Repayment of borrowings (capital repayments)

31 31

Cash and cash equivalents at beginning of reporting period Cash and cash equivalents at end of reporting period

FINANCIAL REPORTING

Cash flows from financing activities

These statements should be read in conjunction with the accompanying notes and significant accounting policies. Council has adjusted the presentation in the cash flow statement in order to separately disclose operational and capital contributions, donations and subsidies.

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121

LOGAN CITY COUNCIL Statement of changes in equity and Statement of cash flows For the year ended 30 JUNE 2014 1.

Significant accounting policies

General information Logan City Council (Council) is a not-for-profit local government entity constituted under the Queensland Local Government Act 2009 and charged with the good rule and local government of the City of Logan. The Council is domiciled in Australia. Its registered office and principle place of business are located at: 150 Wembley Road Logan Central Queensland 4114 Basis of preparation These financial statements are general purpose financial statements for the period 1 July 2013 to 30 June 2014 and have been prepared in accordance with the Local Government Act 2009, the Local Government Regulation 2012 and Australian Accounting Standards and Interpretations, and comply with other requirements of the law. Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (â&#x20AC;&#x2DC;A-IFRSâ&#x20AC;&#x2122;). The financial statements are presented in Australian dollars unless otherwise noted. These financial statements were authorised for issue by Council on 23 September 2014. Compliance with International Financial Reporting Standards (IFRS) Australian Accounting Standards include requirements for not-for-profit entities that are inconsistent with IFRS. To the extent that these inconsistencies are applied, these financial statements do not comply with IFRS as issued by the International Accounting Standards Board. The main impacts are the offsetting of revaluation and impairment gains and losses within a class of assets, and the timing of the recognition of non-reciprocal grant revenue. Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and certain classes of property, plant and equipment at fair value. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Fair value Fair value means the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date taking account of characteristics that are specific to that asset or liability. Valuation techniques and inputs used to develop fair value measurements are provided in the accounting policy notes below.

FINANCIAL REPORTING

The recognised fair values of financial and non-financial assets and liabilities are classified according to the following fair value hierarchy that reflects the significance of the inputs used in making these measurements: Level 1 - Fair values that reflect the unadjusted quoted prices in active markets for identical assets/liabilities. Level 2 - Fair values that are based on inputs that are directly or indirectly observable for the asset/liability (other than unadjusted quoted prices). Level 3 - Fair values that are derived from data not observable in a market. Council recognises transfers between the fair value hierarchy levels, where relevant, at the end of the reporting period. A transfer between the fair value hierarchy levels may occur if the basis of valuation was changed. Details of fair value measurements are provided in note 33. 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.

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122

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 1.

Significant accounting policies (continued)

Critical accounting judgements and key sources of estimation uncertainty The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the Council's accounting policies. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which they occur if the revision affects only that period or current and future periods. The following are the critical judgements and estimations that management have made in the process of applying the Council’s accounting policies and that have the most significant effect on the amounts recognised in the consolidated financial statements: 

Property, plant and equipment depreciation methodology, estimated useful lives and residual values - Management reviews the depreciation methodology, 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. There have been no major changes during the current year and depreciation methodologies and useful lives remain as disclosed in note 1(i).



Property, plant and equipment fair value measurements - Most property, plant and equipment assets are measured at fair value. Where there is an active market for the assets, fair value is determined by reference to market value. Where there is no active market for the assets, fair value is determined by use of a valuation technique. Due to their specialist nature, most Council assets are measured at depreciated replacement cost. During the year, management determined that a discounted cash flow valuation approach would be more relevant to the valuation of water and wastewater infrastructure and facilities assets as the water business unit has been operated on a cashgenerating basis. Details of the change in policy and its financial effects are disclosed in note 46. Landfill and quarry rehabilitation provisions - As reported in note 1(r), 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.



The estimated cost to restore Council's quarry site has been reduced during the current accounting year due to the following actions undertaken by Council's Roads Construction and Maintenance (RCM) branch: Established a system to recycle materials from spoil such as topsoil and gravels of various grades. Collected tree mulch following storms for reuse in landscaping or the manufacture of garden soil. Undertaken to retain approximately 50% of the Kingston quarry site as a recycling centre and associated material stockpiles.

  

The impacts of the changes include:       

Employee leave entitlements - As reported in note 1(s), 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.

FINANCIAL REPORTING



Part of the site will not need rehabilitation Topsoil and mulch will be available onsite The life of the filling operation will be extended and the timing for restoration delayed The current fencing will not all be replaced with bollards The access to the meteorological station may not need to be relocated The existing structures may not need to be removed The density of planting of the area to be revegetated may reduce due to natural regeneration

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123

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 1.

Significant accounting policies (continued)

New accounting standards and interpretations Standards and interpretations affecting amounts reported in the current period (and/ or prior periods) In the current year, Council adopted all new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current reporting period. The adoption of the new and revised Standards and Interpretations has not resulted in any material changes to Council's accounting policies. Council adopted AASB13 Fair Value Measurements and AASB2011-8 Amendments to Australian Accounting Standards arising from AASB13, in the 2011/12 financial year. The adoption of AASB13 has not had any significant impact on the amounts reported and Council has included additional disclosures in relation to the measurement of fair value for both assets and liabilities as required by the standard (see note 33). Standards and interpretations in issue not yet adopted At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue, but not yet effective. Effective dates are for annual reports beginning on or after the date disclosed: Standard AASB9 AASB11 AASB12 AASB127 AASB128 AASB1055 AASB2009-11 AASB2010-7 AASB2011-7 AASB2012-3 AASB2013-1 AASB2013-3 AASB2013-8 AASB2013-9

Effective dates 1 January 15 1 January 14 1 January 14 1 January 14 1 January 14 1 July 14 1 January 15 1 January 17 1 January 14 1 January 14 1 July 14 1 January 14 1 January 14 20 December 13 1 January 14 1 January 15 1 January 14

FINANCIAL REPORTING

Interpretation 21

Description Financial Instruments Joint Arrangements Disclosure of interest in other entities Separate Financial Statements (replaces the existing standard together with AASB10) Investments in Associates and Joint Ventures (replaces the existing standard) Budgetary reporting Amendments to Australian Accounting Standards arising from AASB9 (December 09) Amendments to Australian Accounting Standards arising from AASB9 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements standards Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities Amendments to AASB1049 - Relocation of Budgetary Reporting Requirements Amendments to AASB136 - Recoverable amount disclosures for NonFinancial Assets Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit Entities - Control and Structured Entities (AASB10, AASB12 & AASB1049) Amendments to Australian Accounting Standards Conceptual Framework, Materiality and Financial Instruments Levies

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 1.

Significant accounting policies (continued)

Management has estimated that the standards and interpretations in issue, but not yet adopted by Council, will have the following impact on Council's financial statements in the period of initial application: AASB9 Financial Instruments (effective from 1 January 2017) AASB9, which replaces AASB139 Financial Instruments: Recognition and Measurement, is effective for reporting periods beginning on or after 1 January 2017 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. AASB10 Consolidated Financial Statements (effective from 1 January 2014) AASB10 redefines and clarifies the concept of control of another entity, and is the basis for determining which entities should be consolidated into another entity's financial statements. Council has reviewed all the entities with which it has a relationship and has determined that there are no changes to the number of entities that fall under Council's control due to the new definition provided in the standard. AASB11 Joint Arrangements AASB11 deals with the concept of joint control and sets out new principles for determining the type of joint arrangement that exists, which in turn dictates the accounting treatment. The new categories of joint arrangements under AASB11 are more aligned to the actual rights and obligations of the parties to the arrangement. Council's only joint arrangement, as disclosed in note 27, is a joint venture as defined in AASB11 and is accounted for under the equity method of accounting for joint ventures. As such, the current accounting treatment will not change on the adoption of the new accounting standard. AASB12 Disclosure of interests in other entities (effective from 1 January 2014) AASB12 contains the disclosure requirements for interests in other entities including unconsolidated structured entities. While the Council is yet to complete a review of disclosures, no significant changes are anticipated, based on those presently made. 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.

(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

FINANCIAL REPORTING

The Council pays payroll tax to the Queensland Government on certain activities.

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.

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LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

125

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 1.

Significant accounting policies (continued)

(c)

Revenue recognition (continued)

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 20. 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. 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 noncurrent assets on receipt. Non-cash contributions below asset acquisition thresholds are recognised as revenue and expenses.

FINANCIAL REPORTING

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. FS -

126

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 1.

Significant accounting policies (continued)

(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. (f)

Financial risk management

Council minimises its exposure to financial risk in the following ways: Council has been allocated a category 2 investment power per the Statutory Bodies Financial Arrangements Regulation 2007 and limits funds 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.

The maximum credit risk exposure of receivables is the carrying amount of these assets as disclosed in note 22. 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.

FINANCIAL REPORTING

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 32.

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Significant accounting policies (continued)

(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 and land held for sale 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’, ‘heldto-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.

FINANCIAL REPORTING

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. 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.  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 measured at amortised cost using the effective interest method less any impairment. 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 (where appropriate) a shorter period, to the net carrying amount on initial recognition. FS - 11

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(h) Financial instruments (continued) Short-term deposits are interest bearing investments held-to-maturity measured on an amortised cost basis at original investment cost plus interest recognised on an accrual basis. ď&#x20AC; 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. ď&#x20AC; Equity shareholdings Equity shareholdings comprise investments in subsidiaries, associates, joint ventures in the form of jointly controlled entities, and equity instruments where relevant. 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. Trading subsidiaries are fully consolidated from the date on which control is transferred to Council and are de-consolidated from the date that control ceases. Control is achieved where Council has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Inter-company transactions, balances and unrealised gains between Group companies are eliminated. Accounting policies of subsidiaries are consistent with the accounting policies of Council. 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 26. Investments in associates and joint ventures

Associate companies are those where Council has significant influence over the activities, but are not classified as a subsidiary or an interest in a joint venture. Significant influence is the power to participate in the financial and operating decisions of the investee but is not control or joint control over those policies. Under the equity method the investment is initially recorded at cost and then adjusted for Council's share of the profit or loss and other comprehensive income of the associate or jointly controlled entity. Council had no investments in associate companies at the reporting date. A joint venture is a contractual arrangement whereby the Council and other parties undertake an economic activity that is subject to joint control (i.e. when the strategic financial and operating policy decisions relating to the activities of the joint venture require the unanimous consent of the parties sharing control). When the Council undertakes its activities under joint venture arrangements directly, the Council's share of jointly controlled assets and any liabilities incurred jointly with other venturers are recognised in the financial statements of the relevant entity and classified according to their nature.

FINANCIAL REPORTING

Investments in associates and joint ventures (jointly controlled entities) are accounted for under the equity method, except where the investment, or a portion thereof, is classified as held for sale, in which case it is measured at the lower of its carrying amount and fair value less costs to sell.

Joint venture arrangements that involve the establishment of a separate entity in which each venturer has an interest, such as Council's investment in the Greenbank Commercial Centre Pty Ltd, are referred to as jointly controlled entities. Full details of Council's investment in the Greenbank Commercial Centre Pty Ltd are disclosed in note 27.

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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, excep t 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 39 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 32. 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 REPORTING

 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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Significant accounting policies (continued)

(i)

Property, plant and equipment

Asset classes Council property, plant and equipment (fixed asset) classes comprise land, buildings, plant, equipment, and roads, bridges, water , wastewater and landfill infrastructure assets, 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 (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 2014. 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. Using DCF for water and wastewater infrastructure assets is a change in accounting policy as detailed in note 46. 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.

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 33, 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 reserve relating to a previous revaluation of that asset class.

FINANCIAL REPORTING

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.

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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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 28 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, grouped and networked assets. The asset acquisition threshold for land is $1 and the $5,000 threshold applies collectively to grouped and networked assets. Grouped assets are similar individual assets that are grouped together for operational or control reasons (e.g. computer hardware and park assets), which are valued individually at less than, but collectively exceed, the asset acquisition threshold. 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

FINANCIAL REPORTING

Depreciation is recognised so as to write off the cost or valuation of 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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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

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 Bridges Drainage Water infrastructure Wastewater infrastructure Water and sewerage facilities Waste cells

Depreciation periods Not depreciated 15 - 100 years (consumption based) 4 - 80 years (consumption based) 8 - 64 years (consumption based) 9 - 71 years (consumption based) 6 - 35 years (consumption based) 18 - 31 years (consumption based) 6 - 75 years (straight line) 2 - 15 years (straight line) 2 - 75 years (straight line) 2 - 36 years (straight line) 2 - 11 years (trucks-straight line; cars and utility vehicles-reducing balance) Not depreciated 14 - 65 years (consumption based) 50 - 75 years (consumption based) 87 years (straight line) 70 years (straight line) 15 -90 years (straight line) 40 - 160 years (straight line) 10 - 150 years (straight line) 8 - 12 years (remaining airspace)

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, 3-10 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.

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.

FINANCIAL REPORTING

(k) Leasing

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(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 1(p) 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 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.

FINANCIAL REPORTING

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 value-in-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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Significant accounting policies (continued)

(l)

Impairment of non-financial assets (continued)

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.

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.

FINANCIAL REPORTING

(p) Provisions

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. FS - 18 LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 1.

Significant accounting policies (continued)

(q) Rehabilitation (restoration) provisions A provision is made for the cost of restoration in respect of refuse dumps (landfills) and quarries where it is probable the Council will be liable, or required, to incur such a cost on the cessation of use of these facilities. The provision is measured at the expected cost of the work required; discounted to current day values using the interest rates attaching to Commonwealth Government guaranteed securities with a maturity date corresponding to the anticipated date of the restoration. Rehabilitation and / or restoration costs are accounted for as follows: 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.

FINANCIAL REPORTING

(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.

FS - 19

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 1.

Significant accounting policies (continued)

(r)

Employee benefits (continued)

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 30 as a payable. Annual leave A liability for annual leave is recognised. Amounts expected to be settled within 12 months are calculated on current wage and salary levels including related employee on-costs. Amounts not expected to be settled within 12 months are calculated on projected future wage and salary levels and related employee on-costs, and are discounted to present values. This liability represents an accrued expense and is reported in Note 30 as a payable Sick leave Council has an obligation to pay sick leave on termination to certain employees and therefore a liability has been recognised for this obligation. This liability represents an accrued expense and is reported in Note 30 as a payable. Long service leave A liability for long service leave is measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. The liability is estimated using current pay rates and projected future increases in those rates including related employee on-costs. The estimates are adjusted for the probability of the employee remaining in the Council's employment or other associated employment which would result in the Council being required to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to date, and the result is discounted to present value using Commonwealth Government guaranteed securities interest rates at the reporting date as a discount factor. This liability is reported in Note 34 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 43. (s)

Components of equity

Council equity consists of retained surplus and an asset revaluation surplus. As Council is a local government entity, there is no contributed equity. Retained surplus Retained surplus includes funds set aside for a future purpose in capital and operational reserves and unallocated surplus funds classified as retained earnings, as tabled in note 37 and described below:

Council's capital reserve contains the initial capital recognised on the implementation of accrual accounting, is a non-cash reserve and is adjusted for gains or losses on the disposal or write off of non-current assets and reduced capital funding requirements. Operational reserves are also non-cash reserves and represent contributions to Council that have been set aside for funding purposes to meet anticipated future needs. Council receives funding in the form of developer and government contributions, grants and subsidies (contributions). Contributions are mostly provided for a specific purpose and are kept in reserve until required. Reserves are maintained for accountability purposes, and Council generally borrows to meet capital commitments. Most operational commitments are financed from working capital.

FINANCIAL REPORTING

Capital and operational reserves

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 1.

Significant accounting policies (continued)

(s)

Components of equity (continued)

Retained earnings Council is a not-for-profit entity with all budgeted funds allocated for operational and capital funding purposes. Any temporary surplus or deficit is accounted for during the following budget process. 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). (t)

National competition policy

Council has resolved to apply the National Competition Policy requirements of the Local Government Act 2009 and the Local Government Regulation 2012 and has undertaken the following steps: i

Identified, undertook public benefit assessments, and classified Council's Water and Waste services business activities as significant business activities based on expenditure thresholds provided in the Local Government Regulation 2012.

Determined that the Roads & Drainage Service Group no longer meets the criteria as a 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.

iii

Implemented full cost pricing by pricing the goods and services of significant business activities on a commercial basis. Significant business activities are business activities of a local government thatâ&#x20AC;&#x201D; (a) Are conducted in competition, or potential competition, with the private sector (including off-street parking, quarries, and sporting facilities, for example); and (b) Meet the threshold prescribed under a regulation.

Further explanation of Council business units is provided in note 2(a); while activity statements, consumer cross-subsidies and community services obligations are provided in note 44. (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

FINANCIAL REPORTING

Council recognises a liability under the carbon pricing mechanism for emissions from Council's landfill based in Browns Plains as disclosed in note 30. The repeal of carbon tax legislation (see note 47) 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.

FS - 21

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 2.

Analysis of results by function

Council's Strategy, Leadership and Performance Team (SLPT) have determined Council functions and activities based on service delivery. The streams are Road & Water Infrastructure Services, Community & Customer Services, Strategy & Sustainability, and Organisational Services. Council business units and the Corporate Revenue branch are reported separately as management considers that such disclosures are meaningful to users of Council's financial reports. (a) The activities of Council are categorised into the following broad functions: Council business units Council business units comprise city services classified as type 1 or type 2 (large) business activities under National Competition Policy (NCP). Council has identified its Water and Wastewater, and Waste Services as business activities for NCP purposes. There were no new significant business activities identified or 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. Such advantages 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 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.

FINANCIAL REPORTING

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.

FS - 22 LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 2.

Analysis of results by function (continued)

(a) The activities of Council are categorised into the following broad functions (continued): Waste services The waste services branch is responsible for the collection of household waste, kerbside clean ups, servicing of litter bins, bulk disposals at landfills, waste transfer stations, the Logan recycling market, gas extraction from landfills, municipal bulk solid waste collection, the management of waste vegetation, maintenance of closed landfills, household hazardous waste services and environmental monitoring of current and former waste disposal facilities. Corporate revenue Corporate revenue consists of activities 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 Roads infrastructure services consist 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 maintaining 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

FINANCIAL REPORTING

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 decisionmaking 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 are considered type 3 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.

FS - 23

140

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 2.

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 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

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.

FINANCIAL REPORTING

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.

FS - 24 LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 2.

Analysis of results by function (continued)

(a) The activities of Council are categorised into the following broad segments (continued): Organisational services Organisational services are those services necessary to support Council business units and city services. These comprise: 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

FINANCIAL REPORTING

The Administration branch of Council provides, procurement and purchasing services, stores and property management, security and maintenance services, and manages Council's insurance programs.

FS - 25

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LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

143

Analysis of results by function (continued)

Rates, fees and charges $'000 154,266 29,163 148,483 740 5,554 7,509 651 346,366

$'000 31,687 9,960 37,202 2,528 1,854 737 83,968

$'000 176,775 30,632 154,674 804 5,445 9,690 707 378,727

$'000 31,410 7,695 65,640 3,167 1,011 153 109,076

Grants and contributions

Rates, fees and charges

Grants and contributions

FINANCIAL REPORTING

Reconciliation of revenue and expenses to Council's Income Statement Total revenue Total expenses Net result

Water and wastewater services Waste services Corporate revenue Roads infrastructure services Community and customer services Strategy and sustainability Organisational services Total

Year ended 30 June 2013 Segments

Water and wastewater services Waste services Corporate revenue Roads infrastructure services Community and customer services Strategy and sustainability Organisational services Total

Year ended 30 June 2014 Segments

Other recurrent revenue $'000 6,473 1,994 11,311 391 4,902 2,204 425 27,700

Other recurrent revenue $'000 7,521 2,064 11,167 923 4,796 1,255 514 28,240

$'000 192,426 31,269 212,231 38,333 12,984 11,347 2,260 500,850 2013 $'000 500,850 (409,039) 91,811

2014 $'000 516,766 (417,318) 99,448

Total revenue

$'000 215,706 32,724 174,095 67,263 13,408 11,956 1614 516,766

Total revenue

112 42,477 (220) 447 42,816

$'000

Other capital revenue

28 559 (104) 240 723

$'000

Other capital revenue

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

Total recurrent expenditure $'000 (109,551) (23,626) (16,710) (106,152) (59,517) (24,078) (54,738) (394,372)

Total recurrent expenditure $'000 (121,080) (22,672) (13,629) (110,362) (54,145) (28,393) (57,622) (407,903)

Total capital -related expenditure $'000 (1,112) (546) (12,487) (96) (390) (36) (14,667)

Total capital -related expenditure $'000 (1,325) (8,040) (50) (9,415)

$'000 (110,663) (24,172) (16,710) (118,639) (59,613) (24,468) (54,774) (409,039)

Total expenses

$'000 (122,405) (22,672) (13,629) (118,402) (54,145) (28,393) (57,672) (417,318)

Total expenses

FS - 26

$'000 81,763 7,097 195,521 (80,306) (46,629) (13,121) (52,514) 91,811

Net result

$'000 93,301 10,052 160,466 (51,139) (40,737) (16,437) (56,058) 99,448

Net result

30 JUNE 2014

LOGAN CITY COUNCIL Notes to financial statements

144

Analysis of results by function (continued)

2013 $'000 4,355,044 (292,947) 4,062,097

2014 $'000 4,648,977 (327,513) 4,321,464

Total assets

Reconciliation of assets and liabilities to Council's Statement of Financial Position Total assets Total liabilities Net assets

Net assets $'000 1,450,861 48,009 34,310 2,296,140 286,201 89,507 150,016 4,355,044

$'000 1,525,853 49,330 180,898 2,355,820 290,194 90,139 156,743 4,648,977

Total liabilities $'000 (277,925) (7,049) (10,811) (27,851) (3,413) 3 (467) (327,513) $'000 1,237,521 39,042 (21,254) 2,283,976 283,642 89,507 149,663 4,062,097

Net assets

Year ended 30 June 2013

$'000 1,247,928 42,281 170,087 2,327,969 286,781 90,142 156,276 4,321,464

Water and wastewater services Waste services Corporate revenue Roads infrastructure services Community and customer services Strategy and sustainability Organisational services Total

Total assets

Year ended 30 June 2014 Total liabilities $'000 (213,340) (8,967) (55,564) (12,164) (2,559) (353) (292,947)

Segments

FINANCIAL REPORTING

FS - 27

30 JUNE 2014

LOGAN CITY COUNCIL Notes to financial statements

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

Analysis of revenue and expenditure from continuing operations Rates revenue General rates Environmental and community service charge Water access charges Wastewater charges Water consumption Garbage charges Less discounts given and pensioner remissions

Restricted use Grants and subsidies

9,151 487 159 9,797

11,698 554 184 12,436

9,797

12,436

3,461 2,192 22 1,607 7,282

3,605 2,583 10 2,331 8,529

4,850 (2,802) 2,048

26,712 14,943 11,442 8,774 2,288 64,159

7,155 11,729 8,114 8,118 1,460 36,576

Profit on sale of assets held for sale Proceeds on sale Cost of assets sold

16,191 5,494 21,685

Interest received Interest on managed funds investments Interest on short term deposits Interest on bank accounts Interest on overdue rates

19,992 5,419 25,411

Recurrent donations, contributions and grants Unrestricted use General purpose grants Government contributions Other contributions

119,265 44,623 29,005 58,754 60,440 26,176 338,263 (13,582) 324,681

Fees and charges Regulatory fees Usage fees

123,920 45,660 31,404 69,024 69,737 27,679 367,424 (14,108) 353,316

Donated assets Roads infrastructure Drainage infrastructure Water infrastructure Wastewater infrastructure Other

FINANCIAL REPORTING

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145

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note 9.

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

Capital contributions Government contributions Developer contributions

29,901 29,901

46 28,035 28,081

5,219

6,875

2,386 (31) 2,355 (2,224) 131

2,144 (19) 2,125 (1,898) 227

575

112

84,106 16,880 12,029 1,587 8,938 123,540

80,113 15,224 11,157 1,498 8,661 116,653

10. Capital grants and subsidies Restricted grants and subsidies

11. Gain on sale of non-current assets Gain on sale of property, plant and equipment 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

12. Share of jointly controlled entity profit Share of jointly controlled entity's comprehensive income

13. Reduction in rehabilitation provision Reduction in landfill rehabilitation provision

14. Employee costs

FINANCIAL REPORTING

Wages and salaries Leave entitlements Superannuation Councillors' remuneration Other employee related expenses

FS - 29

146

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note 15.

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

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

68,002 3,451 36,852 323 5,403 5,909 119,940

60,614 3,637 35,131 5,462 5,119 4,549 114,512

10,339 5,318 15,657

9,779 5,123 14,902

14,354 4,282 7,312 341 432 29 991 2,952 2,089 3,471 5,537 41,790

15,650 5,592 5,315 340 430 19 1,567 3,857 2,238 3,234 5,431 43,673

177,387

173,087

2,796 11,840

2,639 11,739

51,742 18,313 6,138 749 91,578

51,558 17,194 5,698 973 89,801

1,241 1,241

1,039 1,039

92,819

90,840

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 Local travel and accommodation Overseas travel and accommodation Advertising and promotions Insurance and damage costs Cleaning and security services Printing, stationery and postage Other services

16. Depreciation and amortisation Depreciation - property, plant and equipment Buildings Plant and equipment Infrastructure assets: Roads and drainage Water and wastewater Water and wastewater facilities Waste landfill

Software

FINANCIAL REPORTING

Amortisation - intangible assets

FS - 30 LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

147

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note 17.

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

Finance costs Finance costs incurred Queensland Treasury Corporation (QTC) interest incurred Account charges Finance costs due to discounting Finance costs incurred

10,705 940 797 12,442

9,838 830 753 11,421

12,442 (613) 11,829

11,421 11,421

Finance costs expensed 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 $613,000 (last year $nil). 18. Other expenses External audit fees for the review of the financial statements Internal audit fees Accounts receivable impairment Bad debts Donations grants and subsidies paid Stock adjustment

206 353 268 19 1,441 41 2,328

176 372 (216) 36 2,007 (4) 2,371

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. Internal audit fees

FINANCIAL REPORTING

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 2013/14 financial year was PriceWaterhouseCoopers. Fees are incurred for the ongoing assessment and evaluation of controls adopted by council to manage operational risks.

FS - 31

148

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

19. Capital expenses Refund of capital contributions Decommissioning of infrastructure assets

5 9,410 9,415

74 14,593 14,667

20. 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. Contributions are recognised as revenue in the statement of financial performance irrespective of whether conditions are imposed on Council's use of the funds (restricted contributions) as described in Council's policy note 1(c). Restricted contributions that have been received, but are not immediately required to fund council work are placed in reserve until required and are classified according to whether they are for operational or capital purposes. Restricted contributions recognised as income during the reporting period that were unspent at period end are funds held for future purpose. Restricted contributions recognised as income during a previous reporting period that were spent in the current period are funds that have been allocated against work performed during the reporting period. Restricted contributions recognised as income during the reporting period that were unspent at period end Operational contributions Capital contributions

29,669 29,669

25,546 25,546

Restricted contributions recognised as income during a previous reporting period that were spent in the current period Operational contributions Capital contributions

198 23,790 23.988

95 19,701 19,796

21. 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

458 125,695 52,022 178,175 (6,128) 172,047

572 99,969 52,026 152,567 (4,892) 147,675

All Council cash balances are available for use, although certain contributions are restricted in how they may be used. The following restrictions have been imposed by regulations or other externally imposed requirements: Constrained income reserve monies Unrestricted funds

57,507 114,540 172,047

49,658 98,017 147,675

FINANCIAL REPORTING

Net gains or losses arising on financial assets designated as at fair value through profit or loss (managed fund investments) amounted to $3,530,000 (last year $3,690,000) and are included in interest on investments in note 6.

FS - 32 LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

149

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

22. 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

20,704 38,501 2,728 61,933 (1,082) 60,851

19,651 36,229 4,919 60,799 (827) 59,972

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. The Council has recognised an allowance for doubtful debts (receivables impairment) dependent on the type of debt. 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 32. 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

827 1,168 (913) 1,082

1,007 (36) 559 (703) 827

1,500 34,100 21 35,621

2,066 34,099 22 36,187

23. Inventories Inventories held for distribution Land held for development and sale Inventories held for sale

Inventories recognised as expense during the year and included in cost of sales amounted to $0 (last year $2,802,421). Inventories recognised as expense during the year and included in cost of providing services amounted to $3,573,901 (last year $3,785,824). Write downs of inventories to net realisable value during the year amounted to $0 (last year $0). 24.

Prepayments Current

FINANCIAL REPORTING

Insurance Computer leases Other miscellaneous

1,491 1,950 730 4,171

1,568 1,690 534 3,792

FS - 33

150

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

25. Other financial assets Non-traded shares in SEQ Regional Recreational Facilities Pty Ltd Non-traded shares in the Logan Country Financial Services Limited

180 10 190

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. 26. 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:

Invest Logan Pty Ltd

Country of incorporation Australia

Principal activity Development advice

Equity holding 30/06/14 30/06/13 100% 100%

FINANCIAL REPORTING

Name of subsidiary

FS - 34 LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

151

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

27. Investment in jointly controlled entity Council has an investment in a jointly controlled entity called 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. Council accounts for its investment in the centre under the equity method whereby the investment is initially recorded at cost and then adjusted for Council's share of the centre's profit or loss and other comprehensive income. Summarised corporate and financial information of the jointly controlled entity are provided below: Name of entity Greenbank Commercial Centre Pty Ltd

Country of incorporation Australia

Principal activity

Ownership interest % 2014 2013

Development

Summarised financial information in respect of Council's jointly controlled 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 jointly controlled entity's net assets Financial performance Income Expenses Profit/ (loss) Add increase in Council current account Council share of jointly controlled entity's profit/ (loss) Changes in jointly controlled entity investment carrying value Opening investment carrying value Plus share of profit/ (loss) Plus increase in council current account Closing investment carrying value

782 (562) (830) (610) (305) 415 393 503

(144) (144) (72) 76 4

499 (72) 76 503

499 499

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).

FINANCIAL REPORTING

Council was unable to obtain a copy of the Greenbank Commercial Centre Pty Ltd annual financial statements for the year ended 30 June 2013 in time for reporting and did not adjust investment carrying values. Both 2013 and 2014 financial performance and changes in investment carrying values have been incorporated in 2014.

FS - 35

152

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

153

FINANCIAL REPORTING

Additions comprise: Renewals Additions other than renewals Total additions

$'000 73,548 139,147 212,695

Total

Note

For the current year financial sustainability statement

1,829,507 91,578 (3,036) (13,265) 106,394 -

3,914 3,914

$'000

Land

577,710

576,325 3,914 (429) (2,100) 577,710

$'000

$'000 5,930,500 147,692 (826) 64,159 (5,260) (22,675) 266,313 6,379,903

Land

Total

2,011,178 4,368,725

16 11 19 36

8 11 19 36

Note

Balance at 30 J une 2014 Carrying value 30 June 2014

Gross carrying amount Opening balance (1 July 2013) Additions Transfers from work-in-progress Increase/ (decrease) in restoration provisionassets Donated Disposals by sale Write off/ decommissioning Revaluations Reclassifications Balance at 30 June 2014 Accumulated depreciation Opening balance (1 July 2013) Depreciation Disposals by sale Write off/ decommissioning Revaluations Reclassifications

28. Property, plant and equipment

$'000 2,316 2,709 5,025

Buildings

31,378 277,822

30,652 2,796 (2,070) -

300,066 173 4,361 491 4,109 309,200

$'000

Buildings

$'000 17,890 17,890

Plant and equipment

80,883 73,851

72,341 11,840 (3,036) (262) -

142,089 4,733 11,360 1,797 (4,831) (414) 154,734

$'000

Plant and equipment

Roads and drainage infra $'000 34,180 83,617 117,797

1,287,708 1,939,604

1,215,800 51,742 (11,787) 31,953 -

3,086,029 74,472 41,655 (19,719) 44,875 3,227,312

Roads and drainage infra $'000

Water and wastewater Infra $'000 12,356 41,995 54,351

507,179 1,195,773

426,353 18,313 (1,119) 63,632 -

1,450,852 34,135 20,216 (2,356) 200,105 1,702,952

Water and wastewater Infra $'000

Water and wastewater facilities $'000 935 43,207 44,142

89,616 186,377

70,672 6,138 (97) 12,903 -

212,713 44,142 (186) 19,324 275,993

Water and wastewater facilities $'000

955 955

Waste landfill cells $'000

14,414 6,498

13,689 749 (24) -

19,957 1,781 (826) 20,912

Waste landfill cells $'000

FS - 36

$'000 5,871 (37,250) (31,379)

Work in progress

111,090

142,469 138,872 (170,251) 111,090

$'000

Work in progress

30 JUNE 2014

LOGAN CITY COUNCIL Notes to financial statements

154

Balance at 30 June 2013 Carrying value 30 June 2013

Balance at 30 June 2013 Accumulated depreciation Opening balance (1 July 2012) Depreciation Disposals by sale Write off/ decommissioning Revaluations Transfers from AllConnex Water Reclassifications

Gross carrying amount Opening balance (1 July 2012) Additions Transfers from work-in-progress Increase/ (decrease) in restoration provisionassets Donated Disposals by sale Write off/ decommissioning Revaluations Transfers from AllConnex Water Reclassifications

16 11 19 36

8 11 19 36

Note

576,325

1,247,824 89,801 (2,493) (20,942) 58,935 456,447 (65) 1,829,507 4,100,993

576,325

5,930,500

539,445 8,837 (206) (2,481) 30,730 -

$'000

$'000 4,186,325 161,577 (476) 36,576 (4,391) (35,535) (70,499) 1,656,988 (65)

Land

Total

Property, plant and equipment comparatives at 30 June 2013

28. Property, plant and equipment (continued)

FINANCIAL REPORTING

30,652 269,414

31,340 2,639 (115) (1,158) (2,400) 346 -

300,066

287,291 893 7,058 (416) (2,601) 3,645 4,241 (45)

$'000

Buildings

72,341 69,748

70,395 11,739 (2,378) (7,755) 405 (65)

142,089

135,848 6,084 8,809 1,460 (3,769) (7,840) 1,517 (20)

$'000

Plant and equipment

1,215,800 1,870,229

1,132,178 51,558 (9,853) 41,917 -

3,086,029

3,158,455 52,574 18,884 (21,828) (122,056) -

Roads and drainage infra $'000

426,353 1,024,499

17,194 (981) 18,891 391,249 -

1,450,852

20,500 16,232 (2,071) 44,941 1,371,250 -

Water and wastewater infra $'000 Infra

70,672 142,041

405 5,698 (1,195) 1,317 64,447 -

212,713

898 9,855 (1,195) 4,887 198,268 -

Water and wastewater facilities $'000

13,689 6,268

13,506 973 (790) -

19,957

19,830 38 (476) 565 -

landfill $'000 cells

Waste

FS - 37

142,469

44,558 145,763 (98,834) 50,982

$'000

Work in progress

30 JUNE 2014

LOGAN CITY COUNCIL Notes to financial statements

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 28. 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.

29. Intangible Assets

Note Gross carrying amount Opening balance Additions Closing balance Accumulated depreciation Opening balance Amortisation Closing balance Carrying value

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

10,449 2,374 12,823

6,239 4,210 10,449

4,713 1,241 5,954 6,869

3,674 1,039 4,713 5,736

50,513 13,024 7,566 1,405 248 72,756

49,909 12,607 7,595 1,504 71,615

30. Trade and other payables Current Creditors and accruals Annual leave Sick leave Other leave entitlements Carbon tax liability

FINANCIAL REPORTING

Council reclassified employee annual, sick and other leave entitlements, excluding long service leave, previously classified as employee benefits provisions to other payables during the reporting period as tabled above, as these items are accrued expenses rather than provisions.

FS - 38 LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

155

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 31.

Borrowings Note Current Non-current Total borrowings

2014 $â&#x20AC;&#x2122;000 10,546 217,661 228,207

2013 $â&#x20AC;&#x2122;000 8,716 186,965 195,681

Details of borrowings are provided in note 32. 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

195,681 41,945 (11) (700) 30 236,945 (8,738) 228,207

120,030 24,382 58,628 442 203,482 (7,801) 195,681

Market value at end of year

247,183

204,952

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 4 December 2014 to 11 April 2033. There have been no defaults or breaches of loan agreements during the financial reporting period. Principal and interest payments are made quarterly in arrears. 32.

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

FINANCIAL REPORTING

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:

FS - 39

156

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 32. Financial risk management (continued) Financial assets

Note

Cash and bank Cash Commonwealth bank account (City) Commonwealth bank account (Trust)

Financial assets classified as at fair value through profit or loss Managed funds QTC (City) QTC (Trust) Perennial 21 Financial assets classified as held to maturity investments Term deposits AMP Bendigo Citibank St George CPG ING RaboDirect Bank of Queensland ME Bank Rural 21 Loans and receivables Fixed interest rate maturing in 12 months Trade receivables 22

Effective interest rate

2014 $'000

2013 $â&#x20AC;&#x2122;000 47 342 69 458

47 448 77 572

3.42% 3.42% 3.84%

98,733 5,525 21,437 125,695

70,938 8,438 20,593 99,969

4.35% 4.50% 4.50% 5.99% 4.50% 4.47% 5.02% 3.80% 4.00% 4.20%

2,000 7,000 10,022 10,000 16,000 7,000 52,022

5,000 9,000 10,000 15,026 5,000 3,000 5,000 52,026

20,704 40,147 60,851

19,651 40,321 59,972

2.27% 2.27%

11.00%

Equity instruments

190

Jointly controlled entities

503

499

239,719

213,228

Total financial assets

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

Ageing of receivables as at 30 June 2014 - $'000 Fully Past due performing >30 days >60 days >90 days 20,704 32,968 211 3,211 445 276 1,390 2,728 38,907 445 276 22,305 63% 1% 36%

Total 20,704 33,179 5,322 2,728 61,933 Note 22

FINANCIAL REPORTING

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 39) of $6,128,000 (last year $4,892,000).

FS - 40 LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

157

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 32. Financial risk management (continued)

Type Rates receivables Accounts receivables Sundry debtors Goods and services tax Total Percentage

Ageing of receivables at 30 June 2013 - $'000 Fully Past due Performing >30 days >60 days >90 days 19,651 28,641 191 3,783 1,268 378 1,968 4,919 37,343 1,268 378 21,810 61% 2% 1% 36%

Total 19,651 28,832 7,397 4,919 60,799 Note 22

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 $1,082,000 (last year $827,000). 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. Borrowing facilities are disclosed in note 38. 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

5.34% 5.34% 5.34% 30

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

22,485 89,327 224,869 336,681 72,756

19,413 76,789 199,131 295,333 71,615

409,437

366,948

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.

FINANCIAL REPORTING

(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 $1,782,000 (last year $1,525,000). 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.

FS - 41

158

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 33. 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 is not based on observable market data, the asset is included in level 3. This is the case for Council infrastructure assets, which are of a specialist nature and where there is no active market for the assets. 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

28 28 28 28 28 28 28

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 Waste landfill At 30 June 2013

Note

Level 2 (Significant other observable inputs) $'000

Level 3 (Significant unobservable inputs)

Total

$'000

Financial assets Managed fund investments

99,969

28 28 28 28 28 28 28

576,325 1,994 578,319

267,420 1,870,229 1,024,499 142,041 6,268 3,310,457

576,325 267,420 1,994 1,870,229 1,024,499 142,041 6,268 3,888,776

Land Buildings - Commercial Buildings - Residential Roads and drainage infrastructure Water and wastewater infrastructure Water and wastewater facilities Waste landfill

FINANCIAL REPORTING

Non-financial assets

FS - 42 LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

159

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 33. Fair value measurements (continued) (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 31 is provided by the Queensland Treasury Corporation and represents the contractual undiscounted cash flows at balance date. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their shortterm nature. (iii) Valuation techniques used to derive fair values and transfers between levels The values of transfers between the different levels of the fair value hierarchy are disclosed below. Transfers between levels will occur where inputs used in making individual asset and liability fair value measurements no longer satisfy the current level of classification. There have been no changes in valuation techniques used for fair value measurement during the year. Specific valuation techniques used to value Council assets include: 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) as a desktop update effective 30 June 2014. Level 2 valuation inputs were used to value land in freehold title as well as land used for special purposes, which is restricted in use under current zoning rules. Sales prices of comparable land sites in close proximity are adjusted for differences in key attributes such as property size. The most significant inputs into this valuation approach are price per square metre. Valuations represent the replacement cost of the land. Buildings Buildings fair values were determined by independent valuer, Australian Pacific Valuers (APV) as a desktop update effective 30 June 2014. Where there is a market for Council building assets, fair value has been derived from the sales prices of comparable properties after adjusting for differences in key attributes such as property size. The most significant inputs into this valuation approach were price per square metre. Where Council buildings are of a specialist nature and there is no active market for the assets, fair value has been determined on the basis of replacement with a new asset having similar service potential including allowances for preliminaries and professional fees. The approach estimated the replacement cost of each building by componentising the buildings into significant parts with different useful lives and taking account of a range of factors. While the unit rates based on square meters could be supported from market evidence (level 2) other inputs (such as estimates of residual value, useful life, pattern of consumption and asset condition) required extensive professional judgement and impacted significantly on the final determination of fair value. As such these assets were classified as having been valued using level 3 valuation inputs. The following table provides a summary of the unobservable inputs and an assessment of the sensitivity of these to the fair value measurement:

FINANCIAL REPORTING

Asset class

Unobservable inputs

Sensitivity to unobservable market inputs (% )

Amount of potential impact $'000

Buildings Specialised buildings

Relationship between asset consumption rating scale and the level of consumed service potential.

-2.50%

+2.50%

-6,326

6,326

Other structures

Relationship between asset consumption rating scale and the level of consumed service potential.

-2.50%

+2.50%

-237

237

FS - 43

160

LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 33. Fair value measurements (continued) Land and buildings last comprehensive valuation Details of the last comprehensive revaluation undertaken for each asset class are as follows: Asset class

Year

Desktop valuation Performed by

Last comprehensive valuation Year Performed by

Land

2013

APV valuers

2012

APV valuers

Buildings

2013

APV valuers

2012

APV valuers

Buildings level 3 inputs used The main level 3 inputs used were derived and evaluated as follows: Under the cost approach the estimated cost to replace the asset is calculated and then adjusted to take account of an accumulated depreciation. In order to achieve this, the valuer determined an asset consumption rating for each asset type based on the interrelationship between a range of factors. These factors and their relationship to the fair value require professional judgement and include asset condition, legal and commercial obsolescence, and the determination of key depreciation related assumptions such as residual value, useful life and pattern of consumption of future economic benefits. The consumption rating scales were based initially on the past experience of the valuation firm and industry guides and were then updated to take into account the experience and understanding of Council's own engineers, asset management and finance staff. The results of the valuation were further evaluated by confirmation against Council's own understanding of the assets and the level of remaining service potential. 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 2014, 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.

Roads and drainage infrastructure - Current replacement costs (CRC) Sealed roads and associated infrastructure Roads and associated infrastructure fair values were determined by Council asset management officers effective 30 June 2014. CRC was calculated by reference to asset linear and area specifications, estimated labour and material inputs, services costs, and overhead allocations. For internal construction estimates, material and services prices were based on existing supplier contract rates or supplier price lists and labour wage rates were based on Council's Enterprise Bargaining Agreement (EBA). All direct costs were allocated to assets at standard usage quantities according to recently completed similar projects. Where construction is outsourced, CRC was based on recently completed similar projects. The last full valuation of sealed roads and associated infrastructure was undertaken effective 30 June 2010. For the 30 June 2014 figures, the ABS Producers' Price Index "Roads and Bridges Construction - Queensland (3101) A2333727L" was applied to last year's figures. It is the intention of Council to undertake a full revaluation of this infrastructure in 2015.

FINANCIAL REPORTING

The unit rates (labour and materials) and quantities applied to determine the CRC of an asset or asset component were based on a â&#x20AC;&#x153;Greenfieldâ&#x20AC;? 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.

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 33. Fair value measurements (continued) Average costs for each of the key components were: Asset category

Key cost components

Measurement unit

Sealed roads

Pavement Surface: Spray seal Surface: Asphalt Pedestal Infill type Each

Per mm pavement depth M2 Per mm pavement depth Each M2 per type M2 based on area and material type Linear metre Linear metre per type M2 Linear metre Linear metre per type Each M2 per type Linear metre Linear metre Each

Traffic signals Medians Footpath Kerb and channel Kerb Walkways Car park

Each Each Each Kerb & channel Kerb Medians splitter islands Surface Retaining walls Fencing Wheel stops

2014 Cost / unit $ $0.2036 $8.90 $0.5551 $29,453 $85 to $131 $27 to $56

2013 Cost/ unit $ $0.1986 $8.71 $0.5416 $26,565 $83 to $128 $26 to $55

$189 $112 to $805 $56 $191 $112 to $805 $311 $53 to $150 $492 $83 $179

$185 $110 to $786 $55 $185 $110 to $786 $292 $52 to $147 $480 $81 $174

Bridges A full valuation of bridges assets was undertaken by independent valuers, Australian Pacific Valuers (APV), effective 30 June 2013. For the 30 June 2014 figures, the ABS Producers' Price Index "Roads and Bridges Construction - Queensland (3101) A2333727L" was used to index last year's figures. The valuation of bridges varies according to the material type used for construction, the deck area, condition and size. Average costs for each of the key components were: Bridges

Each

Drainage infrastructure

M2 based on deck area, material type, structure condition and size.

$1,180 to $4,071

$1,110 to $3,843

A full valuation of drainage infrastructure was undertaken by independent valuers, GHD, effective 30 June 2013. For the 30 June 2014 figures, the ABS Producers' Price Index "Roads and Bridges Construction - Queensland (3101) A2333727L" was used to index last year's figures. The major components of drainage infrastructure are pits, pipes and channels; the valuation of which is determined according to the factors tabled below. Average costs for key components were: Stormwater

Pits Pipe Channels

FINANCIAL REPORTING

Roads and drainage - Fair values

Each based on type, diameter and depth Linear metre per diameter and depth M2 per type

$414 to $19,387

$565 to $11,742

$412 to $6,216

$402 to $6,756

$195 to $209

$190 to $203

Fair value was determined as the written down current replacement costs (WDRC) of each of the asset categories. WDRC is the asset CRC less accumulated depreciation. In determining the level of accumulated depreciation, roads and drainage assets were disaggregated into significant components which exhibited different patterns of consumption or useful lives. Sealed roads For sealed roads, 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 the 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. FS - 45

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 33. Fair value measurements (continued) 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 For bridges, remaining useful lives were determined based on condition assessments according to the following table: Condition rating 0H/ 0M 1H/ 1M 2H/ 2M 3H/ 3M 4H/ 4M 5H/ 5M 6H/ 6M

Assessment Very high level of remaining service potential High level of remaining service potential Adequate level of remaining service potential Adequate level of remaining service potential, but with some issues indicating the need for action in the short to medium term Barely adequate level of remaining service potential requiring action to be taken in the short term Asset is now unacceptable and must be closed or renewed End of life

All other road and drainage infrastructure For all other roads infrastructure and for drainage infrastructure assets, estimates of expired service potential and remaining useful lives were determined on a straight line basis based on industry standard practices and past actuals. Sensitivity If estimated costs used in fair value calculations were 10% higher or lower, the fair value of roads and drainage assets and other components of equity would increase or decrease by $193 million (last year $185m). Roads and drainage fair values are included in level 3 of the AASB13 fair value hierarchy. Waste landfill cells

Asset category

Key cost components

Measurement unit m3 m3 m3

2014 Cost / unit $ 6.30 3.53 33.63

2013 Cost / unit $ 6.30 3.53 33.63

Waste landfill cells

Preliminary & preparation Excavation Base liner & Leachate drain construction Stormwater management system

23.66

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. If estimated costs used in fair value calculations were 10% higher or lower, the fair value of waste landfill assets and other components of equity would increase or decrease by $1,568,071 (last year $1,568,071). Waste landfill valuations are included in level 3.

FINANCIAL REPORTING

Waste landfill cells fair values were determined by Council engineers effective 30 June 2014. 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. Average costs for each of the key components were:

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 33. Fair value measurements (continued) Water and wastewater Council's water business is treated as a single cash-generating unit for asset valuation purposes. Council's water and wastewater infrastructure assets were valued using an income approach. The income approach represents a change in accounting policy, as disclosed in note 46, and has been applied retrospectively to the return of Council's water business from AllConnex Water (AW) effective 1 July 2012. Consolidated asset values at 1 July 2012 were based on final AW carrying values, and 30 June 2013 and 30 June 2014, were determined through use of a discounted cash flow (DCF) model based on cash flow projections used in the Council approved budget and 10-year financial forecast. 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. For the 1 July 2012 valuation, Council undertook an independent DCF valuation, but considered that Council's portion of the AW published asset carrying values was a more accurate representation of fair value. 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 each of the years, 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. 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. Key unobservable inputs and sensitivity analyses are tabled below:

FINANCIAL REPORTING

Significant unobservable input 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

1 July 12 40% 60% 5.21% 7.00% 3.51% 10.23% 8.72% 7.76% 2.70%

Variables used 30 Jun 13 40% 60% 3.66% 7.00% 2.27% 8.68% 6.23% 6.09% 2.70%

30 Jun 14 40% 60% 3.70% 7.00% 2.01% 8.72% 5.71% 5.89% 2.50%

Water and wastewater valuations are included in level 3 of the fair value hierarchy.

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 33. Fair value measurements (continued) (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

Opening balance 01 July 2012 Transfers into level 3 Additions Transfers from AW Disposals Reclassifications Gain/ (losses) recognised in other comprehensive income Gain/ (losses) recognised in other income Closing balance 30 June 2013 Transfers into level 3 Additions Disposals Reclassifications Gain/ (losses) recognised in other comprehensive income Gain/ (losses) recognised in other income Closing balance 30 June 2014

$'000 254,262 7,604 4,241 (301) (45)

Roads and drainage infra $'000 2,026,277 71,458 -

Water and wastewater infra $'000 36,732 979,999 -

Water and wastewater facilities $'000 493 9,855 133,821 -

6,031

(163,973)

26,050

(4,372) 267,420 5,026 -

(63,533) 1,870,229 117,797 -

6,101 (2,746) 275,801

Waste landfill

Total

$'000 6,324 (438) -

$'000 2,287,356 125,211 1,118,061 (301) (45)

3,570

1,355

(126,967)

(18,284) 1,024,497 54,351 -

(5,698) 142,041 44,142 -

(973) 6,268 955 -

(92,860) 3,310,455 222,271 -

11,252

136,473

6,421

160,271

(59,674) 1,939,604

(19,548) 1,195,773

(6,227) 186,377

(749) 6,498

(88,944) 3,604,053

(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

FINANCIAL REPORTING

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 and investment property (recurring fair value measurements) are presented in notes 1(i) and 1(k) respectively.

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 34. Provisions Note Employee benefits Restoration provisions Third party claims Current Non-current

2014 $'000 19,565 5,493 608 25,666

2013 $â&#x20AC;&#x2122;000 17,772 6,728 530 25,030

2,473 23,193 25,666

1,611 23,419 25,030

3.31% 3.30%

3.35% 3.49%

Average discount rates used in estimating provisions Employee benefits Restoration provisions Total Council full-time equivalent employees at 30 June 2014 were 1,370 (last year 1,378) (i) Employee benefits The provision for employee benefits represents vested long service leave entitlements accrued by 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 employee annual, sick and other leave entitlements, excluding long service leave, previously classified as employee benefits provisions to other payables during the reporting period as tabled in note 30, as these items are accrued expenses rather than provisions. (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 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

FINANCIAL REPORTING

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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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 34. Provisions (continued) (iv) Movements on provisions

Carrying amount at 1 July 2012 Additional provisions made in the period Unused amounts reversed in the period Amounts incurred and charged against the provision Increase (decrease) in discounted amount

Employee benefits $'000 13,621 4,602 (1,026) 575

Restoration provisions $'000 7,139 (589) 178

Third party claims $'000 500 618 (184) (404) -

Total provisions $'000 21,260 5,220 (773) (1,430) 753

Carrying amount at 30 June 2013 Additional provisions made in the period Unused amounts reversed in the period Amounts incurred and charged against the provision Increase (decrease) in discounted amount

17,772 3,708 (2,547) 632

6,728 (1,400) 165

530 760 (37) (645) -

25,030 4,468 (1,437) (3,192) 797

Carrying amount at 30 June 2014

19,565

5,493

608

25,666

Note

2014 $'000

2013 $â&#x20AC;&#x2122;000

884 884

621 621

35. Other liabilities

Current Unearned revenue received in advance

This liability reflects cash contributions from developers for which the related service obligations have yet to be fulfilled by Council (refer Note 1c). 36. Asset revaluation surplus Movements in the asset revaluation surplus were as follows: Balance at beginning of period

1,912,485

2,041,919

Land Buildings Roads and drainage infrastructure Water and wastewater infrastructure Water and wastewater facilities Waste landfill Balance at the reporting date

(2,100) 6,179 12,922 136,473 6,421 24 159,919

(2,481) 6,045 (163,973) 26,050 3,570 1,355 (129,434)

2,072,404

1,912,485

324,383 115,978 1,466,545 157,214 6,421 1,863 2,072,404

326,483 109,799 1,453,623 20,741 1,839 1,912,485

Closing revaluation surpluses by asset class: Land Buildings Roads and drainage infrastructure Water and wastewater infrastructure Water and wastewater facilities Waste landfill

FINANCIAL REPORTING

Net adjustment to capital non-current assets at end of period to reflect a change in fair value:

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 37. Retained surplus/ (deficiency) Council's retained surplus consists of the components described in note 1. While not a required disclosure, Council provides the following table of transfers between and the balances of components for information purposes. Council sets asides allocated rates and contributions in operational reserves and then transfers funds to operational or capital projects once expenditures have been incurred. Capital reserve amounts are directly related to the acquisition and disposal of Council assets. Analysis of retained surplus for the year:

Balance at 1 July 2012 Net result attributable to Council Transfers to/ from capital reserve: Capital grants and subsidies Gain on fair value and sale of assets Assets decommissioning Donated assets General revenue Operational funding Transfers to/ from operational reserves: Current contributions received Operational funding Capital funding Balance at 30 June 2013 Net result attributable to Council Transfers to/ from capital reserve: Capital grants and subsidies Gain on fair value and sale of assets Assets decommissioning Donated assets General revenue

Operational reserves

Surplus funds

$'000

1,907,135

147,137

6,875 42,704 (14,593) 36,576 8,065 (19,429) 41,280 2,008,613

74,948 (42,343) (41,280) 138,462

5,219 135 (9,410) 64,159 15,883

553 2,085,152

65,607 (47,471) (553) 156,045

Total retained surplus $'000

3,529 91,811

2,057,801 91,811

(6,875) (42,704) 14,593 (36,576) (8,065) 19,429

(74,948) 42,343 2,537 99,448

2,149,612 99,448

(5,219) (135) 9,410 (64,159) (15,883)

(65,607) 47,471 7,863

2,249,060

FINANCIAL REPORTING

Transfers to/ from operational reserves: Current contributions received Operational funding Capital funding Balance at 30 June 2014

Capital reserve

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note 38. (a)

2014 $â&#x20AC;&#x2122;000

2013 $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

99,448

91,811

16 18 18 19

92,819 287 41 9,410 827

90,840 (180) (4) 14,593 1,194

6 7 8 11 12 13 45

(1,088) (64,159) (131) (4) (575) (11) (700)

2,802 (36,576) (227) (112) (42,477) -

Add: non-cash expenses: Depreciation Bad and doubtful debts Stock adjustment Capital expenses Borrowing costs accrued/ due to discounting Less: non-cash revenues: Interest revenue accrued Cost of goods sold Donations of assets (Gain)/ loss on sale of property, plant and equipment Share of jointly controlled entity comprehensive income Reduction in restoration provision (Gain)/ loss on water reform Gain/ (loss) on market value realisation Gain/ (loss) on local government reform

Less: Capital contributions, grants and subsidies classified as cash inflows from investing activities: Capital contributions Capital grants and subsidies

9 10

(29,901) (5,219)

(28,081) (6,875)

Decrease/ (increase) in operating assets net of non-cash revenues and expenses and non-cash amalgamation transactions: Receivables Inventories Prepayments

6,912 6,029 (918)

(78) 522 (379)

Payables Provisions Other liabilities Net Cash from operating activities (b)

1,125 1,240 282

9,630 2,378 (565)

103,756

110,174

228,207 228,207

195,681 195,681

Financing facilities Amount used Amount unused

FINANCIAL REPORTING

Increase/ (decrease) in operating liabilities net of non-cash revenues and expenses and non-cash amalgamation transactions:

Council does not have an approved bank guarantee facility and has no credit standby facilities or bank overdrafts.

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note

2013 $â&#x20AC;&#x2122;000

2014 $â&#x20AC;&#x2122;000

39. Trust fund Monies paid to the local government Security deposits

2,740 3,388 6,128

2,007 2,885 4,892

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 21, 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. 40. Commitments for expenditure (a)

Operating lease commitments No later than 1 year Later than 1 year but not later than 5 years Later than 5 years

(b)

394 1,274 15 1,683

367 672 42 1,081

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)

36,627 36,627

67,905 67,905

36,627 36,627

67,905 67,905

Contractual commitments Contractual commitments at balance date not recognised in the financial statements are as follows:

FINANCIAL REPORTING

Waste contracts Waste and recyclables collection Recyclables processing Green waste management Property contracts Property transactions Community asset maintenance Operational contracts 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

293 36 107

210 23 64

11,576 12,012

3,216 2,361 5,853 11,727

12,012 12,012

11,727 11,727

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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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

41. Contingent liabilities Details and estimates of maximum amounts of contingent liabilities are as follows: Liability claims Infrastructure credits Local Government Workcare maximum exposure Carbon tax

2,118 14,558 3,488 20,164

Liability claims

4,690 14,558 3,571 20,426 43,245

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

2,118 2,118

188 2 4,500 4,690

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 2013 and show accumulated member funds (equity) of $19,864,786 (2012: $15,627,807) meaning that the likelihood of a claim against Council's guarantee is remote. Local Government Mutual liability self insurance pool

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 2013 and show accumulated member funds (equity) of $22,557,143 (2012: $14,173,836) meaning that the likelihood of a claim is remote.

FINANCIAL REPORTING

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.

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 Note

2014 $’000

2013 $’000

42. 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

5,067 (2,451) 2,616

43. 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). 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. 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 4.66% of the total contributions to the plan for the 2013/14 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. The audited general purpose financial report of the scheme as at 30 June 2013 (the most recent available) which was not subject to any audit qualification, indicates that the assets of the scheme are sufficient to meet the vested benefits.

FINANCIAL REPORTING

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 $12,747,000 (last year: $11,390,000) in respect of employees and $179,000 (last year: $162,000) in respect of elected members. FS - 55

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 44. Statement of activities to which the code of competitive conduct applies National competition policy note Logan City Council applies the code of conduct to the following activities: Building certification Plant fleet services 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 Services $'000 877 215,706 216,583 (158,986) 57,597

Logan Waste Services $'000 884 32,724 33,608 (28,937) 4,671

Community service obligations

4,192 56 4,248 (4,215) 33

Logan Water Services $'000

Plant fleet services $'000 20,162 463 20,625 (16,895) 3,730

528 -

Logan Waste Services $'000 282 16 96 43

528

105 542

FINANCIAL REPORTING

Cleansing remissions to eligible pensioners Water, sewerage and cleansing remissions to eligible community organisations Household hazardous waste Free tipping for community organisations (includes Clean Up Australia Day and disposal of motor vehicles) Animal removal Total

Building certification $'000

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 45. Reincorporation of council's water business Basis for reincorporation The South East Queensland Water (Distribution and Retail Restructuring) Act 2009 (SEQW Act) established a body called the Southern SEQ Distributor-Retailer Authority on 3 November 2009 to deliver water and wastewater services to customers within the local government areas of participating councils: Gold Coast City Council (GCCC), Logan City Council (LCC) and Redland City Council (RCC). The authority traded under the name of AllConnex Water (AW) for the financial periods ended 30 June 2011 and 30 June 2012. On 7 April 2011, the then Queensland Premier, Anna Bligh, announced that the participating councils had the opportunity to take back responsibility for water and waste water pricing, retail and distribution. The South East Queensland (Distribution and Retail Restructuring) and Other Legislation Act (QLD) 2012 (the Amendment Act) provided authority for participating councils to withdraw from AW and set out retransfer requirements and the subsequent responsibilities for their individual local government areas. On 25 July 2011, GCCC the majority participant, voted to withdraw from AW. Following the GCCC decision, RCC (on 8 August 2011) and LCC (on 23 August 2011) also decided to withdraw. Asset transfers and basis for measurement Effective 1 July 2012, Council has received assets and liabilities on the discontinuation of AW. Council's 30 June 2012 financial statements included disclosure of the estimated carrying values of transferring assets and liabilities effective 1 July 2012 and a statement that these carrying values were based on assumptions used in AW's business model, which would not be consistent with the assumptions used under Council's business model going forward. The major difference between the AW carrying values and Council's carrying values has been in relation to property, plant and equipment. AW valued these assets using a discounted cash flow (DCF) analysis based on the AW business model at 30 June 2012. As Council is a not-for-profit entity, Council initially used a depreciated replacement cost approach to determine the fair value of the returning water and waste water assets, effective 1 July 2012. Council has subsequently changed the basis of valuation of water and wastewater assets to a DCF valuation, as disclosed in note 46. Full details of the valuation methodology and key assumptions are provided in note 33. Actual net asset transfers The fair values of the returning water and wastewater assets are tabled below. Initial net asset transfers disclosed in AW 30 June 2012 financial statements were based on a provisional allocation of assets and liabilities (provisional allocation). These allocations were adjusted based on methodologies provided for in a retransfer scheme agreement between the three withdrawing councils and after taking account of final withdrawal costs (subsequent adjustments and true up). Transferring assets were further adjusted to Council fair value (asset fair value adjustments) to determine final take on values and gain on transfer. Provisional allocation $000

FINANCIAL REPORTING

Assets Property, plant and equipment Work in progress Trade and other receivables Unpaid withdrawal costs Inventory Other assets Total assets Liabilities Interest and tax payables Borrowings - QTC Borrowings - Council Employee benefits Other liabilities Total liabilities Net assets Investment carrying value Gain on transfer

Subsequent adjustments $000

Asset fair value adjustments $000

1,152,289 50,982 33,377 611 1,237,259

10,884 7,130 9 18,023

(2,730) (2,730)

Take on values & gain on transfer $000 1,149,559 50,982 44,261 7,130 611 9 1,252,552

13,604 58,628 501,855 4,903 4,691 583,681 653,578 626,285 27,293

1,085 (976) 109 17,914 17,914

(2,730) (2,730)

13,604 58,628 501,855 5,988 3,715 583,790 668,762 626,285 42,477 FS - 57

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 46. Voluntary change in accounting policy and prior period adjustment Voluntary change in accounting policy The financial report has been prepared on the basis of a retrospective application of a voluntary change in accounting policy relating to the valuation of water and wastewater infrastructure and facilities assets. Water and wastewater infrastructure and facilities assets are valued at fair value. The technique used to determine fair value has been changed from a depreciated replacement cost (DRC) approach to a discounted cash flow (DCF) income approach. The reason for the change from a DRC technique is that Council has resolved that its water services business unit is to be operated on a cash generating 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. Full details of the new accounting policy and the bases used to determine fair value are provided in note 1(i); Significant accounting policies, Property, plant and equipment, and in note 33 Fair value measurement. The new accounting policy was adopted on 15 July 2014 and has been applied retrospectively. Council's water business was reincorporated effective 1 July 2012 after the discontinuation of AllConnex Water. On reincorporation, the transferred property, plant and equipment assets were valued using a DRC valuation technique. The change in accounting policy reduced the initial valuation of the transferred assets by $677,449,000, reduced 2012/13 depreciation by $13,923,000 and reduced 2012/13 asset decommissioning costs by $663,000, and has resulted in an increasing revaluation effective 30 June 2013 reported below. The bases and major inputs used to determine fair value at 1 July 2012, 30 June 2013 and 30 June 2014 are provided in note 33 Fair value measurement. Prior period adjustment During the 2013/14 financial year it was discovered that 2011/12 and 2012/13 roads and drainage infrastructure revaluation adjustments of $5,961,982 and $11,744,981 respectively had been processed to depreciation expense. These errors have been corrected in the 2013/14 financial year and comparative amounts have been restated. Asset revaluation On a July 2012, Council changed the method used to determine the fair value of water and wastewater infrastructure and facilities from a depreciated replacement cost to a discounted cash flow basis. The change in valuation method resulted in a revaluation increase of $29,633,000 effective 30 June 2013. Leave reclassification During the 2013/14 financial year Council decided to reclassify annual, sick and other employee leave entitlements from current provision to trade and other payables, as this results in a better presentation of leave liabilities. The reclassification has resulted in an adjustment in comparable amounts of $21,706,000 in 2013 and $16,947,000 in 2012. Effect of the voluntary change in accounting policy, prior period adjustment, and leave reclassification on the 2012/13 Statement of Comprehensive Income and Statement of Financial Position

FINANCIAL REPORTING

The effects of the change in accounting policy and prior period adjustment on Council's 2012/13 Statement of Comprehensive Income and Statement of Financial Position are tabled below:

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LOGAN CITY COUNCIL Notes to financial statements 30 JUNE 2014 46. Voluntary change in accounting policy and prior period adjustment (continued) Nature of the change

Note

Retained surplus Gain on net assets transferred from AllConnex Water Depreciation expense Other capital related expenses Property, plant and equipment Asset revaluation surplus Trade and other payables Current provisions

45 16 19 28 36 30 34

2012/13 Amount reported $'000 2,794,768

Change in accounting policy $'000 (662,863)

Asset revaluation

Leave reclass

$'000

$'000 -

719,926 116,508 15,330 4,734,223 1,900,559 49,909 23,317

(677,449) (13,923) (663) (662,863) -

29,633 29,633 -

Prior period adjust $'000 17,707

2012/13 Compara tives $'000 2,149,612

21,706 (21,706)

(11,745) (17,707) -

42,477 90,840 14,667 4,100,993 1,912,485 71,615 1,611

Council has restated the 2012/13 opening balances of assets, liabilities and equity as they would have been presented had the error not occurred. 47. Events after the reporting period Clean energy legislation package In 2011 the Australian Government introduced a Clean Energy Legislation package. One aspect of this package was the introduction of a pricing mechanism for greenhouse gas emissions in the Australian economy. The pricing mechanism commenced on 1 July 2012 and set a fixed price path for the first three years ($23 per tonne of CO2-equivalent emissions adjusted in real terms by 2.5 percent per annum) before moving to a flexible price mechanism from 1 July 2015. Council has a landfill and a wastewater treatment plant that produce emissions. The landfill exceeds the relevant liability threshold. Council projections indicate that the landfill facility will continue to exceed the relevant emissions thresholds into the foreseeable future. A provision for carbon permits had to be made when greenhouse gas emissions had occurred, as the emission of greenhouse gasses created an obligating event for Council in terms of the payment of carbon charges. Council also disclosed a contingent liability for expected future emissions per year of waste disposal. Organic material within waste deposited at landfills takes time to begin decomposing and emissions are deemed to commence in the year following deposit. As a result, Council has incurred a carbon tax liability in the 2013/14 financial year from waste deposited in the 2012/13 financial year (see note 30). Deposited waste is expected to continue to generate emissions over the next 40 years. Council estimated these emissions using the latest national Greenhouse Accounts Factors in order to determine an expected future liability, the present value of which was disclosed as a contingent liability.

FINANCIAL REPORTING

Carbon tax repeal On 17 July 2014, the Australian Government passed the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 (the Bill). When the bill becomes law, it will repeal the Clean Energy Act 2011 and abolish the carbon pricing mechanism from 1 July 2014. Liable entities must, however, still meet their carbon price obligations for the 2013-14 financial year. The carbon tax repeal means that no carbon tax liabilities will be incurred from 1 July 2014. As a consequence Council has removed carbon tax contingent liabilities disclosures as tabled below: Year of deposit

2012/13 2013/14

Estimated present value of carbon charges $'000 818 1,160 1,978

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LOGAN CITY COUNCIL Audit report

FINANCIAL REPORTING

30 JUNE 2014

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LOGAN CITY COUNCIL Audit report

FINANCIAL REPORTING

30 JUNE 2014

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LOGAN CITY COUNCIL Appropriation Statement For the year ended 30 JUNE 2014 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 AllConnex Water cash true up adjustment transferred to reserve 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

10 19 8

2014 $â&#x20AC;&#x2122;000

2013 $â&#x20AC;&#x2122;000

2,537 99,448 101,985

3,529 91,811 95,340

(5,219) (135) 9,410 (15,883) (64,159) (75,986)

(6,875) (42,704) 14,593 (8,065) 19,429 (36,576) (60,198)

(30,570) (1,647) (155) (1,199) 18,771 (3,336) (18,136)

(26,613) (974) 382 (19,864) 12,163 2,301 (32,605)

7,863

2,537

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.

FINANCIAL REPORTING

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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LOGAN CITY COUNCIL Capital funding statement For the year ended 30 JUNE 2014 Note

2014 $â&#x20AC;&#x2122;000

2013 $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 Wastewater reserve Other reserves Developer contributions (Constrained income reserve)

11 31 10 8

2,386 41,945

2,144 24,382

92,819 5,219 15,883 64,159

90,840 6,875 8,065 36,576

(23,071) 1,236 223 (1,626) 23,790 222,963

(7,410) 1,082 504 20,043 7,363 19,700 210,164

3,914 5,025 17,890 116,127 54,351 44,142 1,781 (31,379) 2,374 214,225 8,738 222,963

8,837 7,951 16,353 71,458 36,732 9,855 38 46,929 4,210 202,363 7,801 210,164

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

28 28 28 28 28 28 28 28 29

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.

FINANCIAL REPORTING

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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182

FINANCIAL REPORTING

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

183

184

FINANCIAL REPORTING

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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186

FINANCIAL REPORTING

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Building our pride: Logan Cityâ&#x20AC;&#x2122;s dynamic, diverse and

APPENDICES

proud community is home to more than 215 ethnicities.

188

Appendices APPENDICES

This section includes background information relevant to the main report, indexes and contact information for our organisation and our elected representatives.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

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Legislative index Local Government Act 2009 REQUIREMENT

DETAILS

Section 45(a)

Contain a list of all the business activities that the local government conducted during the

PAGE/S

136

financial year Section 45(b)

Identify the business activities that are significant business activities

100

Section 45(c)

State whether or not the competitive neutrality principle was applied to the significant

100

business activities, and if the principle was not applied, the reason why it was not applied Section 45(d)

State whether any of the significant business activities were not conducted in the

preceding financial year Section 46

Conduct a public benefit assessment of any new business activity

Section 180 (2)

Taking disciplinary action with regard to complaints of misconduct against councillors

Section 181

Inappropriate conduct referred to the mayor or department's chief executive to take

disciplinary action against a councillor Section 201

Disclosure of the total remuneration packages payable to senior contract employees

Local Government Regulation 2012 REQUIREMENT

DETAILS

PAGE/S

Section 183(a)

Audited financial statements

Section 183(b)

The current-year financial sustainability statement for the financial year

Section 183(c)

The long-term financial sustainability statement for the financial year

Section 183(d)

Auditor-General’s report on the financial statements

Section 184

Community Financial Report

Section 185

Remuneration resolution for Councillors and expense reimbursement under the policy

Section 186(a)

Total remuneration and superannuation paid to Councillors

118 – 187 118 98 178, 179 104

Section 186(b)

Expenses incurred under the expenses reimbursement policy

Section 186(c)

Number of meetings attended by each Councillor

Section 186(d)

Orders and recommendations made under section 180(2) or (4), and section 181 of the Act

Section 186(e)

Disciplinary action against a Councillor

Section 186(f)

Complaints made against a Councillor

Section 187(1)

Complaints management process

Section 187(2)

The number of administrative complaints received, the number resolved and the number

not resolved Section 188

Details for overseas travel by Councillors or employees

Section 189

Summary of grants to community organisations

Section 190(1)(a)

Assessment of the performance in implementing a five-year corporate plan and annual

101 101 8 – 10

operational plan Section 190(1)(b)

Issues relevant to making an informed assessment of the operations and performance in

52 – 59

APPENDICES

the financial year

190

Section 190(1)(c)

An annual operations report for each commercial business unit

Section 190(1)(d)

Details of expenditure for services, facility or activity supplied by another local government

198 – 208

Section 190(1)(e)

The number of invitations to change tenders during the year

96, 97

Section 190(1)(f)

List of registers kept by the local government

Section 190(1)(g)

Summary of all concessions for rates and charges

Section 190(1)(h)

Report on the internal audit for the year

Section 190(1)(i)

Summary of investigate notices for competitive neutrality complaints

Section 190(1)(j)

Response to the Queensland Competition Authority’s recommendations on any competitive

neutrality complaints

Public Sector Ethics Act 1994 REQUIREMENT

DETAILS

PAGE/S

Section 23

Implementation statement giving details of the action taken during the reporting period to

comply with sections •

Section 15 (Preparation of codes of conduct)

•

Section 21 (Education and training)

•

Section 22 (Procedures and practices of public sector entities).

Local Government Finance, Plans and Reporting Regulation 2010 REQUIREMENT

DETAILS

Section 177(7)

Disclosure of Tenders and Expressions of Interest Processes

PAGE/S

Local Government (Operations) Regulation 2010 DETAILS

PAGE/S

Section 42

Disclosure of remuneration schedule adopted for the financial year

31, 34

APPENDICES

REQUIREMENT

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

191

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

GRI reference number and description

as a way to become more sustainable and contribute

Governance, commitments and engagement

to sustainable development. The GRI framework is

4.1 Governance structure of the organisation,

24 – 29,

used by both large and small organisations to report

including committees under the highest

32 – 37

their economic, environmental, social and governance

governance responsible for specific tasks,

performance and impacts. We are using the GRI reporting framework for the first time this year and will continue to use it to enhance our reporting processes. The below table shows the number of GRI Framework components that are disclosed in our Annual Report this year.

GRI reference number and description

4.4 Mechanisms for shareholders and employees to provide recommendations or

organisation's performance 4.6 Processes in place for the highest

16, 17

4.8 Internally developed statements of mission 6 52 – 59

2.3 Operational structure of the organisation

2.4 Location of Organisation's headquarters

205

2.7 Markets served (including geographical breakdown, sectors served and types of

24 – 29 6, 14, 15, 25

customers/beneficiaries) 2.8 Scale of the reporting organisation 2.9 Significant changes during the reporting

54, 58

3.3 Reporting cycle 3.4 Contact point for questions regarding the

6 49 205

or other initiatives to which the organisation subscribes national/international advocacy organisations 4.14 List of stakeholder groups engaged by the

including frequency of engagement by type

26 – 29, 34, 35 6, 18

the report 85 – 93, 198 – 208

operations and other entities 190 – 191

standard disclosures in the report 43, 44

18, 25 18, 74 – 76

and by stakeholder group 4.17 Key topics and concerns that have been

18, 74,

raised through stakeholder engagement, and

how the organisation has responded to those 6

seeking external assurance for the report

35, 40

environmental and social charters, principles

4.16 Approaches to stakeholder engagement

3.13 Policy and current practice with regard to

4.12 Externally developed economic,

37 – 39

3.7 Limitations on the scope or boundary of

3.12 Table identifying the location of the

implementation

stakeholders with whom to engage

3.5 Process for defining report content

subsidiaries, leased facilities, outsourced

social performance and the status of their

4.15 Basis for identification and selection of

report or its contents

3.8 Basis for reporting on joint ventures,

relevant to economic, environmental, and

20, 21,

Report parameters 3.1 Reporting period for information provided

7, 30, 33,

organisation

period regarding size, structure or ownership 2.10 Awards received in the reporting period

or values, codes of conduct and principles

4.13 Memberships of associations with 24 – 29

governance body to ensure conflicts of interest

Organisational profile

2.6 Nature of ownership and legal form

31, 34

senior managers, and executives and the Pages

are avoided

2.2 Primary brands, products and/or services

18, 37 – 39

direction to the highest governance body

makers of the organisation

2.1 Name of the organisation

APPENDICES

oversight

members of the highest governance body,

Strategy and analysis 1.1 Statement from the most senior decision-

Pages

such as setting strategy or organisational

4.5 Linkage between compensation for

REPORT PROFILE

192

REPORT PROFILE

key topics and concerns

PERFORMANCE INDICATORS

GRI reference number and description

PERFORMANCE INDICATORS

Pages

GRI reference number and description

Economic performance EC1 Direct economic value generated and

59,

LA1 Total workforce by employment type,

distributed

66 – 68

employment contract, and region broken down

EC2 Financial implications and other risks and

70 – 72

by gender

opportunities for the organisation's activities

LA2 Total number and rate of new employees

due to climate change

hired and employee turnover

EC4 Significant financial assistance received

143, 146

from government

LA7 Rates of injury LA8 Education, training, counselling,

EC8 Development and impact of infrastructure

59, 66,

prevention, and risk-control programs in place

investments and services provided primarily for

67, 69

to assist workforce members, their families,

public benefit through commercial, in-kind, or

or community members regarding serious

pro-bono engagement

diseases

Environmental

LA11 Programs for skills management and

EN5 Energy saved due to conservation and

lifelong learning that support the continued

71, 72

or renewable energy-based products

30, 71, 72

requirements as a result of these initiatives consumption and reductions achieved EN13 Habitats protected or restored

72 59, 70, 59, 70,71

plans for managing impacts on biodiversity EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved EN22 Total weight of waste by type and

40 36, 40

36 – 39

Society SO2 Percentage and total number of business SO3 Percentage of employees trained in

39, 71,

71 EN14 Strategies, current actions and future

units analysed for risks related to corruption

and services, and reductions in energy EN7 Initiatives to reduce indirect energy

40 – 42

employability of employees

efficiency improvements EN6 Initiatives to provide energy efficient

Pages

Labour Practices and Decent Work

procedures SO4 Actions taken in response to incidents of

corruption Product responsibility PR5 Practices related to customer satisfaction

39, 71,

organisation's anti-corruption policies and

including results of surveys measuring

18, 51, 55

customer satisfaction

91 – 93

disposal method EN26 Initiatives to mitigate environmental

38, 39,

impacts of products and services and extent of

71, 72

APPENDICES

impact mitigation

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

193

Glossary of terms Advocacy

The act of speaking or arguing in favour

Corporate

A strategic document with a minimum

of something, such as a cause, idea,

Plan

five-year outlook, which outlines the

or policy. In the context of the strategic

key strategies that the organisation

priorities, it refers to another sphere of

will undertake to achieve its desired

government or organisation delivering a

outcomes. This is a legislative requirement.

service or outcome for the city. Audit

An examination of the records,

Culture

organisation, our ethics, our institutions,

statements, systems, and procedures of an organisation, together with its stated claims for performance. Best practice

Branch

The financial year we are reporting on in

year

this report is the period from 1 July 2013 to 30 June 2014.

Framework

Best described as a diagram that shows the links between various processes in

all other known methods; achievement of

order to achieve a particular outcome.

outcomes/results that are superior to all

It usually includes an explanation of

others known.

the relationships between the various

Council is divided into four key

elements. Global

The GRI framework is used by large

Reporting

and small organisations to report their

Initiative

economic, environmental, social and

a series of programs and services to

(GRI) Index

governance performance and impacts.

the community. There are 28 branches

Governance

The process by which an organisation

streams. Each stream then contains a number of branches, which deliver

within our organisation (refer to the

makes and implements decisions, is

organisational structure on page X). Each

controlled and managed to achieve its

branch manager reports to a Deputy Chief

objectives, is directed, reviewed and held

Executive Officer.

to account.

Business

A clearly defined and documented plan

continuity

for the organisation that establishes

plan

ground rules for the critical operations

Initiatives

A program of work or project to achieve a measurable benefit within a quantifiable timeframe.

of Logan City Council. It contains the

Key

Objective evidence on the extent of,

guidelines for the business to continue

performance

or progress towards, achievement of a

to operate within a defined timeframe

indicators

desired outcome.

Local

The principal legislation which provides

Government

the legal framework for Queenslandâ&#x20AC;&#x2122;s

using a set of predefined resources and workarounds. Business

Planning of Councilâ&#x20AC;&#x2122;s business direction

Act 2009

local government sector.

planning

to detail the what, why, when, who

Local

The 2008 restructure of Queensland local

and how. It includes strengths and

Government

government authorities, including Logan

weaknesses, strategies and resources.

Boundary

City Council, which was enforced by the

Business planning is different from the

Reform

State Government.

Local

Effective from December 2012, the Local

Government

Government (Beneficial Enterprises and

Regulation

Business Activities) Regulation 2010,

2012

Local Government (Finance, Plans and

Operational Plan because it is targeted at a particular functional area of Council and provides the detail of a branchâ&#x20AC;&#x2122;s business for a set period (usually consistent with the period set for the Operational Plan).

Reporting) Regulation 2010 and Local

Community

The process of working collaboratively

Government (Operations) Regulation 2010

engagement

with and through groups of people

have been collapsed into one Regulation,

affiliated by geographical proximity,

the Local Government Regulation 2012.

special interest, or similar situations, to address issues affecting the wellbeing of those people. The levels of engagement are: inform, consult, involve, collaborate APPENDICES

Financial

result that is considered to be superior to

operational departments, known as

194

our behaviours, and our routines.

A way or method of accomplishing a business function process or outcome/

This defines who we are as an

and empower.

National

In March 2007, the Local Government

Framework

and Planning Ministers’ Council endorsed

Program

operational departments, known as

for

national frameworks for assessing

streams. Each stream then contains a

Sustainability

financial sustainability, asset planning and

number of branches, which deliver a

management and financial planning and

series of programs and services to the

reporting. According to the frameworks, a

community. There are more than 70

council’s long-term financial performance

programs within our organisation, with

and position is sustainable where planned

program leaders reporting to branch

Council is divided into four key

long-term service and infrastructure

managers.

levels, and standards as prioritised

Price

through community engagement and

Waterhouse

consultation, are met without unplanned

Coopers

increases in rates and charges or

(PwC) Risk

The process of identifying, evaluating and

management

controlling risk via the method outlined

Operational

A document with a one-year outlook,

Plan

which outlines the key activities to

in the Australian Standard AS/NZS ISO

be undertaken to achieve the desired

31000:2009.

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, polices or activities.

South-East

A range of structural and regulatory

Queensland

reforms proposed for urban water supply

Water Reform

arrangement in South-East Queensland.

Strategic

An overarching process used to help

planning

Council and the community plan for the future and realise their vision. It is

Performance

Collecting the relevant data, including

a continuous, systematic process for

measurement

past and current performance, forecasts

identifying intended future outcomes, how

and targets. It helps to monitor services

outcomes are to be achieved, and how

and products, and allows organisations

success will be measured.

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

Strategies/

Council’s priorities as outlined in the

strategic

Corporate Plan or as approved through

priorities

the annual strategic planning, resource allocation and budgeting cycle.

Stream

operational departments. Each

involves not just systems but people and

department contains a number of

the whole organisation. Performance

A visual display of the most important

scorecard

performance information consolidated so

branches and is headed by a Deputy Chief Executive Officer. Council's four streams are: Road and Water

an overall understanding of performance

Infrastructure, Organisational Services,

can be viewed at a glance. Planning

A requirement under the Integrated

scheme

Planning Act 1997 that coordinates and integrates the planning and

Community and Customer Services and Strategy and Sustainability. Target

A quantifiable level of performance to be attained at a specific future date. Setting

development matters for a designated

the right target is just as important as

local government including environmental

setting the right measure. It is crucial

matters and key infrastructure concerns. Policy

Council is divided into four key

that targets are realistic but at the same

A definitive statement issued at the

time challenging for those involved in

highest level, which clearly states

the process. They are important to drive

Council’s intent, commitment or position

forward the improvement of services

to achieve an objective and which

across Council.

provides a decision-making framework for day-to-day application.

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.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

APPENDICES

disruptive cuts to services.

Council's internal auditors.

195

A snapshot of Council and community events held in 2013/2014 July 2013

September 2013

November 2013

1 KRANK school holiday program (until 4 July)

1 Logan Village Settlers Day at Logan Village

8 NAIDOC Week flag raising ceremony

14 Free trees collection day at Marsden (also 18 September)

10 Logan Thunder Women’s National Basketball League home season starts

12 Share a Cuppa with Councillor Laurie Smith

1 Teviot Downs Father’s Day Community Fair at Greenbank

12 Exhibitions at the Logan Art Gallery: Journey blong yumi; Body on the line & Mana Pasifika; Movement and energy - Lynne Mullen; Runcorn State High School (until 17 August)

12 Logan Thunder Business Luncheon at Logan Metro Sports Centre

13 Journey blong yumi: Australian South Sea Islander Family Fun Day, Logan Art Gallery 8 Active Logan Program (until 22 September) 28 Logan City Charity Bike Ride to support Diabetes Queensland and The Rotary Foundation

August 2013 8 Sci-fi and Fantasy Month at Logan’s Libraries 9 Share a Cuppa with Councillor Cherie Dalley 17 Native seed propagation workshop at Eagleby

APPENDICES

11 Christmas lights bus tour visiting special entrants of the River 94.9 Christmas Lights Competition.

14 Senior Superstar at Logan Entertainment Centre (also 21 September) 19 Share a Cuppa with Councillor Phil Pidgeon

16 Free trees collection day at Munruben

23 KRANK school holiday program (until 4 October)

17 Get Ready Logan event at Greenbank

29 Rowing down the river at Waterford

22 Business breakfast with speaker Tom Potter

30 Kids Alive - Do the Five swimming program at Aqualogan Laurie Lawrence Swim School (until 4 October)

24 Christmas Carols in the Park at Park Ridge.

October 2013

20 Logan Loves Seniors Day

4 Wacky Wildlife show at Browns Plains.

23 Business breakfast with speaker Dan Gregory

7 Active Logan (until 15 December)

24 Sustainable vegetable gardening workshop at Jimboomba

12 Logan Artworker Networking Event at Logan Art Gallery

15 Exhibitions at the Logan Art Gallery: Mytho-poetic - Glen Skien; Madonna Staunton: Selections; From threads to fabric of community - Mary Elizabeth Barron; Logan treasures: pop-up store (until 20 December0

14 Logan Artworker Networking Event - Forum: Animating Logan at Logan Art Gallery

17-23 Children’s Book Week at Logan’s Libraries

23 Exhibitions at the Logan Art Gallery: Lloyd Rees - Life and Light; Lyn Elgood -Berrinba Wetlands; Logan City - Historic Works; Growing with art - Olga, Francoise and Chantelle Dik (until 28 September)

196

13-14 Beenleigh Show

9 Small Mammals of Logan workshop at Berrinba

11 Exhibitions at the Logan Art Gallery: Artwaves 2013 (until 9 November) 12 BDS Logan Thunder home game at Logan Metro Indoor Sports Centre 12 Logan Artworker Networking Event at Logan Art Gallery 12 Free trees collection day at Eagleby

30 Chip for Charity annual Logan Mayoress’ Community Service Committee charity golf day. Proceeds donated to Logan PCYC.

26 Gigs in the gallery: teen bands and musicians at Logan Art Gallery

31 Sustainable housing workshop at Chambers Flat

31 Share a Cuppa with Councillor Darren Power

26 Hollow Homes workshop at Priestdale

31 Light of the World Festival

30 Christmas Carols in the Park at Jimboomba

December 2013 14 Logan Mayor’s Christmas Carols at Crestmead 7 Free trees collection day at Marsden (also 11 December) 14 Logan Artworker Networking Event at Logan Art Gallery

January 2014

March 2014

May 2014

13 KRANK school holiday program (until 24 January)

1 Logan Artworker Networking Event at Logan Art Gallery

3 Logan Artworker Networking Event at Logan Art Gallery

13 Active Logan program (until 6 April)

2 Clean Up Australia Day at various sites around Logan

17 Exhibitions at the Logan Art Gallery: Head and sole; Sisters as artists - Barbara Limb and Xersa; Floral decadence - Mark Davey (until 15 February)

4 Merry Melodies season 19, Jackie Love at Logan Entertainment Centre

4 The Time Before Festival at Mayes Cottage and Kingston Butter Factory

20-24 Kids Alive - Do the Five swimming program at Aqualogan Laurie Lawrence Swim School (until 24 January) 26 Australia Day pool parties at all Council pools 26 Australia Day Awards Ceremony 11 Free trees collection day at Eagleby

4 Tracks, scats and traces workshop

15 Free trees collection day at Marsden (also 19 March)

10 Free trees collection day at Munruben

29 Reduce your power bills workshop

5-11 International Composting Awareness Week shopping centre display (until 11 May)

29 Logan Art Gallery: No Added Sugar: Free Family Fun Day 30 Dog behaviour seminar at Daisy Hill

April 2014

2 Dog Training Workshop at Daisy Hill

4 Exhibitions at the Logan Art Gallery: Ever Present: Photographs from the Queensland Art Gallery Collection 1850-1975; Marty Pouwelse - Beauty of Natureâ&#x20AC;&#x2122;s fury; Workshop wonders XII (until 10 May)

7 Logan City Sports Awards at Logan Entertainment Centre

5 Keeping backyard chickens workshop

8 Free trees collection day at Munruben

5 Logan Artworker Networking Event at Logan Art Gallery

15 Head and Sole Family Fun Day at Logan Art Gallery

12 Free trees collection day at Eagleby

21 Exhibitions at the Logan Art Gallery: No Added Sugar: Australian - Muslim Womenâ&#x20AC;&#x2122;s Arts Project; Mana Nowbar: Longing; Journey through myself: art by local Muslim women (until 29 March)

15 Merry Melodies season 19, Ian Sternlake at Logan Entertainment Centre

1 Logan Artworker Networking Event at Logan Art Gallery

26 Business lunch with speaker Michael Matusik at Crestmead

16 Exhibitions at the Logan Art Gallery: Open Books +; Paper stories; Objects of adornment - Susan Wellingham; World Environment Day posters (until 21 June) 18 RSPCA Million Paws Walk at Logan Gardens

June 2014 1 Dog Behaviour Seminar at Daisy Hill 3 Merry Melodies season 19, David Scheel at Logan Entertainment Centre 8 Logan Eco Action Festival (LEAF) at Griffith University - Logan Campus 7 Free trees collection day at Marsden (and 11 June) 7 Logan Artworker Networking Event at Logan Art Gallery 18 Queensland Investment Expo, Logan Entertainment Centre (also 19 June) 30 KRANK School Holiday program (until 12 July)

For more information about upcoming events in Logan City, visit www.visitlogan.com.au

APPENDICES

February 2014

13 Merry Melodies season 19, Forever Everly at Logan Entertainment Centre

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

197

Water branches annual performance plan report A summary of performance against 2013/2014 key performance indicators for water and wastewater services is presented below: MEASURE

Financial

TARGET

Total operating expenditure

PERFORMANCE

Within plus or minus

Achieved

10% of annual

$107,556,000

estimate budget of $108,319,000. Earnings before interest and tax, excluding capital adjustments

$34,162,000

Achieved $52,171,000

Water supply

Average number of unplanned water supply interruptions per 1,000

< 100

properties Average duration for unplanned water supply interruptions

Achieved 57

< 3.5 hours

Achieved 2.52 hours

Number of water quality complaints per 1,000 properties

Achieved 4

Number of water main breaks per 100 kilometres of mains

<20

Achieved 7

Wastewater

Number of dry weather wastewater overflows per 1,000 properties

Achieved 3

Number of wastewater odour complaints per 1,000 properties

Achieved 1

Number of wastewater reticulations main breaks and chokes per

<16

1,000 properties Infrastructure

Percentage of capital program delivered to budget

Achieved 12

>80%

Not Achieved 78.5%

Environment

Percentage of wastewater compliance with Department of

90%

Achieved 99.52%

Environment and Heritage Protection licence standards (calculated average long-term compliance) Percentage of wastewater compliance with Department of

100%

Environment and Heritage Protection licence standards (calculated

98.8%

average short-term compliance) Percentage of major incidents reported to Department of

APPENDICES

Environment and Heritage Protection within 24 hours

198

Not Achieved

100%

Achieved 100%

Waste branch annual performance plan report Financial FINANCIAL YEAR ENDING 30 JUNE 2014 NOTES

ORIGINAL BUDGET $000

ACTUAL $000

VARIANCE $000

VARIANCE %

Revenue

$33,032

$33,580

$548

Expenses

$27,425

$26,946

$479

Net profit

$3,924

$4,643

$719

after tax

Business plan outputs Details of performance against all 2013/2014 Business Plan outputs is listed below: PROJECT/KPI

ANNUAL TARGET

PERFORMANCE

Staff turnover

< 10 people per annum

Achieved Turnover of 1 for the year.

Return on assets

> budget estimate of 10.5%

Achieved YTD result is 17.94%

EBIT

> budget estimate of $5,467,000

Achieved $7.424M

Gross margins

> budget estimate of $19,188,00

Achieved $19.963M

Cost/tonne/landfill

< $35.00

Not Achieved YTD costs of $5,533,281 for 152,637 tonnes gives ABC cost of $36.25

Internal communications

Continue to provide timely, regular

Achieved

and accurate information to all branch staff, and encourage feedback and participation, on upgrades , projects, activities etc through avenues such as the branch newsletter, emails, noticeboards, project teams, toolbox meetings, administration meetings, informal get togethers, etc WHS - Lost time injury rate

per million hours worked Staff overtime ($)

Achieved On track - 28

$153,792

Not Achieved $231,713 due to cover requirements for planned and unexpected absences, as well as additional leave to reduce the annual leave balances in the branch.

Age debtors - Over 90 days

No standard

$2,579

No standard

6.43%

- actual ($) Age debtors - debt to

APPENDICES

revenue ratio

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

199

PROJECT/KPI

ANNUAL TARGET

Cost of delivering waste

Favourable variance of less than 10%

PERFORMANCE

Not Achieved

services - Operating

YTD actual $7.742M (favourable variance of 15%)

contribution margin met

due to increase in high volume commercial garbage

(Operating revenue less

revenue and less than expected operating expenses.

expenses) Respond to written

< 10 days (monitored quarterly)

Achieved

correspondence in

The September and December 2013 and March

accordance with Council's

and June 2014 Quarterly Audits all revealed 100%

Customer Service Charter

compliance

Maintain ISO 9001 and ISO

ongoing

14001 accreditation Implement the Asset and

Achieved Accreditation maintained

30 June 2014

Achieved

Services Management

Participation in the SAMMS project was the key

Improvement Plan items

element.

Proportion of missed bin

Proportion of missed services is to be

Achieved

services

less than 0.05%

The actual number of services carried out in 2013/2014 was 10,839,562. There were 911 reported missed services due to contractor error during the period. This represented a missed rate of 0.008% which is within the requirement of 0.05%.

Timeliness of returning to

98% by close of business of the next

Achieved

collect missed bin services

working day

2,581 requests were received during 2013/14. 2,539 (98.3%) requests were actioned within the timeframe.

Timeliness of repair of

98% repaired or replaced within 2

Achieved

damaged wheelie bins

working days

3,494 requests were received during 2013/14. 3,482 (99.7%) requests were actioned within the timeframe.

Timeliness of replacement

98% of replacements provided within 1

Achieved

of stolen wheelie bins

working day

1,268 requests were received in total during 2013/14. 1250 (98.6%) requests were actioned within 1 working day.

Timeliness of completion of

Completion of suburb areas in

Not Achieved

kerbside clean-up services

accordance with schedule (within 5 days)

None of the 18 kerbside clean-up services conducted during the 2013/2014 YTD were been completed within 5 days. In each case the service was completed the following week due to the higher than expected amount of waste presented with the reduction in KCU frequency from twice to once per year.

Develop a web-based day

30 June 2014

Achieved The web page went live in December 2013.

of bin service calendar on Council's website Level of customer

80%

Achieved

satisfaction with wheelie bin

83.6% - Combined garbage and recycling result -

collection service

last Residents Survey was December 2013.

Quality of kerbside recycling

25%

Not Achieved Average rate for the 2013/2014 year was 32.03%. A

APPENDICES

number of education and enforcement measures are

200

in place to address this issue.

PROJECT/KPI

ANNUAL TARGET

PERFORMANCE

Undertake promotion of

30 December 2013

Achieved

the Recycling market via

Signs promoting the Recycling Market have now

signage on the container

been applied onto all containers

transport vehicles. Number of odour

No standard

92 for the year.

Level of compliance with

No more than one exceedance per

Achieved

environmental licence

quarter

There were only four exceedances in the four

complaints

quarters year to date.

conditions Proximity of waste facilities

90% of residents travel no longer than 20

Achieved

minutes

Approximately 94% of Logan City residents travel no longer than 20 minutes

Trial phytocap technology

30 July 2014

Not Achieved

at the former Jimboomba

Phytocap trial proposal has been submitted to the

landfill

DEHP and Council is awaiting its approval.

Continue to investigate

31 December 2013

Achieved

options for waste disposal

A number of disposal options post-Browns landfill

after the closure of the

are being negotiated.

Browns Plains landfill (including alternative waste technologies) Design and excavate Cell

31 March 2014

2D at Browns Plains landfill

Achieved The majority of the bulk excavation was completed. Currently, the new cell is being lined with clay and geosynthetic clay liner. This will be followed by leachate collection system installation.

Prepare a concept design

31 December 2013

Achieved

for a dedicated entry to

Council endorsed the concept plan in February 2014.

the Browns Plains transfer

Detailed design now underway.

station off Bayliss Rd, Heritage Park Develop estimated timings

30 June 2014

Achieved

and conceptual designs for

Expected timings and designs prepared and are

the upgrade of all transfer

informing the Waste Services 20-year capital budget.

stations Investigate the feasibility of

30 June 2014

Achieved

a dedicated organic waste/

Considered by Council during 2013/2014 budget

greenwaste collection

deliberations.

APPENDICES

service

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

201

Corporate and operational plan requirements 2013-2018 Corporate Plan The branch has no specific key performance indicators in the 2013-2018 Corporate Plan.

2013/2014 Operational Plan The two key projects for the branch listed in the 2013/2014 Operational Plan were both achieved as follows: CORPORATE PLAN REFERENCE

KEY PROJECT/MEASURE

TARGET

STATUS

MI 2.5

Waste capital works program

90% of projects delivered

Achieved

delivered on budget

on budget

All capital projects were delivered within allocated budget. Some project timings have been delayed however, resulting in reprovisions into 14/15.

SE 3.4

Investigate leasing of advertising

Investigation complete

space on waste and recycling

and report to Council by

collection vehicles

September 2013

Achieved

Community service obligations Community service obligations were provided in accordance with Council’s policy “Remissions to Community Organisations and Community Service Obligations”. The following community service obligations, their cost and the functional area of Council responsible for specifying the level of service required and the paying for the service for 2013/14 were as follows: COMMUNITY SERVICE OBLIGATION

BRANCH RESPONSIBLE

ACTUAL

Free tipping for community organisations

Community Services

$37,845

Clean Up Australia Day campaign

Community Services

$5,671

Disposal of motor vehicles received from City

City Standards

Nil

Environment and

$105,170

Standards Dead animal removal

Sustainability Household hazardous waste services

Environment and

$95,868

Sustainability Natural disasters/emergencies

Community Services

Nil

Pensioner discounts for waste collection services

Community Services

$286,710

Investigate the feasibility of a dedicated organic

30 June 2014

Achieved

waste/greenwaste collection service

Considered by Council during

APPENDICES

2013/2014 budget deliberations.

202

Other activities Kerbside recycling contamination rates and processing prices The Business Plan KPI for the rate of contamination in kerbside recyclables is a maximum of 25 per cent. Councilâ&#x20AC;&#x2122;s contract with Visy incorporates a risk-share provision whereby the payment made for processing of recyclables floats between a base and a maximum price. The price varies with changes in commodity values as well

Number of letters sent and initial inspections

Compliance after the first letter

Number of second warning letters sent

Compliance after the second letter

Number of residents who stopped presenting their

recycling bins (on two consecutive occasions) after receipt of the first or second warning letter

as contamination rates. Provided below are the contamination rates for the year: QUARTER

CONTAMINATION RATE

Measures to control kerbside recycling contamination Other actions

September 2013

29.01%

The November 2013 recyclables audit data indicated that

December 2013

37.20%

the most heavily contaminated recycling bins were in the

March 2014

31.88%

suburbs of Kingston, Marsden and Edens Landing.

June 2014

30.01%

Approximately 10,000 flyers containing recycling education information were specifically directed to houses on the

Measures to control kerbside recycling contamination Inspection program

runs of the recycling trucks from which the audited loads came. These flyers were delivered on 7 and 8 December 2013. The February 2014 recyclables audit data indicated that

In May 2013 Council approved a new policy and

the most heavily contaminated recycling bins were in the

Delegation of Authority to manage the presentation of

suburbs of Logan Central, Mt Warren Park, Marsden and

grossly contaminated recycling bins. The system works as

Kingston.

follows:

Approximately 10,000 flyers containing appropriate

Council will receive daily reports from its collection

recycling education information were specifically directed

contractor of locations where grossly contaminated

to houses on the runs of the recycling trucks from which

recycling bins have been presented.

the audited loads came. These flyers were delivered on 31

The Waste Services branch may analyse this data for the

May and 1 June 2014.

purpose of identifying users of recycling bins who regularly

Correspondence is then forwarded directly to the

Annual rise and fall price: adjustment waste collection contract

occupants of the properties in question requesting

The waste collection contract contains provision for the

improved recycling behaviours. Inspections of the bins

contractor to apply to adjust the prices they charge for

are also commenced and should the contamination

each service they provide.

continue, and subject to further warnings, the recycling bin will eventually be removed from property with no corresponding reduction in waste rate charges. Four rounds of analysis of data received from the contractor was conducted throughout the year. In each case, follow up was conducted with occupants of premises where it was reported that grossly contaminated bins had been presented three (or four if resources did not

Provisions to adjust service prices are common in contracts of this duration (eight years). The contract requires that these adjustment applications be made in January each year so that any new prices can be applied from 1 July in the next financial year. This arrangement allows Council to make adequate budgetary preparations.

permit) times. The aggregated results of the program for

Such an application was received from JJ Richards on 10

the year were as follows:

January 2014 seeking an adjustment over the previous yearâ&#x20AC;&#x2122;s prices.

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

APPENDICES

present grossly-contaminated bins.

203

Waste education

Service calendar on website

During the 2013/2014 year Council’s waste education

A new addition to Council’s website that allows residents

contractors delivered presentations to 337 school classes

to check their day of bin collection went live during

and 17 community groups.

January 2014.

In order to gauge the effectiveness of the Watch Out Waste School Program, teachers were asked to rate various aspects of the presentation (content, age appropriateness, activities, duration, resources and compatibility with curriculum) on a scale from excellent to poor, with 91 per

Free tipping vouchers The inaugural distribution of free tipping waste vouchers took place in early July 2013 via the rates notice.

cent of teachers rating each aspect of the program as

There was a moderate, but not unmanageable, level of

either ‘excellent’ or ‘very good’.

dissatisfaction from non-rate paying residents who did not

Teachers were also asked to rate the educator on the same scale, with 97 per cent of teachers rating the educator as either ‘excellent’ or ‘very good’. Other highlights for the year included: • Two public place displays at the Logan Hyperdome and Grand Plaza shopping centres. • Learning resource kits were provided to early learning

receive vouchers from property owners. Minor numbers of calls were received from owners of commercial properties and domestic properties that do not receive a waste collection service as a result of the owners opting out of the service due to their dwellings being more than 60 metres from the road. There was also a level of dissatisfaction with Council’s policy position that claims for replacement of vouchers

centres following two professional development

missing from the July rates envelope would only be

workshops held in April 2014.

accepted until 30 September in that current year.

• Throughout the year, 10 schools and 29 early learning centres participated in a Nature’s Recyclers lesson and

In general, the vouchers have been well received in the community.

received a worm farm or compost bin as part of the organics program.

Browns Plains landfill Stage 2D

• National Nude Food Day was promoted through the Watch Out Waste school program, with all primary

For the whole of the 2013/2014 year, waste was tipped

schools in Logan invited to enter a competition aimed

into stage 2F of the landfill.

at reducing the amount of packaging waste in school

Tenders for the construction of the next stage of the

lunchboxes. Expressions of interest in the competition were received from nine Logan primary schools, including 163 classes and 4,027 students. • Letterbox drops of flyers on correct recycling to suburbs where audits had shown there were contamination issues. • Weekend composting workshops were offered in March, May and June 2014. Two of the workshops were at the Browns Plains waste and recycling facility and the other was at the Beenleigh Craft and Farmer’s Market. The contractor also provided assistance with the Logan Waste Fair in November 2013, the Logan Eco Action Festival in June 2014, Waste Fair and various APPENDICES

miscellaneous marketing initiatives.

204

landfill (2D) were considered and a contract awarded in July 2013. The successful contractor set up site offices and commenced site preparation and excavation works in August 2013. At the end of the 2013/2014 year: • Bulk excavation was complete. The base and three sides of the cell had been shaped close to design configuration with only the northern side batter and part of the base of the cell remaining to be shaped. • Progress had been made with the installation of the first layer of clay that forms the engineered liner for the site. A 300mm clay liner had been placed on the western and southern cell batters as well as over half of the cell base.

Odour complaints A total of 92 were received during 2013/2014. It should

Department Of Environment and Heritage Protection (DEHP) involvement in odour issues

be noted that, as was the case in the previous year, these

Following an investigation and monitoring undertaken by

complaints were not from 92 different premises as there

DEHP, Council in October 2013 received a warning notice

were numerous multiple complaints from single premises.

for failing to comply with conditions of the Browns Plains

This compared to 64 odour complaints for 2012/2013

landfill site environmental authority (EA).

year. The main reasons for the relatively high number of complaints was: • That waste tipping in the Stage 2F landfill cell was in

On 10 October 2013, the DEHP officers carried out odour monitoring at a Heritage Park residential address and detected a noxious and offensive odour. Based on the

locations and at a height at which winds could more

nature of the odour and wind conditions, DEHP believed

easily carry odours to more heavily populated areas.

the odours were from the Browns Plains landfill.

• The police investigation detailed below. A total of 30 odour complaints were received in March and April 2014. Odour management continues to be scrutinised at

The

warning notice was for failing to comply with condition B1 of the sites EA that requires “….. no release of contaminants from the licensed place is to cause noxious or offensive odour beyond the boundaries of the licensed place at an odour sensitive place”.

Community Consultative Group meetings. In response to the warning notice and other New odour management initiatives introduced during the

correspondence relating to odour management, Waste

year included:

Services:

• An extension of the existing perimeter odour control

• Outlined to DEHP the considerable and reasonable

network; • Use of various odour perfumes (eg. vanilla, cherry, pine); and • The purchase and use of a new trailer-mounted mobile odour control system.

measures being taken to comply with the conditions of the EA relating to odour management. • Expressed disappointment at the issuing of the warning and the absence of a visit or at least a call on the day of the complaint/monitoring to allow Waste Services to also conduct monitoring.

Police investigation

The date and time of the incident coincided with the

Branch officers were contacted by the police in early

replacement of the deodoriser generator and pump. A

March 2014 in connection with a missing person

response was sent to DEHP on both the inspection and

investigation.

warning notice. A meeting with three DEHP officers to odour reports was held at the landfill on 4 December

waste and recycling facility, and making other enquiries,

2013. In relation to odour management issues, there was

the police subsequently advised that they would be

constructive and positive discussion on EA requirements

commencing excavation of a particular area of the landfill

and monitoring methodology and reporting and odour

on 22 March 2014.

control measures.

Despite the efforts of operational staff, and because of the

It was agreed at the meeting that where resources

age of the wastes being exposed and the length of time

permitted, Council and DEHP would be proactive and

this waste was exposed, the excavation resulted in the

undertake joint monitoring exercises as well as complaint

higher than usual risk of odour emissions. The excavation

investigations with the aim of corroborating odour reports

continued for four weeks and concluded on 17 April 2014.

and bringing a consistency to the monitoring and reporting

On cessation of the police investigation, the excavated

of odour levels. Council also undertook to adopt, where

area was immediately levelled and covered to reduce the

it reasonably could, the odour intensity reporting and

risk of odours.

recording scale that DEHP use in their monitoring and reporting. At the conclusion of the meeting, DEHP officers inspected the site but made no adverse comments on the operations being conducted. LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

APPENDICES

discuss and address odour management measures and After viewing CCTV footage from the Browns Plains

205

Carbon liability Council submitted its 2012/2013 carbon emissions data to

Recycling collection - Mean importance and satisfaction scores

the Clean Energy Regulator in October 2013 for emissions from the Browns Plains landfill and acquitted to required

4.29

Waste disposal post-Browns Plains landfill

Mean (out of 5)

carbon legislation.

4.54

4.60

payments was uncertain at the end of June 2014 due to the Federal Government’s stated intention to repeal the

4.66

4.61

number of carbon permits. The future of carbon liability

4.21

4.19

3.31

A number of options are currently under negotiation.

2013 Logan Listens: Residents Survey

2010

The branch again achieved outstanding results:

2011

2012

2013

Importance Satisfaction

General waste collection - Mean importance and satisfaction scores

• Overall, in terms of importance, ‘recycling collection’ ranked ninth out of the 46 council services/facilities surveyed.

4.73

4.70

Mean (out of 5)

4.25

4.69 4.26

4.28

3.85

• Overall, in terms of satisfaction, ‘recycling collection’ was ranked fourth out of the 46 council services/facilities surveyed. • Verbatim comments indicated that the most common reason why residents commented a low satisfaction with ‘recycling collection’ was that they would like collection of recyclables more often.

2010

2011

2012

2013

Importance Satisfaction

• Overall, in terms of importance, ‘general waste collection’ was ranked fourth out of the 46 council services/facilities surveyed. • Overall, in terms of satisfaction, ‘general waste collection’ was ranked third out of the 46 council

APPENDICES

services/facilities surveyed.

206

Kerbside Clean Up - Mean importance and satisfaction scores 4.26

Four free tipping vouchers - Mean importance and satisfaction scores (service introduced 2013/2014)

4.15 4.09

2012

3.83

3.74

Mean (out of 5)

3.92

2013

Importance

Satisfaction

• Overall, in terms of importance, ‘kerbside clean • Overall, in terms of importance, ‘four free tipping

up’ ranked 26th out of the 46 council services/

vouchers’ ranked 32nd out of the 46 council

facilities surveyed.

services/facilities surveyed.

• Overall, in terms of satisfaction, ‘kerbside clean up’ was ranked equal ninth out of the 46 council

• Overall, in terms of satisfaction, ‘four free tipping vouchers’ was ranked 17th out of the 46 council

services/facilities surveyed.

• Verbatim comments indicated that the most common reason why residents commented a low

• Verbatim comments indicated that the most

satisfaction with ‘kerbside clean up’ was due to

common reason why residents commented a

the service being cut back to one collection per

low satisfaction with ‘four free tipping vouchers’

year, but also that it creates an ‘eyesore’.

was because they did not receive them (both ratepayers and renters expressed this).

Free paint and chemical drop-off days

FACILITY

DATE

NUMBER OF CARS

AMOUNT OF WASTE COLLECTED

AVERAGE AMOUNT OF WASTE COLLECTED PER CAR

MATERIAL MOST-PRESENTED

Browns Plains

2 November 2013

120

4,273kg

37kg

Water-based paint (65%)

Logan Village

1 February 2014

888kg

n/a

Paint (88%)

Carbrook

1 February 2014

3,779kg

n/a

Paint (65%)

Beenleigh

3 May 2014

106

2,928kg

28kg

Paint (64.5%)

Greenbank

3 May 2014

1,572kg

24.5kg

Paint (68.3%)

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

APPENDICES

Three free paint and chemical drop-off services were offered to residents during the year. Details were as follows:

207

E-waste recycling Council’s e-waste recycling service began at the end of

External audit of Quality and Environmental Management System (QEMS)

May 2013. For the 2013/2014 year, 303 tonnes of e-waste

SAI Global conducted a surveillance audit of the branch’s

was removed from Council’s waste and recycling facilities.

operations on 13 and 14 August 2013. The purpose of the audit was to determine continuing

Environmental Protection (Waste Management) Regulation 2000 In early July 2013 the Department of Environment and Heritage Protection released a Framework Review and Options Discussion Paper in relation to the Environmental Protection (Waste Management) Regulation 2000. The

compliance of the organisation’s QEMS with the audit criteria; and its effectiveness in achieving continual improvement and system objectives. The results of the audit were a recommendation that the system meets the requirements of ISO 9001 and ISO 14001 and that the certification continues.

paper called for submissions from interested parties by 22 July 2013. The Waste Services branch lodged a submission after consultation with relevant Council branches.

APPENDICES

We provide waste disposal services across the city, including a landfill site at Browns Plains.

208

Contact information Logan City Council

Logan City Councillors

Mailing address:

Cr Pam Parker, Mayor

PO Box 3226

E mayor@logan.qld.gov.au

Logan City DC Qld 4114

T 07 3412 4226

Cr Laurie Smith, Representing Division 7 E lauriesmith@logan.qld.gov.au T 07 3412 5507

F 07 3412 3444

Phone: 1300 1 LOGAN* (1300 156 426) Cr Lisa Bradley, *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.

Cr Cherie Dalley,

Representing Division 1

Representing Division 8

E lisabradley@logan.qld.gov.au

E cheriedalley@logan.qld.gov.au

T 07 3412 5501

T 07 3412 5508

F 07 3412 3444

M 0411 869 117 F 07 3412 3444

Fax: 07 3412 3444 Cr Russell Lutton,

Email: council@logan.qld.gov.au

Representing Division 2

Cr Phil Pidgeon,

Deputy Mayor

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)

Representing Division 9

E russelllutton@logan.qld.gov.au

E philpidgeon@logan.qld.gov.au

T 07 3412 5502

T 07 3412 5509

M 0411 869 099

M 0411 869 109

F 07 3412 3444

Cr Steve Swenson,

Cr Darren Power,

Representing Division 3 E steveswenson@logan.qld.gov.au T 07 3412 5503 M 0411 869 114 F 07 3412 3444

Representing Division 10 E darrenpower@logan.qld.gov.au T 07 3412 5510 M 0411 869 119 F 07 3412 3444

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

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

18-22 Honora St, Jimboomba Open Monday to Friday, 8 am to 4.45

Cr Graham Able,

pm (except public holidays)

Representing Division 5 E grahamable@logan.qld.gov.au

the 2013/2014 Annual Report. Please feel free to contact us

T 07 3412 5505 A/h 07 3803 4479 F 07 3412 3444

E jenniebreene@logan.qld.gov.au T 07 3412 5512 M 0411 658 297 F 07 3412 3444

through one of the methods listed above.

Representing Division 12

Cr Luke Smith, Representing Division 6 E lukesmith@logan.qld.gov.au T 07 3412 5506

APPENDICES

We welcome your feedback on

Cr Jennie Breene,

M 0403 246 187 F 07 3412 3444

LOGAN CITY COUNCIL 2013/2014 ANNUAL REPORT

209

Index Animals...................................................... 55, 70, 74, 81 Desex .............................................54, 55, 74, 75, 81 Microchip ..............................................................81 Registration ..................................................... 74, 75 Pet ownership .................................................. 54, 75

Executive management team .....................................34 Profiles ............................................................ 34, 35 Oberhardt, John ..............................................35 Rohl, Todd .......................................................35 Rose, Chris .....................................................34 Simon, Oliver ..................................................35 Trinca, Silvio ...................................................35 Remuneration ........................................................34

Arts and culture .................................................... 12, 77 Logan Art Gallery .............19, 42, 54, 64, 79, 196, 197 Logan Entertainment Centre ...... 19, 42, 69,74, 79, 99, 196, 197

Finances .....................................................................51 Financial summary ........................................... 13, 51 Financial sustainability ......... 48, 51, 57, 98, 104, 105, 113, 114, 116, 183, 184, 191, 194

Asset management ...........17, 33, 35, 48, 50–52, 57, 114

Global Reporting Initiative (GRI) ....................... 189, 191

Awards ...........................20, 21, 37, 43, 55, 71, 192, 197 Employee Excellence Awards ............................ 20, 37 External awards ............................................... 20, 21

Graffiti .................................................12, 19, 54, 55, 80

Administrative action ...............................................100 Complaints ..........................................................100

Beenleigh Town Square ........................................ 16, 58 Budget .................................8, 12, 14, 16, 18, 33, 48–51, 53, 60, 61, 77, 79, 83, 87, 89, 97–99, 114, 195, 198, 201, 202 Business continuity planning ...............................43–45 Business plans ........................................... 8, 33, 48, 49 Culturally and Linguistically Diverse (CALD) .....................................................74 City image ....................................................... 18, 64, 65 Campaign ........................................................ 64, 65 Events ...................................................................18 In profile .......................................................... 14, 15 Logan: City of Choice ........6, 9, 12, 16, 17, 20, 21, 36, 38, 53, 55, 67, 76, 77, 79, 82 Code of competitive conduct .............................. 99, 100 Community engagement .................. 37, 54, 64, 191, 192 Logan Listens: Residents’ Survey.... 12, 17, 18, 33, 48, 55, 74, 206 Events ................................. 9, 18, 19, 54, 55, 64, 76, 77, 82, 89, 196, 197 Corporate governance .......................33, 34, 43, 48, 104 Corporate Plan ............6, 8, 10, 16, 17, 34, 47–51, 76, 107, 113, 190, 194, 195, 202 Operational Plan ...................8-10, 33, 34, 48, 49, 51, 52, 54, 56, 58, 60, 64, 66, 70, 74, 76, 82, 190, 194, 195, 202 Customer service ........... 8-10, 17, 24, 29, 35, 37, 43, 54, 55, 74, 75, 82, 99, 100, 195, 200, 209 Development assessment ...10, 24, 58, 68, 78, 82, 83, 99 Logan City Development Incentive Fund ................................................. 12, 69 Disaster management ............... 10, 19, 24 26, 35, 52, 53 Economy .................................... 6, 14, 16, 41, 67, 69, 86 BizConnect ................................................ 59, 66, 68, 69 Businesses ...................6, 7, 9, 14, 16, 28, 37, 53, 59, 64, 66–69, 76, 94, 102 Employment .......................... 6, 9, 16, 38, 57, 66–69, 76, 77, 86, 193 Export ....................................................... 16, 59, 66 Investment .....................8, 11, 16, 35, 58, 59, 61, 66, 67, 69, 78, 86, 193, 197 Global Connections .......................................... 59, 69 Traineeships ..........................................................69 Tourism .....................9, 12, 20, 37, 55, 59, 65, 66, 68

APPENDICES

Energy..................... 6, 9, 37, 39, 58, 70–72, 193, 196,206 Environment ........ 6, 9, 15, 19, 24, 27, 29, 32, 33, 35–37, 51, 55, 57–59, 61, 64, 70, 71, 73, 74, 86, 87, 89, 90, 97, 99, 101, 113, 192, 194, 195, 198, 201, 202, 205, 208 Conservation ...................... 2, 12, 52, 59, 70, 97, 190 Envirogrants .................................................... 70, 71 Sustainability ......................... 6, 8, 10, 17, 24, 27, 32, 35, 39, 48, 50, 51, 54, 57, 58, 69, 71, 73, 82, 90, 192, 202 Ethnicities ........................................................... 15, 188

Growth ......................... 10, 16, 17, 24, 33, 50, 58, 61, 63, 74, 77, 82, 86, 88, 94, 104, 113

Policies ................. 31, 33, 42–44, 51, 54, 95, 96, 99, 193 Borrowing .......... 13, 96, 107, 109, 110–113, 115, 116 Expenses Reimbursement for Councillors �� 31, 187 Revenue ............................ 38, 43, 57, 74, 89, 96, 98, 103–107, 111, 112, 115, 116, 199, 200 Privacy ...................................................... 43, 56, 75 Purpose ........................................ 7, 40, 44, 96, 101, 208 Quality assurance .....................................................101 Rates ...................................9, 11, 17, 56, 60, 75, 76, 96, 97, 106, 107, 112, 190, 195 Collection of ..........................................................97 Concessions .................................................. 97, 187 Discounts ..............................................................97 Interest on .............................................................97 Pensioner concessions ...........................................97 Registers open for inspection .....................................99

History .................................................................. 14, 54

Right to information ...................................................75

Immunisation ............................................ 20, 54, 64, 81

Risk management ........................ 33, 43–45, 56, 57, 195

Infrastructure .............6, 9, 10-12, 17, 24, 27, 28, 31, 35, 38, 46, 50–53, 55, 57, 58, 60–63, 82, 86-88, 97, 105–110, 113–115 Bikeways ..................................................... 6, 15, 51 Cemeteries ...................................................... 12, 15 Charges ..................................................... 12, 58, 82 Capital works program ......................... 9, 53, 60, 202 Footpaths .................................................. 15, 51, 62 Parks ...............2, 6, 11, 12, 15, 20, 22, 24, 29, 32, 42, 51, 54, 55, 60, 61, 71, 74, 77, 83 Roads and drainage .......... 12, 14, 29, 52, 61, 62, 108 Transport ............................ 6, 27, 36, 52, 53, 63, 201 Water and wastewater ....... 12, 14, 41, 52, 53, 60–62, 75, 86–88, 106–108,113, 116, 198 Water rates ........................................................9, 60

Road maintenance ................................................53, 62

Internal audit ............................. 24, 33, 43, 44, 190, 195 Koala ......................................................9, 12, 59, 70, 71 Leadership Development Program ��39 Libraries ..................... 10, 15, 19, 20, 24, 54, 77, 79, 196 Local Government Finance Standards ��101 Logan Entertainment Centre .....................19, 42, 69, 74, 79, 99, 196, 197 Mayor and councillors ........................................ 31, 101 Code of conduct ..............................25, 30, 33, 42, 57 Expenses reimbursement ............................... 31, 190 Meeting attendance ...............................................32 Profiles ............................................................26–29 Able, Graham ..................................................28 Bradley, Lisa ...................................................27 Breene, Jennifer ..............................................29 Dalley, Cherie ..................................................28 Lutton, Russell ................................................27 Parker, Pam ....................................................26 Petersen, Donald .............................................27 Pidgeon, Phillip ...............................................29 Power, Darren .................................................29 Schwarz, Trevina .............................................29 Smith, Laurence ..............................................28 Smith, Timothy (Luke) ......................................28 Swenson, Steven .............................................27 Remuneration ........................................................31 National Competition Policy .....................................100 Organisational structure .............................................24 Performance ....................... 33–35, 39, 43–89, 103–105, 190–195, 198–202 Definitions .............................................................. 8 Framework ............................................................48 Key Performance Indicator (KPI) ................... 8–10, 73, 194, 198, 202 Scorecard ........................................................ 8, 195 Summary ................................................................ 8 Pest management ........................................... 12, 19, 54 Planning scheme .................... 10, 12, 16–18, 33, 52, 54, 58, 59, 82, 83, 195

Rivers ............................................................... 9, 70, 71 Safety ...............12, 17, 20, 27, 31, 32, 36–38, 40, 42, 52, 53, 54–63, 76, 77, 79, 86, 90, 107 Safety cameras .......................................... 12, 55, 79 Workplace health and safety .............................56, 57 Service charges ....................................................96, 97 Community infrastructure .......................................97 Consumer .........................................9, 12, 60, 86, 97 Garbage .................................................. 96, 97, 200 SouthWest1 ................................................. 9, 59, 66, 68 SouthWest 2 ...................................................... 9, 59, 66 Strategic review ............................................. 33, 49, 51 Sport and recreation .............................................54, 78 Active Logan ......................... 19, 55, 76, 79, 196, 197 Aquatic centres .................................... 15, 54, 80, 99 Community centres .................................... 28, 62, 72 Indoor sports centres ............................... 15, 80, 196 Live Well Logan ................................................12, 79 Logan McDonald’s School Holiday Sports Program ................................... 12, 55, 79 Police and Citizen Youth Clubs ................................12 Tenders .......................................... 68, 98, 187, 188, 201 Training .............30, 31, 33, 39, 42, 44–45, 56, 57, 59, 63, 67–69, 76, 77, 86, 100, 191, 193, 197 Twin goals ................................................................3, 7 Vegetation ..............................................9, 15, 58, 70, 93 Volunteers ...................................... 42, 55, 63, 64, 70, 74 Waste ..........15, 18, 24, 28, 35, 37, 39, 57–60, 74, 75, 85, 86, 89–93, 98–100, 108, 193, 198–208 Education .........................................18, 89, 203, 204 E-waste ......................................................... 89, 208 Kerbside collection ................................................89 Landfills and transfer stations . 59, 89, 92, 93, 97, 208 Recycling market ................................84, 89, 93, 201 Tip vouchers ......................... 16, 75, 89, 90, 204, 207 Waste performance plan ......................................199 Water .................................. 9–12, 14–16, 20, 21, 24, 27, 28, 32, 35, 37, 41, 50–52, 54, 57–63, 70–72, 75, 85–88, 97–101, 104, 105 Education ..............................................................52 Logan Water Alliance .......................53, 61–63, 86, 87 NetServ .................................................................88 Pressure and leakage management ��63 Quality ................................................ 9, 70, 87, 198 Rates ................................................................9, 60 Supply ............................................. 86–88, 195, 198 Wastewater ............ 12, 14, 15, 41, 51–54, 60-63, 75, 86–88, 106–108, 113, 116, 198 Water performance plan ...................................3, 198 Wetlands ...............................2, 9, 15, 22, 59, 70, 71, 196 Values ............................................. 7, 17, 36, 40, 49, 51, 96, 108, 109, 112 Values-based culture .............................................36 Vision, city ........................................6–8, 16, 33, 48,195

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LOGAN CITY COUNCIL ANNUAL REPORT Produced by Logan City Council. None of the material in this publication may be reproduced without the permission of the Chief Executive Officer, Logan City Council. All content accurate as of 8 October 2014.

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