WDRC Annual Report 2015-2016 by Western Downs Regional Council

ANNUAL REPORT 1 July 2015 to 30 June 2016

Contact Details and Distribution Contact Council

Customer Service Centre Locations

To contact the Western Downs Regional Council (WDRC) you can:

Local Communities – Local Service Chinchilla — 80-86 Heeney Street Miles — 29 Dawson Street — 30 Marble Street Dalby — 19 Fry Street Tara Jandowae — 22 George Street Wandoan — 6 Henderson Road

1. Telephone our Customer Service Centre on 1300 COUNCIL (1300 268 624) or 07 4679 4000 (interstate) 2. Visit in person at your local Customer Service Centre 3. Find us on Facebook and Twitter

Distribution

4. Email Council at: info@wdrc.qld.gov.au

Western Downs Regional Council’s Annual Report is available in hardcopy or electronic format.

5. Write to us, addressing all correspondence to: Western Downs Regional Council PO Box 551 Dalby QLD 4405

Printed copies of the report may be obtained for a fee by writing to: Western Downs Regional Council, PO Box 551, Dalby QLD 4405, or by telephoning 1300 COUNCIL (or 07 4679 4000 from interstate) during normal business hours. Alternatively, you can visit Council’s website at www.wdrc.qld.gov.au to download a copy for free.

About This Report As well as being a legislative requirement for Local Government, Western Downs Regional Council's 2015/16 Annual Report serves to keep Council's stakeholders, including: residents, ratepayers, business and industry, employees, community groups, and partnering government agencies, informed of Council's performance over the previous financial year. This Annual Report focuses on Council's financial and operational performance for the 2015/16 financial year against the 2013–2017 Corporate Plan, which established the strategic direction of Council's programs and initiatives into prioritised and measurable actions. This was achieved by structuring the Corporate Plan around the following eight theme areas that were identified in the Western Downs 2050 Community Plan. This created a clear link between Council's strategic priorities and the needs and expectations of our local communities: • Effective and Inclusive Governance • Enriched Communities • Healthy Living • Welcoming Communities

• Innovation and Economic Success • Balanced Growth • Healthy Natural Environment • Accessible and Connected Places

Alignment to these eight strategic themes flowed into Council budgets and operational plans, to ensure Council delivered against a shared vision for the Western Downs region.

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How to Read This Report This report is divided into five chapters designed to help you find the information you’re looking for. Chapter 1: Setting the Scene — includes a profile of the Western Downs region, Council's role within the community, and a Community Financial Report consisting of key points highlighting Council's financial performance. Chapter 2: Your Councillors — includes a message from the Mayor, identifies the Councillors and their portfolios, provides the statutory information required for Councillors' Governance. Chapter 3: The Organisation — includes a message from the CEO, shows the organisational structure and the management functions responsible for achieving Council's corporate objectives and operational plans, and provides the statutory information required for Corporate Governance. Chapter 4: Reporting the Organisation's Performance — outlines Council's Strategic Direction, summarises achievements toward meeting the intent of the Corporate Plan, and provides an assessment of Council's overall performance by the Executive Team. Chapter 5: Financial Reporting — includes the certified General Financial Statements that detail Council's financial position for the year ending 30 June 2016.

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Contents CHAPTER 1: SETTING THE SCENE...................................................... 4 Our Region................................................................................................ 5 The Role of Council................................................................................... 7 Community Financial Report..................................................................... 8 CHAPTER 2: YOUR COUNCILLORS.................................................... 13 Mayor's Message................................................................................... 14 Councillors for the 2015-2016 year........................................................ 16 Statutory Information â&#x20AC;&#x201C; Councillors Governance................................... 17 CHAPTER 3: THE ORGANISATION.................................................... 19 CEO's Message....................................................................................... 20 Council's Organisational Structure......................................................... 21 Statutory Information - Corporate Governance...................................... 22 CHAPTER 4: REPORTING THE ORGANISATION'S PERFORMANCE... 25 Council's Strategic Direction.................................................................. 26 Performance Outcome Highlights 2015/16............................................ 27 Assessment Summary of Organisational Performance ......................... 30 CHAPTER 5: FINANCIAL REPORTING............................................... 32 Financial Statements.............................................................................. 33 Management Certificate......................................................................... 81 Independent Auditor's Report Report on the Financial Report........................................................... 82 Current Year Financial Sustainability Statement.................................. 86

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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CHAPTER 1:

SETTING THE SCENE

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WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Our Region On the back of its proud history of agricultural productivity and manufacturing innovation, an experienced supply chain and modern infrastructure are being promoted to attract external investment. Tourism, agriculture and services are fuelling new economic activity as local business gets on with driving the regional economy forward. Advancements in renewable energy and Government incentives in relation to the provision of green, clean, renewable energy products has seen Council approve one large scale solar power development already, with more developments of this nature in the pipeline. Western Downs' strategic location in the centre of the eastern seaboard, and its continued major infrastructure development, is making the region more accessible. Continuing Warrego Highway Upgrades, and ongoing works on the Western Rail Line, enable freight movement within and through the Western Downs region. National building projects outside the administrative boundary, including the Toowoomba Second Range Crossing, Brisbane West Airport and Inland Rail, contribute to improving the region's access to international markets. Major project developments, including Greenfield infrastructure construction in a highly regulated industry, have showcased the capability and capacity of the region. This construction legacy is now being redeployed to support diversification, building the region's services economy through investment attraction and business development. Consistently low unemployment levels and affordable housing support resident relocation, attracting families to the region for relaxed country living in progressive and active communities. A variety of significant events and authentic attractions also boost visitation to the region, and enhance its attractive lifestyle. The Western Downs region is working hard to realise sustainable growth, delivering quality services and improving the region's natural, economic, social and cultural environment. The Western Downs means business.

People Consistently enjoying population growth despite the trend of rural population decline, the Western Downs region welcomed 159 persons

in the year to June 2015, representing a 0.5% increase from 2014. The past five years has seen the region's residential population grow at an average annual rate of 1.7%. Our residential population is expected to increase to 40,349 persons over the period to 2036, an average annual growth rate of 0.9%. Despite a reduction of 0.7% in labour force, the region's unemployment rate (4.4%) remains significantly lower than the averages for Queensland (6.2%). Approximately 39% of employed residents in the Western Downs work in agriculture, forestry and fishing, retail and the construction industries.

Miles Airport

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Economy Mining makes the largest contribution to the regional economy, comprising 18% of the region’s $3.02 billion (as at 2014/15) Gross Regional Product (GRP), followed by agriculture, forestry and fishing (9.1%), construction (8.9%), and manufacturing (6.8%) sectors. Despite the recent contraction in direct expenditure of the mining and resources sector, the economy of the Western Downs region has grown at an average annual rate of 4.0% over the past five years.

“...38 residential dwellings were approved to be built in the Western Downs at a total value of approximately $15.6 million, in the 12-month period to June 2016.”

Lifestyle As voted by the residents of the Western Downs, it’s the 'quality of life' and 'feeling of community' that are our region's greatest strengths. This is closely followed by 'clean living' with clean air and water identified by our residents, as another benefit of modern country living within our welcoming communities.

Proving the appeal of our family friendly lifestyle, 38 residential dwellings were approved to be built in the Western Downs at a total value of approximately $15.6 million, in the 12-month period to June 2016.

Median house prices, approximately half those of Brisbane (March 2016), are one the region's lifestyle advantages, further enhanced by the subtropical climate where all four seasons can be enjoyed. Average summer temperatures are between 18 and 30 degrees C, cooling for the winter months to between 5 and 20 degrees C.

While spread across a large geographical area, communities in the Western Downs boast an impressive range of modern facilities from aquatic and fitness centres to galleries, museums, cinemas and civic centres, delivering the convenience of metropolitan centres in a scenic rural environment.

The Opera at Jimbour in July 2015 attracted a crowd of 8,000 who were treated to 'Die Fledermaus'.

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WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

The Role of Council At Western Downs Regional Council we take the role as the front-line level of government seriously. It is important that Council remains the most accessible level of government in our local communities, and that the decisions made today positively shape the region for the benefit of the generations to come. Council believes in and adheres to the following principles of local government: a) Transparent and effective processes, and decision-making in the public interest; b) Sustainable development and management of assets and infrastructure, and delivery of effective services;

Council's Values

COMMUNICATION LEADERSHIP As elected representatives RESPECT and staff of Western Downs OUR VALUES BALANCE Regional Council, behaviour TEAMWORK is reflected by the ACCOUNTABILITY following values: OUR VALUES moving us forward

Council's Strategic Themes At Western Downs Regional Council we're committed to delivering services, projects and initiatives in response to the priority strategies devised under the following eight Strategic Themes, in accordance with the Corporate Plan:

c) Democratic representation, social inclusion and meaningful community engagement; d) Good governance of, and by, local government; and e) Ethical and legal behaviour of councillors and local government employees.

Council's Mission We are part of the community we serve, working together to provide valued leadership and services to our diverse region. Council's Mission says: Who Council is — Leaders who operate strategically and staff who deliver operationally Why Council exists — To responsibly govern our region and provide services that deliver liveability What Council does — Delivers services that meet community needs through strategic leadership, informed decision making, and an empowered team

We have purposefully aligned the Corporate Plan with the vision themes expressed in the Western Downs 2050 Community Plan. This ensures that Council is delivering a shared vision and creating local communities that our residents are proud of. Each of the eight Strategic Themes are explained in Chapter 4 of this report, on page 26.

What is unique about Council — Councillors and staff live and work in the diverse communities they serve

Council's Vision An innovative team — connected locally, united regionally Innovative — A responsive organisation willing to take managed risks that lead to innovative solutions Connected — In touch with our local communities and their needs United — A regional entity, working collaboratively

One of a number of state-of-the-art facilities across the region for the disposal of general waste, recycling, green waste, and industrial waste

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Community Financial Report What is a Community Financial Report?

Revenue Sources - Where does the money come from?

The Community Financial Report aims to simplify Council's Official Financial Statements by providing a visual representation of our financial performance for the year.

This year Council received $145.1 million in operating revenue and $34 million in capital revenue.

Each report in Council's Financial Statements provides information on a specific aspect of our performance. Collectively the statements provide a detailed profile on the financial performance and health of Council. This Community Financial Report consists of the following

Significant contributors to the revenue stream include:

• Rates, levies, and utility charges $72.5 million; • Operational grants, subsidy contributions, and donations $32.5 million; • Capital grants, subsidy contributions, and donations $34 million;

five key statements or elements:

• Sale of major services $23 million;

• Statement of Comprehensive Income

• Fees and charges $10.2 million;

• Statement of Financial Position

• Rental and levies $1.8 million; and

• Statement of Changes in Equity

• Interest received $3.6 million.

• Statement of Cash Flows

In 2015/16 our total revenue decreased by $24 million, due mainly to a decrease in capital grants and contributions of $17 million as major flood reconstruction work came to completion and a significant slowing of resource sector investment.

• Financial Sustainability Ratios Significant achievements include:

• Delivered an Operating Surplus;

SOURCES OF REVENUE

• Completed $63.9 million of Capital Works projects, including $5.2 million in contributed assets; • Repaid debt to the value of $37.3 million thereby reducing Council's debt balance to $19.3 million; and

19%

Rates and levies

• Reduced materials and services cost by $9.2 million.

41%

Fees and charges

Statement of Comprehensive Income The Statement of Comprehensive Income measures how Council performed in relation to income and expenses during the financial year. This statement illustrates how money received from Council's operations is spent.

Rental and levies

18%

2% 1%

Interest received

Operational Grants, subsidies and contributions 13%

Comparative Trend Analysis Revenue and Expenditure - Recent Results $'000 2013/14

2014/15

2015/16

Recurrent Revenue

157,299

152,564

145,124

Capital Revenue

134,179

51,082

34,605

Recurrent Expenditure

144,828

143,506

145,006

14,241

17,348

14,646

132,409

42,792

20,077

Net Result

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Capital Grants, subsidies and contributions

Executive Summary of Key Highlights

Financial Year

Capital Expenditure

Sale of goods and major services

During the 2015/16 Financial Year, Western Downs Regional Council sustained its financial position and delivered a significant program of services to the community. Council proactively repaid $37.3 million of debt to Queensland Treasury Corporation. Assessment by the Queensland Audit Office on the timeliness and quality of the 2015/16 Financial Statements significantly improved from the prior year, with all control elements rated as 'generally effective'.

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Expenditure - Where does the money go?

DAY-TO-DAY EXPENDITURE

Council incurs both operating and capital expenditure in the provision of goods and services to our community. In 2015/16 our operational expenditure increased by $1.5 million, due to a large increase of $7 million in depreciation which mainly resulted from Council reducing it's work-in-progress balance from $108 million to $41 million, and revised finance costs of $3.7 million resulting from the repayment of debt at market value. Overall material and services costs have dropped $9.2 million as a result of better procurement practices and reduction in commercial works. Significant expenditure items during the 2015/16 Financial Year include:

Operating: • Employee Costs

$49,767,630

• Materials and services costs

$43,979,646

• Depreciation and amortisation

$42,627,398

Capital: • Capital acquisitions

$70,492,584

28%

32%

Employee benefits Materials and services Finance costs

Depreciation and amortisation

34%

(L–R) Spokesperson for Utilities Councillor Peter Saxelby, Deputy Mayor Andrew Smith and Mayor Paul McVeigh are joined by contractors FB Contracting for a site inspection of the pipeline for the new Chinchilla Water Treatment Plant.

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Statement of Financial Position

LIABILITIES 2015/16

The Statement of Financial Position measures what we own (our assets) and what we owe (our debts), resulting in our net worth at the end of the financial year.

22%

26%

Trade liabilities

Our Assets

Property restoration

The major components of our assets include: 14%

• Property, plant and equipment $1.506 billion;

Borrowings

• Cash and cash investments $79.8 million; and • Trade and other receivables $14.1 million.

Employee leave entitlements

38%

Increases in property plant and equipment of $134.7 million included revaluations of $124.1 million, capital works of $63.9 million less the impact of depreciation of $42.6 million.

Our Net Worth $'000s Financial Year

ASSETS 2015/16

Assets Liabilities Cash and cash equivalents - 4.96% Trade and other receivables - 0.88% Term Deposit - 0.00% Inventories - 0.54% Property, plant and equipment - 93.54% Intangible assets - 0.08%

Our Liabilities

Community Equity (balance)

2013/14

2014/15

2015/16

1,532,038

1,508,026

1,609,627

110,205

93,898

51,337

1,421,833

1,414,128

1,558,290

Our debt Like most local governments, Western Downs Regional Council utilises loan borrowings to fund the construction of infrastructure to service the needs of our community. We achieved a negative Net Financial Liabilities Ratio of 35.29%. This result indicates that Council has current assets that exceed total liabilities, and has a very sound liquidity. Council made significant additional principal repayments during 2015/16 in order to reduce its debt.

The major components of our liabilities include: • Loans $19.7 million;

COMPARATIVE DEBT LEVELS

80,000

• Trade payables $16.1 million; • Employee leave entitlements $13.6 million; and

$'000

70,000 60,000

• Provision to restore Council's quarries and landfills $7.3 million.

50,000

During the year, our liabilities decreased by $42.6 million or 45.3%, due mainly to the repayment of debt.

40,000 30,000 20,000 10,000 0

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2011

2012

2013

2014

2015

2016

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Statement of Changes in Equity

Financial Sustainability Ratios

The Statement of Changes in Equity measures the changes in our net wealth and shows the movements in our retained earnings and asset revaluation surplus.

Council's performance at 30 June 2016 against key financial ratios is listed below:

In the 2015/16 financial year, our net worth increased by $144.2 million mainly as a result of the revaluation of property, plant and equipment. Statement of Cashflows While Council repaid debt to the value of $37.3 million during the year, Council's cash balance remained sound due to net cash inflows from operating activities of $45.6 million being partly offset by cash outflows from investing activities of $18.7 million.

Ratio Operating surplus ratio Asset sustainability ratio Net financial liabilities ratio

Target

Result

between 0% and 10%

0.08%

greater than 90%

83.94%

not greater than 60%

-35.29%

The Asset Sustainability Ratio measures our ability to maintain infrastructure capital over the long-term, whilst the Operating Surplus and Net Financial Liabilities ratios measure our ability to maintain financial capital over the long-term. The results achieved in the current year are all within the targets as set by the State Government for financial sustainability and indicates that Council is in a sound financial position.

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Your Rates at Work The following infographic depicts what our community received for their rates. In 2015/16, every $100 of your rates and utilities charges was invested back into our local communities in the following way: LEGEND IN MY HOME DIRECTLY OUTSIDE MY HOME WIDER COMMUNITY

$10.25

$2.66

Corporate and Executive Services*

Environment and Health Management (other than waste, such as parking meters, pest management, stock routes, natural resource management)

$1.37

$0.60

Tourism

Disaster Management

$1.99

$1.21

Planning, Building and Plumbing Services

Economic Development and Strategic Planning

$1.26

$7.42

Aged Care and Health Services

Waste Collection and Management

$36.31

$0.82

Roads and Bridges

Cemeteries

$1.45

$0.71

Drainage

Footpaths

$4.37

$17.69

Community and Cultural Facilities

Utilities (water, wastewater, household gas)

$1.98 Libraries $2.26

$0.51

Pools and Sporting Fields

Streetlighting

$2.81

$4.33

Community, Cultural and Youth Programs

Parks and Showgrounds

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* Includes Governance, Human Resources, Finance, Information Technology, Customer Contact Centre, Marketing and Communications.

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

CHAPTER 2:

YOUR COUNCILLORS

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Mayor's Message My first term as Mayor of Western Downs Regional Council commenced March 2016, and in presenting the 2015/16 Annual Report I would like to acknowledge the hard work and dedication of former Mayor Ray Brown and the previous Council. You can be proud of your contribution toward the achievements documented in this report and the region thanks you for your efforts in creating communities that are a joy to live in. I'm extremely proud to be leading the new team of councillors at Western Downs Regional Council. As one of the largest regional councils in Queensland, our 33,653 residents enjoy the best of modern country living in welcoming communities where convenience, local spirit and lifestyle come together. Our growing population can thank the forward planning of our previous Council for the regional network of water, wastewater and waste infrastructure now in place to cater for future demand. With this essential infrastructure in place, our new term of Council is primed to focus its attention on the liveability of our local communities and building the economic strength of our region.

â&#x20AC;&#x153;The time is now for the Western Downs and I look forward to working with my fellow leaders on what promises to be exciting times ahead for our great region.â&#x20AC;?

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As important as it is to look ahead, it's also critical that we review our past year's performance and celebrate what Council has achieved towards its long-term vision for the Western Downs region. Key to the ongoing prosperity of our exciting region is Council's responsible approach to financial

management that continued to influence its decision making and resulted in an operating surplus for the third consecutive year. With the downturn of the resources sector significantly impacting Council's revenue, it's never been more important to operate within our means so that we can continue to deliver essential services and build key infrastructure. As shown in the Community Financial Report on page 8, despite the challenges Council's performance against financial sustainability ratio targets set by the State Government indicate its sound financial position. Specifically, our Net Financial Liabilities Ratio result indicates that Council is in a sound liquidity position with current assets exceeding total liabilities and; the Asset Sustainability Ratio result indicates our ability to maintain infrastructure assets into the future. With the extraordinary flood reconstruction projects ongoing since 2010/11 completed last financial year, Council renewed its focus on delivering value for money essential services in 2015/16. While it was back to business as usual delivering services in roads, bridges and stormwater, the sustainable growth of essential infrastructure continued in water, wastewater and waste. Some of these projects include: the new Wastewater Treatment Plant in Chinchilla; the new Waste and Recycling Centre in Miles; and commencement of construction on the new Water Treatment Plant in Chinchilla and the Winfields Road Landfill in Jandowae. Building a legacy for our future generations through the balanced growth of our region means more than just essential infrastructure and services; it also means proactively seeking development that's right for our region. The right type of development not only creates new jobs but also enhances the long-term liveability of our communities. As well as adopting the Draft Western Downs Planning Scheme for State Interest

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Review, we made changes to our Planning Department to remove 'red tape' and assist developers to 'fast-track' applications that bring economic benefit to the region.

community spirit by supporting major events that generate an economic benefit for our region including Opera at Jimbour, held in conjunction with Queensland Music, attended by over 8,000 people.

The Western Downs is open for business. Not only can we boast Queensland's lowest average unemployment rate in 2015, we're perfectly located to take advantage of major road, rail and airport infrastructure to access domestic and export markets through South East Queensland, the Port of Brisbane and Central Queensland. Not surprisingly, investor and business confidence in the Western Downs has continued with several significant commercial projects underway or progressing through planning approvals this year.

My vision is for Western Downs to be recognised as the number one region in Queensland. I believe we can do this by building on the pride we have in our work and homes, in our towns, in our local communities and in our region. Pride comes from achieving great outcomes and delivering quality services, and on reading our 2015/16 Annual Report I'm confident you'll agree that we have a lot to be proud of. I especially want to give thanks to the people who deliver on the decisions and plans of Council, and that's our dedicated staff as we couldn't operate without their expertise and commitment.

Already a proven agricultural powerhouse, with a production value of over $500 million a year for all major agricultural commodities, the Western Downs is fast becoming known as the Energy Capital of Queensland. We're currently experiencing our third wave of energy development with renewable energies following in the footsteps of coal and gas. Specifically, solar energy with Origin Energy's Darling Downs Solar Farm project being granted approval, the first of several in the pipeline across the region. These types of green, clean renewable energy projects are exciting for the Western Downs, showcasing the strength and diversity of our regional economy. With the bulk of the essential infrastructure projects completed or underway, Council turned its focus to enhancing the liveability of our towns with a series of projects designed to boost recreational opportunities for residents and visitors alike. For example, this year work commenced on the Miles ANZAC Park development and planning commenced on the Myall Creek Parkland upgrade in Dalby and the new Chinchilla Botanical Gardens Master Plan. We also celebrated

The time is now for the Western Downs and I look forward to working with my fellow leaders – the Councillors, the Chief Executive Officer, and Council staff – on what promises to be exciting times ahead for our great region. Cr Paul McVeigh Mayor Western Downs Regional Council

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Mayor: Councillor Paul McVeigh Portfolio - Executive Services Phone: 07 4679 4004 Mobile: 0408 700 392 paul.mcveigh@wdrc.qld.gov.au

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Councillors for the 2015-2016 year The Western Downs local government area is represented by eight elected Councillors and an elected Mayor who are responsible for the strategic direction of Council. There are no wards or divisions within the Western Downs region. Council elections are held every four years, the most recent being 19 March 2016. For detailed information in relation to Councillor entitlements, remuneration packages, committee representation and meeting attendance, please refer to the next section of this report containing Statutory Information.

Predecessor Councillors: 1st July 2015 - to - 30th March 2016

From left to right: Cr Greg Olm, Cr Charlene Hall, Cr Ian Rasmussen, Cr Ray Jamieson, Mayor Ray Brown, Deputy Mayor George Moore, Cr Tony Brame, Cr Andrew Smith, Cr Carolyn Tillman

Current Councillors: 30 March 2016 - to - 30 June 2016 Deputy Mayor Councillor Andrew Smith

Councillor Carolyn Tillman

Portfolio - Executive Services

Portfolio - Planning and Environment

Portfolio - Parks Open Spaces and Cemeteries

Phone: 07 4679 4004 Mobile: 0408 700 392

Phone: 07 4679 4004 Mobile: 0438 755 896

Phone: 07 4679 4004 Mobile: 0401 662 352

paul.mcveigh@wdrc.qld.gov.au

andrew.smith@wdrc.qld.gov.au

carolyn.tillman@wdrc.qld.gov.au

Councillor Ian Rasmussen

Councillor Ray Brown

Councillor Greg Olm

Mayor Councillor Paul McVeigh

Portfolio - Finance and Corporate Services

Portfolio - Community Facilities

Portfolio - Works and Technical Services

ian.rasmussen@wdrc.qld.gov.au

Phone: 07 4679 4004 Mobile: 0407 650 216 ray.brown@wdrc.qld.gov.au

greg.olm@wdrc.qld.gov.au

Councillor Donna Ashurst

Councillor Kaye Maguire

Portfolio - Economic Development and Tourism

Portfolio - Community and Cultural Development

Councillor Peter Saxelby

Phone: 07 4679 4004 Mobile: 0475 268 207

Phone: 07 4679 4004 Mobile: 0475 007 555

Phone: 07 4679 4004 Mobile: 0475 007 554

donna.ashurst@wdrc.qld.gov.au

kaye.maguire@wdrc.qld.gov.au

peter.saxelby@wdrc.qld.gov.au

Phone: 07 4679 4004 Mobile: 0477 977 085

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Phone: 07 4679 4004 Mobile: 0477 977 082

Portfolio - Utilities

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Statutory Information â&#x20AC;&#x201C; Councillors Governance As the community's elected representatives, the Mayor and Councillors are responsible for the successful management of the Western Downs local government area. To ensure Council's leadership is fair and equitable, and that decisions are made in the best interests of our region, Council is required to act in accordance with the Local Government Act 2009 (the LGA), Local Government Regulation 2012 and associated State and Federal legislation. Council Meetings

The date, time and location of all Ordinary and Special Meetings are published at least annually and are available on Council's website as well as at all Customer Service Centres. Special meetings of Council are called as required, and the only item of business that may be conducted at these meetings is the business stated in the notice. The three Special Meetings identified in the 'Summary of Meeting Attendance' table below were in relation to the Post Election Meeting, and to the deliberations, and the adoption, of the 2016/17 Budget.

Council makes decisions at Ordinary Meetings of Council which are held on the 3rd Wednesday of each month. The Ordinary Meetings are held at the regional Customer Service Centres on a rotational basis, and Special Meetings are convened where required.

A list of agenda items to be discussed at each meeting is publicly available at least two days prior to the meeting, and the agenda reports (excluding confidential items) are published on Council's website at 9.30am on the morning of the Council Meeting.

There were no Standing Committees during 2015/16; however numerous Statutory and Advisory Committees operated comprised of Councillors and external parties. All such Committees operate under a terms of reference and while they do not have decision making authority, their purpose is to provide recommendations to Council.

Minutes of all Council Meetings are published on the website within the statutory ten days following the meeting.

All Ordinary Meetings of Council are open to the public with a scheduled public gallery question time, whereby a member of the public may apply to address Council on a particular matter of public interest. Community deputations are also often received and can be arranged through the office of the Chief Executive Officer. Council may at times resolve to temporarily close a meeting pursuant to section 275 of the Local Government Regulation 2012 to discuss confidential matters, however all decisions about such matters are made in an open meeting. Council meetings are carried out in accordance with Councilâ&#x20AC;&#x2122;s Meetings Policy which is available on the WDRC website - www.wdrc.qld.gov.au.

A total of 19 Ordinary Meetings, 16 with the predecessor Council and three with the current Council), and three Special Meetings (all with the current Council) were held from 1 July 2015 to 30 June 2016. Strategy Sessions In addition to regular Council meetings, strategy sessions are also held to inform Council of important issues. These sessions are not a decisionmaking forum, and therefore allow detailed discussion to explore options and develop a better understanding of the issue. Decisions of Council can only be made during actual Council meetings. Councillors are also representatives on numerous external organisation committees, and Internal Council Committees and Business Enterprises and Groups - view the details at: http://www.wdrc.qld.gov.au/aboutcouncil/councillors-connect/councillors-profiles/

Summary of Meeting Attendance by Councillors - 1 July 2015 to 30 June 2016 Councillor

Ordinary Meetings Attended

Cr Andrew Smith Cr Carolyn Tillman Cr Charlene Hall Cr Donna Ashurst Cr George Moore Cr Greg Olm Cr Ian Rasmussen Cr Kaye Maguire Cr Paul McVeigh Cr Peter Saxelby Cr Ray Brown Cr Ray Jamieson Cr Tony Brame

18 (of 19) 18 (of 19) 16 (of 16) 3 (of 3) 15 (of 16) 18 (of 19) 18 (of 19) 3 (of 3) 3 (of 3) 3 (of 3) 18 (of 19) 16 (of 16) 15 (of 16)

Special Meetings Attended 3 3 0 3 0 3 3 3 3 3 3 0 0

(of (of (of (of (of (of (of (of (of (of (of (of (of

3) 3) 0) 3) 0) 3) 3) 3) 3) 3) 3) 0) 0)

There were no attendances via teleconference for the year.

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Councillor Remuneration and Expenses Reimbursement Policy Chapter 5 Part 3 of the Local Government Regulation 2012 requires the Annual Report to detail the total remuneration, including superannuation contributions, paid to each Councillor for the financial year as well expenses incurred in accordance with Council's expenses reimbursement policy. Particular Resolutions No resolutions were made under section 250(1) related to the adoption or amendment of the Councillor Expenses Reimbursement Policy for this financial year.

The Councillor Expenses Reimbursement - Council Policy, is available by following this link on the WDRC website: http://www.wdrc.qld.gov.au/about-council/council-documents/ policy-register/#C Expenditure from Councillor Discretionary Funds Councillors do not have any formal legislated discretionary funds. Overseas Travel During this reporting period no Councillors or Council officers travelled overseas for Council business.

Councillors' Remuneration, Superannuation, Expenses Incurred, and Facilities Provided: 1 July 2015 to 30 June 2016 Councillor Cr Andrew Smith Cr Carolyn Tillman Cr Charlene Hall Cr Donna Ashurst Cr George Moore Cr Greg Olm Cr Ian Rasmussen Cr Kaye Maguire Cr Paul McVeigh Cr Peter Saxelby Cr Ray Brown Cr Ray Jamieson Cr Tony Brame Totals:

Remuneration

Superannuation: 12%

Expenses Incurred

* Facilities Provided

$84,714.86 $82,609.10 $64,216.08 $18,620.09 $72,973.50 $82,609.10 $82,609.10 $18,620.09 $32,554.49 $18,620.09 $129,147.56 $64,216.08 $64,216.08 $815,726.22

$10,165.78 $9,913.09 $7,705.93 $2,234.41 $8,756.82 $9,913.09 $9,913.09 $2,234.41 $3,906.54 $2,234.41 $15,497.71 $7,705.93 $7,705.93 $97,887.14

$8,975.62 $2,800.70 $1,834.30 $863.12 $4,451.66 $2,006.00 $1,930.20 $1,323.10 $4,463.51 $489.80 $15,371.00 $5,389.08 $5,929.92 $55,828.01

$14,632.00 $14,867.68 $11,231.80 $3,439.45 $11,231.80 $14,632.00 $14,632.00 $3,447.31 $3,384.43 $3,447.31 $14,632.00 $11,231.80 $11,231.80 $132,041.38

* Motor Vehicle Complaints about Councillor Conduct and Performance The roles, responsibilities and obligations of Councillors are set out in the Local Government Act 2009, with provisions relating to complaints about their conduct and performance outlined in Chapter 6. There were no complaints received during the 2015/16 year, as disclosed in the following table: Complaint / Order and/or Recommendation Type Complaints assessed as frivolous or vexatious or lacking in substance Inappropriate conduct referred to the Department's Chief Executive Inappropriate conduct referred to the Mayor Misconduct complaints referred to the Department's Chief Executive Complaints of official misconduct Complaints heard by Regional Conduct Review Panel Complaints heard by Local Government Remuneration and Discipline Tribunal Other complaints dealt with Orders and recommendations by Regional Conduct Review Panel or Local Government Remuneration and Discipline Tribunal Orders of reprimand for inappropriate conduct

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LGA Section

Number

Section 176C(2) Section 176C(3)(a)(i) Section 176C(3)(a)(ii) or (b)(i) Section 176C(4)(a) Section176C(6)

0 0 0 0 0 0 0 0

Section 180(2) and (4)

Section 181

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

CHAPTER 3:

THE ORGANISATION

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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CEO's Message Evolving how we operate and continually looking to do things better, is key to building any sustainable and progressive organisation,Â and this is exactly the approach I have brought to my role as Chief Executive Officer at Western Downs Regional Council. One of the first things that became evident was the genuine sense of common purpose amongst our skilled staff to make a real difference to the lifestyle enjoyed by the people of the Western Downs. So it wasn't surprising to witness achievements at every level of the organisation, simply by people looking for better and more cost-effective ways to do things. A fantastic example is the $8 million saved by the Utilities Team on the Chinchilla Water Treatment Plant Project thanks to their innovative approach to the project redesign and scheduling. Creating an organisation that's fit for the future is more than just being ...there's simply financially viable in the long-term, it's no better place also about being agile and innovative to be than the enough to adapt to the changing needs of customers. With this in mind our new Western Downs. Innovation Lab is a safe environment where staff are challenged to review and improve processes to deliver better customer experiences. This year the team developed Smart Notice technology allowing customers to receive Dog Registration notices on their smart device, pay online via credit card, update their account details and receive SMS reminders. Not only making it easier for customers to renew their dog registration but also reducing Council's mailing costs. A focus on operating efficiencies and delivering value for money services has been critical to ensuring the long-term financial sustainability of our organisation in the face of shrinking revenue due to the downturn of the resources sector. I'm very proud of the work that has been done to review and improve our financial governance, with improved procurement practices, better management and general efficiency gains achieving savings of $9.2 million in Council's operating spend and $18.9 million on capital works projects. We also reviewed how we operate, thought outside of the box and successfully realigned our workforce to our changing work requirements. Changes were made to our management structure to deliver on Council's renewed focus on the liveability of our towns and stimulating the local economy. The creation of a dedicated Community and Liveability division, for example, ensures that growing the economic and social fabric of the Western Downs is reflected in our daily operations with results already being seen in Parks and Open Spaces.

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By challenging the status quo and daring to do things differently, Western Downs has emerged as a leader in financial management across Queensland local governments. The financial maturity of our organisation was reflected in Council's decision to pay down debt by $37.3 million during this financial year, reducing the region's overall debt from $3,264 per ratepayer to $1,172 per ratepayer. Keeping debt low not only gives Council greater flexibility in delivering projects that matter to our communities but also means its better positioned to capitalise on future opportunities. Our focus on strong financial management is all about balancing our responsibility to deliver value for money services to ratepayers while still being able to enhance the liveability of our towns and support the economic growth of our region. This year's sound financial position enabled us to commence planning on an ambitious economic development and tourism agenda, which will be assisted by the release of the Amended Draft Western Downs Planning Scheme for community consultation once passed by the State next year. We've already made improvements in our planning processes and feedback from businesses about our proactive new approach has been very positive. The commencement of works at the Miles ANZAC Park development and drafting of plans for Dalby's Myall Creek Parklands upgrade is just the start of the beautification of our towns to bolster tourist experiences, generate economic benefits and support local jobs throughout our vibrant region. In addition, projects to the value of $1.1 million have been approved for development under the Western Downs Tourism Investment Project, a joint venture between Council and Australia Pacific LNG. With the next wave of energy development on our doorstep, the continued growth of our thriving agricultural and manufacturing industries, and one of Queensland's lowest unemployment rates â&#x20AC;&#x201D; there's simply no better place to be than the Western Downs. I congratulate the entire Council team for their contribution to the achievements celebrated in our 2015/16 Annual Report. Together we make a lasting difference to the communities that we call home. Ross Musgrove Chief Executive Officer

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Council's Organisational Structure audit activities, the Audit Committee provides an independent and external review of the corporate governance frameworks.

In consultation with our communities, the elected Council sets the strategic direction of the organisation under the authority of State Government via the Local Government Act 2009. Council's 2013 - 2017 Corporate Plan translates not only the community's long-term vision for the Western Downs, but also longterm State and Regional Planning policies, articulated in the strategic priorities to be achieved by 2017. The Chief Executive Officer and Executive Team are responsible for carrying out the decisions of Council as well as providing professional advice on how to best achieve identified priorities within allocated resources.

Western Downs Regional Council is structured into the following four divisions: • Executive Services – led by the Chief Executive Officer • Corporate Services – led by the General Manager (Corporate Services) • Community and Liveability – led by the General Manager (Community and Liveability) • Infrastructure Services – led by the General Manager (Infrastructure Services)

In consultation with Council, the Executive Team and their staff develop annual Operational Plans and budgets aligned to the Corporate Plan. An assessment of progress against these plans is provided to Council each quarter via the quarterly Operational Plan Review, and annually to the community via the Annual Report. To ensure the organisation is effectively undertaking its responsibilities, internal audits are carried out to appraise systems and processes, and to encourage a culture of continuous improvement. Overseeing internal

The Executive and Senior Management teams are responsible for the areas shown in the organisational chart below. Their role is to assist Council in making timely and informed decisions, backed by trusted advice and supported by effective and inclusive governance. As leaders of the organisation, the Executive and Senior Management teams are responsible for ensuring their departments service the local communities effectively, and efficiently. Each division is further segmented into functional departments, as shown below.

Western Downs Regional Council Organisational Structure as at 1 February 2016 Chief Executive Officer

General Manager (Community and Liveability)

General Manager (Corporate Services)

General Manager (Infrastructure Services)

Facilities Manager

Chief Financial Officer

Technical Services Manager

Planning and Environment Manager

Chief Technology Officer

Utilities Manager

Economic Development Manager

Chief Human Resource Officer

Works Principal

Community Development Manager

Customer Support and Governance Manager

Health Services Manager

Communication and Marketing Manager

Works Manager Maintenance Works Manager Planning and Corridor Management Works Manager Construction

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Statutory Information - Corporate Governance Identifying Beneficial Enterprises During this reporting period Council did not conduct any beneficial enterprises. A beneficial enterprise is one that Council considers is directed to benefit, and can be reasonably expected to benefit, the whole or part of its Local Government Area. Significant Business Activities Western Downs Regional Council conducted eight significant business activities during 2015/16, as listed below: • Commercial Works • Waste Management • Water • Sewerage • Gas • Dalby Regional Saleyards @ Western Downs • Jimbour Quarry • Washdown Bays The competitive neutrality principle has been applied to these significant businesses with relevant adjustments made as a result. There were no new significant business activities commenced during the reporting period. For a full list of business activities conducted by Council please refer to Chapter 5 of this report, see Note 25 'National Competition Policy' of the Financial Statements, on page 80. Executive Team Remuneration The Executive Team comprised the roles of Chief Executive Officer, General Manager (Corporate Services), General Manager (Infrastructure Services), and since February 2016, the newly created role of General Manager (Community and Liveability). Incumbents in these roles were engaged under performance-based maximum term contract arrangements. Gross remuneration packages for the 2015/16 financial year totalled $1,028,908. Two remuneration packages were within the bands of $100,000 to $200,000, and five remuneration packages were within the bands of $200,000 to $300,000. (Note: Gross earnings provided are inclusive of payout figures, and there were multiple incumbents in some of the roles at different times, for varying lengths of time during the financial year).

writing, and ensuring they are responded to within the Customer Service Charter timeframes. The team also facilitates continuous improvement throughout the organisation by engaging with departments to resolve complaints effectively. View Council's Customer Service Charter by following this link to the WDRC website: http://www.wdrc.qld.gov.au/about-council/council-documents/ Complaints received by Council during 2015/16 are listed in the table below: The total number of formal administrative action complaints made to Council that were resolved through the complaints management process

The total number of information administrative action complaints made to Council that were resolved

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

Internal Audit The Internal Audit function is established under section 105 of the Local Government Act 2009. It is an integral component of Council’s corporate governance framework designed to add value to business operations through continuous improvement. Internal Audit is an independent function within the Council, reporting directly to the Chief Executive Officer and the Audit Committee. Operating under a charter approved by the Council, the mission of the Internal Auditing function is to independently examine and evaluate Council activities and provide assurance to Council, Management and the Community. The scope of the work each year is set out in the approved Internal Audit Plan, which is endorsed by the Chief Executive Officer and the Audit Committee, and approved by the Council. Audits and other activities undertaken during the financial year 2015/16 included: • Risk Assessment and Development of Annual Audit Plan;

Administrative Action Complaints

• Ongoing Monitoring of Tendering and Procurement;

As part of Council's commitment to dealing with administrative action complaints, and to improve internal processes, the organisation maintains a collaborative working relationship with the Queensland Ombudsman's office. More streamlined reporting in line with the Queensland Ombudsman guidelines has also been implemented.

• Review of Council's Risk Management Framework and Risk Registers;

Complaints Management Process The Complaints Management Team is responsible for capturing and identifying complaints received by Council, either by phone, email, or in

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• Audit of Cash Collections and Receipting; • Review of Leave and Absenteeism Reporting; • Review of Information Management Services; • Review of Audit Committee Policy and Internal Audit Charter; • Follow Up Audits on External Audit Recommendations, Queensland Audit Office Audit on Procurement, and Corporate Governance Audit; and • Internal Reviews and Investigations.

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

The Audit Committee The Committee, comprising two Councillors and two external members, acts as an Advisory Committee. A revised Audit Committee Policy was adopted by Council in September 2015 allowing Council to appoint an external member as Chairperson. In March 2016, Mr Don Licastro was appointed as Chair of the Committee, and Mr Peter McKinnon as an external member. Councillors Paul McVeigh and Ian Rasmussen have been appointed as the Council representatives on the Committee. From July 2015 to March 2016 Audit Committee membership comprised:

• Councillor Ian Rasmussen – Chair; • Councillor Ray Brown – Member; • Councillor George Moore – Alternate Member • Mr Andrew Heath – External Member; • Mr John Edgar – External Member. From March 2016 to June 2016 Audit Committee membership comprised:

• Mr Don Licastro – Chair; • Councillor Paul McVeigh – Member; • Councillor Ian Rasmussen – Member • Councillor Andrew Smith – Alternate Member • Mr Peter McKinnon – External Member The primary objective of the Audit Committee is to help Council fulfil its obligations in corporate governance, and the oversight of financial management and reporting responsibilities imposed under sections 208 to 211 of the Local Government Regulation 2012. The Committee met four times during the year, examined draft financial statements, and reviewed reports presented by management, and by internal and external auditors.

• Environmentally Relevant Activities • Register of testable backflow prevention devices (s.38 of Plumbing and Drainage Regulation 2003) • Register of details of onsite sewerage and grey water use facilities for which Council has given a compliance certificate (s.143 of Plumbing and Drainage Act 2002)

Financial Accountability The Financial Statements of Western Downs Regional Council for the period 1 July 2015 to 30 June 2016, as audited by the Auditor-General can be found in Chapter 5 of this Report, on page 33. For the current-year Financial Sustainability Statement as well as the long-term Financial Sustainability Statement for 2015-16, please refer to the 'Other Financial Statements' section of the Financial Statements, on pages 84 and 88 respectively. The Auditor-General’s audit reports about Western Downs Regional Councils Financial Statements and the current-year Financial Sustainability Statement can be found in Chapter 5 of this Report, on page 82 and 86 respectively. Community Financial Report A simplified version of Council's financial performance for the period 1 July 2015 to 30 June 2016 as reported in the audited Financial Statements is provided in the Community Financial Report in Chapter 1 of this Report, on page 8 to 12 Grants to Community Organisations Donations and grants paid to community organisations for the year totalled $524,548.

Registers

Rates Rebates and Concessions

The following registers were kept by Council during the reporting period:

During 2015/16 special rates totalling $67,835 were levied, comprising special charges for roads of $54,910 and special charges for water of $12,925.

• Local Laws Register (s.31 of LGA 2009) • Roads and Maps Register (s.74 of LGA 2009) • Register of Cost Recovery Fees and Commercial Charges (s.98 of LGA 2009) • Asset Register (s.104 of LGA 2009) • Delegations Register (s.260 of LGA 2009)

In accordance with Council policy, pensioner concessions totalling $410,012 and community organisation concessions of $278,529 were granted this financial year.

• Register of Interests (s.289 of LGR 2012)

More detail is provided in Chapter 5 of this Report, in the Financial Statements under Note 3 (a) 'Rates and Levies', on page 49.

• Business Activities Register (s.56 of LGR 2012)

Changes to Council Tenders

• Register of Beneficial Enterprises (s.41 of LGA 2009)

One invitation to change a tender was requested during the year, in accordance with the Local Government Regulation 2012.

• Register of Pre-Qualified Suppliers

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Cooperation Between Local Governments While Council does not have any formal agreements for conducting a joint government activity, as defined in Local Government Regulation 2012, it does have an ongoing arrangement with South Burnett Regional Council, with regard to skip bin collection and soil testing. National Competition Policy The financial performance of Council activities subject to competition reforms, namely commercial works and waste management, for the current and previous financial years is provided in Chapter 5 of this Report within the Financial Statements, see Note 25 under "National Competition Policy, on page 80. At its Special Budget Meeting held 13 June 2016, Council resolved to:

During the reporting period no competitive neutrality complaints were received. Particular Resolutions Council made no resolutions during the year under section 206 (2) of the Local Government Regulation 2012, in relation to the value of Council's non-current physical assets. Particulars of any direction given to commercial business units Council's Code of Competitive Conduct Policy and Dividend Policy are available on the following links: Code of Competitive Conduct Policy: http://www.wdrc.qld.gov.au/aboutcouncil/council-documents/policy-register/#C

1. Adopt the Code of Competitive Conduct Policy.

Dividend Policy: http://www.wdrc.qld.gov.au/about-council/councildocuments/policy-register/#D

2. Apply a Community Service Obligation Payment to the following businesses during the financial year 2015/16:

Overall Performance Assessment

a. Waste Management; b. Water; and c. Washdown Bays

In Chapter 4 of this Report, following the summary of the organisation's Performance Outcomes, the Chief Executive Officer provides an informed assessment of Council's overall performance against the fiveyear Corporate Plan and the annual Operational Plan, on page 30

3. Adopt the Dividend Policy, and subsequently apply Dividend payments from the following businesses during the financial year 2015/16: a. Natural Gas; b. Commercial Works; c. Sewerage; d. Jimbour Quarry; and e. Dalby Regional Saleyards.

Representatives from Western Downs Regional Council and contractors Aquatec Maxcon officially opened the new multi-million dollar Chinchilla Waste Water Treatment Plant in March 2016.

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WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

CHAPTER 4:

REPORTING THE ORGANISATION'S PERFORMANCE

Condamine Power Station just outside Miles

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Council's Strategic Direction The Western Downs Regional Council's 2013 – 2017 Corporate Plan is the strategic business plan for the organisation that translates the community's long-term vision for the region into measureable actions. The Corporate Plan provides a link between our community's needs and expectations, as identified in the Western Downs 2050 Community Plan (WD2050), and Council's operational activities. The Community Plan was developed with extensive community consultation, so adopting the same eight theme areas creates a recognisable connection between Council's operations and the achievement of a shared vision for the region. As Council is just one key stakeholder in the delivery of WD2050, the things Council is responsible for, or contributes to, were identified and prioritised under each of the strategic theme areas; and then priority strategies under each of the themes were identified, to guide Council's operations for the term of this corporate plan. Effective and Inclusive Governance was purposefully placed first and contains the nine priority strategies that describe the central business philosophies which drive Council as an organisation. This theme area relates to all functional areas of the organisation, ensuring better governance of our region by means of effectively managing the business. Western Downs Regional Council is committed to delivering services, projects and initiatives in response to the priority strategies devised under the following eight Strategic Themes: Æ

Measuring Our Success Alignment to these eight strategic themes flows into Council budgets and operational plans, ensuring that we deliver a shared vision for the Western Downs region. Our performance against agreed operational work priorities and targeted budgets for each financial year is measured quarterly. This Annual Report provides our community and key stakeholders with a broad overview and assessment of our performance for the 2015/16 financial year against our 2013 - 2017 Corporate Plan. Highlights of important achievements under each strategic theme are shown overleaf in the Performance Outcome Highlights table, and the Chief Executive Officer's assessment of our progress concludes this chapter.

Strategic Theme 1: EFFECTIVE AND INCLUSIVE GOVERNANCE Western Downs Regional Council can be relied on to govern its communities and manage its business with strategic vision, equity, transparency, collaboration and financial responsibility.

Strategic Theme 2: ENRICHED COMMUNITIES The communities of the Western Downs are enriched through the provision of relevant facilities, essential as well as social services targeted to the needs of our growing region..

Strategic Theme 3: HEALTHY LIVING The people of the Western Downs enjoy the benefits of a healthy and active lifestyle within safe and inclusive communities.

Strategic Theme 4: WELCOMING COMMUNITIES The unique character and identity of the people and towns of the Western Downs will be promoted and celebrated both within our region and beyond.

Strategic Theme 5: INNOVATION AND ECONOMIC SUCCESS Through strategic investment, facilitation and advocacy Western Downs Regional Council will continue to build capacity for the sustainable growth of our prosperous region.

Strategic Theme 7: HEALTHY NATURAL ENVIRONMENT The region’s natural environment and key ecosystems including flora, fauna, waterways, wetlands, and areas of cultural significance are managed through the mitigation of the impacts of development, population growth and climate change.

Strategic Theme 8: ACCESSIBLE AND CONNECTED PLACES The Western Downs region will continue to develop accessible transport systems and advocate for improved telecommunications to connect our people, businesses and industries locally, regionally, nationally and globally.

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WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Performance Outcome Highlights 2015/16 Strategic Theme 1: Effective and Inclusive Governance • Council's 'Safety First' focus resulted in a 56.5% decrease in rehabilitation cases. • Launched the 'We are WDRC' internal brand, a visual representation of our organisation, our purpose and our direction. It communicates everything we care about - our people, making a real difference and being a FutureFit business that's here for the long-term. • Council's new Innovation Lab reviewed internal processes to improve the dog registration customer experience. Innovations included an optional three-year renewal period and the development of Smart Notices received via SMS directly to customer's smart devices. Strategic leadership and a shared vision deliver an accountable, sustainable and performance oriented business

• Increased our social media followers to 14.20% of householders in the region and increased the average reach of our Facebook posts by 61.79%. • Introduced three new governance committees - Workplace Health and Safety; Information Communication and Technology; and Fleet; engaging staff from across the organisation in strategic decision making. • Council paid down debt by $37.3 million during the financial year, reducing the region's overall debt from $3,264 per ratepayer to $1,172 per ratepayer. • Improved procurement practices, better management and general efficiency gains resulted in savings of $9.2 million in Council's operating spend and $18.9 million on capital works projects. • Improved debt recovery processes have reduced Council's overdue rates and charges down to 2.22% this financial year, compared to 9.7% at the end of the 2014 financial year. • Implemented an online Learning Management System that allows greater flexibility in the delivery of training and broadens the scope of learning activities available to employees. • The second year of the Enterprise Risk Management four-year implementation plan was completed, with Strategic and Operational Risk Registers and Treatment Action Plans further developed and ready for inclusion in Quarterly Reporting.

Strategic Theme 2: Enriched Communities • As part of our Utilities Ten Year Capital Works Program: – a new Wastewater Treatment Plant was built in Chinchilla; – 11,700 metres of sewer mains were relined in Chinchilla, Dalby, Jandowae, Miles, Tara and Wandoan; and – The pipeline for Chinchilla's new Water Treatment Plant was laid and preparation for the construction of the plant commenced. • As part of Council's Waste Infrastructure Strategy, the Miles Waste and Recycling Centre was opened to the public in September 2015, and construction of the Winfields Road Landfill commenced in early 2016. Providing facilities and services for people to live, learn, grow and connect

• 95% of the maintenance and capital works program for Parks and Open Spaces was completed on schedule and within budget. • The Myall Remembrance Park Services Memorial in Dalby was completed and officially unveiled. • 72 fully-funded Tech Savvy Seniors workshops were hosted by Western Downs Libraries and were attended by approximately 650 seniors from across the region. • Western Downs Libraries launched the First Five Forever Project, a four-year State Government funded initiative to improve early literacy outcomes in the one to five year old age group. The project will bring 76 additional early literacy programs per quarter to the Western Downs. • The John Mullins Memorial Art Gallery @ Dogwood Crossing, Miles held its largest opening night ever, with over 240 guests attending an exhibition by two local Miles artists.

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Performance Outcome Highlights Strategic Theme 3: Healthy Living

Encouraging Community participation in health and wellbeing initiatives

• Community Care Services met all 18 expected outcomes under the quality review undertaken by the Australian Aged Care Quality Agency. • Council distributed funding of $73,093.50 through its five funding programs to support the community to deliver projects, host events and achieve their goals. • Funding of $237,000 was secured under the Australian Government’s Safer Streets Program to install ClosedCircuit Television (CCTV) cameras in Chinchilla's CBD.

Strategic Theme 4: Welcoming Communities • 34,042 visitors were welcomed to the Western Downs by our helpful staff and volunteers at Visitor Information Centres in Chinchilla, Dalby and Miles. Western Downs is more than just a place to live, attracting visitors and retaining residents through events that celebrate our communities

• Council supported the delivery of Major Events in the region, including the successful Opera at Jimbour, held in conjunction with Queensland Music, that was attended by over 8,000 people. • Seven tourism projects and one marketing project were approved to receive almost $1.1 million in funding under the Western Downs Tourism Investment Project, a joint initiative with Australia Pacific LNG. • 6,700 people attended 15 Anzac Day events across the Western Downs. • A record attendance of 2,100 people celebrated Australia Day with activities held across the region. • 2,200 students participated in the Our Western Downs National Youth Week with events held in six schools and two community venues across the region.

Strategic Theme 5: Innovation and Economic Success Strategic and Innovative investment decisions will create business and industry opportunities that are commercially sustainable

• Smart Notice technology was developed in-house allowing customers to receive Dog Registration notices on their smart device, pay online via credit card, update their account details, and receive SMS reminders. Making it easier for customers and reducing mailing costs. • The 'Year Ahead Series' was once again held to promote economic development priorities and activities in the Western Downs, attracting 308 attendees in six locations across the region. • The Advance Western Downs website attracted 34,414 page views.

One of the many vibrant events across the region attracting tourists and the community.

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WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

Strategic Theme 6: Balanced Growth Plan and deliver strategic infrastructure and services to meet the current and future needs of the region whilst managing our natural economic success

• Finalisation and adoption of the Amended Draft Western Downs Planning Scheme and the Western Downs Regional Council Local Government Infrastructure Plan for the purpose of State Interest Review. • Finalisation and adoption of the Local Heritage Study for the purpose of inclusion in the Amended Draft Western Downs Planning Scheme. • Showing confidence in the local economy, several large developments were approved in the local area.

Strategic Theme 7: Healthy Natural Environment • By reviewing Council's carbon footprint and introducing new initiatives, the annual electricity cost across all Council facilities was reduced by 40%.

Manage and protect our natural environment for the generations of today and into the future

• Council is a step closer to creating a paperless office with our new electronic HR Onboarding System enabling new employees to access their personnel commencement files electronically. • Council and Community groups joined forces to utilise funding under the Drought Assistance Program, to make a significant impact on local pests including the eradication of over 11,000 feral pigs and the deployment of two wild dog controllers to work with local landholders. • The Dalby Washdown Bay opened in November 2015, adding to Council's existing washdown facilities at Chinchilla and Wandoan that provide the agricultural and resource sector more options to remove weed seeds. • Outstanding community involvement led to the successful dispersal and relocation of two large flying fox colonies in Jandowae and Chinchilla.

Strategic Theme 8: Accessible and Connected Places • Council delivered transport infrastructure replacements and upgrades to the value of $33.5 million. • Continued our working partnership with the resource sector to deliver key upgrades to critical road infrastructure. Plan, construct, maintain and advocate for efficient transport and communication infrastructure

• Successfully completed the NDRRA funded Regional Flood Recovery Works project to repair and restore roads damaged in adverse weather conditions during 2014. • Commenced an accelerated multi-year Bridge Reconstruction and Replacement Program which included the completion of the Hookswood Road Steel Bridge and the Burnt Bridge Culvert. • Completed the first and second stages of the Chinchilla Trunk Stormwater Drainage Scheme. • Successfully project managed the construction of the Miles Aerodrome building, which was officially opened in February 2016.

The predecessor Mayor Cr Ray Brown, the former Spokesperson for Works and Engineering Services Cr Andrew Smith and Origin’s Condabri Production Manager Brad Robertson mark the official completion of the Miles Aerodrome Upgrade.

WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2015 TO 30 JUNE 2016

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Assessment Summary of Organisational Performance An informed assessment of how Council has progressed this financial year against each of the priority strategies expressed in the 2013 - 2017 Corporate Plan, has been compiled by the Chief Executive Officer and is shown on the following pages.

Assessment Key The following symbols indicate our progress at the end of the 2015/16 financial year: 2016

ACHIEVED

ON TARGET

NEEDS IMPROVEMENT

SCHEDULED LATER IN CORPORATE PLAN CYCLE

Strategic Theme 1: EFFECTIVE AND INCLUSIVE GOVERNANCE

WDRC can be relied on to govern its communities and manage its business with strategic vision, equity, transparency, collaboration and financial responsibility

1.1

We put safety first to ensure safe and healthy workplaces.

1.2

We support and empower a team that respects the organisational values which drive us forward.

1.3

We are a customer service focused organisation.

1.4

We partner and engage with our communities and key stakeholders through two-way communication.

1.5

Asset Management and service standards are key drivers of our organisationâ&#x20AC;&#x2122;s strategic decision making.

1.6

Strategic planning and an effective governance framework guide our performance driven and accountable organisation.

1.7

Robust financial management achieves sustainable and accountable fiscal governance.

1.8

The application of technology advances our operational efficiency.

1.9

Our Risk Management approach reduces Councilâ&#x20AC;&#x2122;s exposure to negative impacts without limiting innovation.

2.1

Our infrastructure and essential services meet the needs of our communities.

2.2

Our communities are participative, learned and culturally connected.

3.1

Social and recreational services encourage community health and wellbeing.

3.2

Strategic partnerships provide facilities and services that address the social needs of our communities.

3.3

Strategic partnerships keep our communities safe and ready to respond to and recover from disasters.

The people of the Western Downs enjoy the benefits of a healthy and active lifestyle within safe and inclusive communities.

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Strategic Theme 4: WELCOMING COMMUNITIES The unique character and identity of the people and towns of the Western Downs will be promoted and celebrated both within our region and beyond.

4.1

The Western Downs Region attracts visitors to play and stay.

4.2

The Western Downs Region is promoted as a welcoming place to live and grow.

5.1

Our commercial enterprises are sustainable and build capacity within our organisation and the community.

5.2

Innovative economic development strategies support regional growth.

6.1

The sustainable development of our region is informed by strategic policy and planning instruments.

6.2

Infrastructure supports the sustainable development of our region.

7.1

We are a climate smart organisation.

7.2

Our natural environment is protected and managed to maintain community wellbeing.

Strategic Theme 6: BALANCED GROWTH A balanced and responsible approach to the continued growth of our region will promote sustainable development that enhances the liveability of our communities and the prosperity of our diverse businesses and industries. Strategic Theme 7: HEALTHY NATURAL ENVIRONMENT The regionâ&#x20AC;&#x2122;s natural environment and key ecosystems including flora, fauna, waterways, wetlands, and areas of cultural significance are managed through the mitigation of the impacts of development, population growth and climate change.

8.1

Our transport infrastructure meets the needs of our growing community.

8.2

Strategic partnerships will deliver efficient and safe local, regional and national transport systems and effective regional telecommunications.

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CHAPTER 5:

FINANCIAL REPORTING

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