WDRC Annual Report 2011-2012 by Western Downs Regional Council

Annual Report 1 July 2011 to 30 June 2012

Table of Contents Mayorâ&#x20AC;&#x2122;s Foreword

CEOâ&#x20AC;&#x2122;s Report

Distribution

Feedback

Local Communities - Local Service

About Our Region

Vision

Guiding Principles

Positioning Statement

Your Councillors

Executive Team

Council Meetings

Councillors Expenses Reimbursement Policy

Councillor Conduct Complaints

Administration Action Complaints

Internal Audit

Registers

Summary of Strategic Activities Registers

SA 1 People and Communities

SA 2 Growth and Opportunity

SA 3 Planning for Liveability

SA 4 Our Environment

SA 5 Utility Services

SA 6 Infrastructure

SA 7 Empowering Our Team

SA 8 Business Systems and Technology

Appendices

1. Councillor Expenses Reimbursement Policy 2. Debt Policy 3. Audited Financial Statements For Period 1 July 2011 to 30 June 2012

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2

Mayor’s Foreword

The 2011/2012 Annual Report marks the final year of this newly amalgamated Council’s term, and while there have been challenges and testing times during the past year, it has also been a period of considerable progress by Council. It is exciting to look back over the past year and see how much “...committed to building we have achieved. In November, on the foundations of the the opening of the new corporate office in Dalby represented a previous Council...united significant step for Council in regionally to serve our the development of a greater local communities.” customer service focus. The new building offers a one-stop-shop for local residents and opens the door to a more integrated accessible range of services in a convenient central location, and via the single 1300 COUNCIL (1300 268 624) toll free phone number. Work is progressing on the Draft Western Downs Planning Scheme which is on track to be operational early 2013. This regional blueprint will allow residents, industry and developers to have a say in the future development of our towns and communities amid the resource boom.

Another significant event this year was the election of the Newman Government in March. This signals what could be the start of a potentially new era for Queensland local government, with the state indicating its intention to give councils greater ability to drive the decisions that impact on their communities. I would like to thank all Councillors involved on the inaugural Council for their contribution to the Western Downs. I congratulate the existing and three new councillors on their election to the new Council following the April Local Government elections. On the road ahead, this Council faces many challenges but I believe we have a great team with the mix of skills, experience and backgrounds to do the job our constituents expect of us. I continue to be grateful to the Chief Executive Officer and more than 700 employees of Western Downs Regional Council for their dedication to delivering the quality services our communities expect. On behalf of Councillors, I sincerely thank them. In the coming year, this Council is committed to building on the foundations of the previous Council to continue driving an innovative large organisation that is united regionally to serve our local

This year, both State and Federal Governments have contributed significant investment towards the reconstruction of the regions vast road network. In the coming year, Council will spend in excess of $90M on flood restoration works with its ‘Operation Road Restore’ project and maintaining our existing road programs.

communities. To ensure our communities are liveable places where

In a major coup to tackle the region’s growing housing shortage, Council adopted the Western Downs Housing Strategy aimed at delivering more affordable accommodation in our communities. Council took its first step towards implementing this Strategy, instigating the new Western Downs Housing Trust in April.

services to our diverse region, whilst ensuring the future prosperity

people want to visit, raise a family, grow a business, have a sense of wellbeing and a place they are proud to call home. I am proud to be Mayor on the current term Council that is determined to work together to provide valued leadership and of our communities. Cr Ray Brown, Mayor Western Downs Regional Council

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3

Ceo’s Report

I am pleased to be able to present this report on the achievements of the Western Downs Regional Council over the past twelve months. The 2011/2012 year was the last year of the quadrennial term of the newly amalgamated Council which was formed following the Queensland Government reforms which led to the forced amalgamation of several Councils in Queensland.

“The past year has been one of consolidation, building on the foundations of the inaugural Council.”

Following the elections, Council welcomed three new Councillors, Ian Rasmussen, Tony Brame and Greg Olm. Cr Olm has previous local government experience on the former Chinchilla Shire Council whilst Ian and Tony are first time councillors.

It is fitting that I recognise the extraordinary contributions to public life provided by our retiring councillors, Bill McCutcheon and Mick Cosgrove who spent 27 years and 24 years respectively representing their communities. I also wish to acknowledge the efforts of Ian Staines who was unsuccessful in his bid to become Mayor of the Regional Council. Ian served 15 years in local government. I publicly acknowledge the efforts of our Mayor, Cr Ray Brown, and his fellow Councillors, George Moore, Carolyn Tillman, Ray Jamieson, Andrew Smith and Charlene Hall who were all returned in the election, going against a state wide trend which saw several Mayors and Councillors voted out. I believe that this endorsement by the community is due recognition for the tremendous effort these elected officials put into their roles as councillors. Following the elections, Cr Moore was endorsed by his fellow councillors as the Deputy Mayor.

The past year has been one of consolidation, building on the foundations of the inaugural Council. These foundations have been severely tested with the resource boom and flood damage repairs following the devastating floods of 2010/2011. Council endorsed an accelerated program of delivery to cope with the estimated $90M of flood damage repairs which need to be delivered by 2014, this project has been dubbed ‘Operation Road Restore’. Significant milestones for Council in the past year have included: • Redevelopment of the former Ergon Energy building at 30 Marble Street, Dalby for the Corporate Office. This initiative led to the administration and engineering staff in Dalby finally being housed in the one building. • Significant progress with our asset management data gathering as we move towards an Advanced Asset Management System. • An in-house governance program for our elected representatives which helped with a seamless induction into our newly elected Council. • Completion of a Ten Year Water and Sewerage Infrastructure Plan to help guide our decision-making processes with targeted spending based on identified needs. • Completion of an Affordable Housing Strategy (kindly funded by QGC) and the subsequent formation of a Housing Trust. I thank the Mayor and fellow Councillors, both past and present, for their support throughout the past year. I also take this opportunity to recognise our hard-working, dedicated staff who often go beyond the call of duty in carrying out their duties for the community. Phil Berting PSM Chief Executive Officer

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4

Distribution Distribution Western Downs Regional Council’s Annual Report is available in hard copy or electronic format. Printed copies of the report may be obtained for a fee by writing to the Chief Executive Officer, Western Downs Regional Council, PO Box 551, Dalby Qld 4405, or by telephoning Council on 1300 COUNCIL during normal business hours. Alternatively, you can visit Council’s website at www.wdrc.qld.gov.au to download a copy for free. Copies are also distributed to the Department of Local Government and the Queensland State Library.

Feedback In the interest of continuous improvement Council welcomes your feedback. Please forward your commentary in writing to the Chief Executive Officer, Western Downs Regional Council, PO Box 551, Dalby Qld 4405 or email Council at info@wdrc.qld.gov.au.

Local Communities – Local Service To contact the Western Downs Regional Council telephone 1300 COUNCIL (1300 268 624) or visit in person at your local Customer Service Centre:

Chinchilla

80-86 Heeney Street

Dalby

‘Western Downs on Drayton,’ 30 Marble Street

Engineering

‘Western Downs on Drayton’, 30 Marble Street

Jandowae

22 George Street

Miles

29 Dawson Street

Tara

19 Fry Street

Wandoan

6 Henderson Road

Address all correspondence to: The Chief Executive Officer Western Downs Regional Council PO Box 551 DALBY QLD 4405 Email: info@wdrc.qld.gov.au

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5

About OUR our REGION Region ABOUT

DULACCA DRILLHAM

BRIGALOW WARRA

CONDAMINE

JIMBOUR KOGAN

BELL KAIMKILLENBUN

VISION VISION

GLENMORGAN MEANDARRA

Ourvision visionexpresses expresseswhat whatCouncil Council Our aspirestotoachieve achievefor forthe theWestern Western aspires

MOONIE

DownsRegional RegionalCouncil: Council: Downs

proudregion regionunited unitedbyby AAproud opportunityand andlifestyle lifestyle opportunity

Western Downs Regional Council is benefitting from the emerging A globally significant resource area, Western Downs Regional resources industry of the Surat Basin, currently dominated by Coal Council is production the Energy in Capital of Queensland™. Seam Gas the lead up to LNG export.

contributor to GRP. Western Downs Regional LGA contributed benefits. Significant population growth continues with the region’s approximately 0.8% of the Gross State product for Queensland in population at 32,355 as of 30 June 2011. 2008/09.

Western Downs is a region at the to cutting of environmental, The Western Downs is fortunate have edge a strong and diverse economic and social change, a rural economy punching economy with a well established agricultural sector andabove a its weight. People are being attracted to the region for the mix of significant pipeline of investment by national and international employment opportunity, clean environment and country lifestyle. energy and resource companies. The region has over 60 major The region’s population continues to defy history, increasing to projects in operation scheduled commissioning by 31,897 in either June 2010, a 1.3 %orincrease on for 2009.

Gross Regional also Product (GRP) in 2010/2011 Unemployment defied theincreased State and0.3% National averages. The regions unemployment rate was 3.3% in June 2010, continuing to exceed Queensland’s (0.2%) growth forstill thewell samebelow Queensland (5.4%) and Australia (5.2%). In the time, period. Agriculture mining’s contribution to same GRP isperiod 35%, of clearly the labour force has continued to grow at approximately 5% per defining the dominance of these industries in the region and their annum, a result expected to given the investment activity through the longer term contribution the region’s economic growth. region.

2020 procuring over $140 billion investment and creating an

The region’s economy also continues to grow, despite the negative estimated 12,500 jobs. global environment. Gross Regional Product was 1.875 billion up 17.4% in 2008/09; almost double the growth of Queensland. Mining Established regional centres offer young, semi and fully skilled led this extraordinary growth, increasing its GRP by over 400% future employment prospects and lifestyle toworkers, overtakeenhanced Agriculture, Fishing & Forestry as the largest regional

The region’s unemployment rate was 4.1% in June 2012, lower than

Dwelling approvals for the Western Downs increased by over 170% Queensland (5.5%) and Australia (5.2%). The region’s labour force in the year ending December 2009. The majority of activity was for continueshouses to grow increasing by over 5% half in the ended June separate and came in the second of year the year, building 2012, while in the same period the number of unemployed persons towards record approvals for 2009/10 financial year. has decreased by approximately 10%.

Annual Report 1 JULY 2011 TO 30 JUNE 2012 ANNUAL REPORT 1 JULY 2009 TO 30 JUNE 2010

PA G E 6 PA G E 6

Guiding Principles As Councillors and staff of Western Downs Regional Council we are committed to the following principles as a guide to our actions as representatives of our region: • Invest in our people • Think regionally – deliver locally • Facilitate growth – manage impact • Excellence in affordable service delivery • Consistent and informed decisions As a team we will work together to achieve: • Quality outcomes for our communities • An inclusive team culture • Pride in our organisation • Continuous improvement

positioning statement ‘Our Communities: Our Future’ is the positioning statement for Western Downs Regional Council. The aim of the statement is to define the business of Council. It’s an important message that says who we are and who we serve. Community and progress are the key themes which define Council’s direction and lie at the heart of our communications.

‘Our Future’ indicates Council’s long term approach to business while ‘Our Communities’ indicates a willingness to engage all communities in the journey. Images of people from the region add further strength to the statement and support Council’s goal to encourage a greater connection between communities that share a common future.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 7

Your Councillors

Mayor: Cr Ray Brown Portfolio: Governance

Deputy Mayor: Cr George Moore Portfolio: Utilities â&#x20AC;&#x201C; Water, Wastewater and Gas

Cr Charlene Hall Portfolio: Community Facilities, Sport and Recreation

Cr Ray Jamieson Portfolio: Planning

Cr Tony Brame Portfolio: Economic Development and Tourism

Cr Greg Olm Portfolio: Environment and Health

Cr Andrew Smith Portfolio: Works and Plant

Cr Ian Rasmussen Portfolio: Finance, Information Technology and Information Services

Cr Carolyn Tillman Portfolio: Community and Cultural Development

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 8

Executive Team

Phil Berting Chief Executive Officer

Ed Hoffmann Community and Development General Manager

Graham Cook Engineering Services General Manager

Lee Vohland Corporate Services General Manager

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 9

Council Meetings Western Downs Regional Council convenes Ordinary Meetings of Council on the first and third Wednesdays of each month. Special Meetings were held when necessary to consider specific items such as budget and statutory processes. Ordinary and Special Meetings comprise of all members of Council. The first Ordinary Meeting of the month was usually held at the Corporate Office in Dalby, with the second meeting held at one of Council’s regional Customer Service Centres on a rotational basis. In total throughout the year 22 Ordinary Meetings and four Special Meetings were held.

staff, industrial and legal proceedings and resolves to close its meetings for such discussions. However, any decisions about such confidential matters are made in an open meeting. Public notice of days and times of meetings is given each month and copies of the agenda for each meeting are available for public inspection two days prior to each scheduled meeting at Council’s Corporate Office and Customer Service Centres. A copy of each agenda index was also placed on Council’s website. All Council Meeting Minutes are available on Council’s website along with statistical, local

All meetings are open to the public unless it is otherwise resolved by Council that a meeting be closed under Section 72 of the Local Government (Operations) Regulation 2010. From time to time, the Council has a need to discuss confidential matters such as contracts,

law and policy information. Councillors are also involved in numerous advisory committees set up for special purposes such as major projects.

Summary of Meeting Attendance during 1 July 2011 to 30 June 2012: Councillor

Attended Ordinary 22

Apologies

Attended Special 4

Cr Ray Brown

Cr Charlene Hall

Cr Mick Cosgrove

19 (19)

2 (2)

Cr Bill McCutcheon

17 (19)

1 (2) 1

Apologies

Cr Ray Jamieson

Cr George Moore

Cr Andrew Smith

Cr Ian Staines

Cr Carolyn Tillman

Cr Tony Brame

3 (3)

2 (2)

Cr Ian Rasmussen

3 (3)

2 (2)

Cr Greg Olm

3 (3)

2 (2)

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 0

Councillor ExpenseS Reimbursement policy The Western Downs Regional Council Councillor Expenses Reimbursement Policy is attached as an appendix to this Report. Expenditure from Councillor Discretionary Funds Councillors do not have any formal legislated discretionary funds. Councillors Overseas Travel During this reporting period no Councillors travelled overseas for Council business.

Councillors Remuneration, Superannuation, Expenses Incurred and Facilities Provided Councillor

Remuneration

Superannuation Council 12%

Expenses Incurred

* Facilities Provided to

T. Brame

$8,703.72

$1,044.45

$411.33

$3,392

R. Brown

$137,081.83

$16,449.82

$28,726.22

$20,352

M. Cosgrove

$80,507.07

$9,660.85

$4,088.28

$16,960

C. Hall

$81,050.28

$9,726.03

$7,889.40

$20,352

R. Jamieson

$81,050.28

$9,726.03

$14,438.15

$20,352

W. McCutcheon

$71,263.68

$8,551.64

$8,352.25

$16,960

G. Moore

$82,237.14

$9,868.46

$7,382.26

$20,352

G. Olm

$8,703.72

$1,044.45

$1,075.14

$3,392

I. Rasmussen

$8,703.72

$1,044.45

$1,343.35

$3,392

A. Smith

$81,050.28

$9,726.03

$8,119.79

$20,352

I. Staines

$71,263.68

$8,551.64

$11,737.72

$16,960

C. Tillman

$81,050.28

$9,726.03

$3,437.95

$20,352

$792,665.68

$95,119.88

$97,001.84

$183,168.00

TOTAL * Motor Vehicle

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 1

Councillor Conduct Complaints The annual report for each financial year must contain the particulars of each of the below: Statistics for conduct or performance complaints made against Councillors were as follows:

Complaint Type

LGA Section

Number

Complaints assessed as frivolous or vexatious

Section 177(4)

Inappropriate conduct referred to the Department’s Chief Executive

Section 177(5)(a)

Inappropriate conduct referred to the Mayor

Section 177(5)(b)

Misconduct complaints referred to the Department’s Chief Executive

Section 177(6)

Complaints of official misconduct

Section 177(7)

Complaints heard by Regional Conduct Review Panel

Complaints heard by Local Government Remuneration and Discipline Tribunal

Other complaints dealt with

Section 177(8)

LGA Section

Number

Section 180(2) and (4)

Orders of reprimand and/or referral by Mayor

Section 181(1)

Orders by Meeting Chairpersons

Section 181(2)

Summary of orders and recommendations made:

Type of order and/or recommendation Orders and recommendations by Regional Conduct Review Panel or Local Government Remuneration and Discipline Tribunal

Details of orders and recommendations made:

Name of Councillor

Description of conduct engaged in

Summary of order or recommendation

Cr Charlene Hall

Release of media statement without approval as required under Council Policy

That the Councillor be counselled about the act of inappropriate behaviour including directions on how not to repeat the act.

Breach of trust placed as Councillor by acting contrary to the Local Government Act 2009 by contravening Council’s expense policy

That the Councillor be educated/counselled in the regulations and policies of the Council; and that the Councillor acknowledge her actions were incorrect and will use her best endeavours to in the future abide by Council policies as well as meeting State and Council laws and regulations.

Cr Charlene Hall

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 2

Administrative Action Complaints As part of Council’s commitment to dealing fairly with administrative action complaints, Council introduced a Complaints Management Policy and Process in April 2011 to deal with all of Council’s administrative complaints. Throughout the process the Queensland Ombudsman assisted with and gave advice on the development and implementation of the policies and procedures. Council is continually striving toward improvement and regularly consults with the Ombudsman to streamline its processes. The Complaints Management Policy and process was adopted by Council and all General Managers, Managers and frontline staff were trained by the Queensland Ombudsman in the Complaints Management Process. Council’s complaints register provides details of the complaints, statistics, trends and recommendations that have been made as a result of the complaint/s. Council’s Complaints Working Group meets quarterly to discuss the complaints process and any recommendations to be implemented and provided to Executive. The Executive Team is provided with quarterly reports on Council’s complaints statistics and performance. These details are also provided to Council as part of monthly report. Compared to the previous year, the amount of complaints received by Council has nearly tripled due to the fact that we now have a process in place to capture complaints. In comparison to the previous year, Council has dramatically improved in the area of resolving complaints with only one complaint still outstanding for the current year. The number of administrative action complaints made to Council

The number of administrative action complaints resolved by Council under the complaints management process

The number of administrative action complaints not resolved by the local government under the complaints management process

The number of administrative action complaints not resolved that were made in a previous financial year

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 3

Internal Audit Audit Committee Meetings: • Two Audit Committee meetings were held on: – 28 February 2012 – 29 June 2012 Internal Audit reports completed: • Community Grants Program • Economic Development Assistance • RADF Program • Petty Cash System and Payment Internal Audits in progress: • Use of Council Motor Vehicles • Fuel Card & Motor Vehicle Use • Bulk Fuel Use & Management • Fleet Management Issues

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 4

Registers The following registers are kept by Council for the inspection by members of the public (except where indicated by*): • Roads and Map Register (s74 of LGA 2009) • Land Records (s87 of LG (FPR) Reg) • R egister of Cost Recovery Fees and Commercial Charges (s98 of LGA 2009) • R egister of Interests for Councillors (s105 of LG Operations Reg) • Delegations Register (s260 of LGA 2009) • Local Laws Register (s16 of LG Operations Reg) • R ecord of Written Complaints About Councillor Conduct or Performance (s177 of LGA 2009) • Cemetery Register • Register of Pre-Qualified Suppliers (s87 LG (FPR) Reg) • Business Activities Register (s175 BE and BA Reg) • Register of Beneficial Enterprises • * Register of Interest for Chief Executive Officer and Senior Contract Employees (s105 of LG Operations Reg) • * Register of Interests for Related Persons (s105 of LG Operations Reg) • * Asset Register

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 5

Summary of Strategic Activities

To address priority issues identified during the corporate planning process, the Western Downs Regional Council team is committed to delivering services and initiatives within each of the following strategic activity areas: SA 1 People and Communities SA 2 Growth and Opportunity SA 3 Planning for Liveability SA 4 Our Environment SA 5 Utility Services SA 6 Infrastructure SA 7 Empowering Our Team SA 8 Business Systems and Technology

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 6

SA 1 People and Communities ambition Create an enriched and vibrant social fabric through regular interaction with our people and communities

SA 1 People and Communities incorporates the strategic functions of Community Facilities, Cultural Development, Community Development and Community Services. During the year, Council commenced the implementation of the Western Downs 2050 Community Plan and the detailed strategies for Sport and Recreation, Community Facilities and Services, Health and Wellbeing. The Western Downs Community Plan was developed through extensive consultation and has been utilised by the energy sector for community development to achieve balanced growth within our region. Council commenced the process of developing a Corporate Plan based on the guiding strategies in the Community Plan. The Western Downs 2050 Community Plan guided Council in the provision of services and infrastructure throughout the year achieving the following capital projects: •

Upgrade of Jandowae Swimming Pool

•

C onstruction of the Dalby $4.6 million 25 metre indoor heated pool adjacent to existing heritage listed 50 metre pool

•

C onstruction of the Bell $1.2 million Community Centre Project

•

Construction of the Wandoan Skate Park Facility

•

C ompleted the construction of the Dalby $6.7 million PCYC Indoor Sports Centre upgrade

•

C ompleted the refurbishment of the Ergon Energy building in Marble Street Dalby and established it as Council’s Corporate Office

•

C ompleted construction under Regional Local Community Infrastructure Project (RLCIP) funding of $538,000 to upgrade swimming pools at Miles, Tara and Wandoan

•

E xtension and redevelopment of Tara HACC Centre funded by Department of Communities

•

Removal of asbestos from Dalby Showgrounds

•

ndertook structure report and development design U options to determine future of 107 Drayton Street building as a cultural precinct in Dalby

•

C onstruct new amenities building at Wandoan O’Sullivan Park Football Oval and Waterloo Plains

•

P rovided various upgrades of equipment and maintenance to Customer Service Centres, halls and sporting amenities to ensure an improved service to the public

During the year, the Western Downs hosted the Triple J One Night Stand event in Dalby that gained the region considerable exposure and attracted a huge youth audience. Throughout the year Council services continued to be popular with 50% of the population being members of the library service, while the Regional Swimming Pools and Regional Civic Centres and Showgrounds provided increased services to their respective communities attracting 80,000 visits.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 7

SA1 PEOPLE AND COMMUNITIES CONT’D 2011/12

ACHIEVEMENTS

Western Downs Regional Council Civic Centres – Total number of functions

152 Chinchilla 121 Jandowae 195 Tara 196 Miles 75 Dalby 102 Wandoan

2011/12 achievements Community Facilities Provide safe, well serviced facilities for people to live, grow and connect within Civic Centres Council operates a number of civic centres across the region and two at Dalby and Chinchilla where cinemas are attached. Management of the Chinchilla and Dalby centres is under contract arrangements of specialist operators, confirming Council’s commitment to provide a high level of regional services. Across the region there were 841 indicated events conducted within these facilities. Cultural Facilities • The new Bell Bunya Community Centre building was completed

Swimming Pools and Aquatic Centres Throughout the region there are eight swimming pools in operation under various management arrangements. During the year new management agreements were established for Council’s pools at Dalby, Chinchilla and Miles. Over the year 78,460 patrons utilised Council’s swimming pools and Aquatic Centres. The following Capital Projects were achieved during the year: • C ompletion and opening of the new Dalby 25 metre heated indoor swimming pool. • U pgrading of the Jandowae Swimming Pool and installation of a thermal blanket. • M ajor refurbishment of the Miles, Tara and Wandoan swimming pools. Western Downs Regional Council – Swimming Pool Patrons

• F urther investigation work was carried out for Council’s building at 107 Drayton Street looking at utilising the building for a Cultural Centre and Library space in Dalby. Civic Centres During the year Council’s Corporate Office building in Marble Street, Dalby was refurbished. Council is now able to provide all Dalby services from one building close to the town centre.

14,302 Tara 1,894 Meandarra 1,172 Moonie 5,678 Jandowae 3,213 Wandoan 6,569 Miles 29,654 Dalby 19,104 Chinchilla

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 8

SA1 PEOPLE AND COMMUNITIES CONT’D 2011/12

ACHIEVEMENTS

Sport & Recreation The following Capital Projects were achieved during the year: • • • • •

Completion of the Wandoan Skate Park Completion of the playing fields at the Dalby PCYC Installation of exercise equipment along Myall Creek Dalby Upgrade to airconditioning at the Jandowae Squash Courts Upgrade of the Tara Tennis Courts

Regional Showgrounds Across the region there are eight showgrounds that come under Council’s Regional Showgrounds Advisory Committee with varying ownerships from Council having a trustee lease over the grounds to private freehold. Council has agreed to provide a capital contribution or grant to each Showground of $20,000/ annum and the governing body for each facility makes recommendations to Council on suitable projects.

Cultural Development Encourage and develop participative and culturally connected communities Regional Arts Development Fund The Regional Arts Development Fund (RADF) Program is administered by the regional RADF Committee (Chaired by Cr Tillman) with the assistance of local RADF Committees (Wandoan, Tara, Chinchilla, Miles, Dalby/Wambo). This tiered management system is unique in Queensland. The RADF program was well supported with 40 approved applications totalling $128,917 from four funding rounds and Out of Rounds assessment. Art Galleries The three Regional Art Galleries (Chinchilla, Miles, Dalby) display work from local artists, larger travelling exhibitions and in some cases National and State touring exhibitions. Visitor numbers through the galleries have been high, totalling 31,214.

Western Downs Libraries This has been a year of consolidation for the library service with all libraries refurbished and collections boutiqued at all branches with the exception of Dalby. • L ibraries issued 229,871 items for the year with an overall increase margin of 1.08%. • R eservations and Inter-Library Loans (loans that come from other libraries around Australia), are holding steady with reservations up 4.09% and inter-library loans down 0.11%. There were 9,921 internal reservations using our own stock and only 836 requests to other libraries which is a good result. • C urrently the library service has 15,776 members which represent 50.08% of the population. • V isitor numbers were down across the region by 7.17%, total visitors for the year were 214,041 which equates to 6.79 visits per capita. • P ublic Access Internet Hours were down across the region by 19.42%. Libraries provided 23,391 hours of internet access to 29,549 users for the year. It will be interesting to see the changes in internet usage due to the rollout of Public Wi-Fi across eight of our branches. • S tock turnover is steadily increasing - up .95% on last year (it seems a small number but as an average, it is meeting our long term target). We now have a regional stock turnover figure of 3.08. Annual total library items issued 54,825 Chinchilla 137,175 Dalby 18,738 Jandowae 16,144 Meandarra 13,370 Miles 8,559 Moonie 22,010 Tara 15,988 Wandoan 9,373 Bell

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 1 9

SA1 PEOPLE AND COMMUNITIES CONT’D 2011/12

ACHIEVEMENTS

Program Delivery The Library Service has delivered well in all areas identified in the Corporate and Operational Plan for the delivery of Community Support programs with a total of 824 programs hosted. These were attended by 7.302 people, providing 916 hours of public programming delivered. Community Development • Digital Literacy based programs: 173 programs with 2,839 attendees and 252 hours of programming delivered. • Early and Family Literacy based programs: 280 programs with 1,549 attendees and 137 hours of programming delivered. • Young Adult Literacy based programs: 65 programs with 516 attendees and 46 hours of programming delivered. • Adult Literacy based programs: 29 programs with 258 attendees and 23 hours of programming delivered. • Multicultural Awareness based programs: 31 programs with 171 attendees and 37 hours programming delivered. • Lifestyle based programs: 245 programs with 1,969 attendees and 421 hours of programming delivered. Library Achievements • The regional Customer Satisfaction Survey registered 1,161 completed responses an increase on the 936 responses received in the previous year’s survey. This data has been used to align library programming and collection profiling to ensure responsiveness to community demand and the delivery of customer focused services.

• S orcer, the new library online search interface was established. It reflects a contemporary and dynamic library service and provides another way for our customers to engage with our libraries and each other. There is also a Sorcer App which clients can download and access their library account via their smart phones, iPads and tablets. Members can see what items they have on loan, renew items, search for and reserve items in our catalogue all from their mobile devices.

Community Development Improve community health and wellbeing through group and individual participation in social and recreational activities. The Western Downs Regional Council aims to support liveable communities where everyone can be actively involved in the place where they live - because communities with active populations are in a better position to respond to emerging needs and challenges. Whilst specialist staff provide assistance to organisations and individuals, financial assistance was made available to 69 organisations through donations and sponsorships with assistance totalling $135,811.

• T he preparation and implementation plan for the rollout of self-check machines, promotional screens and touch screen Online Public Access Catalogue (OPAC) machines were completed for all of our branches. The go-live will be during the first quarter of 2012-2013.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 0

SA1 PEOPLE AND COMMUNITIES CONT’D 2011/12

ACHIEVEMENTS

Community Development Engagement Initiative (CDEI)

to encourage and teach young people how to learn and

The Community Development Engagement Initiative is to assist local

develop their own skills.

councils to identify and implement projects that will support their community’s recovery efforts, particularly their human and social wellbeing, using a community development approach. The Community Development Engagement Initiative is a pilot program that will conclude on the 30 June 2013. Through this initiative, Western Downs Regional Council had been allocated two Community Development Recovery Officers (Dalby & District, Chinchilla & District) and $250,000 Flexible Funding. There

Other activities provided throughout the week such as face painting, jumping castles, rock climbing wall and decorating the boards encouraged the whole family to come along and enjoy a day outside in a relaxed and fun atmosphere. The youth were encouraged to engage with the youth services that partnered up with Council and came along highlighting their services available across the region and locally.

have been 21 successful applications under the Flexible Funding

ANZAC Day

Program with projects totalling $223,934.

Western Downs Regional Council hosted a full program of ANZAC

Furthermore, there have been seven community development projects funded through Brokerage Funds totalling $66,000.

services and ceremonies on the 25 April 2012. Eighteen ANZAC Day ceremonies and services were conducted across the region in 2012 in remembrance of those men and women who fought and died to make

National Youth Week 2012 – Skate Park Jams

Australia and our region what it is today. Council representatives were

To celebrate the 2012 National Youth Week (16 April - 22 April 2012)

in attendance at the ANZAC Day services as it is seen as an integral

for young people within the Western Downs Regional Council area,

part of their duty to connect with the community on such an occasion.

Council employed Skateboarding Australia to conduct a series of skateboarding clinics.

Seniors Week Seniors Week is an opportunity for Queenslanders of all ages to join

Over the course of the week, the clinics visited Bell, Jandowae,

together and celebrate the valuable contributions of seniors. Seniors

Wandoan, Miles, Tara, Chinchilla and Dalby with a total of 825 youth

Week is well supported by the Western Downs Regional Council with

participating in the skateboarding clinics. Involvement in the clinics was

eight events held across the region attracting 457 attendees.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 1

SA1 PEOPLE AND COMMUNITIES CONT’D 2011/12

ACHIEVEMENTS

Australia day award recipients Western Downs Regional Council Regional Australia Day Award Winners • Citizen of the Year Award – Margaret Hackett • Young Citizen of the Year Award – Justin Hirning • Sports Achievement Award – Joanna Hills • Community Event/Project of the Year Award – Corang North Centenary Celebrations • Cultural Award – Matilda Pohlmann Western Downs Regional Council Local Australia Day Award Winners: Regional Citizen of the Year Award • Regional – Margaret Whackett • Chinchilla District – Billie–Jo Erb • Dalby District – Bradley Reimers • Miles District – Scott Pogan • Tara District – Roslyn Wade • Wandoan District – Helen Devlin Local Young Citizen of the Year Award • Regional – Justin Hirning • Chinchilla District – Leon Polzin • Miles District – Laura Kerwick • Tara District – Ryan Matthews Regional Cultural Award • Chinchilla District – Matilda Pohlmann

Western Downs Regional Council Local Junior Sports Achievement Award • Regional – Joanna Hills • Chinchilla District – Michael Wostear • Dalby District – Daniel Mauch • Tara District – Gaige Nystrom Local Senior Sports Achievement Award • Miles District – Thomas Williams Sports Administrator/Coach/Official Award • Chinchilla District – Murray Sturgess • Dalby District – Robert Farquharson • Miles District – Maureen Petrie Local Community Project/Event of the Year Award • Regional – Coranga North Centenary Celebrations • Chinchilla District – Chinchilla Community Commerce & Industry Inc – Rebuilding Chinchilla /Wandoan • Dalby District – Fishing Competition (MYCNC/Condamine Alliance) • Miles District – Murilla Fish Stocking Association Inc – Children’s Fishing Clinic • Tara District – Inglestone QCWA – Big Cuppa Tea Cancer Fundraising Day • Wandoan District – Wandoan State School 100 Year Celebrations

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 2

Funding Programs Financial assistance is available to individuals and not-for-profit organisations through a number of funding programs that are implemented throughout the year including Minor Grants, In-Kind Assistance, Community Loan Program and Sporting Assistance Program. • T he Minor Grants Program has been well supported with 24 successful applications in the two funding rounds with projects totalling $58,709. • The Sporting Assistance program was reasonably supported with 10 successful applications with assistance totalling $2,150. • The Public Liability Reimbursement Scheme was well supported with 31 successful applications with assistance totalling $19,949. • Through the Community Loan programme three organisations received assistance totalling $105,000.

Community Services Provide safe and well serviced communities Home and Community Care Services Western Downs Regional Council provides Home and Community Care Services to the residents of the region through the following service providers: Tara Community Care, Meandarra Home Nursing Service, Jandowae Domiciliary Care, Miles Home Maintenance Service and Chinchilla Home Maintenance Service. These services enable aged and disabled residents to remain in their own homes and maintain their independence and quality of life. Community Aged Care Packages are also delivered from the Carinya Hostel in Miles, Tara Community Care and Jandowae Domiciliary Care. The packages are provided to residents who require a higher level of care which allows residents to remain in their own homes and remain part of their community. All services have undergone accreditation audits and all have been successful in obtaining accreditation. Aged Care Facilities Western Downs Regional Council operates two aged care facilities within the region. Tarcoola, based in Tara, is a 33 bed facility with an occupancy rate of 85%. Carinya aged cared facility is based in Miles and is a 17 bed facility with 95% occupancy rate. Both facilities have successfully undergone accreditation audits. QGAP Services Council provides State Government services in Jandowae and Tara with 5,517 transactions over the 12 month period totalling $982,890. Australian Citizenship Ceremonies Council was pleased to officiate in eight Australian Citizenship ceremonies from 1 July 2011 to 30 June 2012, at which 50 residents became Australian Citizens.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 3

SA 2 Growth and Opportunity ambition Realise opportunities and build capacity for the sustainable growth of our prosperous region

SA 2 Growth and Opportunity incorporates the strategic functions of Tourism and Promotion, and Business and Industry.

Tourism and Promotion Encourage the development of tourism and promotion of the Region The Western Downs Regional Council currently undertakes tourism marketing primarily targeting the drive and “grey nomads” markets. Tourism marketing undertaken in 2011/12 has included the production of the sub-regional guides for local towns. Furthermore, Council continues to implement the Western Downs Destination Management Plan and Servicescape of the Visitor Information Centres. Visitor Information Centres There is a strong network of Visitor Information Centres that were well supported with over 58,255 visitors recorded through the centres. 18,264 Chinchilla 11,923 Dalby 269 Jandowae 13,571 Miles 5,821 Moonie RTC 547 Bell

2011/12 achievements The Temper Trap, Stonefield, 360 and Matt Corby. The total economic impact associated with Triple J ‘One Night Stand’ for the Western Downs Local Government Area was $4.8m. In the months prior to the event, Triple J promoted the One Night Stand and the event location (Dalby) to the national Triple J audience through on-air promos, competitions, interviews and online coverage. The marketing value of this promotion is estimated in the hundreds of thousands of dollars. Furthermore, $10,000 was raised through a gold coin donation at the gate with all proceeds going to a youth charity. Council resolved to donate the proceeds to 10 Chaplaincy Program within the Western Downs Regional Council area.

Business and Industry Encourage and facilitate growth through development of business and industry

Events There is a rich range of events and festivals in the Western Downs Regional Council area that are well supported by Council including Opera at Jimbour, Delightful & Delicious, Moonie Yabbie Races, the Tara Festival of Culture and Camel Races and a host of races, golf days, campdrafts etc. One Night Stand Concert The Triple J ‘One Night Stand’ held on the 2 June 2012 was a free major outdoor concert that attracted approximately 15,000 people. The event was staged through a partnership between ABC (Triple J) and the Western Downs Regional Council with the following artists performing:

Major Developments • Council submitted detailed responses to Major Project Terms of Reference, Environmental Impact Statements, Social Impact Management Plans, Integrated Housing Strategies, Community Investment Strategies and project amendments. In addition, responses were also provided on key issues impacting the region such as the Murray-Darling Basin Plan, Land Access Framework, CSG Water Management Policies, Mines to Minds, Underground Water Impact Reports and other State Government legislative amendments. A whole-of-Council approach was taken to ensure all submissions were thoroughly researched and prepared to fully represent the best interests of the Western Downs communities to resource sector proponents and higher levels of government to achieve optimal outcomes for the region.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 4

SA2 Growth AND opportunity CONT’D 2011/12

ACHIEVEMENTS

• D eveloped the acclaimed Western Downs Affordable Housing Strategy which provided a series of key priority actions to combat affordable housing stress across the region due to the rapid growth of the energy sector. As a result of the Strategy, the Western Downs Housing Fund Pty Ltd as trustee of the Western Downs Housing Trust was established as the delivery vehicle for the provision of affordable housing supply. The Trust was granted Deductible Gift Recipient Status and endorsed as a Taxation Concession Charity by the Australian Tax Office and is supported by major project proponents, Queensland and Australian Government, businesses, community groups and Council. • Published Major Project Fact Sheets to Advance Western Downs website, identifying status, cost, expected employment, picture/ map of project and details in an easy to read one page format. New Fact Sheets are developed as projects are announced and existing Fact Sheets are reviewed/updated annually. • Published comprehensive 2012 Economic Profiles. The Economic Profiles have been uploaded to Advance Western Downs and Western Downs Regional Council websites. • Monthly update reports on the status of the energy resource sector projects provided to Council, with workers accommodation reports provided quarterly. Economic Development • Hosted a Business Investment Tour with a delegation of Norwegian company and government representatives at the request of Trade & Invest Queensland. Forty local businesses took part in the tour. • Acquired funding through 2011 Queensland Natural Disasters Jobs and Skills Package to employ a contract Jobs and Skills Development Officer. • Established Western Downs Jobs and Skills Task Group, a group of Federal, State and Local government representatives, industry leaders and local business operators, to drive the planning, development and implementation of the Jobs and Skills project for the Western Downs Region. • Held a Skilling Solutions Symposium in Dalby in October 2011 with around 100 participants.

•

S urveyed 105 businesses in Western Downs region measuring the gaps between current, emerging and future workforce skills and workforce development needs. Data from the Skilling Solutions Symposium and Skills Gap Survey was utilised to inform the development of the Western Downs Skills Strategy to mitigate the impact of the growing resource sector and support the region in achieving a sustainable workforce. Developed a unique business support project, Western Downs Economic & Innovation Zone (WDEIZ), with support of regional Chambers of Commerce, Queensland and Australian Government agencies. Offering free appointments with contracted Business Advisors, 69 businesses completed an appointment between March and June 2012. Results of WDEIZ, obtained through analysis of post-appointment evaluations, showed that over 90% of participants stated the services provided met or exceeded their expectations. Further to this, over 95% of businesses believed WDEIZ services would make a contribution in supporting their business or innovation, with the majority of these indicating the contribution would be immediate. Completed Western Downs Industrial Land Strategy to outline a preferred approach to the growth of industrial enterprise and development of industrial land in towns across the Western Downs over the next 20 years. Supporting development of the Western Downs Planning Scheme and Regional Statutory Planning to be undertaken by Queensland Government, the Western Downs Industrial Land Strategy will assist Council with future business investment attraction strategies. Promoted the Western Downs Region as a place “Open For Business” through participation in the Energy Summit 2012 held in Toowoomba. A presentation was delivered by Council on key activities and investment opportunities. Key messages were reinforced through the course of the conference via exhibition stand, officer networking and large foyer display. Attended and supported Western Downs Regional Business Excellence Awards Presentation (May 2011), hosted by Chinchilla Community, Commerce & Industry.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 5

SA2 Growth AND opportunity CONT’D 2011/12

ACHIEVEMENTS

•

dministered Advance Western Downs website, A (www.advancewesterndowns.com.au ). The website has been growing exponentially each year attracting over 6,000 unique business visits every month. Weekly Business E-News Monitor published utilising email and the Advance Western Downs website with a story introduction and local business profile. In 2011/2012, the Business News Monitor delivered 152 articles relevant to regional business and profiled 47 local businesses.

Saleyards The Western Downs Regional Council Saleyards Advisory Committee successfully managed the Dalby Saleyards with a throughput of 238,000 head of cattle, which has increased by 29% on the previous year, maintaining the position of number two saleyard in Australia for the throughput and the largest single day selling centre. The saleyards business remains one of Council’s key services to rural enterprises across the region. Throughout the year, Council worked with the industry to determine the future of the Dalby Saleyards with regards redevelopment as per the following staged $11.1 million program. • • •

$700,000 worth of WH&S issues upgrade $5 million construction of new receival and drafting facilities with roof over and soft floor $5.4 million construction of new selling pens with roof over and soft floor

The WDRC Saleyards Advisory Committee has operated very successfully throughout the year, moving the cattle scanning and stock movement operations to a contract basis. The redevelopment consultation process resulted in improved relationships with the Dalby Saleyards stakeholders and agents with more of an industry focus. The Dalby Saleyards is the only remaining saleyards business of Council with saleyards facilities at other centres being transferred from WDRC Saleyards operations to Council’s Rural Services Branch. The future marketing of the saleyards business is a key objective for the immediate future, whilst finalising the redevelopment project.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 6

SA 3 Planning for Liveability ambition Build an effective planning solution that enhances the liveability and lifestyle of our regional communities whilst promoting sustainable development

SA 3 Planning for Liveability incorporates the strategic functions of Strategic Planning, Planning Services and Building Services.

Strategic Planning Review development policy and planning instruments in response to regional planning requirements The Planning Scheme review process to combine all six of the current Planning Schemes into a single Western Downs Planning Scheme has progressed. Major achievements to date include: • Completion of background planning studies • Review existing planning schemes • Adopt draft vision and strategic framework • Prepare flooding studies for towns • Prepare stormwater studies • Draft Planning Scheme and maps prepared Targets include: • First State interests checks • Public consultation • Complete and implement Draft Planning Scheme

2011/12 achievements Preparation of Priority Infrastructure Plans that will relate to the new planning scheme has commenced.

Planning Services Effectively resource and manage planning, development assessment and compliance A total of 294 development applications were received up from 182 the previous year. This shows continued strong development growth throughout the region.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 7

SA3 Planning For Liveability CONT’D 2011/12

ACHIEVEMENTS

Applications Received

Applications Approved

Reconfiguring a Lot

# of DAs

# of New Lots

# of DAs

# of new lots

Residential

587

Residential

Rural Residential

Industrial

Commercial

Other

Material Change of Use

# of DAs

# of DUs

GFA m²

# of DAs

# of DUs

GFA m²

Residential

1,811

61,190.18

Residential

787

28,141.70

Commercial

202

24,495.96

Commercial

31,759.47

Industrial

269

29,964.37

Industrial

48,999.59

Other

1,353

60,449.40

Other

16,138.10

Operational Works

# of DAs

Value of Works

# of DAs

Value of Works

$7,632,544

$45,808,683

# of DAs is: Number of Development Applications

# of DUs is: Number of Dwelling Units

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 8

SA3 Planning For Liveability CONT’D 2011/12

ACHIEVEMENTS

Building Services Effectively resource and manage building, plumbing and drainage assessment, and inspection services The following lists detail approvals issued for the Chinchilla, Dalby, Miles and Tara Customer Service Areas.

Chinchilla Building Type

Number of Approvals YTD Council

Private

Residential (New)

Residential (Alteration/Addition)

Serviced Accommodation

Value of Approvals YTD Private

YTD

$25,309,936

$12,781,028

130

–

$686,561

–

$3,021,899

$1,446,410

Domestic Outbuildings

$1,257,082

$153,825

Commercial (New)

$2,353,447

$10,431,458,240

Commercial (Alteration/Addition)

$437,000

$50,000

Industry (New)

–

Industry (Alteration/Addition)

–

Public Buildings (New)

–

Public Buildings (Alteration/Addition)

–

Swimming Pools

$74,475

$164,490

Miscellaneous

$49,700

$7,500

201

$33,190.100

$10,446,061,493

TOTAL

Council

Number of Dwelling Units

130

YTD Building Compliance Searches

Building Record Searches

Special Reports

Building and Plumbing Inspections

934

TOTAL

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 2 9

SA3 Planning For Liveability CONT’D 2011/12

ACHIEVEMENTS

Dalby Building Type

Number of Approvals YTD

Value of Approvals YTD

Council

Private

Residential (New)

$2,856,324

$24,816,990

Residential (Alteration/Addition)

$1,603,686

$1,730,611

Serviced Accommodation

–

$12,966,320

Domestic Outbuildings

$720,074

$629,903

Commercial (New)

$211,172

$700,000

Commercial (Alteration/Addition)

$16,000

$1,148,044

Industry (New)

$1,739,500

$4,512,302

Industry (Alteration/Addition)

$271,531

$19,000

Public Buildings (New)

–

$5,902,288

–

Public Buildings (Alteration/Addition)

$559,540

$2,996,555

Swimming Pools

$211,930

$181,430

Miscellaneous

$97,560

$703,207

142

188

$14,189,605

$50,404,362

TOTAL

Council

Number of Dwelling Units

Private

YTD 127

127

YTD Building Compliance Searches

Building Record Searches

Special Reports

Building and Plumbing Inspections

765

TOTAL

951

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3 0

SA3 Planning For Liveability CONT’D 2011/12

ACHIEVEMENTS

Miles Building Type

Number of Approvals YTD Council

Private

Residential (New)

Residential (Alteration/Addition)

Value of Approvals YTD

Number of Dwelling Units

Council

Private

YTD

$3,230,084

$7,661,124

$480,200

$102,000

Serviced Accommodation

$64,000

$38,776,180

Domestic Outbuildings

$121,875

$157,947

Commercial (New)

$5,000

Commercial (Alteration/Addition)

$50,000

$250,000

Industry (New)

–

$270,000

–

Industry (Alteration/Addition)

–

Public Buildings (New)

–

Public Buildings (Alteration/Addition)

–

$12,000

–

Swimming Pools

–

$80,523

–

Miscellaneous

$10,000

$355,998

TOTAL

$4,323,682

$47,308,249

YTD Building Compliance Searches

Building Record Searches

Special Reports

Building and Plumbing Inspections

215

TOTAL

272

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3 1

SA3 Planning For Liveability CONT’D 2011/12

ACHIEVEMENTS

Tara Building Type

Number of Approvals YTD

Value of Approvals YTD

Council

Private

Council

Private

Residential (New)

$847,455

$4,593,236

Residential (Alteration/Addition)

–

$35,000

–

Serviced Accommodation

–

Domestic Outbuildings

–

$165,205

–

Commercial (New)

–

$565,920

Commercial (Alteration/Addition)

–

Industry (New)

$28,299

$78,000

Industry (Alteration/Addition)

–

$19,800

–

Public Buildings (New)

–

Public Buildings (Alteration/Addition)

–

$250,000

–

Swimming Pools

–

Miscellaneous

–

TOTAL

$1,345,759

$5,237,156

Number of Dwelling Units YTD 26

YTD Building Compliance Searches

Building Record Searches

Special Reports

Building and Plumbing Inspections

164

TOTAL

173

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3 2

SA 4 Our Environment ambition Provide a healthy environment for our people today and the generations of tomorrow

SA 4 Our Environment incorporates the strategic functions of Environmental Health, Rural Services and Waste Management.

Environmental Health Improving environmental health for the benefit of our regional communities and environment Council’s focus of core environmental health responsibilities continued during the financial year with involvement in food hygiene, environmental protection, dangerous goods safety management, environmental nuisances and public health matters. This section also administers Council’s Local Laws; after a comprehensive process, new local laws applicable to the entire Council area became law in late 2011. Council takes both an enforcement and promotional approach to better environmental health practices, and regularly prepares newsletters, offers instructional courses as well as conducts routine inspections to communicate environmental health messages to stakeholders. A good example is Council’s food hygiene course, which is offered free of charge to local businesses. This course helps to improve food handlers’ knowledge about food hygiene, and the program is being expanded to target not-for-profit groups as well as food businesses. Statistics • Dogs registered: 4,324 (5,340 – previous year) • Cats registered: 951 (916 – previous year) • Participants in Council’s food hygiene course: 82 (43 – previous year) • Food Premises Inspections undertaken: 173 (215 – previous year) • Food safety programs accredited: 13 • ERA inspections: 62 (107 – previous year) • Flammable and combustible inspections: 57 (57 – previous year)

2011/12 achievements Rural Services/Natural Resource Management Create a natural environment that is valued and sustainable by managing the region’s natural character, heritage and values This year saw the continued on-ground fight against the emerging animal and plant pests. The region-wide pest management plan was completed with quality input from the working group found to be particularly beneficial. Action plans to continue the ‘on-ground’ fight against plant and animal pests continues, with Council being one of Queensland’s most active councils in terms of wild dog baiting. The group also maintained stock routes under Council’s control and offered rural services, such as Drummuster. Part of Council’s Corporate Plan goals is to provide additional washdown facilities for the prevention of weed and seed spread in strategic locations throughout the region. The construction of the Wandoan Washdown Bay was completed and commissioned in February 2012. This facility has been a resounding success. In its first six months of operation, the facility was used on average 16,456 minutes per month (or over 9 hours per day). This is well in excess of all predictions and is expected to substantially help in the fight against weed spread in the region. New facilities are being developed for Chinchilla, Miles and Dalby. Council assisted a number of natural resource management (NRM) groups with the delivery of on-ground environmental projects in sensitive areas, such as creeks and reserves. A focus of this program

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3 3

SA4 OUR ENviRONMENT CONT’D 2011/12

ACHIEVEMENTS

included work with the Bunya Mountains Murri Ranger program for the on-ground projects in Russell Park, Bunya Mountains, which has received critical acclaim. Statistics • Wild dog baits distributed during 2011/2012 campaigns: 4,700kg (3,028kg during previous year’s campaign) • Drummuster drums collected: 56,428 (51,958 collected in the previous year)

Waste Management Meet the current and growing needs of our region through a coordinated and considered approach to services and environmental infrastructure Council’s Waste Management section continued with the delivery of its Waste Infrastructure Strategy, which has been titled “Towards a Waste Wise Western Downs”. After delays associated with the 2010/2011 floods, construction work on many priority capital projects is now well underway, and in some cases, projects have now been completed.

community has responded very well to this service with the kerbside recycling rates substantially increasing since its inception. Other worthy projects have included the expansion of the green waste

The Kaimkillenbun Waste and Recycling Centre was opened in February 2012, and the construction of the Dalby Waste and Recycling Centre commenced during the period and will be due for completion in late 2012. These two centres are an exciting development for their local communities and provide state-of-the-art facilities for the deposit of recyclables and waste for disposal. Planning for other Waste and Recycling Centres is underway, including large regional centres at Chinchilla and Miles due for construction from 2013.

recycling program, continuation of a concrete recycling scheme in

Project planning is well underway for new regional landfills, including the Winfields Road Landfill Upgrade and the West Regional Landfill. Extensive site selection and validation processes were undertaken during the year and development applications were prepared for the preferred sites. These facilities represent some of Council’s largest capital investments and once completed will include the most contemporary environmental safeguards and provide substantial longterm waste disposal capacity for the entire Western Downs area.

State Government waste levy, which required the supervision of many

The region-wide garbage and recycling collection contract continues to be a resounding success. Every week, well over 11,000 garbage and 5,500 recycling services are collected throughout the Western Downs area and with almost no service interruption. The service provides separate garbage and recycling collection at all major population centres and many rural/residential communities, and offers this service for the same price, no matter the location. Since its introduction, the

Dalby and the introduction of a waste education program that was incorporated into the garbage and recycling contract. Improvement works are continuing to be made at many Council facilities, especially the Dalby Landfill which is now subject to a greatly improved maintenance program. A focus of Council’s waste program included the implementation of the sites for the first time, the collection of the levy on behalf of the state at a rate of $35/tonne for many waste types and the collection of a substantial amount of data. The total levy collected by Council for the State Government was $308,250.45 from the commencement of the levy on 1 December 2011 until it was repealed by the Newman State Government effective 30 June 2012. Statistics • Properties serviced: 11,603 (11,216 - previous year) • Kerbside recycling - 1,807.78 tonnes (1,216 tonnes - previous year) • Recycling contamination rate: 12.42% • Green waste recycled (final product generated): 2,949m³ (1,740m³ - previous year)

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3 4

SA 5 Utility Services ambition Manage our water, sewerage and gas networks to achieve reliability, safety and cost

SA 5 Utility Services incorporates the strategic functions of Water, Wastewater and Gas. The 2011/12 year has brought major challenges to the Utilities Group. Continued development of the Coal Mining and CSG Industry, and

2011/12 achievements

the new developments associated with the LNG industry have had a major impact on the water and wastewater services of many regional communities. Planning of augmentation works has been a major focus during the year. The Utilities Group have presented to Council it’s proposed ten year capital works program to enable Council to forward plan major expenditure on infrastructure for the region.

•

Water

•

Manage water and recycled water treatment, networks, revenue and assets to achieve safe, reliable and cost effective water supplies •

A number of projects have been completed for the Miles Water supply with new trunk mains and upgrades to industrial water

•

main supply. Standby generators and pumps have been installed •

at the Water Treatment Plant. •

The automatic read meter replacement program has

continued, with 2,000 new meters being installed in Chinchilla and Jandowae. Asset mains replacement works included replacements in Dalby, Jandowae, Warra, Tara and Meandarra. Planning to cater for the rapidly developing communities of Dalby, Chinchilla, Miles and Wandoan was undertaken with the Water Network Analysis Reports completed and included in the ten year capital works plan. Fluoride implementation in Chinchilla and Miles has been completed. Planning and design work for new water treatment plants at Wandoan and Tara.

Town water consumption 2011/2012 annual 1500000 1300000

Consumption (KL)

1100000 900000 700000 500000 300000 100000 0

Dalby

Chinchilla Tara

Summer consumption (Oct to Mar)

Jandowae

Miles Wandoan

Winter consumption (Apr to Sept)

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3 5

SA5 UTILITY Services CONTâ&#x20AC;&#x2122;D 2011/12

ACHIEVEMENTS Town litres / connection / day (2011/2012) annual average 1100 1000 900

Consumption (L/Conn/Day)

800 700 600 500 400 300 200 100 0 Dalby

Chinchilla Tara

Jandowae

Miles Wandoan

Village water consumption (2011/2012) annual 30000

Consumption (KL)

25000 20000 15000 10000 5000 0

Bell Warra Summer consumption (Oct to Mar)

Condamine

Meandarra

Winter consumption (Apr to Sept)

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3 6

SA5 UTILITY Services CONTâ&#x20AC;&#x2122;D 2011/12

ACHIEVEMENTS Village litres / connection / day (2011/2012) annual average 900

Consumption (L/Conn/Day)

800 700 600 500 400 300 200 100 0 Bell Warra

Condamine

Meandarra

Hamlet water consumption (2011/2012) annual 12000 Consumption (KL)

10000 8000 6000 4000 2000 0

Jimbour

Kaimkillenbun Brigalow Dulacca

Kogan

Summer consumption (Oct to Mar)

Moonie The Gums

Glenmorgan Flinton Westmar

Winter consumption (Apr to Sept)

Hamlet litres / connection / day (2011/2012) annual average Consumption (L/Conn/Day)

1000 800 600 400 200 0

Jimbour

Kaimkillenbun Brigalow Dulacca

Kogan

Moonie The Gums

Annual Report 1 JULY 2011 TO 30 JUNE 2012

Glenmorgan Flinton Westmar

PA G E 3 7

SA5 UTILITY Services CONT’D 2010/11

ACHIEVEMENTS Wastewater

Manage wastewater treatment, collection and pumping, revenue and assets to achieve reliable and environmentally sensitive wastewater systems • • •

ajor asset upgrades to pump stations were undertaken at Chinchilla, Dalby, Jandowae and Meandarra. Manhole relines and sewer main M patching was undertaken in other centres. Planning to cater for the rapidly developing communities of Dalby, Chinchilla, Miles and Wandoan was undertaken with the Sewer Network Analysis Reports completed and included in the ten year capital works plan. Planning and design work for new Wastewater Treatment Plant at Wandoan

Treated sewerage (2011/2012) 100

Treated sewerage (ML)

75 50 25 0

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Dalby

Chinchilla

Miles Tara Wandoan

Jandowae

Meandarra

Total Treated Sewage Dalby

786.88

Chinchilla

387.63

Miles

110.71

Tara

76.82

Wandoan

32.19

Jandowae*

33.08

Meandarra*

12.19

* Estimated amount based on pumping hours

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3 8

SA5 UTILITY Services CONT’D 2011/12

ACHIEVEMENTS Gas Manage gas networks, revenue and assets to achieve safe, cost effective gas distribution systems • •

onstruction of the new Dalby Gas Gate Station has been completed with commissioning finalised and system functioning as expected. C District regulator upgrades have continued.

Gas consumption 600000

Consumption (m3)

500000 400000 300000 200000 100000 0

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2009/2010

2010/2011

2011/2012

Total Consumption 2009/2010

3,248,851 m3

2010/2011

3,517,748 m3

2011/2012

4,077,425 m3

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 3 9

SA 6 infrastructure ambition Build and maintain civil infrastructure to create safe and liveable communities within our region

SA 6 Infrastructure incorporates the strategic functions of Civil Works, Aerodromes, Asset Management, Cemetery Operations, Stormwater Networks, District Depots and Workshops, Commercial Works, Fleet and Plant and Quarry Operations. Engineering Services has continued to work effectively in delivering regional infrastructure services through both regional planning and local delivery. Projects have been delivered by a combination of Council’s workforces, based out of local depots and customer service centres, in conjunction with locally and regionally based contractors to meet the needs of all of Council’s customers. This has been done to maintain best value for the infrastructure services provided. On top of the normal construction and maintenance works Engineering Services delivers, Council continued to deliver the flood reconstruction program from the previous flood events in 2010 and 2011. In January 2012, the region was once more impacted by flooding which resulted in damage to infrastructure. Council has delivered the emergent works to reopen closed roads and other damaged infrastructure. With the ongoing intensive development of the Surat Basin and its resources, the resulting impacts on community infrastructure have been a focus for Engineering Services. A number of control measures have been utilised to deal with these impacts such as permitting, infrastructure agreements and planning and building approvals. These measures involve careful consideration of the impacts to community infrastructure and the associated cost to be borne by the applicant. While the flooding event provided extra challenges for Council, the main objective of Engineering Services remains the same - to ensure that a comprehensive and structured approach is taken towards planning and development of infrastructure. Our goal remains that infrastructure projects are well planned and delivered as directed by Council to meet the community’s aspirations. Engineering Services aims to set appropriate standards, approve all designs and budgets prior to implementation to ensure that Council and the community achieves best value in service delivery.

2011/12 achievements Civil Works Plan, design, construct and maintain regional civil infrastructure to service the regional community Acknowledging the impact of significant flood events and resource sector activities across the Western Downs Region in the 2011/2012 financial year, Council delivered a substantial amount of civil works throughout the region. Both Council’s day labour workforce and an extensive pool of contractors have been used to meet the timeframes of these demands. This has significantly improved the level of service of road networks in many areas even with increased traffic volumes. It should also be noted that an increasing road network, mainly as a result of new subdivisions, added to normal maintenance requirements. Currently Council owns the second largest road network in Queensland, totalling 7,729km, of which 2,106km is sealed and 5,623km is unsealed. Adding to the abovementioned number is an additional 1,959km of Federal and State roads under Council’s care and control, taking the total length of Council controlled roads to 9,550km. Engineering Services continued the process of developing a long term planning and budgeting process with a 10 year Works Program for each of the five districts. This program provides for all capital, major maintenance, Main Roads works and maintenance requirements for road and footpath infrastructure for the next 10 years. The compilation of this program involves identifying and prioritising Council’s infrastructure needs according to clear and transparent methodology, which is consistent with Council policies, strategies and

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 0

SA6 INFRASTRucture CONT’D 2011/12

ACHIEVEMENTS Asset Management

the Corporate Plan. The program was once again made available to the public at Community Connect forums at each of the larger towns within the region.

Develop a whole of organisation approach to implement best practice asset management

Parks and Gardens

Substantial changes to the Local Government Act have highlighted the

Build and maintain civil infrastructure

importance of asset management in local government. Council has

The Parks and Gardens function is resourced through the Works Section of Council and this year resources were aligned closer to other works functions to provide a better delivery service to the community in this area. Extra resources were provided by Council to ensure that the community’s expectation on service delivery is assessed against the resource levels available to deliver this important function. The Council’s strategy remains to enhance the existing parks and gardens throughout the region delivering consistent levels of service for like facilities, no matter where they may be located throughout the region. Flooding and high rainfall did cause a large drain on resources from this section during 2011/2012 in order to ensure public safety elsewhere. However, parks and gardens throughout the region have responded well to the higher rainfall levels and extra works now being performed by this function.

continued with the development of a whole of organisation approach to asset management with associated financial modelling and service level standards. The development of Core Asset Management Plans for key assets of Council has been completed prior to the timeframe set by the State Government. The asset management team has been reviewing the asset inventory register, which has involved a desktop audit of the road, water and sewer networks. A field audit of the road network was conducted that included GPS pickup of the entire Council road and footpath network, collecting details such as the length, width and construction standard of roads, bridges and floodways. A condition assessment of the road network was completed to allow the revaluation of the entire road asset class. This work will be used to review depreciation costs in Council’s financial reports and will result in

Aerodromes

a significant improvement in Council’s financial sustainability. Work is

Maintain and enhance aerodromes relevant to CASA and community requirements

continuing on the collection of inventory data for Council’s building assets.

Aerodromes are the responsibility of Council’s local workforce for operations and maintenance. Procedures and policies are developed through the Engineering Services General Manager. Council has been working closely with the resources sector to plan for the development of aerodrome infrastructure requirements for future development in the Western Downs.

Maintain cemetery operations to a level acceptable to the community

Planning was undertaken for the upgrade of the Miles Aerodrome to a standard to handle Dash 8 - 300 aircraft and the work is set to commence in 2012/2013. Planning for upgrades to Chinchilla, Wandoan and Dalby Aerodromes also continued. All aerodromes have continued to be maintained and a longer term view of infrastructure at each strip has been taken. This has resulted in an increased effort in maintaining the assets at these important facilities in order to provide improved services to users.

Cemeteries Following a review of the cemetery operations, Council appointed a resource to ensure that operations were standardised across the region. This will see the development of operational policies to standardise all processes that are geared towards maintaining affordability while achieving sustainability. The Council’s Cemeteries Online project is operational and continues to be updated. This has proven to be an invaluable tool for members of the public undertaking their own research to find loved ones. Further development of the cemetery function on the Council website is planned in 2012/2013 to complement this online data base. Cemetery records continue to be reviewed and maps updated with procedures and documentation being streamlined to improve customer service and staff efficiencies.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 1

SA6 INFRASTRucture CONT’D 2011/12

ACHIEVEMENTS Stormwater Networks Plan and design regional stormwater area network infrastructure Council’s aim is to provide stormwater infrastructure and strategies that ensure adequate protection and/or to minimise the effect of overland flow or flooding. Planning for studies into several stormwater catchments occurred in Dalby and Chinchilla. Council has continued with major works in the Gaske Lane area of Chinchilla and work is expected to commence in 2012/2013.

Commercial Works Actively pursue commercial works opportunities within our region Commercial works include external works for private developers under contractual arrangements and provides Council’s workforce the opportunity to compete and measure themselves against private industry. This arrangement not only keeps our workforce up-to-date with modern day construction techniques, but also empowers them and demonstrates that they are competitive in the construction market. This in turn ensures an effective workforce that delivers local projects cost effectively. A substantial part of commercial works operation includes the completion of work by Council on behalf of the Department of Transport and Main Roads (TMR). An alliance is in place with TMR under a contractual agreement to deliver the Road Maintenance Performance Contract (RMPC) on an annual basis. Council also undertook a number of major road reconstruction projects as the Principal Contractor on behalf of TMR. This is a very important part of Council’s program delivery as it not only provides safer main roads within the region but maintains the ability of Council to provide employment in the region.

Fleet To manage an efficient fleet and plant to support Council operations Council has an adopted Plant and Vehicle Replacement Policy which was applied across the region during the 2011/2012 financial year using an industry standard approach designed to reflect true costs. This will allow Council to maintain a sustainable modern fleet into the future and provides a consistent regional approach to fleet and vehicle replacement.

The period between 1 July 2011 and 30 June 2012 has seen Council continue its Plant and Vehicle Replacement Program and replaced its 2011/2012 budgeted plant and fleet to a value of approximately $6,140,354.

Quarry Operations To provide quality quarry products at competitive prices A strong performance has been recorded by the Western Downs Regional Council’s Jimbour Quarry operations for the 2011/2012 financial year. Product sales totalled almost $4.54 million, with the majority going directly to Council works and projects throughout the region as well as supplying to a wide range of customers and businesses. Crushing operations during the year produced 84,038 tonnes of road base material and 128,482 tonnes of aggregates and associated materials. Council’s Jimbour Quarry remains committed to the safe production and supply of quality materials to its valued clients.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 2

SA6 INFRASTRucture CONT’D 2011/12

ACHIEVEMENTS Major Projects

A large number of relatively major projects have been completed during the past 12 months, refer to the tables below: Chinchilla Road Projects

Road Name

Work Description

Vanrenan’s Road

Resheet and seal

Chinchilla Tara Road

Widen and seal

Nudley School Road Kogan-Condamine Road/ Chinchilla-Kogan Road Dalby-Kogan Road/WarraKogan Road/Tara-Kogan Road Council and TMR networks

Concrete slab through Floodway

Chinchilla Street

New footpath at Visitor Information Centre

Various bitumen roads

Bitumen reseal program 2011/2012

Cameby Road

Gravel resheet

B Tennyson’s Road

Gravel resheet

Stevenson’s Road

Gravel resheet

B Rider’s Road

Gravel resheet

Banana Bridge Road

Gravel resheet

Old Man Lagoon Road

Gravel resheet

Mulga Street, Brigalow

Gravel resheet

Intersection upgrade Intersection upgrade Flood damage emergency repairs

Dalby Road Projects

Major projects

Road Name

Work Description

Springvale Road

Reconstruction

Branch Creek Road

Reconstruction

Inverai Road

Reconstruction

Roche Street

On-street parking construction

Hogan Street

On-street parking construction

Moreton Street

Reconstruction and Upgrade

Dixon Street

Dust suppression

Hunter Street

Hard stand construction

Patrick Street

Bridge replacement

Marble Street

Reconstruction

Giesel Street

Culvert replacements

Angle Road

Gravel resheet

Caldells Road

Gravel resheet

Challecomb Street

Gravel resheet

Clifford’s Road

Gravel resheet

Curd’s Road

Gravel resheet

Various Streets

Annual reseal program

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 3

SA6 INFRASTRucture CONT’D 2011/12

ACHIEVEMENTS Miles Road Projects

Road Name

Work Description

Dulacca South Road

Widen and Seal

Wallen Creek Road

Bitumen reseal

Old Cameby

Bitumen reseal

Morgan Street

Bitumen reseal

Marian Street - Dawson Street to Pine Street Daisy Street - Dawson Street to Pine Street Forrest Street - Sturt Street to Oxley Street Oxley Street - Forrest Street to Gregory Street Kennedy Street - Wambo Street to Wilson Street Market Street - Foster Street to Wambo Street Teireyboo Street - Kennedy Street to Foster Road Foster Street - Caliguel Street to Wambo Street Murilla Street - Corbett Drive to Tully Street

Bitumen reseal Bitumen reseal Bitumen reseal Bitumen reseal Bitumen reseal Bitumen reseal Bitumen reseal Bitumen reseal Bitumen reseal

Yulabilla Road

Bitumen reseal

Mt Myrtle Road

Gravel resheet

Kowguran Road

Gravel resheet

Boort Kio Road

Gravel resheet

Alford’s Road

Gravel resheet

Cotswold Road

Gravel resheet

Major projects Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 4

SA6 INFRASTRucture CONT’D 2011/12

ACHIEVEMENTS Tara Road Projects

Road Name

Work Description

Leichhardt Highway

Widen and Overlay

Goranba Lane

Resheet and seal

Cambridge Crossing Road

Resheet and seal

Bennetts School Road

Resheet and seal

Smallacombe Street

Intersection improvements

Sara Street Meandarra

Replace footpath

Council and TMR networks

Flood damage emergency repairs

Various bitumen roads

Bitumen reseal program 2011/2012

Bullockhead Road

Gravel resheet

Crowders Creek Road

Gravel resheet

Wandoan Road Projects

Road Name

Work Description

Nathan Road

Widen and seal

Waterloo Street

Reconstruction and stormwater drainage installation

Bungaban Road

Bitumen reseal

Ryals Road

Bitumen reseal

Cecil’s Road

Bitumen reseal

Grosmont

Bitumen reseal

Royds Street

Bitumen reseal

O’Sullivan Park Car Park

Bitumen reseal

Giligulgul Road

Gravel resheet

Cormack’s Road

Gravel resheet

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 5

SA 7 Empowering our Team ambition Provide organisational support and leadership to build a strong and effective regional Council

SA 7 Empowering Our Team incorporates the strategic functions of Strategic Management, Governance, Strategic Marketing, Information Management, Human Resources Management, Safety, Disaster Management and the regional Customer Service Centres.

2011/12 achievements

Strategic Management To provide effective strategic planning and leadership to establish a clear focus, shared across our regional organisation • F our quarterly reviews of 2009-2013 Corporate Plan and 2011/2012 Operational Plan conducted • Eight Councillors, the Executive Team and four Managers enrolled in the Australian Institute of Company Director’s Course • Monthly Executive Team Meetings held regionally

Copies of Resolutions of Council pertaining to sections of Local Government (Operations) and (Financial Plans & Reporting) Regulations 2010.

• Quarterly Management Team Meetings held regionally

FPR Reg 113 Resolutions Copy of resolution under s42(5) Local Government (Operations) Regulation 2010 • (Remuneration Schedule)

Governance

Council Resolution

To implement best practice governance to achieve an effective and accountable Organisation

MOVED by Cr McCutcheon and seconded by Cr Tillman

• D evelopment and gazettal on 14 November 2011 of a new suite of local laws and subordinate local laws for Western Downs Regional Council. The seven Local Laws supported by 22 Subordinate Local Laws replaced the 141 Local and Subordinate Local Laws inherited from the former Councils which now comprise Western Downs Regional Council. Local laws are laws adopted by Council to reflect community needs and ensure the good rule and governance of the area. The new regional local laws represent a significant milestone towards the efficient and consistent administration of the region. • Review and consolidation of 969 policies from a total of 1,031 policies from legacy councils which now comprise Western Downs Regional Council. • Development, implementation and facilitation of an internal Councillor Induction Program to better assist Councillors develop an understanding of how their Council works, the wider local government environment and their responsibilities and obligations. • Processing of three Right to Information applications and one Information Privacy application. • Various changes were made to Council’s policies and procedures during the year to continue to address the requirements of the Local Government Act 2009 and Regulations.

That this Report be received and in accordance with section 42(5) of the Local Government (Operations) Regulation 2010, the Councl adopts the following remuneration schedule payable to Council members, effective from 1 January 2012 as determined by the Local Government Remuneration and Discipline Tribunal: Elected Representative

Remuneration

Amalgamation Loading (to conclusion of 2012 election)

Mayor

$130,292

$2,770

Deputy Mayor

$85,718

$1,940

Councillor

$75,432

$1,700

(b) C opy of resolutions under s45(1) Local Government • (Operations) Regulation 2010 (Requirement to adopt expenses reimbursement policy or amendment) (c) List of resolutions under s154(2) Local Government (Financial Plans & Reporting) Regulation 2010 • (Thresholds for treating non-current physical assets as expenses) Nil during 2011/2012

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 6

SA7 Empowering our team CONT’D 2011/12

ACHIEVEMENTS

Strategic Marketing Deliver marketing, communication and PR strategies that enhance Council’s professional corporate image • I ncreased the quantity of media releases and alerts distributed by 36.2% from last financial year • Launched new SMS emergency alert system to expand existing eNews subscription service to residents and ratepayers • Undertook an internal review of Council’s website resulting in a redesigned homepage and a suite of new features to improve overall functionality and online customer services • Attracted 58,501 unique visitors to Council’s website • Continued to develop and enhance Council’s staff intranet – COLIN (Council Online Information Network). COLIN is a one-stop communication and information hub for all Western Downs Regional Council staff to access Council related information and to provide a high level of internal and external customer service delivery • COLIN received 5,574 internal visits during the year • 12 editions of the Monthly Council Update published in various newspapers, regional magazines and local community newsletter publications • Published two editions of Council’s Community Update Newsletter distributed to registered voters regionally

Information Management and Customer Service Management Effective and timely management of all forms of correspondence generated and received by Council in order to deliver excellent customer service Information Management Achievements • C ontinual streamlining of daily mail and records management procedures • Development of new automatic workflows complete with end points to improve reporting capabilities

• • • • • • • •

Operational Dataworks Training delivered to all new staff Refresher Dataworks Training delivered to functional areas Continual cleansing of Name and Address Register Creation of regional property files Developed Dataworks User Guide Web Browser and help cards Developed Security Matrix for document control within Dataworks Developed enhanced information management reporting tools Reviewed Retention and Disposal Schedule in compliance with Queensland State Archives requirements • Facilitated conversion of Archive Room and transferred documents to off-site archive storage • Conducted audit of legal documents • Developed and delivered Web Browser training to all users Information Management Statistics • T otal incoming documents recorded during 2011/12 = 35,419 (an increase of 5,719 documents from previous year) • Total outgoing documents recorded during 2011/12 = 27,548 (an increase of 5,232 documents from previous year) • Total forms recorded during 2011/12 = 15,530 Customer Service Management Achievements • O ngoing implementation of regional Customer Contact Centre and refinement of operating procedures • Developed KPI’s and reporting system • Developed and implemented a regional Communication Campaign for contact Centre • Reviewed After Hours Call Service • Reviewed and developed Internal Services Directory Customer Service Management Statistics • Total number of phone calls received in the inbound queue = 55,662 • Total number of phone calls answered from the inbound queue = 53,084 • Total number of customer requests = 7,351 • Total number of customer complaints = 93

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 7

SA7 Empowering our team CONT’D 2011/12

ACHIEVEMENTS

Human Resource Management Attract, retain and develop an effective team whilst promoting a positive and proactive culture • O rganisational Transformation Program recommendations implemented including: – Coordinator Leadership Capability Program – Organisational Values and related behaviours – Restructure of the organisation – Implementation of key ‘People’ systems (i.e. position descriptions) • Nurses Enterprise Bargaining Agreement (EBA) successfully negotiated and implemented • Negotiations commenced for a Personal Carers Enterprise Bargaining Agreement (EBA) • Introduced a new online recruitment system - ERecruitment • Introduced a job evaluation system - NEOS • Corporate Inductions are held every 4th Wednesday of the month presenting regularly updated information collated from each Division along with a folder of documents for reference • Human Resources continue to review HR Management internal systems and develop policies

• Equal Employment Opportunity (EEO) Committee formed and Contact Officers trained • EEO Policy adopted and Management Plan developed • Monthly HR visits held across the region • HR Metrics Steering Committee formed

Work Health and Safety Implement and maintain safe workplaces for our people through continual development of Council’s WHS System to best practice standards • Continually enhance Council’s WHS System and assist Divisions to identify and minimise hazards • Hazard Inspection matrix completed • Delivered regional WHS Training Programs including hosting specific training days on high risk topics • Conducted annual internal audit of WHS Management System • Coordinated the delivery of bi-monthly WHS Toolbox Talks by Supervisors • Continued to develop and review policies

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 8

SA7 Empowering our team CONT’D 2011/12

ACHIEVEMENTS

Disaster Management To establish and maintain disaster planning and response systems to reduce the likelihood and consequence of disasters on the community • Conducted Local Disaster Management Group meetings • Conducted Local Emergency Coordination Committee meetings (Chinchilla, Miles, Tara, Jandowae, Wandoan) • Undertook a Local Disaster Management Group disaster scenario Exercise Muddy Waters • Participated in District Disaster Management Group meeting and Exercise Phoenix (Wildfire scenario) and Exercise Red Light Runner (traffic accident scenario). • Established an Evacuation Centre for the flood affected residents of St George after receiving a request for assistance from Balonne Shire Council via the State Disaster Coordination Centre, where a total of 642 evacuees were registered, moved on to friends/family or stayed at the Dalby Showgrounds or PCYC Evacuation Centres • Conducted a debrief meeting after St George floods – Dalby evacuation centre event • Disaster Management training, including Recovery, Evacuation, Resupply, Warnings and Alerts, Disaster Management Arrangements, Evacuation Centre Management, QFRS Fire Operation Awareness, provided to the Local Disaster Management Group, Western Downs Regional Council employees and community groups

• S uccessful Emergency Management Queensland subsidised projects include: replacement vehicle Chinchilla SES; replacement vehicle Dalby SES; replacement vehicle Miles SES; audiovisual/training equipment Dalby SES • Successful application for cyclone and flood warning subsidy for installation of telemetry systems for flood warnings and weather stations • Developed Natural Disaster Risk Assessment, subsidised under the Natural Disaster Resilience Program, using a workshop style approach, including Local Disaster Management Group members with local, historical and disaster management knowledge and experience • Completed Stage One of the Flood Review and Management Study, subsidised under the Natural Disaster Resilience Program with work commencing on Stages Two and Three to be completed prior to June 2013 • Memorandum of Understanding established with the Red Cross for the provision of services in relation to preparing for, responding to and recovering from emergency events • Memorandum of Understanding with St John Ambulance for the provision of first aid services at an evacuation centre • Memorandum of Understanding established with the Department of Transport and Main Roads for the inclusion of Council Local Roads of Regional Significance in the 13 19 40 Road Conditions and Closures System • Maintained regional communication and support for district State Emergency Services Groups

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 4 9

SA 8 Business Systems and technology ambition Implement and manage effective business systems and accountable financial practices to serve the needs of Council and the community

SA 8 Business Systems and Technology incorporates the strategic functions of Financial Planning and Performance, Rating and Utilities Revenue, Asset Management Coordination, Financial Services and Technology Support.

Community Financial Report A community financial report contains a summary and analysis of a Local Governmentâ&#x20AC;&#x2122;s financial performance and position for the financial year Sources of Revenue â&#x20AC;&#x201C; where our money comes from Total revenue of $160,940,515 was recognised during the period 1 July 2011 to 30 June 2012 and consists of operating revenue (including rates and charges) of $136,975,172 and capital revenue (including grants, subsidies and contributions) of $23,261,719. The breakup of revenue is depicted in the graph below:

31% Rates and levies 15% Sales of major services 5% Fees and charges 1% Rental and levies 1% Interest received including investments 41% Grants and subsidies 0.07% Other income

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5 0

SA8 BUSINESS Systems and Technology CONT’D 2011/12

ACHIEVEMENTS

Operating Expenditure – where our money is spent Total expenditure of $127,644,856 was recognised during the period 1 July 2011 to 30 June 2012 and consists of operating expenditure (including employee costs) of $119,711,491 and capital expenditure of $7,957,339. The breakup of expenditure is depicted in the graph below:

Capital Works Program Capital works of more than $23,000,000 were undertaken during the period 1 July 2011 to 30 June 2012. Significant projects include: • R egional Road and Bridge network renewal and improvements ($8.1 million) • Dalby Aquatic Centre ($3.5 million) • Trunk Stormwater drainage - Gaske Lane to Charleys Creek (Chinchilla) ($1.3 million) • Bell Community Centre ($1.1 million) • Reconstruct sewerage pump stations (Chinchilla) ($1.1 million) • Tara Water Plant Augmentation ($0.55 million) • Construct new rising water to cater for developments (Chinchilla) ($0.53 million)

33% Employee costs 34% Materials and services 24% Depreciation and amortisation 1% Finance costs 7% Other costs 1% Current cost of developed land sold The net result for 2011-2012 is an operating surplus of $33,271,685. Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5 1

SA8 BUSINESS Systems and Technology CONT’D 2011/12

ACHIEVEMENTS

Ratios: Measurements of Financial Sustainability The Local Government (Finance, Plans and Reporting) Regulation 2010 now mandates a series of financial sustainability indicators that local governments will calculate and disclose to the community on a regular basis. These measures are to be used to evaluate the financial sustainability of all local governments in Queensland. Council’s performance as at 30 June 2012 against the key financial sustainability ratios and targets are as follows:

Ratio

Explanation

Target

2012

Target Met

Working Capital

Council’s ability to meet its short term financial obligations

1:1 – 4:1

6.70:1

Operating Surplus Ratio

Indicates the extent in which Council can cover its operational expenses from total revenue raised

0 – 10%

12.6%

Net Financial Liabilities Ratio

Council’s ability to service its net liabilities from its operating revenues

=< 60%

-25.1%

Interest Coverage Ratio

Council’s capacity to cover its debt servicing costs

0 – 5%

0.1%

Asset Consumption Ratio

Shows the remaining average proportion of Council’s infrastructure assets relative to their as new value in current dollars

40% – 80%

46.7%

Asset Sustainability Ratio

Reflects the extent to which infrastructure assets managed by Council are being replaced as they reach the end of their useful lives

> 90%

76%

Summary The financial result for Council for the year ended 30 June 2012 was considered moderate due to an operating surplus. The main reason for this surplus was the prepayments of grants and subsidies. However Council also identified expenditure savings and achieved efficiency targets which contributed to this operating surplus. Council has undertaken these measures to ensure that Council’s position continues to improve in the future years. Council also conducted a review of its General Rating Strategy during 2011/12 and these outcomes have been implemented and additional income will result in 2012/13 and future years. Council also undertook a comprehensive revaluation of its asset base which identified savings within the depreciation methodology used. Efficiency has also been achieved through the implementation of the organisational reforms during the 2011/12 financial year.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5 2

SA8 BUSINESS Systems and Technology CONT’D 2011/12

ACHIEVEMENTS

10 Year Financial Forecast – Measures of Sustainability

Ratio

Target

2011 -12

2012 -13

2013 -14

2014 -15

2015 -16

2016 -17

2017 -18

2018 -19

2019 -20

2020 -21

Working Capital

1:1 - 4:1

6.70:1

8.8:1

10.9:1

10.6:1

11.7:1

12.9:1

14.3:1

15.7:1

17.3:1

18.9:1

Operating Surplus Ratio

0 - 10%

12.6%

-21.5%

-4.7%

-3.3%

-1.9%

-0.1%

1.6%

3.7%

4.9%

6.2%

Net Financial Liabilities Ratio

=< 60%

-25.1%

16.2%

-3.3%

-4.1%

-16.9%

-30.6%

-45.3%

-60.8%

-76.8%

-93.1%

Interest Coverage Ratio

0 - 5%

0.1%

1.63%

3.26%

3.24%

3.08%

2.77%

2.47%

2.19%

1.92%

1.66%

Asset Consumption Ratio

40% 80%

46.7%

94.7%

93.4%

91.5%

88.7%

85.9%

83.1%

80.4%

77.8%

75.2%

Asset Sustainability Ratio

> 90%

76.0%

135.7%

111.1%

64.1%

62.7%

61.6%

60.5%

61.1%

60.0%

59.2%

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5 3

SA8 BUSINESS Systems and Technology CONT’D 2011/12

ACHIEVEMENTS

Debt Position Western Downs Regional Council’s outstanding debt as at 30 June 2012 was $31,143,687. The graph below shows the combined borrowings for the last four years. Outstanding debt balance 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0

2008/09 2009/10 2010/11 2011/12

Basic Statistics

Period to 30 June, 2012

Rates Number of Rateable Assessments

18,163

Average rates and charges per residential property

$759

Level of rate arrears (millions)

$2.52m

Snapshot of the region’s assets The table below illustrates Western Downs Regional Council’s assets as at 30 June, 2012.

Assets

Total Asset Value

Depreciation / Amortisation for 2011/12 year

Written down value as at June 30, 2012

Land

$57,106,842

Site Improvements

$16,299,193

$342,591

$10,369,016

$186,782,619

$3,130,081

$139,956,650

Plant and Equipment

$59,946,310

$5,202,436

$37,483,892

Furniture and Fittings

$822,699

$121,496

$448,982

Road and Bridge Network

$954,433,490

$17,333,358

$648,059,087

Water

$145,880,211

$2,674,153

$82,280,164

Sewerage

$103,109,154

$1,715,579

$49,893,123

Stormwater

$55,477,300

$840,905

$31,537,069

Gas

$11,144,566

$143,651

$6,325,740

$270,817

$206,750

$1,620,677

$255,961

$1,086,211

$1,591,273,027

$31,760,211

$1,064,753,526

Buildings

Heritage and cultural assets Intangibles Total

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5 4

SA8 BUSINESS Systems and Technology CONT’D 2011/12

ACHIEVEMENTS

Financial Planning and Performance To plan and monitor the Council’s financial performance • Developed and adopted a 10-year financial plan • Coordinated the development, adoption and review of Council’s budget • Implemented an investment policy and associated procedure • Coordinated a review of Council’s fees and charges Council’s Debt Policy for the 2011/2012 financial year is attached as an appendix to this report. National Competition Policy Chapter three of the Local Government Act 2009 and chapter 11 of the Local Government Act 1993 deal with the “Code of Competitive Conduct” (CCC) and “Complaints about Competitive Neutrality” respectively. Under Section 768 of the Local Government Act 1993, Council is required to identify in its Annual Report activities to which the code of competitive conduct is applied. Application of Competitive Neutrality to Other Business Activities Other business activities undertaken by local government which are not type one, two or three activities are defined as services provided which are of a policy, regulatory, planning, community or social nature for which funding is provided predominantly from the Council Budget. Council on 8 July 2011 resolved to adopt the Code of Competitive Conduct in accordance with Section 47 of the Local Government Act 2009 and to apply the Code of Competitive Conduct for the 2011/2012 financial year to the Council businesses of: • • • • • • • •

Waste Management Natural Gas Commercial Works Water Sewerage Jimbour Quarry Dalby Regional Saleyards Washdown Bays

2011/12 achievements Consultancy From 1 July 2011 to 30 June 2012, Council expended a total of $2,954,025 in consultancy services. Overseas Travel During this reporting period no Council employees travelled overseas at the expense of Council. Entertainment and Hospitality Services Entertainment or hospitality services expenses during 2011/2012 financial year totalled $103,199. Advertising Advertising expenses during 2011/2012 financial year totalled $220,805.

Summary of Complaints and Decisions Council did not receive any references of investigation notices from the Queensland Competitive Authority issued under Section 137 of the Local Government (Beneficial Enterprises and Business Activities) Regulation, 2010.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5 5

SA8 BUSINESS Systems and Technology CONT’D 2011/12

ACHIEVEMENTS

Rating and Utilities Revenue

Asset Management Coordination

To implement Council’s Revenue Policy in relation to rates and utility charges

To coordinate the financial management of Council’s assets

• Issued rates notices, water consumption and gas notices • Council allowed $388,843 in Council Pensioner Concessions for the 2011/2012 financial year • Implemented a further review of general rating categories in response to the required move towards rating parity

Financial Services To provide financial service to support Council’s operations • Reviewed Procurement Policy • Maintained day-to-day financial service functions (accounts payable and payroll) within service standards • Established inventory (gravel and quarry) financial procedures

•

Undertook a full revaluation of the following asset classes: • Site Improvements • Buildings • Road and Bridge Network • Water Network • Sewerage Network • Stormwater Network • Gas Infrastructure

Reserves Land that is a reserve under the Land Act 1994 - 780 hectares. Area of the reserve controlled by Council including Land leased by it to someone else - 11,645 hectares

Remuneration Packages One senior contract employee with a total remuneration package of: $206,031 Three senior contract employees with total remuneration packages of: $193,524, $180,592 and $172,172. Number of Invitations to Change Tenders Council did not invite any expressions of interest prior to inviting tenders under Section 177(3) of the Local Government (Finance, Plans and Reporting) Regulation 2010 during the reporting period. No invitations were offered to tenders under Section 177(7) of the Local Government (Finance, Plans and Reporting) Regulation 2010 to change their tenders during the reporting period.

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5 6

SA8 BUSINESS Systems and Technology CONT’D 2011/12

ACHIEVEMENTS

Technology Support To provide technical support to Council’s operations Achievements: • Successfully relocated IT infrastructure and services to new Corporate Office • Successfully completed upgrade to Microsoft Office 2007 • Completed SAN Storage Upgrade • Completed migration to CommVault Simpana data management software • Implemented CCTV System within town of Tara • Completed analogue to digital upgrade of self-help television services in town of Bell • Installed upgraded IPWAN links to Dalby Saleyards and Dalby Visitor Information Centre • Completed implementation of videoconferencing system Technical Support Statistics • Total Helpdesk tickets raised during year = 5,658 • System Uptime: • Authority: 99.24% • Powerbudget: 99.37% • TechOne ECM: 99.40% • Microsoft Exchange: 99.42% • Network: 99.53% • Phone System: 99.48%

Technical Support Statistics (2011/2012) annual average 99.60% 99.55% 99.50% System Update

99.45% 99.40% 99.35% 99.30% 99.25% 99.20% 99.15% 99.10% 99.05% Authority Powerbudget TechOne ECM

Microsoft Exchange Network Phone System

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5 7

APPENDICES • Councillor Expenses Reimbursement Policy • Debt Policy • Audited Financial Statements for Period 1 July 2011 to 30 June 2012

APPENDICES

Annual Report 1 JULY 2011 TO 30 JUNE 2012

PA G E 5 8

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Council Policy Council Policy POLICY TITLE:

COUNCILLOR EXPENSES REIMBURSEMENT POLICY COUNCIL POLICY

RESPONSIBLE DIVISION: POLICY TITLE: RESPONSIBLE SECTION:

Corporate Services COUNCILLOR EXPENSES REIMBURSEMENT POLICY OVERNANCE G COUNCIL POLICY

LINK TO CORPORATE PLAN: RESPONSIBLE DIVISION:

SA 7 - EMPOWERING Corporate Services OUR TEAM

RESPONSIBLE RESPONSIBLE OFFICER: SECTION:

Chief Executive Officer GOVERNANCE

AUTHORISED BY: LINK TO CORPORATE PLAN:

Ordinary Meeting of O Council - 3 June 2008 SA 7 - EMPOWERING UR TEAM

ISSUE DATE: OFFICER: RESPONSIBLE

3Chief JuneExecutive 2008 Officer

AMENDMENT AUTHORISED DATE/S: BY:

15 October 2008 of Council - 3 June 2008 Ordinary Meeting 1 April 2009 14 December 3 June 2008 2011

ISSUE DATE: DATE REVIEWDATE/S: DUE: AMENDMENT

May 2013 2008 15 October 1 April 2009 14 December 2011

DATE REVIEW DUE: May 2013 POLICY OBJECTIVES/PURPOSE: The purpose of this policy is to provide for the proper control of the reimbursement of reasonable expenses incurred, or to be incurred by Councillors in discharging their duties and responsibilities. POLICY OBJECTIVES/PURPOSE: The policy covers:purpose of this policy is to provide for the proper control of the reimbursement of reasonable expenses The the reimbursement to Councillors of legitimate expenses incurred; and incurred, or to be incurred by Councillors in discharging their duties and responsibilities.  the facilities to be provided to Councillors. The policy covers: the reimbursement to Councillors of legitimate expenses incurred; and ORGANISATIONAL SCOPE:  the facilities to be provided to Councillors. This policy applies to all Councillors of Western Downs Regional Council. ORGANISATIONAL SCOPE:for Councillor remuneration. Councillor remuneration is determined annually by This policy does not provide the Local Government Remuneration Tribunal. This policy applies to all Councillors of Western Downs Regional Council. POLICY: This policy does not provide for Councillor remuneration. Councillor remuneration is determined annually by the Local Government Remuneration Tribunal. STATEMENT OF PRINCIPLES This policy ensures that Council’s reimbursement of expenses incurred by Councillors and facilities provided POLICY: to Councillors is consistent with the local government principles and financial sustainability criteria as defined in the Local Government Act 2009. STATEMENT OF PRINCIPLES should not financially disadvantaged when carrying out by their roles andand should be fairly and Councillors This policy ensures thatbeCouncil’s reimbursement of expenses incurred Councillors facilities provided reasonably compensated in accordance statutory requirements community expectations. is consistent with the localwith government principles andand financial sustainability criteria as defined to Councillors in the Local Government Act 2009. Councillors should not be financially disadvantaged when carrying out their roles and should be fairly and reasonably compensated in accordance with statutory requirements and community expectations.

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Councillors should not receive a private benefit through their role as a Councillor and as such this policy provides for actual reimbursement of legitimate expenses and full disclosure through appropriate accountability requirements.

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In addition, the principles that underpin this policy are:a.

Public Interest

The use of public monies in the public interest by responsible budgeting and accounting. b.

Fair and Reasonable

Fair and reasonable allocation of Council resources in the form of allowances, facilities and other benefits, to enable all Councillors to conduct the duties of their office. c.

Transparent

Transparent decision-making by the public disclosure of policy and resolutions. d.

Accountability

Accountability for expenditure and use of facilities through full justification and acquittal. PAYMENT OF EXPENSES Expenses will be paid to Councillors in accordance with the relevant administrative processes as approved by the Chief Executive Officer and the limits as outlined in this policy. Wherever possible most expenses will be booked and paid for by Council in advance. Councillors making a claim for legitimate expenses incurred for Council business must submit the appropriate form detailing the relevant expense within one (1) month of the expense being incurred or invoiced. Expense Categories Council Business

Details Council will reimburse expenses incurred in undertaking Council business which includes:e. attendance at Council meetings, committee meetings, Councillor Information Sessions and approved workshops, strategic briefings and deputations; f. attendance at pre-arranged meetings with the Chief Executive Officer and/or General Managers; g. attendance at seminars and conferences where Councillors are required to either deliver a paper and/or attend as a delegate of Council as per resolution, h. attendance at public meetings and other community events such as presentation dinners and meetings with community groups where a formal invitation has been received inviting the Councillor in their official capacity to perform official duties or as an official Council representative as per resolution or with the prior approval of the Mayor; i. attendance at civic functions and ceremonies on behalf of the Mayor as delegated by the Mayor. Section 12(4)(i) of the Local Government Act 2009 states that the Mayor has the extra responsibility of representing the local government at ceremonial or civic functions. Section 12(5) of the Local Government Act 2009 states that a Councillor who is not the Mayor may perform the Mayorâ&#x20AC;&#x2122;s extra responsibilities only if the Mayor delegates the responsibility to the Councillor.

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Professional Development

Professional Development and Study Assistance Where a Councillor identifies the need to attend training or undertake study to improve skills relevant to their role as a Councillor the Councillor may request Council's approval to attend. Each Councillor is allocated a maximum of $5,000 per term towards professional development costs.

Travel Costs

Council will reimburse travel expenses deemed necessary to achieve the business of Council where:  a Councillor is an official representative of Council; and  the activity / event and travel have been endorsed by resolution of Council. Councillors are required to travel the most direct route, using the most economical and efficient mode of transport. Any fines incurred while travelling in Council owned vehicles or privately owned vehicles when attending to Council business, will be the responsibility of the Councillor incurring the fine. All Councillor travel approved by Council resolution will be booked and paid for by Council. Any travel transfer expenses associated with Councillors travelling for Council approved business will be reimbursed. Councillor's private vehicle usage will be reimbursed at the Australian Taxation Office cents per kilometre rate if the:  travel has been endorsed by Council resolution; and  claim for mileage is substantiated with log book details; and  total travel claim does not exceed the cost of the same travel using economy flights plus the cost of taxi transfers. Council will reimburse parking costs incurred by Councillors while attending to official Council business.

Accommodation

All Councillor accommodation for Council business will be booked and paid for by Council where possible. Council will pay for the most economical deal available where possible. The minimum standards for Councillor accommodation will be three star rating. Where particular accommodation is recommended by conference organisers, Council will take advantage of the package deal that is the most economical and convenient to the event. Councillor's travelling (within the Western Downs Regional Council area) to attend official Council business will be eligible to claim accommodation in accordance with the following criteria:  

where duration of meetings exceed six (6) hours and the travel time to the Councillor's principle place of residence is in excess of one (1) hour ; or where Councillors are required to attend official Council business over consecutive days; or where Councillors are required to attend official Council business which extends past 6.30 p.m.

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Meals

Council will reimburse costs of meals for a Councillor when:  the Councillor incurs the cost personally; and  the meal was not provided within the registration costs of the approved activity/event; and  a copy of a tax invoice is provided. Council reimbursement for meal expenses shall be interpreted as reasonable expenses incurred for the purchase of breakfast, lunch, dinner where these are not provided at the event and must be within the Australian Taxation Office Guidelines for Reasonable Allowances set for each income tax year.

Incidental Allowance

Council will pay an incidental daily allowance of $20 per day to Councillors when they are required to stay away from home overnight for official Council business.

Hospitality and Entertainment Expenses

The Mayor and Councillors may have occasion to incur hospitality expenses while conducting official Council business. Hospitality expenses incurred will typically take the form of meals and beverages. The maximum amount of hospitality expenses that may be reimbursed is $4000 / annum for the Mayor and $500 / annum for Councillors. A copy of a tax invoice is required for reimbursement. Hospitality and entertainment expenses shall be in accordance with Council’s Entertainment and Hospitality Expenditure Policy.

PROVISION OF FACILITIES All facilities provided to Councillors remain the property of Council and must be returned to Council when a Councillor's term expires. Councillors will be provided facilities as detailed in the table below and have been based on the principle that no private benefit is to be gained from the facilities provided. Facilities Categories Administrative Tools

Details Council will provide Councillors the following home office equipment in lieu of a permanent individual office to enable Councillors to carry out their role effectively:  Laptop  Printer  Fax  Stationery A meeting room will be provided at each Customer Service Centre for Councillors, Chief Executive Officer and General Managers to utilise when working in the area. Meeting rooms will be required to be booked in advance with the relevant Community Services Manager.

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Internet Access

Councillors will be required to have Internet access to receive Council meeting agendas and communicate via email. Councillors may choose one of the following options in relation to internet access:  Option 1 - Council connected Internet Internet access provided by a service in Council's name and paid for by Council.  Option 2 - Councillor connected Internet Internet access provided by a service in the Councillor's name and paid for fully by Council.

Mobile Telephone

Council will provide a mobile telephone to Councillors for official Council business. Councillors may choose one of the following options in relation to the provision of a mobile telephone:  Option 1 - Council connected Mobile Phone Council provides the mobile phone and pays for all associated costs. Any personal calls made must be reimbursed to Council.  Option 2 - Councillor personal phone Councillor utilises a personally owned mobile phone and pays all associated costs. Council will reimburse 50% of the costs incurred.

Home Telephone

Council will reimburse home telephone line rental, up to a maximum of $44.00 per month. Council will reimburse calls made in relation to official Council business.

Maintenance costs of Council owned equipment

Council will be responsible for the ongoing maintenance and reasonable wear and tear costs of Council owned equipment that is supplied to Councillors for official business use.

Corporate Uniform

Council will provide Councillors with the following corporate equipment:  Name badge  Necessary safety equipment for use on official business e.g. safety helmet/boots  Corporate Jacket  Corporate shirts  Corporate trouser/ lower garment  Corporate tie/scarf  Corporate Polo Shirt  Business Cards

Vehicles

Due to the vast area which Western Downs Regional Council covers (38,039sq kms) and to encourage Councillors to participate in all Council activities/events held throughout the region, Council has deemed it necessary to provide a vehicle to Councillors for official Council business. Council authorises the private use of Council vehicles if a Councillor has entered into a lease back contract with Council, which defines the terms of the lease agreement. The Chief Executive Officer is responsible for ensuring the relevant documentation has been completed. The Mayor will be provided with an appropriate sedan or 4WD luxury vehicle. Councillors will be provided with an appropriate sedan or 4WD base model vehicle. The set leaseback fee will be deducted automatically from the fortnightly Councillor remuneration payments. The leaseback fee will be set by Council resolution and will be reviewed annually.

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Fuel Costs

All fuel used in a Council owned vehicle on official Council business will be provided or paid for by Council as per lease agreement.

Insurance Cover

Council will insure Councillors in the event of injury sustained while discharging their duties. Council will pay the excess for injury claims made by a Councillor resulting from conducting official Council business.

REPORTING The Local Government (Operations) Regulation 2010 legislates that Council must maintain a policy providing for payment of reasonable expenses incurred, or to be incurred, by Councillors for discharging their duties and responsibilities as Councillors and provision of facilities to the Councillors for that purpose. The Local Government (Finance, Plans and Reporting) Regulation 2010 legislates that Council must in its Annual Report detail the expenses incurred by, and the facilities provided to each Councillor during the year under the local government’s expenses reimbursement policy and include a copy of the local government’s expenses reimbursement policy. RELATED LEGISLATION: Local Government Act 2009 Local Government (Operations) Regulation 2010 Local Government (Finance, Plans and Reporting) Regulation 2010 RELATED DOCUMENTS (LOCAL LAWS, POLICIES, DELEGATIONS ETC): Entertainment and Hospitality Expenditure Policy Councillor Vehicle Lease Agreement – Private Use of Vehicle ATTACHMENTS: Nil DEFINITIONS: Entertainment and hospitality’ – as defined in section 139 of the Local Government (Finance, Plans and Reporting) Regulation 2010:“(1) The local government may spend money on entertainment or hospitality only— (a) if the entertainment or hospitality is in the public interest; and (b) in a way that is consistent with the local government’s entertainment and hospitality policy. (2) Entertainment or hospitality includes, for example— (a) entertaining members of the public in order to promote a local government project; and (b) providing food or beverages— (i) to a person who is visiting the local government in an official capacity; or (ii) for a conference, course, meeting, seminar, workshop or another forum that is held by the local government for its councillors, local government employees or other persons; and (c) paying for a councillor or local government employee to attend a function as part of the councillor’s or employee’s official duties or obligations as a councillor or local government employee.”

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REVIEW TRIGGER: List of factors which require the policy to be reviewed eg: Periodic review – annually in line with budget or post-election  Change in legislation affecting this policy  Change in community priorities or circumstances relating to this policy

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Council Policy

Council Policy POLICY TITLE:

DEBT POLICY

POLICY NO:

FICT C/2.1.1

DIRECTORATE: POLICY TITLE:

Finance and ICT COUNCILLOR EXPENSES REIMBURSEMENT POLICY

LINK TO CORPORATE PLAN:

SA 8 - BUSINESS SYSTEMS AND TECHNOLOGY

RESPONSIBLE DIVISION: RESPONSIBLE OFFICER:

Corporate Chief ExecutiveServices Officer

RESPONSIBLE AUTHORISED BY:SECTION:

GOVERNANCE Special Meeting of Council – 8 July 2011

LINK TO CORPORATE PLAN: ISSUE DATE:

SA2011 7 - EMPOWERING OUR TEAM 8 July

AMENDMENT DATE/S: RESPONSIBLE OFFICER:

8 July 2011 Chief Executive Officer

DATE REVIEW DUE: AUTHORISED BY:

JuneOrdinary 2012 Meeting of Council - 3 June 2008

COUNCIL POLICY

ISSUE DATE:

3 June 2008

AMENDMENT DATE/S:

15 October 2008 1 April 2009 14 December 2011

POLICY OBJECTIVES/PURPOSE:

The purpose of this policy is to ensure the sound management of Council’s existing and future debt.

DATE REVIEW DUE: ORGANISATIONAL SCOPE:

May 2013

Section 133 of the Local Government (Finance, Plans and Reporting) Regulation 2010 states that a local government must develop a policy about its Debts. Furthermore, Council’s borrowing activities are governed by the Statutory Bodies Financial Arrangements Act 1982 and Section 104 of the Local Government Act 2009.

POLICY OBJECTIVES/PURPOSE:

POLICY:

The purpose of this policy is to provide for the proper control of the reimbursement of reasonable expenses incurred, or to be incurred by Councillors in discharging their duties and responsibilities.

This borrowing policy applies for the 2011/2012 financial year and the next nine financial years. This policy will be prepared annually and amended as and when required to meet the prevailing circumstances of Council.

The policy covers: the reimbursement to Councillors of legitimate expenses incurred; and Borrowing Purposes  the facilities to be provided to Councillors. Borrowing will only be used to finance capital works that will provide services now and into the future. No borrowings will be used to finance recurrent expenditure and the operational activities of the Council.

When seeking funding for capital works, Council will, wherever possible, use its existing cash reserves. The use of any ORGANISATIONAL SCOPE: existing cash reserves will be subject to maintaining all relevant financial ratios and measures within adopted targets. A debt service ratio of 5% fortoinfrastructure will of be Western maintained withinRegional Council's Council. budgets. This policy applies all Councillors Downs Repayments and Repayment This policy does not provideAbility for Councillor remuneration. Councillor remuneration is determined annually by Borrowings will be undertaken for capital works only where the interest and debt principal repayments can be serviced and the Local Government Remuneration Tribunal. relevant financial ratios and measures are maintained within approved targets. Council will discharge debts in the shortest possible time subject to overall budgetary constraints.

POLICY:

New loans will be taken up only if the subsequent increase in debt servicing payments allows the total debt-servicing ratio to STATEMENT OF PRINCIPLES remain within corporate targets.

This Term policy ensures that Council’s reimbursement of expenses incurred by Councillors and facilities provided Debt The debt term shall not exceedwith the finite life ofgovernment the related asset. is consistent the local principles and financial sustainability criteria as defined to Councillors in the Local Government Act 2009.

Councillors should not be financially disadvantaged when carrying out their roles and should be fairly and reasonably compensated in accordance with statutory requirements and community expectations.

Service 1300 * The debt term associated with the Dalby Depot redevelopmentCustomer will be decreased on728 the500 sale of the Depot on Irvingdale Rd, Dalby and the sale of the industrial land developed in associationwww.wdrc.qld.gov.au with this redevelopment. * The debt term associated with the Dalby Depot redevelopment will be decreased on the sale of the Depot on Irvingdale Rd, info@wdrc.qld.gov.au andterm the sale of the industrial land developed association with this redevelopment. ** Dalby The debt associated with the Residential Land in Development will be decreased as the proceeds from the land sale are realized. ** The debt term associated with the Residential Land Development will be decreased as the proceeds from the land sale are realized. Sources Borrowing Council shall raise all external borrowing at the most competitive rates available and from sources as defined by legislation. Borrowing Sources Council shall raise all external borrowing at the most competitive rates available and from sources as defined by legislation. Proposed Borrowings Based on Council’s most recent review of its capital funding requirements, the following borrowings are identified as being Proposed Borrowings required for the current financial year and the next nine financial years. Based on Council’s most recent review of its capital funding requirements, the following borrowings are identified as being required for the current financial year and the next nine financial years. SCHEDULE OF BORROWINGS Year 2011/2012 Year

SCHEDULE OF BORROWINGS Purpose

Amount

Dalby Police Construction Purposeof Amount Citizens Youth extensions and 11110.802.200.0001 $345,000 2011/2012 Club Dalby Police renovations Construction of Citizens Youth Establishment extensions and 11110.802.200.0001 $345,000 2011/2012 Bell Community of Club renovationscentre in 11110.0802.200.0030 Centre community $1,300,000 2011/2012 Bell CommunitytheEstablishment of town of Bell CentreCultural Relocation communityof centre $1,300,000 2011/2012 Dalby Dalby in 11110.0802.200.0030 the town of Bell Centre Library to 107 Drayton 11110.802.200.0039 $1,600,000 2011/2012 Dalby Cultural Street, Relocation Dalby of Dalby Centre Library to 107 11110.802.200.0039 $1,600,000 2011/2012 Dalby Depot Construction of Drayton new 12422.804.200.0012 $127,000 Street, Dalby workshop 2011/2012 Dalby Dalby Depot Construction of on new 2011/2012 Depot Reconfigure Lot 11 12422.804.200.0012 $127,000 workshop D9140 Healy Street 12422.804.200.0029 $200,000 2011/2012 Dalby Depot Reconfigure Lot 11 on Dalby for Industrial Land D9140 Healy Street 12422.804.200.0029 $200,000 Dalby Patrick for Industrial 2011/2012 Bridge Replace Street 13160.803.200.0001 $400,000 Land Dalby Replacement Bridge, 2011/2012 Tara Bridge Water Investigate Replace Patrick Street 2011/2012 design and 13160.803.200.0001 $400,000 Replacement construct Bridge, Dalby Plant an RO plant 14135.0802.200.0005 $360,000 the Taradesign water 2011/2012 Augmentation Tara WaterforInvestigate and supply Plant construct an RO plant 14135.0802.200.0005 $360,000 2011/2012 Dalby Water Planning Augmentation for the Tara and water Plant construction of RO supply 14135.0802.200.0016 $350,000 concentration 2011/2012 Augmentation Dalby Waterplant Planning and stage Plant construction of RO 14135.0802.200.0016 $350,000 2011/2012 Land Land Augmentation Residential plant concentration Development – Development (Lot 5 on stage 16110.0802.200.0002 $400,000 RPResidential 125663 – 15 2011/2012 Jandowae Land Land Development – Allotments) Development (Lot 5 on 16110.0802.200.0002 $400,000 2011/2012 Land Industrial Jandowae RP 125663 Land – 15 Development – Development – Allotments) 16110.0802.200.0009 $2,000,000 Carmichael 7 2011/2012 Chinchilla Land Industrial Street –Land Development – Allotments Development – 2011/2012 Land Residential Land– 7 16110.0802.200.0009 $2,000,000 Chinchilla Carmichael Street Development – Development – 16110.0802.200.0012 $330,000 Allotments Purchase from DERM 2011/2012 Wandoan Land Residential Land 2011/2012 Dalby 1 of OH & S – 16110.0802.200.0012 Development – Stage Development $330,000 $700,000 Saleyards Upgrades Wandoan Purchase from DERM 16115.0801.200.0006 2011/2012 Redevelopment Dalby Stage 1 of OH & S 2011/2012 Vehicle Construction Saleyards $700,000 Upgrades of vehicle 16115.0801.200.0006 Washdown Redevelopment washdown facility at 42211.802.200.0009 $450,000 – Chinchilla to service 2011/2012 Facility Vehicle Construction of vehicle Chinchilla thewashdown energy and rural at Washdown facility 42211.802.200.0009 $450,000 Facility – industries Chinchilla to service of house facility 2011/2012 Waste Transfer Front Chinchilla the energy and rural Station – with weighbridge for industries 43311.0802.200.0014 $830,000 2011/2012 Chinchilla Waste Transfer DERM house levy facility Front ofwaste Station – audit with weighbridge for 43311.0802.200.0014 $830,000 Chinchilla DERM waste levy audit

Term (Years) Term (Years) 20

20 20

20 15*

15* 15* 20 20

15* 20 20

20 10**

10** 10**

10** 20 20 10

10 15

Term Year Purpose Amount Term (Years) Year Purpose Amount (Years) 2011/2012 Waste Transfer Front of house facility 43311.0802.200.0016 $300,000 15 2011/2012 Waste Transfer Station – Miles Front of house facility 43311.0802.200.0016 $300,000 15 Station – Miles Total 2011/2012 $9,692,000 Total 2011/2012 $9,692,000 2012/2013 Tara Water Investigate design and 2012/2013 Tara Water Investigate design and Plant construct an RO plant Plant construct an RO plant 14135.0802.200.0005 $360,000 20 $360,000 20 Augmentation for the Tara water14135.0802.200.0005 Augmentation for the Tara water supply supply 2012/2013 Dalby Water Planning 2012/2013 Dalby Water Planning andand Plant construction of Plant construction of RORO 14135.0802.200.0016 $150,000 20 20 $150,000 Augmentation plant concentration concentration14135.0802.200.0016 Augmentation plant stage stage 2012/2013 Land Residential Land 2012/2013 Land Residential Land Development – Development (Lot 5 on Development – Development (Lot 5 on 16110.0802.200.0002 $400,000 $400,000 10** 10** Jandowae 125663– –15 1516110.0802.200.0002 Jandowae RPRP 125663 Allotments) Allotments) 2012/2013 Vehicle Construction of vehicle 2012/2013 Vehicle Construction of vehicle Washdown washdownfacility facility Washdown washdown at at 42211.802.200.0002 $880,000 $880,000 10 10 Facility – Dalby Dalby Dalby service Facility – Dalby to to service the the42211.802.200.0002 energy andand rural rural energy industries industries 2012/2013 Transfer of of house facility 2012/2013 Waste Waste TransferFront house facility Front Station – –with for for Station withweighbridge weighbridge 43311.0802.200.0014 43311.0802.200.0014$1,670,000 $1,670,000 15 15 Chinchilla DERM Chinchilla DERM waste waste levylevy audit audit Total 2012/2013 Total 2012/2013 $3,460,000 $3,460,000 2013/2014 Chinchilla Construct a 2013/2014 Chinchilla Construct a Sporting multipurpose Sporting multipurposesporting sporting42211.802.200.0002 42211.802.200.0002 $3,000,000 $3,000,000 20 20 Facility facility in Chinchilla Facility facility in Chinchilla Total 2013/2014 $3,000,000 Total 2013/2014 $3,000,000 Total 2014/2015 $0 $0 Total 2014/2015 Total 2015/2016 $0 $0 Total 2015/2016 Total 2016/2017 $0 $0 Total 2016/2017 Total 2017/2018 $0 Total 2017/2018 $0 Total 2018/2019 $0 Total 2018/2019 $0 Total 2019/2020 $0 Total 2019/2020 $0 Council will review the requirements for debt throughout the 2010/11 financial year to ensure that loans are drawn down at the Council will reviewtime. the requirements for debt throughout the 2010/11 financial year to ensure that loans are drawn down at the most advantageous most advantageous time. RELATED DOCUMENTS (LOCAL LAWS, POLICIES, DELEGATIONS ETC): RELATED DOCUMENTS (LOCAL LAWS, POLICIES, DELEGATIONS ETC): Authority in respect of this policy is delegated to the Chief Executive Officer. Authority in respect of this policy is delegated to the Chief Executive Officer. ATTACHMENTS: ATTACHMENTS: Nil Nil DEFINITIONS: DEFINITIONS: Nil Nil REVIEW TRIGGER: REVIEW TRIGGER:  Periodic review - annual in line with budget  Change in legislation affecting thiswith policy Periodic review - annual in line budget  Change in legislation affecting this policy

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Financial Statements For period 1 July 2011 to 30 June 2012

WESTERN DOWNS REGIONAL COUNCIL Financial Statements For the year ended 30 June 2012

Table of contents Note 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

Analysis of results by function

Revenue analysis

Grants, subsidies, contributions and donations

Capital income

Employee benefits

Materials and services

Finance costs

Depreciation and amortisation

Capital expenses

Loss on write-off of non-current assets

Loss on impairments

Cash assets and cash equivalents

Trade and other receivables

Inventories

Land purchased for development and sale

Property, plant and equipment

Intangible assets

Trade and other payables

Provisions

Borrowings

Asset revaluation surplus

Retained surplus

Reserves

Commitments for expenditure

Events after balance date

Contingent liabilities

Superannuation

Trust funds

Reconciliation of net result for the year to net cash inflow (outflow) from operating activities

Page 1

WESTERN DOWNS REGIONAL COUNCIL Financial Statements For the year ended 30 June 2012

Table of Contents - continued 31

Financial Instruments

Controlled Entities

National competition policy Management Certificate Independent Audit Report

Page 2

WESTERN DOWNS REGIONAL COUNCIL Statement of Comprehensive Income For the year ended 30 June 2012 Note

2012

2011

Income Revenue Recurrent revenue Rates and levies

3 (a)

49,485,739

36,717,995

Sale of goods and major services

3 (b)

24,528,324

24,524,368

Fees and charges

3 (c)

7,712,358

4,155,650

Rental and levies

3 (d)

1,624,984

1,628,946

Interest received

3 (e)

2,302,422

2,009,749

Other recurrent income

3 (f)

112,268

103,751

276,608

248,274 35,883,406

Reimbersement of expenditure Grants, subsidies, contributions and donations

4 (i)

50,044,860

Proceeds from sales of land developed for resale

5 (i)

887,609

1,833,638

136,975,172

107,105,777

23,261,719

14,785,759

Total recurrent revenue Capital revenue Grants, subsidies, contributions and donations

4 (ii)

Total revenue Capital income

5 (ii)

23,261,719

14,785,759

160,236,891

121,891,536

703,624

305,393

160,940,515

122,196,929

Employee benefits

(41,787,400)

(38,660,353)

Materials and services

(43,059,178)

(55,421,147)

5 (i)

(1,326,892)

(936,181)

Finance costs

(1,777,810)

(940,261)

Depreciation and amortisation

(31,760,211)

(48,176,018)

(119,711,491)

(144,133,960)

Total income

Expenses Recurrent expenses

Current cost of developed land sold

Total recurrent expenses Capital expenses 10

(7,957,339)

(6,095,652)

Total expenses

Other capital expenses

(127,668,830)

(150,229,612)

Net result (deficiency) attributable to Council

33,271,685

(28,032,683)

22 (i)

(229,904,685)

131,947,353

(229,904,685)

131,947,353

(196,633,000)

103,914,670

Other comprehensive income Increase / (decrease) in asset revaluation surplus Total other comprehensive income Total comprehensive income for the period

The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies.

Page 3

WESTERN DOWNS REGIONAL COUNCIL Statement of Financial Position As at 30 June 2012 Note

2012

2011

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

60,954,186

30,570,025

14 (a)

20,835,497

21,005,981

10,745,096

10,912,245

92,534,779

62,488,251

Non-current Assets Trade and other receivables

14 (b)

203,287

250,469

Property, plant and equipment

17 (a)

1,112,304,209

1,326,335,683

Intangible assets

TOTAL ASSETS

1,086,211

734,226

1,113,593,707

1,327,320,378

1,206,128,486

1,389,808,629

11,557,748

Current Liabilities Trade and other payables

11,410,081

Provisions

972,390

877,317

Borrowings

1,420,354

1,014,780

13,802,825

13,449,845 1,838,007

Non-current Liabilities Trade and other payables

2,292,800

Provisions

12,334,845

8,419,292

Borrowings

29,723,333

21,378,302

TOTAL LIABILITIES NET COMMUNITY ASSETS

44,350,978

31,635,601

58,153,803

45,085,446

1,147,974,683

1,344,723,183

Community Equity Asset revaluation surplus

531,540,672

761,445,357

Retained surplus (deficiency)

557,464,432

555,911,722

Reserves

58,969,579

27,366,104

1,147,974,683

1,344,723,183

TOTAL COMMUNITY EQUITY

The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies.

Page 4

Note

1,147,974,683

(196,633,000)

(229,904,685)

33,271,685

(115,500)

1,344,723,183

103,914,670

(101,343)

132,048,696

(28,032,683)

1,240,808,513

$ 1,344,723,183

2011

2012

Total

557,464,432

(31,603,475)

(22,308,022)

(9,295,453)

33,271,685

(115,500)

555,911,722

2012

Note 23

(deficit)

Page 5

555,911,722

2,863,630

(28,032,683)

581,080,775

2011

Retained surplus

The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies.

Balance at end of period

Net transfers in the period

and capital reserves

Transfers (to) from retained earnings

and recurrent reserves

Transfers (to) from retained earnings

Total comprehensive income for period

Property, plant & equipment

Impairments:

Property, plant & equipment

Revaluations:

Other comprehensive income for the period

Net result

Minor error correction

Balance at beginning of period

Statement of Changes in Equity For the year ended 30 June 2012

WESTERN DOWNS REGIONAL COUNCIL

58,969,579

31,603,475

22,308,022

9,295,453

27,366,104

2012

Note 24

Reserves

27,366,104

(2,863,630)

30,229,734

2011

531,540,672

(229,904,685)

761,445,357

2012

Note 22

surplus

761,445,357

131,947,353

(101,343)

132,048,696

629,498,004

2011

Asset revaluation

WESTERN DOWNS REGIONAL COUNCIL Statement of Cash Flows For the year ended 30 June 2012 Note

2012

2011

Cash flows from operating activities : Receipts Receipts from customers Interest received Proceeds from sales of land developed for resale

143,111,445

105,309,815

2,302,422

2,009,749

887,609

1,833,638

Payments Payments to suppliers

(94,939,772)

Interest expense

(1,366,416)

Net cash inflow (outflow) from operating activities

49,995,288

(99,282,463) (844,822) 9,025,917

Cash flows from investing activities: Grants, subsidies, contributions and donations Payments for property, plant and equipment Payments for intangible assets

23,261,719

11,288,183

(52,913,474)

(34,591,258)

(607,946)

Proceeds from sale of property plant and equipment

Net movement in loans and advances

1,797,378 100,591

Net cash inflow (outflow) from investing activities

(242,743) 1,174,913 262,881

(28,361,732)

(22,108,024)

9,692,000

9,669,955

Cash flows from financing activities: Proceeds from borrowings

Repayment of borrowings

Net cash inflow (outflow) from financing activities

(941,395) 8,750,605

(670,474) 8,999,481

Net increase (decrease) in cash and cash equivalents held

30,384,161

(4,082,626)

Cash and cash equivalents at beginning of the financial year Cash and cash equivalents at end of the financial year

30,570,025 60,954,186

34,652,651 30,570,025

The above statement should be read in conjunction with the accompanying notes and Significant Accounting Policies.

Page 6

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 1

Significant accounting policies

1. 1

Basis of preparation These general purpose financial statements are for the period 1 July 2011 to 30 June 2012 and have been prepared in compliance with the requirements of the Local Government Act 2009 and the Local Government (Finance, Plans and Reporting) Regulation 2010 . Consequently, these financial statements have been prepared in accordance with all Australian Accounting Standards, Australian Accounting Interpretations and other authoritative pronouncements issued by the Australian Accounting Standards Board. These financial statements have been prepared under the historical cost convention except for the revaluation of certain non-current assets.

1. 2

Statement of compliance These general purpose financial statements comply with all accounting standards and interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to Council's operations and effective for the current reporting period. Because the Council is a not-for-profit entity and the Australian Accounting Standards include requirements for not-for-profit entities which are inconsistent with International Financial Reporting Standards (IFRS), to the extent these inconsistencies are applied, these financial statements do not comply with IFRS. The main impacts are the offsetting of revaluation and impairment gains and losses within a class of assets, and the timing of the recognition of non-reciprocal grant revenue.

1. 3

Constitution The Western Downs Regional Council is constituted under the Queensland Local Government Act 2009 and is domiciled in Australia.

1. 4

Date of authorisation The financial statements are authorised for issue on the date it was submitted to the Auditors for final signature. This is the date the management certificate is signed.

1. 5

Currency The Council uses the Australian dollar as its functional currency and its presentation currency.

1. 6

Adoption of new and revised Accounting Standards In the current year, Council adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current reporting period. The adoption of the new and revised Standards and Interpretations has not resulted in any material changes to Council's accounting policies.

Page 7

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.

Effective for annual report periods beginning on or after:

AASB 9 Financial Instruments (December 2009) AASB 10 Consolidated Financial Statements AASB 11 Joint Arrangements AASB 12 Disclosure of interests in other entities AASB 13 Fair Value Measurement AASB 119 Employee benefits (completely replaces existing standard) AASB 127 Separate Financial Statements (replaces the existing standard together with AASB 10) AASB 128 Investments in Associates and Joint Ventures (replaces the existing standard) AASB 1053 Application of Tiers of Australian Accounting Standards 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (December 2009) AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements AASB 2011-12 Amendments to Australian Accounting Standards arising from Interpretation 20 (AASB 1) AASB 2011-13 Amendments to Australian Accounting Standard - Improvements to AASB 1049

1 January 2013

1 January 2013 1 July 2013 1 January 2013 1 July 2013

1 January 2013 1 July 2013 1 July 2012 1 July 2013 1 July 2013 1 January 2013 1 January 2013 1 July 2012 1 January 2013 1 July 2013 1 January 2013 1 July 2012

AASB 9 Financial Instruments AASB 9 , which replaces AASB 139 Financial Instruments: Recognition and Measurement , is effective for reporting periods beginning on or after 1 January 2013 and must be applied retrospectively. The main impact of AASB 9 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 AASB 139 will be replaced with two measurement categories: fair value and amortised cost and financial assets will only be able to be measured at amortised cost where very specific conditions are met.

Page 8

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 Consolidation Standards The AASB issued a suite of six related accounting standards which are effective for annual reporting periods beginning on or after 1 January 2013. These standards: · AASB 10 Consolidated Financial Statements · AASB 11 Joint Arrangements · AASB 12 Disclosure of Interests in Other Entities · AASB 127 Separate Financial Statements · AASB 128 Investments in Associates and Joint Ventures · AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards aim to improve the accounting requirements for consolidated financial statements, joint arrangements and off balance sheet vehicles. The AASB is still considering whether these standards need to be modified for application by not-for-profit entities. Consequently, not-for-profit entities are not currently permitted to apply these standards prior to the mandatory application date. As Council is a not-forprofit entity, no assessment has been made of the potential impact. An assessment AASB 13 Fair Value Measurement (AASB 13) AASB 13 applies to reporting periods beginning on or after 1 January 2013. The standard sets out a new definition of "fair value", as well as new principles to be applied when determining the fair value of assets and liabilities. The new requirements will apply to all of the Council's assets and liabilities (excluding leases) that are measured and/or disclosed at fair value or another measurement based on fair value. The potential impacts of AASB 13 relate to the fair value measurement methodologies used, and financial statement disclosures made in respect of, such assets and liabilities. The Western Downs Regional Council has commenced reviewing its fair value methodologies (including instructions to valuers, data used and assumptions made) for all items of property, plant and equipment measured at fair value to determine whether those methodologies comply with AASB 13 . To the extent that the methodologies don't comply, changes will be necessary. While the Council is yet to complete this review, no significant changes are anticipated, based on the fair value methodologies presently used. Therefore, and at this stage, no consequential material impacts are expected for the Western Downs Regional Council's property, plant and equipment in 2013/14. AASB 13 will require an increased amount of information to be disclosed in relation to fair value measurements for both assets and liabilities. To the extent that any fair value measurement for an asset or liability uses data that is not "observable" outside the Council, the amount of information to be disclosed will be relatively greater. Amendments to AASB 101 Presentation of Financial Statements The AASB 101 amendments require Council to group items presented in other comprehensive income into those that, in accordance with other standards: (a) will not be reclassified subsequently to profit or loss and (b) will be reclassified subsequently to profit or loss when specific conditions are met. It is applicable for annual periods beginning on or after 1 July 2012. The Council’s management expects this will change the current presentation of items in other comprehensive income; however, it will not affect the measurement or recognition of such items.

Page 9

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 Amendments to AASB 119 Employee Benefits A revised version of AASB 119 Employee Benefits applies from reporting periods beginning on or after 1 January 2013. The revised AASB 119 is generally to be applied retrospectively. The revised standard includes changed criteria for accounting for employee benefits as "short-term employee benefits". Had Western Downs Regional Council applied the revised standard this year annual leave currently classified as a 'short-term benefit' would have been reclassified as a 'long-term benefit'. However, no reported amounts would have been amended as the Council already discounts the annual leave liability to present value in respect of amounts not expected to be settled within 12 months (refer Note 1.19). The concept of "termination benefits" is clarified and the recognition criteria for liabilities for termination benefits will be different. If termination benefits meet the timeframe criterion for "shortterm employee benefits", they will be measured according to the AASB 119 requirements for "shortterm employee benefits". Otherwise, termination benefits will need to be measured according to the AASB 119 requirements for "other long-term employee benefits". Under the revised standard, the recognition and measurement of employer obligations for "other long-term employee benefits" will need to be accounted for according to most of the requirements for defined benefit plans.

The revised AASB 119 also includes changed requirements for the measurement of employer liabilities/assets arising from defined benefit plans, and the measurement and presentation of changes in such liabilities/assets. Western Downs Regional Council contributes to the Local Government Superannuation Scheme (Qld) as disclosed in note 28. The revised standard will require Western Downs Regional Council to make additional disclosures regarding the Defined Benefits Fund element of the scheme. The reported results and position of the Council will not change on adoption of the other pronouncements as they do not result in any changes to the Councilâ&#x20AC;&#x2122;s existing accounting policies. Adoption will, however, result in changes to information currently disclosed in the financial statements. The Council does not intend to adopt any of these pronouncements before their effective dates. 1. 7

Critical accounting judgements and key sources of estimation uncertainty In the application of Council's accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and ongoing assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

Council has made no judgements or assessments which may cause a material adjustment to the carrying amount of assets and liabilities within the next reporting period. Judgements, estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes: Valuation and depreciation of property, plant and equipment - note 1.14 and note 17 (b) Impairment of property, plant and equipment - note 1.16, note 12 and note 17 (a) Provisions - note 1.21 and note 20 Contingencies - note 27

Page 10

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 1. 8

Revenue Rates, levies, grants and other revenue are recognised as revenue on receipt of funds or earlier upon unconditional entitlement to the funds.

1. 8

(a)

Rates and levies Where rate monies are received prior to the commencement of the rating/levying period, the amount is recognised as revenue in the period in which they are received, otherwise rates are recognised at the commencement of rating period.

1. 8

(b)

Grants and subsidies Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue in the year in which Council obtains control over them. An equivalent amount is transferred from retained earnings to the relevant reserve until the funds are expended. Unspent non-reciprocal capital grants are placed in the Constrained grants, subsidies and contributions reserve. Council spends all recurrent grants in the year received and therefore Council has not established a reserve for this purpose. Where grants are received that are reciprocal in nature, revenue is recognised as the various performance obligations under the funding agreement are fulfilled. Council does not currently have any reciprocal grants.

1. 8

(c)

Non-cash contributions Non-cash contributions with a value in excess of the asset recognition thresholds, are recognised as revenue and as non-current assets. Non-cash contributions below the thresholds are recorded as revenue and expenses. Physical assets contributed to Council by developers in the form of road works, stormwater, water and wastewater infrastructure and park equipment are recognised as revenue when the development becomes "on maintenance", i.e. the Council obtains control of the assets and becomes liable for any ongoing maintenance, and there is sufficient data in the form of drawings and plans to determine the approximate specifications and values of such assets. All non-cash contributions are recognised at the fair value of the contribution received on the date of acquisition.

1. 8

(d)

Cash contributions Council receives cash contributions from property developers to construct assets, such as roads and footpaths, and to connect new property developments to water and sewerage networks in the local government area. Where agreements between Council and the developers relating to these contributions are determined to fall within the scope of AASB Interpretation 18 Transfers of Assets from Customers , these contributions are recognised as revenue when the related service obligations are fulfilled. Developers may also make cash contributions towards the cost of constructing existing and proposed water supply and sewerage headworks in accordance with Council's planning scheme policies (headworks include pumping stations, treatment works, mains, sewers and water pollution control works). Cash contributions in relation to water supply and sewerage headworks are not within the scope of AASB Interpretation 18 because there is no performance obligation associated with these contributions. Consequently, these cash contributions are recognised as income when received. AASB Interpretation 18 has been applied prospectively from 1 July 2009. All cash contributions were recognised as revenue on receipt prior to 1 July 2009.

1. 8

(e)

Rental income Rental revenue is recognised as income on a periodic straight line basis over the lease term.

1. 8

(f)

Interest Interest received from term deposits is accrued over the term of the investment.

Page 11

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 1. 8

(g)

Sales revenue Revenue from the sale of natural gas and quarry items is recognised upon transfer of ownership to the customer. Revenue is measured at the fair value of the consideration received or receivable. Revenue for saleyard services and contract work is recognised in the accounting peirod in which the services are rendered.

1. 8

1. 9

(h)

Fees and Charges Fees and charges are recognised upon unconditional entitlement to the funds. Generally this is upon lodgement of the relevant applications or documents, issuing of the infringement notice or when the service is provided. Financial assets and liabilities Council recognises a financial asset or a financial liability in its Statement of Financial Position when, and only when, Council becomes a party to the contractual provisions of the instrument. Western Downs Regional Council has categorised and measured the financial assets and financial liabilities held at balance date as follows: Financial assets Cash and cash equivalents (note 1.10) Receivables - measured at amortised cost less any impairment (note 1.11) Financial liabilities Payables - measured at amortised cost (note 1.18) Borrowings - measured at amortised cost (note 1.20) Financial assets and financial liabilities are presented separately from each other and offsetting has not been applied. The fair value of financial instruments is determined as follows: The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximate their carrying amounts and are not disclosed separately. The fair value of borrowings, as disclosed in note 21 to the financial statements, is determined by reference to published price quotations in an active market and/or by reference to pricing models and valuation techniques. It reflects the value of the debt if the Council repaid it in full at balance date. As it is the intention of the Council to hold its borrowings for their full term, no adjustment provision is made in these financial statements. The fair value of trade receivables approximates the amortised cost less any impairment. The fair value of payables approximates the amortised cost. Western Downs Regional Council does not recognise financial assets or financial liabilities at fair value in the Statement of Financial Position. All other disclosures relating to the measurement and financial risk management of financial instruments are included in note 31.

1. 10

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.

Page 12

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 1. 11

Receivables Trade receivables are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase price / contract price. Settlement of these amounts is required within 30 days from invoice date. The collectability of receivables is assessed periodically and if there is objective evidence that Council will not be able to collect all amounts due, the carrying amount is reduced for impairment. The loss is recognised in finance costs. The amount of the impairment is the difference between the assetâ&#x20AC;&#x2122;s carrying amount and the present value of the estimated cash flows discounted at the effective interest rate. All known bad debts were written-off at 30 June. Subsequent recoveries of amounts previously written off in the same period are recognised as finance costs in the Statement of Comprehensive Income. If an amount is recovered in a subsequent period it is recognised as revenue. 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. Loans and advances are recognised in the same way as other receivables. Terms are usually a maximum of five years with interest charged at negotiated rates. Security is not normally obtained.

1. 12

Inventories Stores and raw materials held for resale are valued at the lower of cost and net realisable value and include, where applicable, direct material, direct labour and an appropriate portion of variable and fixed overheads. Costs are assigned on the basis of weighted average cost. Inventories held for distribution (internal consumption) are: â&#x20AC;˘ goods to be supplied at no, or nominal, charge, and â&#x20AC;˘ goods to be used for the provision of services at no, or nominal, charge. Inventory for distribution is valued at cost, adjusted when applicable for any loss of service potential. Land acquired by Council with the intention of reselling it (with or without further development) is classified as inventory. This land is valued at the lower of cost or net realisable value. As an inventory item, this land held for resale is treated as a current asset. Proceeds from the sale of this land will be recognised as sales revenue on the signing of a valid unconditional contract of sale. Profit arising upon sale of land is recognised in the Statement of Comprehensive Income on the signing of a valid unconditional contract of sale.

1. 13

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

1. 14

Property, plant and equipment Each class of property, plant and equipment is stated at cost or fair value less, where applicable, any accumulated depreciation and accumulated impairment loss. Items of plant and equipment with a total value of less than $10,000, and infrastructure assets and buildings with a total value of less than $10,000 are treated as an expense in the year of acquisition. All other items of property, plant and equipment are capitalised. The classes of property plant and equipment recognised by the council are reported in note 17 (a). (a)

Acquisition of assets Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including freight in, architect's fees and engineering design fees and all other establishment costs. Property, plant and equipment received in the form of physical contributions, are recognised as assets and revenues at fair value by Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Page 13

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 (b)

Capital and operating expenditure Wage and materials expenditure incurred for the acquisition or construction of assets are treated as capital expenditure. Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity of the non-current asset are expensed as incurred. Expenditure that relates to replacement of a major component of an asset to maintain its service potential is capitalised.

(c)

Valuation Land and improvements, buildings, major plant and all infrastructure assets are measured on the revaluation basis, at fair value, in accordance with AASB 116 Property, Plant & Equipment and the Local Government (Finance, Plans & Reporting) Regulation 2010 . Other plant and equipment, furniture and fittings, heritage assets and work in progress are measured at cost. Council ensures at each reporting date that the carrying amount of each asset class held at valuation does not materially differ from its' fair value by performing:- a comprehensive revaluation where Council assesses that there has been a material change in the fair value of assets; or - an interim valuation using suitable indicies, where there has been a material variation in the index. Any revaluation increment arising on the revaluation of an asset is credited to the appropriate class of the asset revaluation surplus, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense to the extent it exceeds the balance, if any, in the revaluation surplus of that asset class.

Separately identified components of assets are measured on the same basis as the assets to which they relate. Further details in relation to valuers, the methods of valuation and the key assumptions used are disclosed in note 17 (b). (d)

Capital work in progress The cost of property, plant and equipment being constructed by the Council includes the cost of purchased services, materials, direct labour and an appropriate proportion of labour overheads.

(e)

Depreciation Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment assets is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to the Council. Management believe that the straight-line basis appropriately reflects the pattern of consumption of all Council assets. Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and commissioned ready for use. Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the Council. Depreciation methods, estimated useful lives and residual values of property, plant and equipment assets are reviewed at the end of each reporting period and adjusted where necessary to reflect any changes in the pattern of consumption, physical wear and tear, technical or commercial obsolescence, or management intentions. The condition assessments performed as part of the annual valuation process for assets measured at depreciated current replacement cost are used to estimate the useful lives of these assets at each reporting date. Details of the range of estimated useful lives for each class of asset are shown in note 17 (a).

Page 14

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 (f)

Land under roads Land under roads acquired before 30 June 2008 is recognised as a non-current asset where the Council holds title or a financial lease over the asset. The Western Downs Regional Council currently does not have any such land holdings. Land under the road network within the Council area that has been dedicated and opened for public use under the Land Act 1994 or the Land Title Act 1994 is not controlled by Council but is controlled by the state pursuant to the relevant legislation. Therefore this land is not recognised in these financial statements.

1. 15

Intangible Assets Intangible assets with a cost exceeding $10,000 are recognised as intangible assets in the financial statements, items with a lesser value being expensed. Expenditure on research activities relating to internally-generated intangible assets is recognised as an expense in the period in which it is incurred. Costs associated with the development of computer software are capitalised and are amortised on a straight-line basis over the period of expected benefit to Council. Amortisation methods, estimated useful lives and residual values are reviewed at the end of each reporting period and adjusted where appropriate. Details of the estimated useful lives assigned to each class of intangible assets are shown in note 18.

1. 16

Impairment of non current assets Each non-current physical and intangible asset and group of assets is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation surplus increase.

1. 17

Operating leases Payments made under operating leases are expensed in equal instalments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property.

1. 18

Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price net of applicable discounts other than contingent discounts. Amounts owing are unsecured and are generally settled on 30 day terms.

Page 15

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 1. 19

Liabilities - employee benefits Liabilities are recognised for employee benefits such as wages and salaries, annual 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. Where it is expected that the leave will be paid in the next twelve months the liability is treated as a current liability. Otherwise the liability is treated as non-current. (a)

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 included in note 19 as a payable.

(b)

Annual leave A liability for annual leave is recognised. Amounts expected to be settled within 12 months (the current portion) are calculated on current wage and salary levels and includes related employee oncosts. Amounts not expected to be settled within 12 months (the non-current portion) are calculated on projected future wage and salary levels and related employee on-costs, and are discounted to present values.

(c)

Superannuation The superannuation expense for the reporting period is the amount of the contribution the local government makes to the superannuation plan which provides benefits to its employees. Details of those arrangements are set out in note 28.

(d)

Sick leave Sick leave taken in the future will be met by future entitlements and hence no recognition of accrued sick leave entitlements have been made in these financial statements. No entitlement vests with the employee on termination.

(e)

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 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 would result in the Council being required to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to date, and the result is discounted to present value. The interest rates attaching to Commonwealth Government guaranteed securities at the reporting date are used to discount the estimated future cash outflows to their present value. This liability is reported in note 20 as a provision.

1. 20

Borrowings Borrowings are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these liabilities are measured at amortised cost. In accordance with the Local Government (Finance, Plans and Reporting) Regulation 2010 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. All borrowing costs are expensed in the period in which they are incurred. No borrowing costs are capitalised on qualifying assets. Borrowings are classified as non current liabilities except for the principle amount that is due and payable, under the contractual terms of the loan agreement, 12 months after the end of the reporting period. This amount is classified as a current amount. Further details are provided in note 21.

Page 16

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 1. 21

Restoration provision A provision is made for the cost of restoration in respect of refuse dumps 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. Within each restoration provision there may be many site locations, some of which can be on Council controlled land and some which are not. The following accounting treatments apply depending on the site location. Restoration on land not controlled by Council Where the restoration site is on State reserves which the Council does not control, the cost of the provisions for restoration of these sites has to be treated as an expense in the year the provision is first recognised. Changes in the provision due to either time, discount rate or expected future cost are treated as an expense or income in the reporting in which they arise. Restoration on land controlled by Council Restoration sites that are situated on Council controlled land and are classified as land and improvement assets. The provision for restoration is, therefore, included in the cost of the land and amortised over the expected useful life. Changes in the provision not arising from the passing of time are added to or deducted from the asset revaluation surplus for land. If there is no available revaluation surplus, increases in the provision are treated as an expense and recovered out of future decreases (if any). Changes to the provision resulting from the passing of time (the unwinding of the discount) are treated as a finance cost. The Council has the following restoration provisions: (a)

Refuse sites The provision represents the present value of the anticipated future costs associated with the closure of the refuse 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 refuse sites is reviewed at least annually and updated based on the facts and circumstances available at the time.

(b)

Quarry sites The provision represents the present value of the anticipated future costs associated with the closure of the quarry sites, reclamation and rehabilitation of 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 quarry sites rehabilitation is reviewed at least annually and updated based on the facts and circumstances available at the time.

Page 17

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 1. 22

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

When an asset is disposed of, the amount reported in surplus in respect of that asset is retained in the asset revaluation surplus and not transferred to retained surplus. 1. 23

Retained surplus (deficit) The retained surplus represents that part of the Council's equity, that corresponds to the amount of cash (reported within cash and cash equivalents) that is held for the purpose, and has not been restricted to meet specific future funding needs at the reporting date. These funds are available as a general funding source in future years. A retained deficit represents an overall funding shortfall which needs to be recovered in future years to maintaoin a fully funded position.

1. 24

Reserves held for funding future capital expenditure These are cash backed reserves and represent funds, from revenue sourses, that are accumulated to meet anticipated future capital asset funding requirements. In each case the amount relates to a perceived future requirement which is not currently a liability. Unspent loan cash reserve The amounts reported in this reserve at balance date correspond to the amount of cash (reported within cash and cash equivalents) which has been received in respect of approved loan funds from QTC that have been drawn down but not expended on the specific capital projects. As the funds are expended they are transferred to the Council's capital account. Refer notes 13 and 24 (a) . Constrained grants and subsidy contributions reserve The amounts reported in this reserve at balance date correspond to the amount of cash (reported within cash and cash equivalents) which has been received in respect of capital works where the required capital works have not yet been carried out. Where non-reciprocal grants, subsidies and contributions are received for specific capital projects, amounts equivalent to the capital grants received are transferred from retained surplus to the constrained works reserve. When the grant monies are expended on the respective projects, an equivalent amount is transferred out of the constrained works reserve to retained surplus. The Council does not reallocate amounts in this reserve to any other reserve or for any other purpose. Water reserve This reserve was created and holds funds to contribute to the future renewal of Council water infrastructure. Sewerage reserve This reserve was created and holds funds to contribute to the future renewal of Council waste water infrastructure. Waste reserve This reserve was created to contribute to the future funding for refuse disposal. Showgrounds reserve This reserve was created and hold funds to be contributed to the future replacement of non-current assets for the regional showgrounds. Roads Special Charges reserve This reserve holds unexpended funds raised from the Huston's Road and Macalister-Wilkie Creek Road Special as defined in Council's 2011/2012 Revenue Statement. Gas Infrastructure reserve This reserve was created to contribute to the future renewal of Council's gas infrastructure.

Page 18

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 Constrained Works reserve This reserve was created to account for the capital projects which have already been funded but not yet completed. NDRRA reserve This reserve was created to account for the funding eceived for flood reconstruction but not yet spent. Saleyards reserve This reserve was created and holds funds to contribute to the future renewal of Council's saleyard assets. 1. 25

Reserves held for funding future recurrent expenditure: These are cash backed reserves and represent funds that are accumulated within the Council to meet anticipated future recurrent or operating expenditure needs. In each case the amount relates to a perceived future requirement which is not currently a liability. Financial Assistance Grant reserve This reserve was created to account for the prepayment of the Financial Assistance grant.

1. 26

National competition policy The Council has reviewed its activities and has identified 8 activities that are business activities. Details of these activities can be found in note 33.

1. 27

Rounding and comparatives The financial statements have been rounded to the nearest $1 or, where that amount is $0.50 or less, to $0. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.

1. 28

Trust funds held for outside parties Funds held in the trust account on behalf of outside parties include those funds from the sale of land for arrears in rates, deposits for the contracted sale of land, security deposits lodged to guarantee performance and unclaimed monies (e.g. wages) paid into the trust account by the Council. The Council performs only a custodian role in respect of these monies and because the monies cannot be used for Council purposes, they are not considered revenue nor brought to account in the financial statements. For details see note 29.

1. 29

Controlled Entities and Associates. Western Downs Housing Trust Council resolved to approve the incorporation of the Western Downs Housing Trust at it's ordinary meeting held on the 4th April 2012. This housing trust was formed to provide housing for the people living in or relocating to the Western Downs Regional Council area. The company has not been consolidated into these Financial Statements as the transactions are not considered material. The Western Downs Housing Trust is audited by the Queensland Audit Office.

Page 19

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 Western Downs Housing Fund Pty Ltd Council resolved to conduct the beneficial enterprise known as the Western Downs Housing Fund Pty Ltd at it's ordinary meeting held on the 4th April 2012. This housing fund was formed to act as trustee for the Western Downs Housing Trust. The company has not been consolidated into these Financial Statements as the transactions are not considered material. Western Downs Disaster Relief Fund This relief fund was formed to provide assistance to families and individuals within the Western Downs region which were affected by the floods of December/January 2011. The company has not been consolidated into these Financial Statements as the transactions are not considered material. The Western Downs Disaster Relief Fund is audited by the Queensland Audit Office. For details see note 32. 1. 30

Carbon Tax In 2011 the Australian Government introduced a Clean Energy Legislation package. One aspect of this legislation package, which will impact upon council directly and indirectly, is the introduction of a pricing mechanism for greenhouse gas emissions in the Australian economy. The pricing mechanism commences on 1 July 2012 and sets a fixed price path for the first three years ($23 per tonne of C02-equivalent emissions adjusted in real terms by 2.5 percent per annum) before moving to a flexible price mechanism from 1 July 2015. It proposes a framework for setting a cap on greenhouse gas emissions by capping the number of carbon units available once the flexible price period commences, which can be adjusted over time to ensure that the government's reduction targets are met. Council estimates that all its landfills will trigger a direct liability under the carbon pricing scheme from 1 July 2012. In addition, Council estimates that its gas wholesale business will trigger a direct liability in the 2012/13 financial year. No liability arises in respect of waste processed prior to 1 July 2012. Council is yet to undertake modelling to estimate the liability that will arise from these waste facilities. However uncertainty exists due to the following factors: 1. Greenhouse gas is emitted from waste over a very long period (40 years); and 2. The price/tonne of emissions, after the initial fixed price period has expired, is currently unknown and reliance is placed on the carbon price scenarios included in the Commonwealth Treasury modelling of core policy released in the July 2011 document 'Strong growth, low pollution modelling a carbon price'. Organic material within waste deposited at landfills takes time to begin decomposing. Council will not have to begin purchasing carbon credits until the 2013/14 financial year, as waste deposited in 2012/13 will only begin to break down and generate emissions at the start of 2013/14. This waste will continue to generate emissions over the next 40 years. This means that Council will have a liability to purchase carbon permits in respect of that waste as long as total emissions from the landfill site continue to be above the legislated landfill facility threshold of 25,000 tonnes of carbon dioxide equivalent.

As modelling has not yet been completed, Council has not considered the effect on gate fees at each of the affected landfills in the 2012/13 financial year, despite the estimated liability that will arise from that waste. Council has undertaken modelling to estimate the liability that will arise from its wholesale gas business. Modelling has been completed for Council's gas business and Council has increased fees for the sale of gas.

Page 20

WESTERN DOWNS REGIONAL COUNCIL Notes to the Financial Statements For the year ended 30 June 2012 In addition to this direct liability for its waste facilities and gas business, Council expects increased costs arising from the carbon pricing mechanism. The most significant of these will be electricity and fuel. Commonwealth Treasury modelling published in July 2011 in the document 'Strong growth, low pollution modelling a carbon price' indicates that carbon pricing is expected to increase electricity prices by 10% within 5 years from 1 July 2012 and increase other costs by 0.7% on inflation. In addition fuel tax credits will be progressively reduced over the initial fixed price period.

Council has not undertaken modelling to estimate electricity and fuel increases. 1. 31

Taxation Income of local authorities and public authorities is exempt from Commonwealth taxation except for Fringe Benefits Tax and Goods and Services Tax (â&#x20AC;&#x2DC;GSTâ&#x20AC;&#x2122;). The net amount of GST recoverable from the ATO or payable to the ATO is shown as an asset or liability respectively. The Council pays payroll tax to the Queensland Government on certain activities.

Page 21

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012 2

(a) Components of council functions The activities relating to the Council's components reported on in note 2 (b) are as follows :

People & Communities SA1 To create an enriched and vibrant social fabric throught regular interaction with our people and communities. Growth & Opportunity SA2 Realise opportunities and build capacity for the sustainable growth of our prosperous region. Planning for Liveability & Our Enviroment SA3&4 Build an effective planning solution that enhances the livability and lifestyle of our regional communities whilst promoting sustainable development. Provide a healthy environment for our people today and the generations of tomorrow. Infrastructure SA6 Build and maintain civil infrastructure to create safe and liveable communities within our region. Empowering our Team & Business Sys & Technology SA7&8 Provide organisational support and leadership to build a strong and effective regional Council. Implement and manage effective business systems and accountable financial practices to serve the needs of Council and the community. Wash Bay Operations To provide and maintain an environmentally sensitive waste service for the regional Council. Commercial Works Actively pursue and undertake commercial works as an alternative revenue stream for Council. Waste Management To provide and maintain an environmentally sensitive waste service for the regional Council. Water Infrastructure Manage the water networks to achieve reliability, safety and cost effectiveness for our customers. Sewerage Infrastructure Manage the sewerage networks to achieve reliability, safety and cost effectiveness for our customers. Natural Gas Manage the gas network to achieve reliability, safety and cost effectiveness for our customers. Dalby Regional Saleyards Manage the operations of the Dalby Regional Saleyards to achieve safety and cost effectiveness for our customers. Jimbour Quarry Operate the Jimbour Quarry as a commerical operation as an alternative revenue stream.

Page 22

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012 2 Analysis of results by function (b) Revenue, expenses and assets have been attributed to the following functions : Functions

Total

Net

Grants

Income Other

income

expenses

result

Assets

2012

for period

People & Communities SA1

6,779,576

2,545,804

9,325,380

19,160,930

(9,835,550)

111,145,094

Growth & Opportunity SA2

26,744

1,469,923

1,496,667

3,287,259

(1,790,592)

12,298,277

Planning for Liveability & Our Enviroment SA3&4

60,966

2,763,675

2,824,641

5,399,401

(2,574,760)

Infrastructure SA6

34,931,807

4,710,106

39,641,913

37,712,165

1,929,748

783,351,752

Empowering our Team & Business Sys & Technology SA7&8

18,371,102

38,353,815

56,724,917

19,945,692

36,779,225

116,155,045

175,000

426,526

601,526

(1,045,469)

1,646,995

1,322,481

Commercial Works

3,100,739

16,014,181

19,114,920

16,303,956

2,810,964

Waste Management

2,850,745

3,146,473

5,997,218

8,792,880

(2,795,662)

Water Infrastructure

Wash Bay Operations

442,626

9,344,922

586,240

9,982,461

10,568,701

9,369,763

1,198,938

95,589,145

Sewerage Infrastructure

6,494,687

3,631,112

2,863,575

52,608,227

Natural Gas

3,113,138

1,904,545

1,208,593

7,085,406

Dalby Regional Saleyards

2,713,150

1,498,582

1,214,568

6,478,898

Jimbour Quarry Total

2,323,657

1,708,014

615,643

10,306,613

94,057,596

160,940,515

127,668,830

33,271,685

1,206,128,486

66,882,919

Prior Year Functions

Income Grants

Other

Total

Net

income

expenses

result

People & Communities SA1

Assets

for period

2011

2,360,533

7,074,844

13,750,578

(6,675,734)

124,849,027

2,278,458

3,474,333

(1,195,875)

11,056,834

175,000

1,727,423

1,902,423

4,355,204

(2,452,781)

439,815

Infrastructure SA6

20,750,761

4,324,296

25,075,057

73,257,128

(48,182,071)

986,925,312

Empowering our Team & Business Sys & Technology SA7&8

17,588,262

25,673,717

43,261,979

12,274,047

30,987,932

69,356,860

Growth & Opportunity SA2 Planning for Liveability & Our Enviroment SA3&4

Wash Bay Operations Commercial Works

4,714,311

19,500,675

658,501

18,842,174

Waste Management

555,050

2,389,608

2,944,658

3,367,251

(422,593)

Water Infrastructure

1,417,030

9,052,730

10,469,760

10,178,769

290,991

4,167,430 107,031,217

Sewerage Infrastructure

4,535,874

4,544,699

Natural Gas

2,352,336

1,524,330

828,006

9,163,573

Dalby Regional Saleyards

1,768,836

1,170,917

597,919

7,709,234

Jimbour Quarry Total

1,032,029

2,831,681

(1,799,652)

8,277,115

76,338,014

122,196,929

150,229,612

(28,032,683)

1,389,808,629

45,858,915

Page 23

(8,825)

60,832,213

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Revenue analysis (a) Rates and levies General rates Separate rates State & Rural fire levy Water Water consumption, rental and sundries Sewerage Waste management Rates and utility charge revenue Less: Discounts Less: Pensioner remissions Net rates and utility charges

Note 1.8(a)

(b) Sale of goods and major services Sale of Natural Gas Quarry Sales Saleyard Services Contract and recoverable works (c) Fees and charges User fees and charges (d) Rental and levies Aged Care Community housing rental income Community facilities Commerical leases (e) Interest received Investments Other sources Over due rates and utility charges (f) Other recurrent income Other income 4

Grants, subsidies, contributions and donations (i) Recurrent - grants, subsidies, contributions and donations are analysed as follows: General purpose grants Commonwealth government grants State Government subsidies & grants Donations Contributions Total recurrent revenue

2012

2011

38,718,617 278,107 84,185 2,928,364 5,036,919 4,096,308 2,777,476 53,919,976 (4,003,639) (430,598) 49,485,739

25,886,660 270,329 126,581 2,602,345 5,770,922 3,624,581 2,245,515 40,526,933 (3,435,349) (373,589) 36,717,995

2,995,967 2,118,416 2,713,150 16,700,791 24,528,324

2,199,677 1,145,414 1,768,836 19,410,441 24,524,368

7,712,358 7,712,358

4,155,650 4,155,650

824,925 445,075 128,391 226,593 1,624,984

984,196 339,992 142,535 162,223 1,628,946

1,718,211 282,131 302,080 2,302,422

1,433,424 361,902 214,423 2,009,749

112,268 112,268

103,751 103,751

22,966,713 18,518,695 8,425,706 17,379 116,367 50,044,860

16,535,664 13,064,508 6,278,234 5,000 35,883,406

1.8(b)

Page 24

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Note (ii)

Capital - grants, subsidies, and contributions are analysed as follows: (a) Monetary revenue designated for capital funding purposes: Commonwealth government grants State Government subsidies & grants Contributions (b) Non-monetary revenue received is analysed as follows: Infrastructure from Government sources at fair value Developer assets contributed by developers at fair value

2011

9,552,971 7,418,834 6,289,914 23,261,719 1.8(c)

Total capital revenue 5

2012

23,261,719

74,916 3,422,660 3,497,576 14,785,759

Capital income (i) Gain (loss) on the disposal of non-current assets Proceeds from sales of land Less : Book value of land sold

(ii) Capital Income Proceeds from the sale of plant and equipment Less: Book value of plant and equipment sold

887,609 (1,326,892) (439,283)

1,833,638 (936,181) 897,457

1,588,980 (1,113,993) 474,987

1,170,913 (796,604) 374,309

Proceeds from the sale of land and buildings Less: Book value of land and buildings sold Proceeds from the sale of other non current assets Less: Book value of other non current assets sold Provision for restoration of land Discount rate adjustment to quarry restoration provision Total capital income 6

4,629,414 5,276,179 1,382,590 11,288,183

Employee benefits Total staff wages and salaries Councillors' remuneration Annual, sick and long service leave entitlements Superannuation

Other employee related expenses Less : Capitalised employee expenses

Councillor remuneration represents salary, and other allowances paid in respect of carrying out their duties. Total Council employees at June 2012: Elected members Federal award staff State award staff Total full time equivalent employees

4,000 (72,916) (68,916)

208,398 (185,002) 23,396

205,241 205,241

703,624

305,393

33,215,061 787,624 7,124,474 4,178,036 45,305,195 971,009 46,276,204 (4,488,804) 41,787,400

2012

Page 25

9 298 353 660

29,159,213 739,182 6,446,974 3,919,221 40,264,590 1,509,533 41,774,123 (3,113,770) 38,660,353

2011

9 291 356 656

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Note

Materials and services Audit Fees Advertising Consultancy Services Donations & Grants Paid Insurance Telecommunications Purchase of Gas Legal Fees Rates & Utilties Diesel & Fuel Services Repairs & maintenance - roads & bridges - materials Repairs & maintenance - roads & bridges - services Rentals - Operating leases Other materials

2012

2011

375,250 220,805 2,954,025 732,881 1,059,678 490,090 889,945 327,071 2,019,507 3,869,136 17,533,649 7,282,313 850,782 140,127 4,313,919 43,059,178

308,843 211,481 2,310,580 547,124 1,031,012 726,156 811,369 386,969 2,790,009 3,605,865 10,154,747 14,189,445 11,487,740 123,245 6,736,562 55,421,147

1,366,416 101,138 291,453 18,803 1,777,810

844,822 86,885 8,554 940,261

342,591 3,130,081 5,202,436 121,496 17,333,358 2,674,153 1,715,579 840,905 143,651 31,504,250

577,300 6,025,114 5,706,533 135,939 27,850,350 4,256,525 2,661,644 585,026 222,917 48,021,348

254,359 1,602 255,961

153,068 1,602 154,670

31,760,211

48,176,018

The estimated Audit fee for 2011/12 is $210,000 with the actual for 2010/11 being $249,000. 8

Finance costs Finance costs charged by the Queensland Treasury Corporation Bank charges Impairment of receivables and bad debts written off Quarry rehabilitation

Depreciation and amortisation (a) Depreciation of non-current assets Site improvements Buildings Plant and equipment Furniture and fittings Road and bridge network Water Sewerage Stormwater Gas infrastructure

1.14(e)

In 2011-12, Council changed the method of calculating depreciation from Advance SLAM depreciation method to a straight line method in respect of road assets acquired prior to 1 July 2010. Council further assigned residual values, and reappraised useful lives and current depreciation rates for asset classes recorded at fair value. The total residual value applied to these assets was $527 million (32% of the Gross value). The impact of the changes to the method of calculating depreciation and of the assignment as stated above is a decrease in the depreciation expense from the prior year of approximately $16.5 million. It is expected that based on the current depreciation method the Council's depreciation expense in future years will be significantly reduced from that disclosed in 2011. The effect in future periods is not disclosed because estimating it is impractical. (b) Amortisation of other intangible assets Computer software Other intangible asset Total depreciation and amortisation

Page 26

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Note

2012

2011

10 Capital expenses Loss on the disposal of non-current assets Loss on write-off of capital assets Revaluation decrement Revaluation down of property, plant and equipment Provision for restoration of land Discount rate adjustment to quarry rehabilitation provision Increase in the rehabilitation provision, due to recognition of new sites requiring future expenditure

17 (a) 20

Total capital expenses 11 Loss on write-off of non-current assets are as follows: Land Site improvements Buildings Plant and equipment Furniture and fittings Road and bridge network Water Sewerage Stormwater Gas infrastructure Computer Software 12 Loss on impairments Loss on impairment of property plant and equipment: Road and bridge network The fair value for the asset has decreased as per valuations sort for the sale of Wood Street. Total impairment losses Less impairment losses offset against the asset revaluation surplus Impairment losses treated as an expense 13 Cash assets and cash equivalents Cash in operating bank account Cash in other banks and on hand Investments held at fixed interest rates Deposits and investments held with QTC at variable interest rate Balance per statement of cash flows Externally imposed expenditure restrictions at the reporting date relate to the following cash assets: Unspent loan monies Unspent government grants and subsidies Unspent developer contributions Total unspent restricted cash for capital projects

17 (a) 17 (a)

1.10

24 (a)(i) 24 (a)(ii) 24 (a)(ii)

Cash and deposits at call are held in the Commonwealth Bank and the National Australia Bank in business cheque accounts and Queensland Treasury Corporation in cash management accounts.

Page 27

1,841,326 1,841,326

4,766,668 4,766,668

93,944 93,944

429,792

5,592,277 6,022,069

1,328,984 1,328,984

7,957,339

6,095,652

2,975 22,357 66,266 1,107,321 582,779 15,752 43,876 1,841,326

170,604 771,487 415,098 51,568 2,629,267 608,074 119,303 1,267 4,766,668

101,343

101,343 (101,343) -

10,368,222 7,285 23,000,000 27,578,679 60,954,186

2,368,296 5,651 28,196,078 30,570,025

8,678,495 1,569,990 1,475,180 11,723,665

5,747,161 3,002,317 8,749,478

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

14 Trade and other receivables (a) Current Rateable revenue and utility charges Fees and charges GST recoverable Other debtors Less: Impairment provision

Note 1.11

(b) Non-current Loans and advances to community organisations Loan to Dalby Bio Refinery Loans and advances to controlled entities and associates Interest is charged on outstanding rates at a rate of 11% per annum. There is no concentration of credit risk for rates and utility charges, fees and other debtors receivable. Loans to controlled entities and associates are charged at an interest rate ranging between 0% and the base rate plus 3%. No interest is charged on other debtors. Movement in accumulated impairment losses (trade and other receivables) is as follows: Opening balance Impairment adjustment in period Closing balance

Valued at cost, adjusted when applicable for any loss of service potential. Land purchased for development and sale 16 Land purchased for development and sale Balance at the beginning of financial year Transferred from other asset category Development costs Less: Cost of developed land sold Balance at end of the financial year

2011

3,027,156 16,437,641 584,760 (428,548) 19,621,009 934,531 86,809 108,483 84,665 20,835,497

Prepayments Loans and advances to community organisations Loan to Dalby Bio Refinery Loans and advances to controlled entities and associates

15 Inventories Current Inventories for internal use: Quarry and road materials Stores and materials

2012

3,108,127 16,765,201 429,762 (233,834) 20,069,256 603,359 56,140 277,226 21,005,981

123,153 80,134 203,287

141,986 108,483 250,469

233,834 194,714 428,548

254,608 (20,774) 233,834

1.12

1.14

Land purchased for development and sale is valued at the lower of cost and net realisable value.

Page 28

3,769,687 4,954,467 8,724,154

4,701,468 2,862,943 7,564,411

2,020,942 10,745,096

3,347,834 10,912,245

3,347,834 (1,326,892) 2,020,942

7,019,350 (2,772,418) 37,083 (936,181) 3,347,834

1,775

Internal transfers from work in progress

Disposals

Internal transfers between asset classes

Recognition/changes of future rehabilitation costs

Depreciation provided in period

Depreciation on disposals

Depreciation on write-offs

Revaluation adjustment to the ARS*

Internal transfers to other asset classes

* ARS denotes - Asset Revaluation Surplus

Range of estimated useful life in years

Net value at 30 June 2012

and impairment balance

Not depreciated

57,106,842

Minor Correction to opening balance

Closing accumulated depreciation

Opening balance

Accumulated depreciation and impairment

57,106,842

Revaluation adjustment to Income

Closing gross value

9,892,938

Revaluation adjustment to the ARS*

(2,975)

Write-offs

Additions at cost

47,215,104

10 - 100

10,369,016

5,930,177

3,523,969

342,591

2,063,617

16,299,193

(2,186,248)

5,341,335

(22,357)

1,697,038

11,469,425

2012

Fair Value

2012

Site improvements

Fair Value

Land

Minor correction to opening balance

Opening gross value

Asset Values

Basis of measurement

17 (a) Property, plant and equipment

Notes to the financial statements For the year ended 30 June 2012

WESTERN DOWNS REGIONAL COUNCIL

10 - 150

139,956,650

46,825,969

16,126,908

(28,051)

3,130,081

27,597,031

186,782,619

7,487,367

(94,317)

6,028,155

173,361,414

2012

Fair Value

Buildings

5 - 25

37,483,892

22,462,418

(1,943,439)

5,202,436

19,203,421

59,946,310

(3,057,432)

8,571,991

54,431,751

2012

Cost

Plant and equipment

448,982

373,717

121,496

252,221

822,699

166,637

656,062

7 - 10

2012

Cost

Furniture and fittings

Page 29

10 - 100

648,059,087

306,374,403

87,511,560

(332,335)

17,333,358

201,861,820

954,433,490

(126,856,727)

(1,439,656)

(185,002)

4,783,414

(115,500)

1,078,246,961

2012

Fair Value

Road and bridge network

10 - 100

82,280,164

63,600,047

36,365,090

(248,594)

2,674,153

24,809,398

145,880,211

29,140,528

(831,373)

488,585

117,082,471

2012

Fair Value

Water

4 - 100

49,893,123

53,216,031

29,645,800

1,715,579

21,854,652

103,109,154

23,126,398

104,212

79,878,544

2012

Fair Value

Sewerage

50 - 80

31,537,069

23,940,057

6,592,404

(174)

840,905

16,506,922

55,477,126

3,698,647

(15,926)

517,069

51,277,336

2012

Fair Value

Stormwater

10 - 100

6,325,740

4,818,826

1,439,811

(15,403)

143,651

3,250,767

11,144,566

(93,944)

(529,629)

(59,279)

1,383,453

10,443,965

2012

Fair Value

Gas infrastructure

206,750

64,067

270,817

Not depreciated

2012

Cost

Heritage assets

Not depreciated

48,636,894

1,112,304,209

527,605,712

181,205,542

(624,557)

(1,943,439)

31,504,250

317,463,916

1,639,909,921

(2,186,248)

(93,944)

(48,699,143)

(2,465,883)

(3,242,434)

(607,946)

53,521,420

(115,500)

1,643,799,599

2012

Total

(24,350,275)

53,521,420

19,465,749

2012

Cost

Works in progress

Depreciation provided in period

Depreciation on disposals

Depreciation on write-offs

Revaluation adjustment to the ARS*

Impairment adjustment to the ARS*

Internal transfers

* ARS denotes - Asset Revaluation Surplus

Range of estimated useful life in years

Net value at 30 June 2011

Not depreciated

47,215,104

and impairment balance

Minor correction to opening balance

47,215,104

Opening balance

Accumulated depreciation and impairment

Closing gross value

2,772,416

Recognition/change of future rehabilitation costs

Internal transfers between asset classes

2,085,374

Write-offs

Revaluation adjustment to the ARS*

Disposals

5 - 20

9,405,808

2,063,617

164,926

106,058

(40,921)

577,300

1,256,254

11,469,425

2,186,248

700,647

463,683

(211,525)

386,418

62,693

Internal transfers from work in progress

Contributed assets at valuation

7,943,954

Additions at cost

42,294,621

2011

Fair Value

Site improvements

Fair Value

Land

Minor correction to opening balance

Opening gross value

Asset Values

Basis of measurement

17 (a) Property, plant and equipment - prior year

Notes to the financial statements For the year ended 30 June 2012

WESTERN DOWNS REGIONAL COUNCIL

30 - 100

145,764,383

27,597,031

15,677

1,620,597

(149,259)

(32,294)

6,025,114

20,117,196

173,361,414

303,607

9,868,665

(920,746)

(105,210)

11,047,093

153,168,005

2011

Fair Value

Buildings

3 - 20

35,228,330

19,203,421

(25,098)

(181,351)

(1,119,746)

5,706,533

14,823,083

54,431,751

922,443

(596,449)

(1,916,350)

8,890,135

74,917

47,057,055

2011

Cost

Plant and equipment

403,841

252,221

4,592

(11,750)

135,939

123,440

656,062

11,625

(63,318)

133,280

574,475

7 - 10

2011

Cost

Furniture and fittings

Page 30

10 - 100

876,385,141

201,861,820

1,383,412

101,343

(1,400,387)

(572,634)

27,850,350

174,499,736

1,078,246,961

5,650,561

109,061,756

(3,201,901)

16,300,216

2,545,370

947,890,959

2011

Fair Value

Road and bridge network

20 - 80

92,273,073

24,809,398

(88,562)

1,066,580

(188,368)

4,256,525

19,763,223

117,082,471

(279,159)

5,737,809

(796,442)

7,668,317

279,840

104,472,106

2011

Fair Value

Water

12 - 100

58,023,892

21,854,652

(64,886)

1,731,425

(28,835)

2,661,644

17,555,304

79,878,544

(571,500)

5,901,895

(148,138)

1,243,169

569,761

72,883,357

2011

Fair Value

Sewerage

10 - 50

34,770,414

16,506,922

(1,431,395)

785,831

585,026

5,257

16,562,203

51,277,336

(5,952,904)

2,441,040

64,000

5,257

54,719,943

2011

Fair Value

Stormwater

11 - 50

7,193,198

3,250,767

184,002

222,917

2,843,848

10,443,965

582,580

15,689

27,688

9,818,008

2011

Fair Value

Gas infrastructure

206,750

64,067

63,207

860

270,817

220,247

50,570

Not depreciated

2011

Cost

Heritage assets

Not depreciated

19,465,749

(45,811,010)

34,591,258

30,685,501

2011

Cost

Works in progress

1,326,335,683

317,463,916

21,873

101,343

4,094,106

(1,173,118)

(1,152,040)

48,021,348

5,257

267,545,147

1,643,799,599

2,186,248

3,777,983

136,142,802

(5,938,519)

(2,021,560)

3,497,576

34,591,258

5,257

1,471,558,554

2011

Total

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

17 (b) Property, plant and equipment valuations were determined by reference to the following: Land The fair value of land is measured at current market value as at 30 June 2012 as independently determined by Australia Pacific Valuers Pty Ltd. Fair value was derived by reference to market based evidence including observable historical sales data for properties of similar nature and specification within the Western Downs Regional Council and surounding areas. Land under infrastructure and reserve land does not have a value for the purpose of a Local Government's financial statements. Site improvements The fair value of land is measured at current market value as at 30 June 2012 as independently determined by Australia Pacific Valuers Pty Ltd. Fair value was derived by reference to market based evidence including observable historical sales data for properties of similar nature and specification within the Western Downs Regional Council and surounding areas. Buildings There is no market for Council's buildings as these are held to provide essential services to the community. Accordingly, the fair value of all building assets is measured at written down current replacement cost. The fair value of buildings as at 30 June 2012 was independently determined by Australian Pacific Valuers Pty Ltd. (a) Condition was assessed using the following table: Condition Remaining rating useful life 0 96% - 100% 1 91% - 95% 2 76% - 90% 3 66% - 75% 4 56% - 65% 5 46% - 55% 6 36% - 45% 7 26% - 35% 8 16% - 25% 9 6% - 15% 10 0% - 5% Plant and equipment Other plant and equipment is measured at original cost less accumulated depreciation. Furniture and fittings Other furniture and fittings is measured at original cost less accumulated depreciation. There has been no reportable movement in the carry value of these assets throughout the reporting period. Samples were taken from across the asset class to ensure that this was the case. Infrastructure There is no market for Council's infrastructure assets as these are held to provide essential services to the community. Accordingly, the fair value of all infrastructure assets is measured at written down current replacement cost. The fair value of buildings as at 30 June 2012 was independently determined by Australian Pacific Valuers Pty Ltd.

Page 31

Note

2012

2011

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Road and bridge network The fair value of road and bridge network infrastructure as at 30 June 2012 was determined by management based on the following key assumptions: (a) Average $/m2 for each of the key components were: Sealed Unsealed Bridges roads roads $ $ $ Formation 4.00 3.00 Concrete 34.00 Pavement 22.30 11.85 Timber 34.00 Seal 7.85 n/a (b) Condition was assessed using the same table as that identified for buildings. In the process of valuing the Councilâ&#x20AC;&#x2122;s assets at 30 June 2012, it was discovered that the area of unsealed roads had been misstated in the prior year. The result of the error was an overstatement of the value of unsealed roads estimated to be approximately $65 million in the 2010-11 closing values of the Roads and Bridge Network assets class. Council further identified during the process that unit rates in respect of unsealed roads had been overstated in prior years. This error in the estimate of unit rates was further impacted by the application of a 6% index to the value of unsealed roads in 2010-11. The result of this error is estimated to be an overstatement of $135 million in the 2010-11 closing values of Roads and Bridge Network assets class. Due to the nature of the errors and the additional work undertaken by Council in 2011-12 over road assets, which includes more detailed road identification, Council considers that it is impracticable to attribute adjustments to individual assets in the prior year. Water and Sewerage The fair value of Water and Sewerage Infrastructure was independently determined by Australia Pacific Valuers Pty Ltd, as at 30 June 2012. (a) The average cost per meter was $140.70 for water pipes and $365 for sewerage pipes. (b) Condition was assessed using the same table as that identified for buildings. Stormwater The fair value of Stormwater Infrastructure was independently determined by Australia Pacific Valuers Pty Ltd, as at 30 June 2012. (a) The average cost per meter was $751.70 for drainage pipes. (b) Condition was assessed using the same table as that identified for buildings. Gas infrastructure The fair value of Gas Infrastructure was independently determined by Australia Pacific Valuers Pty Ltd, as at 30 June 2012. (a) The average cost per meter was $78.00 for gas pipes. (b) Condition was assessed using the same table as that identified for buildings. Heritage assets Heritage Assets are recorded at cost and have not been revalued and are not depreciated.

Page 32

Note

2012

2011

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Note 1.15

18 Intangible assets Net carrying value at period end: (a) Computer software (c) Other intangible asset

2012

2011

1,081,405 4,806 1,086,211

(a) Computer software Opening gross carrying value Transfer (to) from other assets categories Acquired at cost Value of asset write off in the period Accumulated amortisation Opening balance Transfer (to) from other non-current asset category Amortisation in the period Amortisation written off in period Net carrying value at end of the financial year

727,818 6,408 734,226

1,001,942 607,946 1,609,888

1,782,039 (1,005,565) 242,743 (17,275) 1,001,942

274,124 254,359 528,483

158,937 (21,873) 153,068 (16,008) 274,124

1,081,405

727,818

10,789 10,789

4,381 1,602 5,983 4,806

2,779 1,602 4,381 6,408

1,419,222 6,522,302 3,060,103 408,454 11,410,081

608,350 7,814,091 2,755,523 379,784 11,557,748

2,292,800 2,292,800

1,838,007 1,838,007

The computer software has a finite life of 5 years. Straight line amortisation has been used with no residual value. (c) Other intangible asset Opening gross carrying value Accumulated amortisation Opening balance Amortisation in the period Net carrying value at end of the financial year The other intangible asset has a finite life of 5 years. Straight line amortisation has been used with no residual value. 19 Trade and other payables Current Accruals Creditors Annual leave Other entitlements

1.18

1.19(b)

Non Current Annual leave

1.19(b)

Employee benefit expenses are calculated at current pay levels and adjusted for inflation and likely future changes in salary level. The non-current portion of annual leave and long service leave is then discounted to the present value. Further details on employee entitlements are reported in Note 1.19

Page 33

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Note 20 Provisions Current Long service leave Property restoration: (i) Refuse sites

1.19(e)

Non-Current Long service leave Property restoration: (i) Refuse sites (ii) Quarry sites (iii) Desalination Ponds

1.19(e)

Details of movements in provisions: Long service leave Balance at the beginning of financial year Amount provided for in the period Amount paid in the period Balance at end of the financial year (i) Refuse sites Balance at the beginning of financial year Increase in provision - new site Balance at end of the financial year Current portion Non-current portion This is the present value of the estimated cost of restoring Council's refuse sites to a useable state at the end of their useful lives. The total projected cost is $6,709,302 and the costs to rehabilitate the multiple sites are expected to be incurred between 2013 and 2018. (ii) Quarry sites Balance at the beginning of financial year Increase in provision - due to change in time Increase (decrease) in provision - change in discount rate Increase in provision - new site Increase (decrease) in estimate of future cost Balance at end of the financial year Current portion Non-current portion This is the present value of the estimated cost of restoring Council's Jimbour Quarry to a useable state at the end of its useful life. The total projected cost is $2,353,095 and the costs to rehabilitate the site is expected to be incurred between 2027 and 2031.

Page 34

2012

2011

761,240

877,317

211,150 972,390

877,317

5,381,380

4,904,060

5,803,717 1,149,748 12,334,845

422,590 906,394 2,186,248 8,419,292

5,781,377 862,721 (501,478) 6,142,620

5,308,264 940,681 (467,568) 5,781,377

422,590 5,592,277 6,014,867

422,590 422,590

211,150 5,803,717 6,014,867

422,590 422,590

906,394 18,803 429,792 (205,241) 1,149,748

906,394 906,394

1,149,748 1,149,748

906,394 906,394

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Note

(iii) Desalination Ponds Balance at the beginning of financial year Increase in provision - due to change in time Increase in provision - new site Increase (decrease) in estimate of future cost Balance at end of the financial year

2012

2011

2,186,248 (2,186,248) -

Current portion Non-current portion

Council has reviewed this provision during the financial year 2011-12 and has identified that this site will not be closed within the foreseeable future and as such this site will not be required to be rehabilitated. 21 Borrowings (a) Bank overdraft The council has a $200,000 bank overdraft facility.

2,186,248 2,186,248 2,186,248 2,186,248

1.20

(b) Unsecured borrowings Unsecured borrowings are provided by the Queensland Treasury Corporation. All borrowings are in $A denominated amounts and carried at amortised cost, interest being expensed as it accrues. No interest has been capitalised during the current or comparative reporting period. Expected final repayment dates vary from 4 February 2019 to 25 April 2032. There have been no defaults or breaches of the loan agreement during the period. Principal and interest repayments are made quarterly in arrears. Details of borrowings at balance date are: Current Queensland Treasury Corporation

1,420,354

1,014,780

Non Current Queensland Treasury Corporation

29,723,333

21,378,302

22,393,082 9,692,000 (941,395) 31,143,687

13,393,601 9,669,955 (670,474) 22,393,082

1,420,354 29,723,333 31,143,687

1,014,780 21,378,302 22,393,082

Details of movements in borrowings: Queensland Treasury Corporation Balance at the beginning of financial year Loans raised Principal repayments Balance at end of the financial year Classified as : Current Non-current

The QTC loan market value at the reporting date was $33,358,998. This represents the value of the debt if Council repaid it at that date. As it is the intention of Council to hold the debt for its term, no provision is required to be made in these accounts. No assets have been pledged as security by the council for any liabilities. Borrowings are all in $A and are underwritten by the Queensland State Government.

Page 35

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Note 1.22

22 (i) Asset revaluation surplus Movements in the asset revaluation surplus were as follows: Balance at the beginning of financial year (a) Adjustments to property, plant and equipment through revaluations: Land Site improvements Buildings Road and bridge network Water Sewerage Stormwater Gas infrastructure

(b) Adjustments to property, plant and equipment through impairments: Road and bridge network Balance at end of the financial year (ii) Asset revaluation surplus analysis The closing balance of the asset revaluation surplus is comprised of the following asset categories: Land Site improvements Buildings Road and bridge network Water Sewerage Stormwater Gas infrastructure 23 Retained surplus Movement in retained surplus Balance at the beginning of financial year Minor error correction Net result (deficiency) attributable to Council

2012

2011

761,445,357

629,498,004

9,892,938 1,817,366 (8,639,541) (214,368,287) (7,224,562) (6,519,402) (2,893,757) (1,969,440) (229,904,685)

2,085,374 357,625 8,248,068 110,462,143 4,671,229 4,170,470 1,655,209 398,578 132,048,696

531,540,672

(101,343) (101,343) 761,445,357

39,064,162 6,305,334 57,570,241 311,432,271 45,320,985 33,784,004 38,063,675 531,540,672

29,171,224 4,487,968 66,209,782 525,800,558 52,545,547 40,303,406 40,957,432 1,969,440 761,445,357

555,911,722 (115,500) 33,271,685 589,067,907

581,080,775 (28,032,683) 553,048,092

(42,853) (2,931,334) 3,670,150 (1,624,883) 653,252 (312,148) (129,031) (143,561) (12,378,054) (9,339,560) 270,000 (22,308,022)

(1,667,282) 9,768,107 (5,402,526) (2,530,820) (1,694,610) 996,261 2,374,396 (110,934) 2,009,541 (193,152) (685,351) 2,863,630

1.23

Transfers (to)/ from capital reserves for future capital project funding, or from reserves funds that have been expended: Constrained grants and subsidy contributions reserve Future capital asset sustainability reserve Unspent loan cash reserve Water reserve Sewerage reserve Waste reserve Showgrounds reserve Roads Special charges reserve Roads network reserve Gas Infrastructure reserve Constrained Works reserve NDRRA reserve Saleyards reserve Transfers (to) recurrent reserves for future project funding, or from reserves funds that have been expended: Financial Assistance grant reserve Balance at end of the financial year

(9,295,453) (9,295,453) 557,464,432

Page 36

555,911,722

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

24 Reserves (a) Restricted capital reserves (i) Unspent loan cash reserve This cash forms part of council's capital value as the balance represents loan cash drawn down but unspent at balance date. The cash is restricted to specific project funding.

Note 1.24

Balance at the beginning of financial year Loan funds drawn down in period. Loan cash expended in period. Balance at end of the financial year

2012

2011

5,747,161 9,692,000 (6,760,666) 8,678,495

344,635 9,669,955 (4,267,429) 5,747,161

3,002,317

1,335,035

20,905,821 (20,862,968) 3,045,170

8,870,193 (7,202,911) 3,002,317

11,723,665

8,749,478

6,852,390 7,022,619 312,148 547,713 1,082,626 12,378,054 9,339,560 415,351 37,950,461

10,522,540 5,397,736 653,252 418,682 939,065 685,351 18,616,626

9,295,453 9,295,453 47,245,914

18,616,626

(i) Water reserve Balance at the beginning of financial year Transfer from retained earnings for future expenditure Transfer to retained earnings funds expended Balance at end of the financial year

10,522,540 (3,670,150) 6,852,390

7,991,720 2,530,820 10,522,540

(ii) Sewerage reserve Balance at the beginning of financial year Transfer from retained earnings for future expenditure Transfer to retained earnings funds expended Balance at end of the financial year

5,397,736 3,748,883 (2,124,000) 7,022,619

3,703,126 1,694,610 5,397,736

(ii) Constrained grants and subsidy contributions reserve Balance at the beginning of financial year Transfer from retained earnings non reciprocal grants, subsidies and contributions received and allocated to specific capital projects Transfer to retained earnings funds expended Balance at end of the financial year Total restricted capital reserves (b) Other reserves (1) Summary of capital reserves held for funding future projects: (i) Water reserve (ii) Sewerage reserve (iii) Waste reserve (iv) Showgrounds reserve (v) Roads Special Charges reserve (vi) Gas Infrastructure reserve (vii) Constrained Works reserve (viii) NDRRA reserve (ix) Saleyards reserve (2) Summary of recurrent reserves held for funding future projects: (i) Financial Assistance Grant reserve Total general reserves Movements in capital reserves are analysed as follows:

(iii) Waste reserve Balance at the beginning of financial year Transfer to retained earnings funds expended Balance at end of the financial year (iv) Showgrounds reserve Balance at the beginning of financial year Transfer from retained earnings for future expenditure Transfer to retained earnings funds expended Balance at end of the financial year This reserve has been renamed from Plant Replacement reserve to Showgrounds reserve.

Page 37

653,252 (653,252) -

1,649,513 (996,261) 653,252

312,148 312,148

2,374,396 (2,374,396) -

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Note

(v) Roads Special Charges reserve Balance at the beginning of financial year Transfer from retained earnings for future expenditure Transfer to retained earnings funds expended Balance at end of the financial year

2012

2011

418,682 253,291 (124,260) 547,713

307,748 211,701 (100,767) 418,682

(vii) Gas Infrastructure reserve Balance at the beginning of financial year Transfer from retained earnings for future expenditure Balance at end of the financial year

939,065 143,561 1,082,626

745,913 193,152 939,065

(vii) Constrained Works reserve Transfer from retained earnings for future expenditure Balance at end of the financial year

12,378,054 12,378,054

(viii) NDRRA reserve Transfer from retained earnings for future expenditure Balance at end of the financial year

9,339,560 9,339,560

(ix) Saleyards reserve Balance at the beginning of financial year Transfer from retained earnings for future expenditure Transfer to retained earnings funds expended Balance at end of the financial year

685,351 (270,000) 415,351

685,351 685,351

(x) Roads Network reserve Balance at the beginning of financial year Transfer to retained earnings funds expended Balance at end of the financial year

2,009,541 (2,009,541) -

(xi) Asset Replacement reserve Balance at the beginning of financial year Transfer to retained earnings funds expended Balance at end of the financial year

9,768,108 (9,768,108) -

Movements in recurrent reserves are analysed as follows: (i) Financial Assistance Grant reserve Transfer from retained earnings for future expenditure Balance at end of the financial year

9,295,453 9,295,453

25 Commitments for expenditure Contractual Commitments Contractual commitments at balance date but not recognised in the financial statements are as follows: To 1 Year From 1 Year to 5 Years Greater then 5 Years -

9,167,387 8,520,848 17,688,235

26 Events after balance date There were no material financial adjusting events after balance date.

Page 38

4,730,516 7,754,651 2,544,000 15,029,167

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

27 Contingent liabilities Details and estimates of maximum amounts of contingent liabilities are as follows:

2012

2011

893,030

895,891

Note

Local Government Workcare The Western Downs Regional Councilis a member of the Queensland local government workers compensation self-insurance scheme, Local Government Workcare. Under this scheme the Council has provided a bank guarantee to cover bad debts which may remain should the self insurance licence be cancelled and there was insufficient funds available to cover outstanding liabilities. Only the Queensland Government's workers compensation authority may call on any part of the guarantee should the above circumstances arise. The Council's maximum exposure to the bank guarantee is: Local Government Mutual The Council is a member of the local government mutual liability self-insurance pool, LGM Queensland. In the event of the pool being wound up or it is unable to meet its debts as they fall due, the trust deed and rules provide that any accumulated deficit will be met by the individual pool members in the same proportion as their contribution is to the total pool contributions in respect to any year that a deficit arises. As at 30 June 2011 the financial statements reported an accumulated surplus and it is not anticipated any liability will arise. Native Title Claims over Council land At 30 June, 2012 Council had acquired Native Title rights & interests pursuant to s.9.7 of the Acquisition of Land Act 1967 , s.24MD of the Native Title Act 1993 (Commonwealth) and s.144 of the Native Title (Queensland) Act 1993 in respect of 5 allotments purchased in the Wandoan area covering an area of 12.94 Hectares. The purchase price of the allotments - $1,890,104.30 At reporting date it is not possible to make an estimate of any probable outcome associated with the acquisition of these rights & interests or any financial effect. 28 Superannuation The Western Downs Regional 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 two elements referred to as the Defined Benefits Fund (DBF) 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 DBF is a defined benefit plan as defined in AASB 119 . The Council is not able to account for the DBF as a defined benefit plan in accordance with AASB 119 because the scheme is unable to account to the Council for its proportionate share of the defined benefit obligation, plan assets and costs. Any amount by which either fund is over or under funded would only affect future benefits and contributions to the DBF, 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 2011 (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.

Page 39

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

The most recent actuarial assessment of the scheme was undertaken as at 1 July 2009. The actuary indicated that “the DBF is in a very modest financial position with regard to the net asset coverage of vested liabilities. Investment returns will be volatile under the required investment strategy, particularly over short periods. The DBF therefore needs sufficient reserves to be able to withstand a reasonable range of such influences. Because the DBF is now running down and cash flows are negative, the VBI (vested benefit index) should not be allowed whenever possible to retreat below 100%. Once below 100%, benefits drawn reduce the available assets for remaining members and hence the nest asset coverage of vested benefits declines further.

Note

2012

2011

In order to withstand a one in ten ‘low return’ outcome, the DBF would need reserves of the order of 8% to 10% having regard to the investment strategy adopted. Given the current position of the DBF, such reserve can essentially only eventuate from either excess investment returns over salary increases or additional employer contributions. Council has been 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 DBF members. 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 DBF when the actuary advises such additional contributions are payable - normally when the assets of the DBF are insufficient to meet members' benefits. The next actuarial investigation will be made as at 1 July 2012. The amount of superannuation contributions paid by Western Downs Regional Council to the scheme in this period for the benefit of employees was: 29 Trust funds Trust funds held for outside parties: Security deposits & bonds Flood relief funds Unclaimed monies

4,178,036

3,919,221

3,271,318 27,532 3,298,850

2,845,611 121,688 7,431 2,974,730

1.28

The Western Downs Regional Council performs only a custodial role in respect of these monies, and because the monies cannot be used for Council purposes, they are not brought to account in these financial statements.

Page 40

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012

Note

30 Reconciliation of net result for the year to net cash inflow (outflow) from operating activities Net result (deficiency) attributable to Council

2012

2011

33,271,685

(28,032,683)

Non-cash operating items: Impairment of receivables and bad debts written off Depreciation and amortisation Current cost of developed land sold Change in restoration provisions expensed to finance costs

8 9 16

Investing and development activities: Capital grants, subsidies and contributions Capital income Capital expenses Payment for land for sale and development costs in the period

291,453 31,760,211 1,326,892 18,803 33,397,359

8,554 48,176,018 936,181 49,120,753

4 5 10

(23,261,719) (703,624) 7,957,339 (16,008,004)

(14,785,759) (305,393) 6,095,652 (37,083) (9,032,583)

156,794 1,159,743 (2,343,532) 361,243 (665,752)

(6,530,168) (203,328) 3,230,813 473,113 (3,029,570)

49,995,288

9,025,917

Changes in operating assets and liabilities : (Increase) decrease in receivables (Increase) decrease in inventories (excluding land) Increase (decrease) in payables Increase (decrease) in provisions Net cash inflow from operating activities

Page 41

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012 31

Financial Instruments Western Downs Regional Council's activities expose it to a variety of financial risks including interest rate risk, credit risk, and liquidity risk. Exposure to financial risks is managed in accordance with Council approved policies on financial risk management. These policies focus on managing the volatility of financial markets and seek to minimise potential adverse effects on the financial performance of the Council. The Council minimises its exposure to financial risk in the following ways: - Investments in financial assets are only made where those assets are with a bank or other financial institution in Australia. The Council does not invest in derivatives or other high risk investments. - When the Council borrows, it borrows from the Queensland Treasury Corporation unless another financial institution can offer a more beneficial rate, taking into account any risk. Borrowing by the Council is constrained by the provisions of the Statutory Bodies Financial Arrangements Act 1982 . Western Downs Regional Council measures risk exposure using a variety of methods as follows: Risk exposure

Measurement method

Credit risk

Ageing analysis

Liquidity risk

Maturity analysis

Interest rate risk

Sensitivity analysis

(i) Credit Risk Credit risk exposure refers to the situation where the Council may incur financial loss as a result of another party to a financial instrument failing to discharge their obligations. In the case of rate receivables, the Council has the power to sell the property to recover any defaulted amounts. In effect this power protects the Council against credit risk in the case of these debts. In other cases, the Council assesses the credit risk before providing goods or services and applies normal business credit protection procedures to minimise the risk. The Council is exposed to credit risk through its investments with the Queensland Treasury Corporation (QTC) and deposits held with banks or other financial institutions (if applicable). 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/regulated banks/financial institutions and whilst not capital guaranteed, the likelihood of a credit failure is remote. By the nature of the Councils operations, there is a geographical concentration of risk in the Council's area. Because the area is largely agriculture and resource industry, there is also a concentration in the agricultural and resource sector. The maximum exposure to credit risk at balance date in relation to each class of recognis+ed financial asset is the gross carrying amount of those assets inclusive of any provisions for impairment. No collateral is held as security relating to the financial assets held by the Council. The following table represents the Council's maximum exposure to credit risk: Note

2012 $

Financial Assets

2011 $

Cash and cash equivalents - Bank

10,375,507

2,373,947

Cash and cash equivalents - QTC

27,578,679

28,196,078

Investments with approved deposit 13

23,000,000

Receivables - rates

taking institutions

3,027,156

3,108,127

Receivables - other

17,077,097

17,930,673

893,030 81,951,469

895,891 52,504,716

Other credit exposure Guarantee Total

Page 42

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012 31

Financial instruments - continued Past due or impaired No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated. The following table represents an analysis of the age of the Council's financial assets that are either fully performing, past due or impaired: Past due Current

31 to 60

61 to 90

Over 90

days

$ Receivables: 2012 2011

Less

Less than 30

Total

Impaired $

8,822,564

4,281,768

1,002,091

969,413

5,456,965

(428,548)

20,104,253

385,709

18,354,733

813,257

259,288

1,459,647

(233,834)

21,038,800

(ii) Liquidity risk Liquidity risk refers to the situation where the Council may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The 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. The Council manages its exposure to liquidity risk by maintaining sufficient undrawn facilities, both short and long term, to cater for unexpected volatility in cash flows. These facilities are disclosed in the borrowings note 21. The following table sets out the liquidity risk of financial liabilities held by the Council in a format as it might be provided to management. The amounts disclosed in the maturity analysis represent the contractual undiscounted cash flows at balance date (excluding employee entitlements as defined by AASB132 Financial Instruments para 4(b) ):

0 to 1 year 2012 Trade and other payables Loans QTC

$ 7,941,524 3,188,082 11,129,606

1 to 5 years $

Over 5 years

Total contractual

Carrying

cash flows

amount

$ -

12,594,011 12,594,011

$ -

31,569,700 31,569,700

7,941,524

47,351,793 55,293,317

31,143,687 39,085,211

2011 Trade and other payables Loans QTC

8,422,441 2,305,808 10,728,249

9,204,187 9,204,187

24,179,642 24,179,642

8,422,441

35,689,637 44,112,078

22,393,082 30,815,523

The outflows in the above table are not expected to occur significantly earlier and are not expected to be for significantly different amounts than indicated in the table. (iii) Interest rate risk The Council is exposed to interest rate risk through its borrowings from the Queensland Treasury Corporation and investments held with financial institutions. The risk in borrowing is effectively managed by borrowing mainly from the Queensland Treasury Corporation and having access to a mix of floating and fixed funding sources such that the desired interest rate risk exposure can be constructed. Interest rate risk in other areas is minimal. The Council does not undertake any hedging of interest rate risk. Interest Rate Sensitivity Analysis The following interest rate sensitivity analysis is based on a report similar to that which would be provided to management, depicting the outcome to profit and loss should there be a 1% increase in market interest rates. The calculations assume that the rate would be held constant over the next financial year, with the change occurring at the beginning of that year. It is assumed that interest rates on overdue rates would not change. If the rates decreased by 1% the impact would be equal in amount in the reverse direction.

Page 43

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012 Net carrying amount Financial assets and liabilities that are held at variable interest rates total:

Profit/(loss)

Equity

2012

2011

2012

2011

2012

2011

Financial assets

27,578,679

28,196,078

275,787

281,961

275,787

281,961

Financial liabilities

31,143,687

22,393,082

(311,437)

(223,931)

(311,437)

(223,931)

Net total

(3,565,008)

5,802,996

(35,650)

58,030

(35,650)

58,030

(iv) Fair Value Western Downs Regional Council does not recognise financial assets or liabilities at fair value in its Statement of Financial Position.

32 Controlled Entities and Associates - Financial Results Revenue Controlled Entities and Associates

Expenses

Profit/(Loss)

2012

2011

2012

2011

2012

2011

Western Downs Housing Trust

1,894

Western Downs Housing Fund Pty Ltd

Western Downs Disaster Relief Trust

274,404

121,688

152,716

(121,688)

121,688

Assets Controlled Entities and Associates Western Downs Housing Trust

Liabilities

2012

2011

2012

2011

8,618

10,502

Western Downs Housing Fund Pty Ltd

Western Downs Disaster Relief Trust

121,688

Page 44

(1,894)

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012 33

National Competition Policy (a) Activities to which the code of competitive conduct is applied A "business activity" of a local government is divided into two categories : (a) Roads business activity: (i)

the construction or maintenance of State controlled roads for which the local government submits an offer to carry out work in response to a tender invitation, other than through a sole supplier arrangement.

(ii)

submission of a competitive tender for construction or road maintenance on the local government's roads which the local government has put out to tender, or called for by another local government.

(b) Other business activity, referred to as type three activities, means the following: (i) (ii)

trading in goods and services to clients in competition with the private sector, or the submission of a competitive tender in the local government's own tendering process in competition with others for the provision of goods and services to its self. Excluded activities are (a) library services, and (b) an activity or part thereof prescribed by legislation.

Local government may elect to apply a Code of Competitive Conduct (CCC) to their identified business activities. This requires the application of full cost pricing, identifying the cost of community service obligations (CSO) and eliminating the advantages and disadvantages of public ownership within that activity. The application of the CCC to the roads business activity is compulsory. The CSO value is determined by Council, and represents an activities cost(s) which would not be incurred if the activities primary objective 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. Notwithstanding CSO's, the Council is committed to operating these activities as business activities in accordance with the CCC. Commercial Works Waste Management Water Sewerage Natural Gas Dalby Regional Saleyards Jimbour Quarry Washdown Bays The following table summaries the financial results for these, including competitive neutrality adjustments if applicable. Full information is available for inspection at the Council offices.

Page 45

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012 33

National Competition Policy - continued (b) Financial performance of activities subject to competition reforms: Commercial Works

Waste Management

2012

2011

2012

2011

2012

Revenue for services provided to the Council Revenue for services provided to external clients

19,151,409

* Community service obligations Less : Expenditure Surplus (deficiency)

19,500,675

41,981 5,807,324

31,182

2,944,659

9,273,256

10,469,760

16,340,635

19,531,857

5,260,226

3,754,304

8,823,508

10,141,728

449,748

328,032

2,810,774

589,079

Natural Gas

Dalby Regional Saleyards

2012

2011

2012

2011

2012

275 6,494,828 -

4,535,875

2,520

2,905

3,115,658

2,349,431

178,586

3,118,178

2,352,336

Less : Expenditure

3,681,471

4,714,461

1,766,725

Surplus (deficiency)

2,813,632

1,351,453

1,548,414

1,170,917 597,919

2011

14,526

8,430

2,118,416

1,145,414

22,956

780,044

1,925,287

22,956

1,338,372

(779,873)

Page 46

1,164,736

1,145,414

1,768,836

828,006

2012

2,118,416

2,713,150

1,524,330

2011 -

$ -

1,768,836

2012 -

2011

2,713,150

Washdown Bays

Jimbour Quarry

Surplus (deficiency)

9,765,956

3,754,304

4,714,461

Less : Expenditure

8,738,519

809,645

6,495,103

* Community service obligations

703,804

5,849,305

* Community service obligations

Revenue for services provided to external clients

$ 534,737

19,531,857

Revenue for services provided to the Council

2011

19,151,409

Sewerage

Revenue for services provided to external clients

Water

WESTERN DOWNS REGIONAL COUNCIL Notes to the financial statements For the year ended 30 June 2012 33 National Competition Policy - continued (c) CSO's were paid during the reporting period to the following activities. Activities

CSO description

Actual $

Washdown Bays

To transfer general revenue for the shortfall in revenue

Page 47

8,430