Toowoomba Regional Council Annual Report 2018-19 · 2019. 10. 23. · Contents About this report Our Annual Report summarises Council’s 2018-19 activities, our many achievements,

Annual Report2018 - 2019

Toowoomba Regional Council

Rich traditions. Bold ambitions.

2 TOOWOOMBA REGIONAL COUNCIL I Annual Report 2018 - 2019

Contents

About this reportOur Annual Report summarises Council’s 2018-19 activities, our many achievements, our challenges and a snapshot of the year gone by. It is also an opportunity for us to profile our organisation, the teams within it and our beautiful region.

Council measures its performance against the 2014-2019 Corporate Plan and this is the final year of reporting against this Plan.

We view our Annual Report as one of the key accountability mechanisms between Council and our community and it is developed in compliance with Section 104 of the Local Government Act 2009.

This report is also available in full on our website at: www.tr.qld.gov.au/annualreport

Fast Facts about our Community 4Mayor's Report 6Councillors 8Governance Structure 9CEO’s Report 10Executive Leadership Team 12Council Group Performance 13Council Goal Performance 15

Goal 1 - Culture 16Goal 2 - Community 18Goal 3 - Natural Environment 20Goal 4 - Built Environment 22Goal 5 - Infrastructure and Asset Management 24Goal 6 - Economy 26Goal 7 - Governance 28Goal 8 - Innovation and Technology 30

Legislative Information 32Community Financial Report 44Financial Report 50

Annual Report 2018 - 2019 I TOOWOOMBA REGIONAL COUNCIL 3

FAST FACTS ABOUT OUR COMMUNITY

85,369 jobs

Gross Domestic Product $10.81 billion

6,591 km sealed and unsealed roads

Australia’s second largest inland city

716 km of footpaths and cycleways

87 roundabouts

Population 167,657

575 Council-maintained parks

2,578 development approvals

Land area 12,973km2

2.94 million annual visitors to our region

1,780 km of water pipeline

13 libraries

MAYOR'S REPORTThe Toowoomba Region’s transformation over the past 10 years has been remarkable and the next decade promises to be just as exciting.

Our regional centre, Toowoomba, has transformed from a large country town to a cosmopolitan city, influenced by our emerging laneway culture. We have a jet-capable airport, a large data centre, solar farms and the initial approvals to commence construction on the Inland Rail.

We have Rich Traditions and Bold Ambitions.

In 2013 we sat down with the community to set our vision for the future: a roadmap to guide how we would use resources strategically to realise current and future needs and aspirations.

This is the last time we report against our 2014-19 Corporate Plan.

Our 2018-19 Annual Report also chronicles the achievements of our Region and provides a transparent summary of how we spent money received via rates, grants, fees and revenue.

Our Region has a diverse and stable economy that is able to avoid the boom and bust cycles experienced by many other regions. Last year the Gross Regional Product for the Toowoomba Region edged over $10.81 billion, up 4.5% on the previous 12 months. Our average growth over the past 10 years is around 3.6% per year, exceeding the state average of 2.1%.

Looking forward, there is reason to be optimistic with strong employment growth, the highest in the state, and a solid population growth rate.

This year, Council injected $475 million into the economy, including operational (service delivery) expenditure of $322 million and a capital (infrastructure) program of $153 million.

Local government cannot be left to shoulder the full cost of providing essential infrastructure for our growing communities, while meeting residents’ increased expectations across other activities. We will continue to advocate for our fair share of funding to achieve community goals and ambitions.

Council continued building and maintaining our infrastructure network to support projected growth, including the Toowoomba Enterprise Hub Stimulus Project (Nass Road Upgrade Project), Pittsworth Industrial Precinct Enabling Project, including Gap Road, and Peters Road in West Meringandan.

Our long-term ambition of diverting heavy traffic out of Toowoomba edged closer to reality, with Council upgrading Boundary Street, Mort Street and Griffiths Street to provide links to the Toowoomba Second Range Crossing.

This $1.6 billion project is a game-changer for the Region and I welcome the completion of this landmark project.

Over the past decade, our Region has experienced dramatic climatic conditions, including a devastating flash flood in 2011 and prolonged drought.

We can no longer rely on ‘regular’ seasons with our dams running low. This year Council responded to challenging drought conditions by investing in infrastructure and innovation to ensure resilient water and sewerage services.


Key projects included construction of an 8.2ML reservoir at Charlton, securing water for Hodgson Vale and new sewerage infrastructure at Highfields.

Dam pump stations and water mains projects also progressed for the Toowoomba Bulk Water Supply dams (Cooby, Perseverance and Cressbrook), along with the ongoing staged renewal and replacement of sewage pump stations across the Region.

I was thrilled to attend the official opening of the $28 million Highfields Sport and Recreation Park in April, following staged construction by Council over several years. Sporting clubs connect communities and promote healthy and active lifestyles and it’s heartening to hear that netball, cricket, football, running and rugby clubs are utilising this wonderful facility.

When people think of the Toowoomba Region, they think of fresh country air, wide open spaces, rich agricultural land and award-winning parks and gardens.

I am proud of the role Council has played in contributing to our liveability, through the provision of parks, barbecues and bikeways that promote healthy lifestyles, increase accessibility and enhance community connections.

This year, Council completed an extensive Parks Renewals program to ensure our 575 Council-maintained parks are of the highest standards for visitors and residents, with upgrades at numerous parks including Haden Park, Mountain View Park and Harlaxton Park.

Transforming the city into a thriving regional centre for the Darling Downs remained a priority, with continued investment in the City Centre Master Plan.

The 120 year-old Heritage-listed Toowoomba Railway Goods Shed was officially opened. Upgrades to Cathro Park also progressed to create a link from the Railway Parklands Precinct to Queens Park.

Highfields is a thriving and growing urban hub, with population projections suggesting that an additional 7000 people will call this area their home by 2031. This year, Council worked in partnership with the community to progress the Highfields Library Project, with construction expected to commence in 2020. The new facility will include a library, customer service centre and a community meeting facility.

Council also researched options for the provision of library services to the western growth corridor (including Wilsonton and Glenvale) and the Cambooya and Westbrook areas, as part of a wider strategic discussion on library service levels.

Council commenced a review of its Toowoomba Regional Planning Scheme this year, with community workshops in March and June. The statutory document sets out a vision, policies and provisions for the use, development and protection of land in the Toowoomba Region. Changes to the planning scheme will decide where we zone land for urban expansion, water, waste and road infrastructure required to service the community.

With any changes to the Planning Scheme, there is always a great challenge to balance the needs of the development industry with the expectations of the community on regional growth. This is a challenge we take seriously and I invite members of the community to provide input on this important review.

New technologies, such as NBN, are changing the way we do business, find information and communicate. Our Region is becoming a communications hub, with the recent construction of the only accredited Tier III data centre outside an Australian capital city.

Council continued to strengthen and promote a unique calendar of regional and local events, with our support of the award-winning Toowoomba Carnival of Flowers, Regional Summer Tunes, the Millmerran Camp Oven Festival and hundreds of other community-led development programs including Queensland Day and High Country Festivals.

Sports tourism grew across the Region and the annual Hutchinson Builders Toowoomba International tennis event was successfully delivered despite significant weather delays throughout the event.

Ten Sports Tourism Grants, valued at $58,000 were also awarded to support events across the Region, including the Pony Club Queensland State Championships at the Millmerran Showgrounds and the Arthur Postle Gift in Pittsworth.

Attracting international students to study in our Region gained traction during this year, with the launch of Study Toowoomba, an education and training industry cluster that will support the growth of the education industry.

The launch of Study Toowoomba was made possible through a grant of $145,000 over two years from the Queensland Government under the International Education and Training Partnership Fund, with matching funding being provided by Council and the University of Southern Queensland.

Sister City relationships continued with Takatsuki (Japan), Whanganui (New Zealand) and Paju (South Korea). I enjoyed my official role of welcoming visiting students from Mishima High School, Ena City High School and Haruhigaoka High School in Japan to our Region.

At Council we believe it is our responsibility to help build resilient and productive communities through continued support of multicultural, disability, youth and senior services, including the Council Cab service, YouthConnect and the Linking Leaders project.

At Council we actively seek to understand our community’s aspirations and needs and are committed to informing, explaining and listening. Your valuable feedback will help us to continue to deliver exceptional outcomes.

On behalf of my fellow Councillors, I thank CEO Brian Pidgeon for his leadership during the year and acknowledge the ongoing contribution of our valued staff and committed volunteers.

I would also like to thank my fellow Councillors for their continued passion, support and service to the community.

I am confident our combined efforts will strengthen our rich traditions and ensure current and future generations take full advantage of our bold ambitions.

Paul Antonio Toowoomba Regional Council Mayor


Cr Paul AntonioMAYOR, CHAIR - ECONOMIC DEVELOPMENT COMMITTEEP 07 4688 6433 M 0429 954 109 E [email protected]

Cr Carol TaylorDEPUTY MAYOR, CHAIR - INFRASTRUCTURE COMMITTEEP 07 4688 6615 M 0417 723 948 E [email protected]

Cr Nancy SommerfieldCHAIR - WATER & WASTE COMMITTEEP 07 4688 6605 M 0499 774 278 E [email protected]

Cr Geoff McDonaldCHAIR - ENVIRONMENT & COMMUNITY COMMITTEEP 07 4688 6784 M 0499 774 276 E [email protected]

Cr Megan O’Hara SullivanPORTFOLIO LEADER - FINANCE & BUSINESS STRATEGYP 07 4688 6794 M 0477 071 824 E megan.o’[email protected]

Cr James O’SheaPORTFOLIO LEADER - INFRASTRUCTUREP 07 4688 6406 M 0474 074 824 E james.o’[email protected]

Cr Mike WilliamsCHAIR - FINANCE & BUSINESS STRATEGY COMMITTEEP 07 4688 6421 M 0428 182 976 E [email protected]

Cr Bill CahillPORTFOLIO LEADER - WATER & WASTEP 07 4688 6782 M 0419 908 083 E [email protected]

Cr Chris TaitCHAIR - PLANNING & DEVELOPMENT COMMITTEEP 07 4688 6793 M 0499 774 274 E [email protected]

Cr Joe RamiaPORTFOLIO LEADER - ENVIRONMENT & COMMUNITYP 07 4688 6783 M 0491 490 900 E [email protected]

Cr Anne GlasheenPORTFOLIO LEADER - PLANNING & DEVELOPMENTP 07 4688 6800 M 0408 718 720 E [email protected]

COUNCILLORS


Governance Structure

1. The community elects the Council and provides input to determine the region's priorities.2. Council establishes priorities and considers recommendations received from its Committees.3. Committees* consider the strategic direction for the region, within specialised areas, and provide recommendations

to Council. A few specific functions within the region are managed by controlled entities established by Council including Jondaryan Woolshed, Empire Theatre and, Toowoomba and Surat Basin Enterprise (TSBE). The Audit and Risk Committee oversees the activities of audit and provides an independent, external review of Council's governance and internal control frameworks.

4. Federal and State Government provide authority to Council through legislative instruments.5. Through the Chief Executive Officer (CEO), Council decisions are carried out. The CEO also provides Council with

advice on priorities and strategic direction and oversees Council's operational groups.

*Current committees can be viewed at www.tr.qld.gov.au/committees

COUNCIL2

COMMUNITY1

CEO5

FEDERAL & STATE GOVT4

AUDIT & RISK COMMITTEE3

COMMITTEES3

Provides authority

Consider strategic direction and provide recommendations

Elects Council and provides input

Manage specific functionseg Empire Theatre

CONTROLLEDENTITIES3

Oversees audit and risk management.

Provides assurance.

Decision makers

FINANCE & BUSINESS STRATEGY5

$ENVIRONMENT & COMMUNITY5

Directs Council’soperational groups

PLANNING & DEVELOPMENT5

ADVISORY COMMITTEES

COUNCIL COMMITTEES

INFRASTRUCTURE5 WATER & WASTE5


CEO’S REPORTEveryday our talented staff manage everything from multi-million dollar road projects to learn-to-swim lessons and interments at our local cemeteries.

Our Region spans almost 13,000km2 and this year Council faced the ongoing challenge of delivering value-for-money services, while continuing to invest in infrastructure initiatives to secure our future.

The Annual Report tells a story of our achievements and challenges, and an opportunity for our organisation to demonstrate the value of local government and its contribution to the Region.

Our 2018-19 Annual Report also provides a comprehensive summary of our financial position and how we finalised our achievement of the goals articulated in our 2014-19 Corporate Plan.

Key achievements for Council this year included delivering a net operating surplus for the fifth year running and delivering 97% of activities planned against our Operational Plan.

Broader organisational reporting was also implemented to increase transparency, along with continual engagement across branches to improve understanding of business requirements and expected behaviours.

Fostering an appropriate corporate culture that aligns with Council’s mission, values and behaviours, was a key objective of Council this year, as we focused on improving communication and knowledge sharing across the organisation to drive positive cultural change.

Roadshows, staff surveys and staff forums were some of the ways we shared information and sought feedback from staff, with various initiatives implemented across the organisation to improve accountability, safety and wellbeing, teamwork, honesty and respect. These identified values will guide our future planning.

Open and transparent decision making is a hallmark of good governance and this year Council adopted a new Corporate Plan (2019-24), in consultation with the community.

The roadmap considered feedback from the current Corporate Plan, a review of Council policies and plans, results of the community survey and community consultation to establish the direction and aspirations for the Region.

I am confident the ambitious plan balances the needs of the community, while taking into consideration the operational capacity and capability of Council.

A plan for the future often starts with a vision statement and I believe we can collectively achieve our goal to ensure the Toowoomba Region is a vibrant, inclusive and liveable Region where respect for tradition and diversity is embraced.

Our staff are our greatest asset and this year Council continued to invest in attracting and retaining empowered, skilled workers to provide exceptional service to our community.

Technology is changing rapidly and Council embraced opportunities to use technology to improve efficiency


and enhance service delivery, with staff training in various platforms.

Council was named a finalist at the Queensland Training Awards, recognising our commitment to training in the large employer category.

Creating professional pathways for people across our Region continued to be a priority, with Council supervising 10 university graduates, seven cadets, eight interns, nine apprentices and 30 trainees this financial year. We also hosted seven school-based trainees and two school-based apprentices and fostered inter-organisational relationships and collaboration across Council.

The pressure on local government to deliver key services, respond to rapid technological changes and invest in asset and construction renewal has never been greater.

This year, Council responded to this challenge by investing $153 million to renew, upgrade and build new assets for the community, including expenditure on water, wastewater, buildings, roads and bridges.

Key wastewater projects included progress on the Wirraglen (Highfields) Sewerage Project, replacement of the sewage pump station in Lorrimer Street, Oakey and Kara View Estate sewerage system upgrade.

Construction and Maintenance branches delivered exceptional levels of service, effectively managing an extensive works program for the Region, with services predominantly undertaken by a day-labour workforce.

We delivered a $21 million road renewals program to upgrade and maintain sealed and unsealed roads. Council also completed significant road infrastructure projects including the Mort Street, Boundary Street and Griffiths Street upgrades.

Planning for the re-introduction of the Queensland Government’s waste disposal levy on 1 July 2019, was a key priority during the financial year. Preparatory works included installation of fencing, lighting and CCTV, additional site surveys and a review of data and reporting requirements.

Waste Services performed collection and disposal of waste to a high standard, completing 116,903 wheelie bin collections per week.

Environmental Health Services enhanced community health and wellbeing across our Region, by investigating health and noise complaints and facilitating responsible pet ownership. Specifically, Council responded to more than 5,622 requests to investigate, monitor and enforce animal management standards and 3,927 environmental health complaints.

The Toowoomba Region enjoys an envious reputation as a culturally rich, vibrant and inclusive community, with a lifestyle unmatched by larger cities.

Libraries and art galleries across the Region continued to be local hubs for reading, learning, culture and social interaction. Meeting rooms were well-utilised and Council’s popular library programs and activities continued to attract people of all ages.

I would like to thank our Mayor Paul Antonio and elected members for their vision and enthusiasm this financial year and acknowledge the collective leadership of the Executive Management Team and all staff members.

Working at Toowoomba Regional Council is a great privilege and I am proud of my colleagues and their commitment to providing high levels of customer service and value-for-money services.

This year, together, we have achieved many accomplishments.

This coming year will be busy, as we progress towards partnering with the community to implement our 2019-24 Corporate Plan and ensure a sustainable and bright future for our Region.

Brian Pidgeon Chief Executive Officer - Toowoomba Regional Council

Key achievements for Council this year included delivering a net operating surplus for the fifth year

running and delivering 97% of activities planned against our

Operational Plan.


EXECUTIVE LEADERSHIP TEAMBrian PidgeonCHIEF EXECUTIVE OFFICER

P 131 872 E [email protected]

Arun PratapGENERAL MANAGER - Finance & Business StrategyP 131 872 E [email protected]

Damian PlattsGENERAL MANAGER - Water & Waste ServicesP 131 872 E [email protected]

Mike BradyGENERAL MANAGER - Infrastructure Services GroupP 131 872 E [email protected]

Nick HauserGENERAL MANAGER - Environment & Community ServicesP 131 872 E [email protected]

Stewart SomersGENERAL MANAGER - Planning & DevelopmentP 131 872 E [email protected]


COUNCIL GROUP PERFORMANCEToowoomba Regional Council has continued our on-going mission to improve the liveability and attraction of our region by delivering valued and relevant community services. We aim to plan for a sustainable and liveable future and this starts with our Executive Leadership Team setting aspirational targets for their respective areas. In the following section we provide a high-level overview of how our service areas are tracking against the objectives set out in our corporate plan.

Greater than or equal to 85% - is recognised as being on track Greater than or equal to 50%, but below 85% - is recognised as being in need of increased attention Below 50% - is recognised as underperforming

2018-19 2017-18 2016-17Office of the CEO 95% 87% 86%Chief Executive Officer 87% 72% 81%

Enterprise Project Management Office* - 35% 100%

Governance 96% 95% 94%

Legal Services 100% 95% 10%

Water and Waste Services 100% 99% 77%

General Manager Water and Waste Services 85% 37% NA

Waste Services 93% 88% 51%

Water Infrastructure Services 100% 99% 95%

Water Operations 103% 101% 97%

Water Project Services 100% 80% 75%

Infrastructure Services 97% 97% 97%

General Manager Infrastructure Services 97% 100% N/A

Construction & Maintenance - Executive Manager 100% 98% 100%

Construction & Maintenance Central 98% 100% 97%

Construction & Maintenance North 100% 100% 100%

Construction & Maintenance South 100% 90% 96%

Plant & Fleet 92% 98% 93%

Project Services 100% 100% 96%

Transport & Drainage Planning 92% 98% 95%

Planning and Development Services 97% 96% 96%

General Manager Planning and Development 100% 100% 98%

Development Engineering and Plumbing Services 100% 98% 98%

Development Services 99% 97% 98%

Regional Architecture & Heritage 100% 100% 100%

Strategic Planning & Economic Development 93% 104% 93%

Environment and Community Services 97% 99% 88%

General Manager Environment and Community Services 93% 100% 94%

Community Development, Facilities & Tourism 98% 94% 94%

Environmental Health Services 100% 100% 96%

Library & Cultural Services 97% 99% 78%

Parks & Recreation Services 97% 98% 94%

Property Services 93% 95% 74%

Finance and Business Strategy 97% 96% 96%

General Manager Finance & Business Strategy 98% 98% 98%

Customer Service 99% 100% 100%

Financial Services 100% 100% 100%

Information Communication & Technology 98% 93% 96%

People & Organisational Development 91% 89% 93%

Service Improvement 94% 93% 93%

Stakeholder Engagement & Communications 99% 96% 96%

*This branch now forms a part of another branch's reporting structure



COUNCIL GOAL PERFORMANCEThis scorecard summarises final progress against long-term targets central to our Vision and the implementation of our corporate objectives. It also provides an overview relating to the implementation of our 2014-2019 Corporate Plan. Overall performance is determined by our achievement against established performance measures and the progress of major initiatives. Our figures are based on the following:

Greater than or equal to 85% - is recognised as being on track Greater than or equal to 50%, but below 85% - is recognised as being in need of increased attention Below 50% - is recognised as underperforming


2018-19 2017-18

GOAL 1: CULTURE: A responsive Council with focus on innovation and safety through collaboration and opportunity. 92% 89%

1.1 Responsive and effective service delivery 92% 89%

1.1.1 Foster an appropriate corporate culture that aligns with Council’s Mission, Values and Behaviours1 87% 72%

1.1.2 Develop and maintain healthy and safe working conditions and regularly review workplace health and safety practices1 100% 98%

1.1.3 Adopt a coordinated and collaborative approach to celebrating and rewarding achievements 100% 100%

1.1.4 Support culture incubators and collaborative working spaces, to foster inter-organisational relationships and collaboration across Council 84% 78%

1.1.5 Deliver professional development opportunities and pathways for all employees 80% 91%

1.1.6 Support business operations with effective workforce planning including recognising emerging technologies and transitioning employment opportunities 95% 70%

1.1.7 Attract and retain a skilled workforce through implementation of contemporary human resource practices and organisational development1 93% 99%

scorecard

A responsive Council with focus on innovation and safety through collaboration and opportunity.

At Council we understand our people are our greatest asset and, with a team of empowered, skilled workers, we can continue to provide exceptional service to our community.

As one of the largest employers in the region, we seek to attract and retain an innovative and engaged workforce that collaborates and fosters pride to achieve success.

Council measures our cultural performance through investment in professional development, staff satisfaction and turnover and workplace health and safety incidents.

1. This was a new goal commencing in the 2017-18 financial year. Items 1.1.1, 1.1.2 and 1.1.7 have moved from other pre-existing goals.

GOAL 1 - CULTURE


We are one of only four local governments in Australia to be certified under the WHS Accreditation Scheme.

Work continued to improve culture throughout the organisation including a series of CEO Roadshows.

Customer Service Bravo awards were expanded this year to include all employees.

Council employed 1,773 people including 1,130 males and 643 females across Council.

achievements

Council was named as a finalist at the Queensland Training Awards, recognising our commitment to training in the large employer category.


2018-19 2017-18 2016-17

GOAL 2: COMMUNITY: A safe, healthy and equitable community that celebrates diversity and enjoys a quality lifestyle. 99% 99% 92%

2.1 A Creative, educated community 99% 100% 82%

2.1.1 Identify and promote opportunities for arts, cultural expression and the development of creative industries. 100% 100% 98%

2.1.2 Ensure cultural facilities and programming meets the needs of the community and regional development. 99% 100% 89%

2.1.3 Provide contemporary library facilities and services across the region to meet the needs of the community. 100% 100% 58%

2.1.4 Identify and promote public art opportunities that enhance the urban environment. 100% 95% 100%

2.2 An active and healthy community 98% 99% 97%

2.2.1 Plan and provide an integrated and accessible network of open space. 99% 97% 95%

2.2.2 Plan and provide facilities and programs that enable participation in sport and recreation. 96% 100% 100%

2.2.3 Establish partnerships with stakeholders to increase opportunity for participation in sport, recreation and community activity. 100% 100% 100%

2.3 A safe, sustainable and resilient community 100% 100% 99%

2.3.1 Maintain and improve health standards including food safety, immunisation and public health. 103% 99% 96%

2.3.2 Maintain and improve environmental standards including animal and pest management, site management, pollution control and waste management and minimisation.

97% 100% 100%

2.3.3 Improve community safety through design, information and programs. 100% 100% 100%

2.3.4 Enhance disaster management preparedness and capability in collaboration with the community. 100% 100% 100%

2.3.5 Develop and implement effective community information and education programs in collaboration with key community stakeholders. 100% 100% 100%

2.4 A connected and inclusive community 95% 100% 100%

2.4.1 Build social capital through provision of accessible community infrastructure and programs. 93% 100% 100%

2.4.2 Provide equitable access to and advocate for a range of services, programs and facilities to address disadvantage and foster inclusion. 100% 100% 100%

A safe, healthy and equitable community that celebrates diversity and enjoys a quality lifestyle.

The Toowoomba Region enjoys an envious reputation as a culturally rich, vibrant and inclusive community, with a lifestyle unmatched by larger cities.

Council places a high priority on providing equitable access to community infrastructure and services, and developing and supporting initiatives that encourage community wellbeing.

Council measures our community goals through facility visitations and the area of open space per head of the population. We also monitor environmental and health standard breaches and the diversity of the community we serve.

GOAL 2 - Community

scorecard


Stage two of the Highfields Sport and Recreation Park was opened in March.

122,304 young people attended Council youth programs.

5000 people participated in Learn to Swim, squad and school programs.

Winter Wonderland was a resounding success with 20,999 tickets sold.

achievements


GOAL 3 NATURAL ENVIRONMENT

2018-19 2017-18 2016-17

GOAL 3:NATURAL ENVIRONMENT: The region’s environmental assets including natural areas and resources, open space and agricultural lands, are conserved and enhanced for future generations.

96% 95% 96%

3.1 Green spaces, natural areas and natural resources are protected and well managed. 96% 95% 96%

3.1.1 Develop and implement an environmental policy for the region that protects and enhances natural and agricultural assets. 92% 95% 95%

3.1.2 Build community awareness and participation in natural and agricultural land conservation. 95% 93% 100%

3.1.3Plan and manage open space, parkland and natural areas to eradicate pests and noxious weeds and promote biodiversity, water quality and community use.

94% 88% 70%

3.1.4 Protect, enhance and manage air, land and water quality. 100% 100% 100%

3.1.5 Implement water sensitive urban design and stormwater management approaches that enhance natural systems and reduce risk of flooding. 100% 100% 100%

The region’s environmental assets including natural areas and resources, open space and agricultural lands, are conserved and enhanced for future generations.

When people think of the Toowoomba Region, they think of fresh country air, wide open spaces, rich agricultural land and our award-winning parks and gardens.

As a region we have a joint responsibility to protect, restore and enhance our natural environment and work in partnership to promote sustainability.

Water quality, the area of agricultural land and natural habitat are how we measure our natural environment performance, along with the number of environmental care groups in the region.

scorecard


Council supplied 16,327.1ML of treated drinking water to 62,298 connected properties.

Managing and maintaining Council’s network of conservation reserves and natural areas continued this year.

Council consulted the community on a draft Green Infrastructure Strategy which will create a plan for how we manage natural and living assets throughout the Region.

achievements


2018-19 2017-18 2016-17

GOAL 4: BUILT ENVIRONMENT: Well managed, integrated and connected growth, respecting community, environmental and heritage values. 99% 100% 97%

4.1 Sustainable and prosperous urban and rural development 99% 100% 96%

4.1.1Undertake strategic integrated land use and infrastructure planning that responds to climate, is resource-wise, reinforces local character and achieves innovation and design excellence.

99% 98% 98%

4.1.2Ensure planning supports economic development while protecting and enhancing high quality agricultural lands, scenic amenity and community, environmental and heritage values.

98% 100% 87%

4.1.3Plan centres and townships to provide a strong sense of identity, local employment opportunities, community participation and access to housing choices.

98% 100% 91%

4.1.4 Ensure development accords with Toowoomba Regional Council’s planning scheme, planning instruments, codes and legislation. 100% 97% 98%

4.1.5 Implement improved business practices to ensure efficient and effective planning and development assessment. 97% 100% 100%

4.1.6 Develop in partnership with industry a standard for land development, design and built form, to ensure continuous improvement. 100% 100% 91%

4.1.7 Undertake catchment scale planning for natural hazards to mitigate future risk. 90% 90% 90%

4.2 A safe, equitable and integrated transport system 99% 99% 97%

4.2.1Plan to ensure Toowoomba City is a principal regional activity centre connected to a network of vibrant rural towns by an integrated transport system.

100% 100% 95%

4.2.2 Plan to ensure Toowoomba region is a strategic transport and logistics hub of regional and national significance. 88% 98% 98%

4.2.3 Improve safety, serviceability and efficiency of the region’s road network. 100% 99% 100%

4.2.4 Implement an integrated and accessible transport system for the region, including a safe walking, cycling and public transport network. 100% 100% 89%

4.2.5 Plan and regulate parking to meet the needs of community and business. 100% 100% 100%

Well managed, integrated and connected growth, respecting community, environmental and heritage values.

Accessibility enhances liveability and Council is committed to investing in key infrastructure to ensure efficient and sustainable movement of people, freight and services across the region.

Investment in roads, footpaths and carparks make it easy for us to work, live and play and maintain our enviable quality of life.

GOAL 4 BUILT ENVIRONMENT

scorecard


Council commenced a review of the Toowoomba Regional Planning Scheme this year.

Council purchased 20 hectares of land in central Highfields this financial year to control the future expansion of the town centre as part of the Central Highfields Master Plan.

Following extensive community consultation, Council completed Flood Risk Assessment, Planning Evaluation and Scheme Amendments.

716km of footpaths and cycleways were inspected and maintained by staff.

Major road infrastructure projects included the Nass Road Upgrade Project, Peters Road in Meringandan and Gap Road in Pittsworth.

achievements


2018-19 2017-18 2016-17

GOAL 5:INFRASTRUCTURE AND ASSET MANAGEMENT: A well-planned and maintained infrastructure network that is sustainable and enhances local character and identity.

98% 93% 79%

5.1 Integrated and timely provision and management of sustainable infrastructure and assets 95% 96% 85%

5.1.1Develop a Strategic Infrastructure and Asset Management Plan to guide the provision, maintenance, decommissioning, replacement and enhancement of Council assets and infrastructure.

97% 92% 79%

5.1.2 Ensure the provision and management of infrastructure and assets meet the needs and priorities of Council, the community and industry. 89% 97% 78%

5.1.3Plan and implement urban improvement works which enhance local character and identity, conserve and improve the region’s streetscapes and provide iconic parkland.

100% 100% 100%

5.1.4 Plan and deliver a safe, sustainable and efficient road network. 98% 99% 100%

5.1.5 Plan and deliver safe and effective stormwater management outcomes and a flood resilient region. 100% 89% 89%

5.1.6 Plan and deliver safe, sustainable and efficient airports and aerodrome services. 100% 100% 96%

5.2 A safe and sustainable water network 99% 93% 82%

5.2.1 Plan, deliver and manage efficient and sustainable, high quality, water supply systems. 99% 92% 82%

5.2.2 Advance water use efficiency and water cycle innovation throughout the region. 100% 100% 100%

5.3 Sustainable waste management 96% 88% 48%

5.3.1 Plan, deliver and manage efficient and sustainable waste and resource management services. 95% 100% 63%

5.3.2 Plan and deliver an integrated waste infrastructure network. 95% 86% 42%

5.3.3Minimise the impacts of waste generation through modified consumer behaviour, effective recycling infrastructure and practices, and the reduction of emissions from landfill.

100% 95% 48%

5.4 A sustainable sewerage network 106% 95% 86%

5.4.1 Plan, deliver and manage a high quality sewerage network and treatment facilities. 107% 94% 85%

5.4.2 Effective and efficient use of recycled water. 99% 100% 98%

A well planned and maintained infrastructure network that is sustainable and enhances local character and identity.

The Toowoomba Region is continuing to experience a trajectory of unprecedented growth. To support this, Council is committed to maximising utilisation of existing assets and investing in new infrastructure to enhance our liveability.

Council considers whole-of-life asset costing and population growth when planning infrastructure projects. We measure our success through the provision of quality drinking water, sustainable waste management and a high quality sewerage network.

The ratio of planned to reactive maintenance and investment in new infrastructure are also good indicators of how well we are managing our infrastructure and assets.

GOAL 5 - INFRASTRUCTURE AND ASSET MANAGEMENT

scorecard


Water Operations employed leak detectors to walk through regional communities and provided mails drops and spoke with residents.

Council invested $22.6 million in water infrastructure capital projects this year to meet the current and future water needs of the growing Region.

Property Services managed a $5.8 million refurbishment of the Empire Theatre.

Waste Services performed collection and disposal of 116,903 wheelie bin collections per week.

Flood Risk Management Plans for six high-priority areas and Urban Stormwater Management Plans for 19 priority catchments were completed.

achievements


GOAL 6 - ECONOMY

2018-19 2017-18 2016-17

GOAL 6: ECONOMY: A dynamic and diverse economy creating industry development and employment opportunities. 94% 100% 93%

6.1 A strong and diverse economy 90% 99% 95%

6.1.1 In partnership promote the region as ‘open for business’ by supporting the growth of new and existing businesses. 100% 100% 100%

6.1.2 In partnership implement the Toowoomba Region Economic Development Strategy. 100% 92% 85%

6.1.3

Plan to leverage the opportunities inherent in major projects across the region, including the Toowoomba Second Range Crossing, Brisbane West Wellcamp Airport and surrounding Business Park and Melbourne Brisbane Inland Rail Project.

56% 100% 100%

6.1.4 Ensure planning and infrastructure supports future economic growth. 87% 99% 90%

6.1.5 In partnership plan for and support the growth of strong, viable and diverse economic clusters. 100% 100% 100%

6.1.6 In partnership support the growth of the region’s creative industries sector and the knowledge economy. 96% 100% 93%

6.2 Leverage the unique character and assets of the region’s centres and townships 96% 104% 92%

6.2.1 Strengthen and promote a unique calendar of regional and local events. 97% 112% 100%

6.2.2 Develop a brand that positions the region as a business, tourism, lifestyle and cultural destination. 96% 88% 80%

6.2.3 Identify and plan the next generation civic projects that promote the region, stimulate economic development and enhance identity. 93% 100% 100%

6.2.4 Plan and support local economic development for regional centres and townships. 100% 100% 100%

A dynamic and diverse economy creating industry development and employment opportunities.

Over its rich history, the Toowoomba Region has transformed its agricultural base into a diverse and strong economy, offering a range of business, investment and employment opportunities.

Economic growth and development is important to the expansion of our region. Success is measured by our Gross Regional Product (GRP), population growth, the rate of unemployment, the number and diversity of business and other economic indicators.

scorecard


The 120-year-old Heritage-listed Toowoomba Railway Goods Shed was officially opened in April.

More than 250,000 attended the Toowoomba Carnival of Flowers.

achievements

Small Business Digital Literacy workshops were delivered to small businesses across the Region.

Council engaged with education and training providers to launch Study Toowoomba.


GOAL 7 - GOVERNANCE

2018-19 2017-18 2016-17

GOAL 7:GOVERNANCE: A well governed, responsive Council, providing effective leadership and management, and respecting community values.

98% 95% 94%

7.1 A region governed in consultation and partnership with the community 97% 94% 97%

7.1.1 Ensure leadership and decision making is transparent, accountable and represents the current and future interests of the region’s communities. 96% 91% 100%

7.1.2 Implement effective community consultation processes that enable participation, engagement and collaboration. 100% 100% 88%

7.1.3 Develop and maintain community participation, partnerships and volunteer programs. 100% 100% 100%

7.1.4 Implement an effective information and education program to encourage community participation in decision making and build social capital. 94% 100% 98%

7.2 Responsive and efficient customer service delivery 98% 93% 98%

7.2.1 Continually review and enhance service delivery to ensure Council’s responsiveness to customer and community expectations. 99% 99% 98%

7.2.2 Work collaboratively across Council to provide effective, efficient and coordinated outcomes. 97% 92% 98%

7.2.3 Build a culture of continuous improvement which recognises best practice 98% 35% 100%

7.3 Strategic management of Council 99% 98% 91%

7.3.1 Foster an appropriate corporate culture that aligns with Council’s Mission, Values and Behaviours. 96% 100% 81%

7.3.2 Develop and maintain healthy and safe working conditions and regularly review workplace health and safety practices. 95% 90% 92%

7.3.3 Develop and implement local laws, policies, standards and codes in accordance with legislative requirements and ensure compliance. 100% 100% 100%

A well governed, responsive Council, providing effective leadership, management and respecting community values.

Toowoomba Regional Council is committed to effective and transparent governance including visionary leadership, facilitated community engagement, financial sustainability and responsive customer service.

During the finacial year, Council implemented effective community consultation processes that enabled participation, engagement and collaboration, including the corporate website, surveys, meetings and workshops.

Our operating surplus, asset sustainability and financial performance ratios were some of the measurements we used to assess financial sustainability.

scorecard


Council completed 2,760 engagement activities for 115 separate projects.

An organisational Customer Experience Assurance Program commenced.

achievements


2018-19 2017-18 2016-17

GOAL 8: INNOVATION & TECHNOLOGY: 93% 95% NA

8.1 Responsive and innovative people, process and systems 93% 95% NA

8.1.1 Dynamic collaborative working environments and incubators that support innovation and entrepreneurial approaches 100% 72% NA

8.1.2 Adopt a co-ordinated and collaborative approach to innovation and technology 100% 100% NA

8.1.3 Implement reliable and contemporary information, knowledge and management systems1 89% 95% 94%

8.1.4 Identify and implement process and system improvements, facilitating improved decision 94% 98% NA

Investing in innovation to create a dynamic future in people, process and technology which sustainably improve service delivery.

Council utilises information and communications technology to improve business functions and deliver benefits to the community.

Key objectives include delivering a co-ordinated and collaborative approach to innovation and technology across Council, investment in mobile technology and using technology to improve service delivery and outcomes for our residents and visitors.

1. Historic comparative scores have been moved from other areas of the Operational Plan.

GOAL 8 - INNOVATION AND TECHNOLOGY

scorecard


The corporate website continues to be Council’s primary communication channel with an average 52,522 website users per month.

ICT received the Harry Haxton Shield for Excellence for achieving outstanding results in records and information management and making notable contributions to records and information management in Queensland.

achievements


Resolutions made during the financial year under section 250 (2) Local Government Regulation 2012: No resolution was made pursuant to section 250 (2).

Resolutions made during the financial year under section 206 (2) Local Government Regulation 2012: No resolution was made pursuant to section 206 (2). The last resolution made was at the Finance and Business Strategy Committee on 9 September 2015 in adopting the 2.51 Non-Current Asset Policy.

Councillor Remuneration (Section 186 (a) Local Government Regulation 2012)

COUNCILLOR REMUNERATION

Councillor Total remuneration range* Superannuation paid by Council Total

Antonio, Paul Cr $175,710 $21,085 $196,795

Taylor, Carol Cr $119,801 $14,376 $134,177

Sommerfield, Nancy Cr $103,830 $12,460 $116,290

McDonald, Geoff Cr $103,830 $12,460 $116,290

O'Hara Sullivan, Megan Cr $103,830 $12,460 $116,290

O'Shea, James Cr $103,830 $12,460 $116,290

Williams, Mike Cr $103,830 $12,460 $116,290

Cahill, Bill Cr $103,830 $12,460 $116,290

Tait, Chris Cr $103,830 $12,460 $116,290

Ramia, Joe Cr $103,830 $12,460 $116,290

Glasheen, Anne Cr $103,830 $12,460 $116,290

Total $1,229,981 $147,600 $1,377,581 *Rounded to the nearest $

The facilities provided to each Councillor during the financial year in accordance with 2.53 Expenses Reimbursement (Councillors) Policy

Facilities provided to Councillors (Section 186 (b) Local Government Regulation 2012)

FACILITIES AND DEVICES

Councillor Laptop Computer Smart Phone iPad Motor Vehicle

Antonio, Paul CrTaylor, Carol CrSommerfield, Nancy CrMcDonald, Geoff CrO'Hara Sullivan, Megan CrO'Shea, James CrWilliams, Mike CrCahill, Bill CrTait, Chris CrRamia, Joe CrGlasheen, Anne Cr

LEGISLATIVE INFORMATION 2018-2019


Councillor Expenses (Section 186 (b) Local Government Regulation 2012)

The expenses incurred by each Councillor during the financial year in accordance with 2.53 Expenses Reimbursement (Councillors) Policy

COUNCILLOR EXPENSES AND VEHICLESCouncillor Accomm-

odation ($)

ProfessionalDevelopment ($)

Travel & Transfers ($)

Council Vehicle Meals ($) Community Engagement ($)

Hospitality ($)

Legal ($) Total ($)

Councillor payment ($)

Cost ($)

Antonio, Paul Cr

$5,156.45 $9,939.39 $12,477.13 -$3,342 $22,125.24 $1,118.67 $1,677.19 $2,095.24 $15,000 $66,247.31

Taylor, Carol Cr

$5,712.33 $14,056.12 $10,061.08 -$3,342 $14,760.00 $2,114.24 $432.44 $109.09 $- $43,903.30

Sommerfield, Nancy Cr

$1,265.22 $11,823.54 $1,453.35 -$3,342 $15,608.04 $560.99 $749.99 $159.09 $- $28,278.22

McDonald, Geoff Cr

$1,085.42 $7,888.89 $7,559.65 $- $- $257.88 $542.27 $- $- $17,334.11

O'Hara Sullivan, Megan Cr

$693.71 $8,727.34 $74.23 -$3,342 $20,676.36 $183.64 $270.98 $- $- $27,284.26

O'Shea, James Cr

$- $7,111.34 $466.32 -$3,342 $10,153.92 $1,021.67 $75.59 $- $- $15,486.84

Williams, Mike Cr

$834.00 $6,902.97 $3,117.47 -$3,342 $14,917.08 $197.11 $136.36 $- $- $22,762.99

Cahill, Bill Cr

$154.55 $31,849.67 $109.78 -$3,342 $14,322.00 $142.18 $146.24 $- $- $43,382.42

Tait, Chris Cr

$475.49 $7,127.33 $- -$3,342 $15,254.16 $294.02 $110.73 $- $- $19,919.73

Ramia, Joe Cr

$303.81 $6,953.88 $970.57 -$3,342 $10,725.60 $151.41 $59.09 $- $- $15,822.36

Glasheen, Anne Cr

$2,451.01 $9,882.02 $1,480.83 -$3,342 $20,692.20 $623.81 $193.60 $193.32 $- $32,174.79

Total $18,131.99 $122,262.49 $37,770.41 -$33,420.00 $159,234.60 $6,665.62 $4,394.48 $2,556.74 $15,000 $332,596.33

*Overseas travel costs are included in the Councillor’s Expenses and Vehicles summary

Number of Local Government Meetings attended (Section 186 (c) Local Government Regulation 2012)

COUNCIL MEETING ATTENDANCE

CouncillorMeetings Attended Absent

Committee Meetings

Ordinary Meetings of Council

Special Meetings of Council

Official Council business

Personal Reasons or Unwell

Total Meetings Held 60 12 11

Antonio, Paul Cr 54 10 10 9Taylor, Carol Cr 60 10 9 2 2

Sommerfield, Nancy Cr 54 9 8 1 11McDonald, Geoff Cr 60 12 11O'Hara Sullivan, Megan Cr 60 12 11O'Shea, James Cr 57 12 11 3Williams, Mike Cr 48 12 9 7 7Cahill, Bill Cr 60 12 7 1 3Tait, Chris Cr 54 11 10 8Ramia, Joe Cr 60 12 10 1Glasheen, Anne Cr 60 11 10 2


Administrative action complaints (Section 187 Local Government Regulation 2012)Toowoomba Regional Council is committed to dealing fairly with administrative action complaints and reviewed 60 complaints during 2018-19.Council has implemented its Complaints Management Framework to deliver a quality service which has, as its foundation, a high level of customer service. As part of this service, Council seeks to ensure an efficient and effective response to operational and administrative concerns. The number of complaints received in 2018-2019 decreased by 13% from the previous year.

ADMINISTRATIVE ACTION COMPLAINTS

Unresolved Complaints (Brought forward from previous year)

Complaints Received

Complaints Resolved

Unresolved Complaints (carried forward to next year)

2018/19 12 65 60 17

Complaints (Section 186 (f) Local Government Regulation 2012)The Local Government Act 2009 provides a framework for assessing complaints about the conduct or performance of Councillors. Council's 2.72 Investigation Policy details how complaints about the inappropriate conduct of Councillors will be dealt with as required under the Act. It is a requirement under the Local Government Regulation 2012 that the Annual Report contains details of complaints received about Councillors conduct or performance. Orders and complaints about Councillors during the financial year are shown in the tables.

For the period 1 July 2018 to 2 December 2018

Section of LGA Type of order/complaint Number

180(2) and (4) Orders and recommendations made about misconduct 0

181(2) Orders made for inappropriate conduct 0

176C(2) Complaints about Councillor conduct or performance for which no action was taken 2

176C(3)(a)(i) Complaints referred to the Chief Executive, Department of Local Government about inappropriate conduct of the Mayor or Deputy Mayor

1

176C(3)(a)(ii) Complaints referred to the Mayor about inappropriate conduct by a Councillor other than the Mayor or Deputy Mayor

0

176C(4)(a) Complaints about misconduct referred to the Chief Executive Officer of the Local Government 0

176C(4)(b) Complaints about misconduct referred to the regional conduct review panel or the tribunal 0

176C(5) Complaints assessed by the Chief Executive Officer as being about corrupt conduct 0

176C(6) Complaints about another matter 0

For the period 3 December 2018 to 30 June 2019

Section of LGA Type of order/complaint Number

150I(2) Orders made about unsuitable meeting conduct 0

150AH(1) Orders made for inappropriate conduct 0

150AR(1) Decisions, orders and recommendations made* 1

150P(2)(a) Complaints referred to the assessor by Council, a Councillor and the Chief Executive Officer 0

150P(3) Complaints referred to the Crime and Corruption Commission 0

150R(2) Notices issued 2

150S(2)(a) Notices issued 0

150W(a)(b)(d) Decisions made 5

150AC(3)(a) Referral notices accompanied by a recommendation from the assessor 0

150AF(4)(a) Occasions information was given 0

Chapter 5A, part 3, division 5

Occasions the local government asked another entity to investigate the suspected inappropriate conduct of a councillor

0

150AJ (1) Applications heard by the conduct tribunal about the alleged misconduct of a councillor 1

* It was alleged that on 14 November 2018 at the Economic Development Committee, Cr Geoff McDonald failed to inform the meeting of his personal interest in an agenda item concerning the Temporary Toowoomba CBD Development Incentive Policy amendments. The Tribunal orders pursuant to s150AR(1)(b)(i) of the Act, that Cr McDonald makes a public admission that the Councillor engaged in misconduct at an Ordinary Meeting of the Toowoomba Regional Council. The Tribunal notes Cr McDonald's apology to the Council at its Ordinary Meeting on 20 November 2018. In the circumstances, the Tribunal accepted the action already taken by the Councillor to be compliant with the Order (as above) that it has made.

Competitive Neutrality Complaints (Section 190 Local Government Regulation 2012)

Section of LGR Type of order/complaint Number

190 (1)(i) Notices given in the financial year under section 49 for competitive neutrality complaint 0

190 (1)(j) Council response in the financial year on the QCA’s recommendations on any competitive neutrality complaints under section 52(3)

0


Overseas travel made by Councillors and Staff (Section 188 Local Government Regulations 2012)OVERSEAS TRAVEL - COUNCILLORSName Position Destination Purpose CostAntonio, Paul Cr Mayor China and Japan Official Delegation visit $8,630 Cahill, Bill Cr Councillor Denmark, England,

Spain and USAInternational Zero Waste Study Tour $24,900

Taylor, Carol Cr Councillor Taiwan Attend Smart Cities Summit $1,836 Taylor, Carol Cr Councillor Finland Attend 2018 IPMA Global Achievement Awards $9,683 Williams, Mike Cr Councillor China and Japan Official Delegation visit $4,120 OVERSEAS TRAVEL - STAFFName Position Destination Purpose CostDavis, Lyndal Economic Development

Officer - ResearchChina and Japan Official Delegation visit $4,103

Garmany, Shamus Principal Economic Development Officer

China Official Delegation visit $2,339

Holland, Stephen Manager, Project Services

Finland Attend 2018 IPMA Global Achievement Awards $4,957

Krimmer, Tony Senior Economic Development Officer

Taiwan Attend Smart Cities Summit $2,112

Martin, Heath Principal Land Use and Community

South Korea Staff Exchange $4,676

Morey, Jane International Secretariat Japan Official Delegation visit $2,053

Pidgeon, Brian Chief Executive Officer China and Japan Official Delegation visit $9,440 Uren, Troy Manager, Waste Services Denmark, England,

Spain and USAInternational Zero Waste Study Tour $24,900

Executive Remuneration (Section 201 Local Government Act 2009)

EXECUTIVE REMUNERATION

Number of Senior management staff 1 7 *The total remuneration includes annual salary, superannuation and non-cash benefitsTotal remuneration range* $300,000 - $400,000 $200,000 - $300,000

The total remuneration for senior management staff came to $2,078,644.

Registers kept (section 190 (1)(f) Local Government Regulation 2012)• Asset Register• Councillor Conduct Register• Delegations Register• Gifts Register• Lobbyist Register• Local Laws Register

• Register of Cost Recovery Fees• Register of Interests – CEO, Senior Executive Officers

and Related Persons• Register of Interests – Councillors and Related Persons• Register of Pre-Qualified Suppliers• Road Register

Report on the internal Audit for the financial year (Section 190 (1)(h) Local Government Regulation 2012)Council’s Internal Audit function is established through a ‘co-sourced’ service delivery arrangement with Crowe Horwath to provide an independent and objective assessment and evaluation of control measures to manage Council’s operational risks.This arrangement provides Council with access to extensive expertise and skills, seamless service delivery and an opportunity to mentor, build capacity and drive performance.Council’s corporate risk profile was used to focus the Internal Audit Plan to direct effort to those areas of higher risk. 12 audits were undertaken in 2018-19:• Aquatic Centre Management processes• Revenue - Fire levy collections and payments, refunding

of overpaid rates and charges• Lease Management Processes• Community and Customer Engagement (including data

integrity, customer records maintenance / database)• Cash Management• Financial Delegations within TechnologyOne

• Payroll, including Leave Management• Plant and Fleet Internal Hire Rates, including Utilisation• Asset Administration (end to end asset management

processes)• Risk Management• Stores Inventory Management and Site Security• Overtime and allowances management

As per section 105 of the Local Government Act 2009, Council’s Audit and Risk Committee monitors and reviews the integrity of financial documents, the internal audit function and the effectiveness and objectivity of the local government’s internal auditors and makes recommendations to the local government about any matters that the audit committee considers need action or improvement.Council’s Audit and Risk Committee is an Advisory Committee and has the prime objective to assist Council to fulfil its corporate governance role and oversight responsibility relating to accounting and reporting practices.


Beneficial Enterprises

Toowoomba Regional Council actively engages with entities through partnering or collaborative arrangements to achieve mutually beneficial outcomes for the Region. The table below lists the beneficial enterprises conducted during the financial year in accordance with section 41 of the Local Government Act 2009.

For the period 1 July 2018 to 2 December 2018

Beneficial Enterprises Number Nature of help provided by Council Value

Adventure Way Promotions Group 1 Financial support in the form of a membership $1,500

APN Newspapers Pty Ltd 1 Financial support for the Chronicle Garden Competition. $39,163

APN Newspapers Pty Ltd 1 Financial support for Future Toowoomba Campaign $11,000

Australia's Country Way 1 Financial support in the form of a membership $13,200

Bendigo Bank, Gomaren & Doctor's Creek Landcare Group Inc., Queensland Water & Land Carers

1 In-kind support in providing graphic design services for a flyer. Council provided graphic design services for a flyer (SEC $1,000 labour), printing and exibit setup

$1,500 (est.)

Brisbane Valley Heritage 1 Financial support in the form of a membership $350

City of Toowoomba Eisteddfod Inc. 1 Financial support contributing towards hire fees for the use of the Empire Theatre

$13,200

Cloncurry Shire Council 1 In-kind support providing use of TRC logo on videos for floods Nil

Condamine-Balonne Water Committee Inc.

1 Financial support in the form of a subscription $5,500

Council of Mayors SEQ 1 Financial support in the form of a membership $92,045

Council of Mayors SEQ 1 Financial support towards Food Trails Platform $4,892

Crows Nest and District Tourist and Progress Association Inc.

1 Financial support towards towards Crows Nest Day $3,000

Department of Agriculture and Fisheries

1 Financial support towards Darling Downs Moreton Rabbit Board and onground research

$752,724

Department of Agriculture and Fisheries

1 Financial support towards Habitat Enhancement Program at Cressbrook Dam

$33,000

Department of Employment, Small Business and Training

1 Financial and in-kind (use of logo) support towards QLD Training Awards

$3,300

Department of State Development, Manufacturing, Infrastructure and Planning (DSDMIP)

1 Financial support for 15th Darling Downs and South West (DDSW) Planners Forum Networking Dinner

$1,050

Drive Inland Promotions Association Inc

1 Financial support in the form of a membership $13,200

Empire Theatres Pty Ltd 1 Financial support as per the Operating Grant $1,256,044

Flexi School 1 In-kind support providing use of TRC and YouthConnect logos on exterior signs

Nil

Goombungee-Haden Show Society 1 Financial support towards Goombungee and Hayden Show $200

Goombungee-Haden Show Society 1 Financial support towards the Rodeo $220

Goombungee-Haden Show Society 1 Financial support under the Core Support Grant $5,000

Housing Industry Association 1 Financial support towards HIA Qld Housing Awards Partnership $5,000

Housing Industry Association 1 Financial support in the form of a membership $740

Intuyu Consulting Pty Ltd 1 Financial support for It Takes a Spark Edu Conference $1,100

JA and SJ Currie 1 Financial support in the form of membership to Downs Little Lifeguard

$63

John and Val Sheppard 1 Financial support under the Heritage Incentive Grant Scheme $10,000

Jondaryan Woolshed Pty Ltd 1 Financial support as per the Operating Grant $748,558

Jondaryan Woolshed Pty Ltd 1 Financial support in the form of a Conditional Contribution/Donation

$243,650

Kontraband Studios Pty Ltd 1 Financial support towards 2019 Block Party Event $71,500

Koori Kids Pty Ltd 1 Financial support towards NAIDOC Week $450

Local Government Association of QLD LGAQ

1 Financial support in the form of a membership $336,238


Beneficial Enterprises Number Nature of help provided by Council Value

Local Government Managers Australia (QLD) Inc.

1 Financial support in the form of a subscription $2,490

Lost Trades Fair 1 Financial support in the form of a membership $16,500

Master Builders Queensland 1 Financial support in the form of a membership $471

Murray Darling Association Inc. 1 Financial support in the form of a membership $6,968

Newhope Group - Acland Mine 1 In-kind support providing use of TRC logo on corflute signs Nil

Office of Industrial Relations 1 Financial support towards Safe Work Month $4,950

Parks & Leisure Australia 1 In-kind support for hosting conference in the provision of merchandise

$1,250

Pittsworth District Alliance 1 Financial support in the form of a membership $250

Pittsworth State Primary School 1 Financial support towards Running of the Pittsworth Function Centre

$27,500

Planning Institute Australia 1 Financial support towards 2019 Rural and Regional Conference $3,300

Queensland Museum Network 1 Financial support as part of a partnership agreement with Cobb and Co Museum

$74,946

Queensland Tourism Industry Council 1 Financial support in the form of a membership $750

Rotary Club of Toowoomba East Inc. 1 Financial support for Takatsuki Earthquake Relief $10,000

Royal Agricultural Society Queensland

1 Financial support under the Core Support Grant $26,000

RSPCA Qld 1 Financial support towards Operation Wanted (desexing) program $15,000

Southern QLD Country Tourism Ltd 1 Financial support towards operations $292,879

Spring Bluff Railway Station Trust 1 Financial support towards operations $88,295

Steve Waugh Foundation 1 In-kind support in the provision of operational support and stakeholder coordination/networking in the promotion of the region as a suitable host destination and use of TRC logos in 'The Captains Ride'.

$7,500 (est.)

Study Toowoomba Inc. 1 In-kind support towards the establishment of Study Toowoomba. Legal costs ($5,184) plus staff time.

$5,184

The Downs Women in Business Awards

1 Financial support for Aspiring Young Business Women's Award $4,950

The Toowoomba Chamber of Commerce Incorporated

1 Financial support for Business Excellence Awards $12,100

The Toowoomba Chamber of Commerce Incorporated

1 Financial support for Toowoomba Small Business Exchange $2,200

Toowoomba and Surat Basin Enterprise

1 Financial support as per the Operating Grant $502,425

Toowoomba and Surat Basin Enterprise

1 Financial support and in-kind support towards Advancing Regional Innovation Program

$16,000

Toowoomba Christian College 1 Financial support as recipient of the Mayor's Telstra Technology Awards 2018

$5,000

Toowoomba Conferences 1 Financial support towards operations $38,500

Toowoomba Hospital Foundation 1 Financial support as recipient of the Triple M Mayoral Carols by Candlelight.

$7,000

Toowoomba International Multicultural Society

1 Financial support towards Toowoomba Languages and Cultures Festival

$25,000

Toowoomba Turf Club Inc. 1 Financial support towards Toowoomba Turf Club Rose Race Series/ Mad Hatters Racing

$11,000

University of Southern Queensland 1 Financial support for the maintenance of the Japanese Gardens $22,000

University of Southern Queensland 3 Financial support towards TRC Scholarships (Engineering - Civil/Environmental)

$20,000

University of Southern Queensland Student Guild

1 Financial support for Chinese New Year Celebrations $3,000

University of Southern Queensland 2019 Darling Downs Science and Engineering Challenge

1 Financial support for the Bronze Sponsorship for the Darling Downs Regional Science and Engineering Challenge at USQ

$550

Total 67


Community Leases Number

Adventurers Tennis Club Incorporated - Stenner Street (284A), Middle Ridge

1

Alford Park Tennis Club Inc - Willow Street (11-13), North Toowoomba

1

Assert Services Inc. - Hill Street (46), Toowoomba 1

Australian Dream Astronomy Club - Pittsworth-Tummaville Road, Pittsworth

1

Back Plains and District Community Hall Association Incorporated - Clifton-Pittsworth Road (806), Back Plains

1

Bringalily Hall - Bringalily Creek Road (309), Bringalily 1

Brookstead Hall Committee - Madelaine Street (10), Brookstead

1

Broxburn Music Club of Pittsworth Inc. - Felton Road, Pittsworth

1

Cabarlah Sports & Festival Committee Incorporated - Shostaki Road, Cabarlah

1

Cambooya Community Kindergarten Association Inc. - Harrow Street (3-5), Cambooya

1

Cambooya Landcare Assocation Inc - Eton Street (64), Cambooya

1

Cambooya Public Hall Committee - Harrow Street (5), Cambooya

1

Cambooya Rural Fire Brigade - George Street, Cambooya

1

Citizens Radio Emergency Service Team Queensland Incorporated (CREST) - North Street (13), Mt Lofty

1

Clifton & District Historical Society Inc - King Street (46), Clifton

1

Clifton & Districts Chamber of Commenrce & Industry Inc - King Street (95), Clifton

1

Clifton Benchrest Shooters Union Inc. - Leyburn-Cunningham Road, Leyburn

1

Clifton Dabblers Incorporated - King Street (97), Clifton 1

Coalbank Hall Committee - Trapp Road, Coalbank 1

Commonwealth of Australia through its Bureau of Meteorology - Bridge Street (400-484), Toowoomba (Lease AWS)

1

Cooyar Agricultural Society Inc - Munro Street (5), Cooyar

1

Creche & Kindergarten Association of Qld - Margaret Street (37-39), Millmerran

1

Crow's Nest & District Historical Society Inc. - Thallon Street (46), Crows Nest

1

Crows Nest & District Pony Club Inc. - Pierces Creek Road (188), Crows Nest

1

Crows Nest and District Children's Centre and Kindergarten Association Incorporated - Lalor Street (32), Crows Nest

1

Darling Downs Aero Club Limited - Bridge Street (400-484), Toowoomba (Lease D)

1

Darling Downs Aero Club Limited - Bridge Street (400-484), Toowoomba (Lease F)

1

Darling Downs Aero Club Limited - Bridge Street (400-484), Toowoomba (Lease G)

1

Darling Downs Field Archers Inc - Willims (69-117) Road, Cranley

1

Darling Downs Sailing Club Inc - Groomsville Road (640), Cooby Dam

1


Department of Transport and Main Roads - Bell Street (26), Toowoomba City

1

Department of Transport and Main Roads - Poplar Street (2), Newtown

1

Djuan Dip Committee - Bergen Road, Djuan 1

Downs Steam Tourist Railway & Museum - Brook Street (82-84), Toowoomba

1

Emu Creek Public Hall Committee Inc. - Emu Creek Road, Emu Creek

1

FE Logan Hall Committee - Meara Place (10), Clifton 1

Gowrie Junction Progress Association Incorporated - Old Homebush Road (24), Gowrie Junction

1

Groom Park Hall Committee Association Incorporated - Neil Street (104C), Toowoomba South

1

Guides Queensland - Heller Street (1A), Rangeville 1

Guides Queensland - Jones Street (15), Harlaxton 1

Guides Queensland - Memory Street (18A), Harristown 1

Haden Public Hall Committee - Boundary Street, Haden

1

Harlaxton Hall Steering Committee Inc - Gleeson Crescent (9a), Harlaxton

1

Highfields Mens Shed Inc. - Shostaki Road (32), Cabarlah

1

Hodgson Vale Community Sports Club Inc. - New England Highway (12728-12752), Hodgson Vale

1

Hume Street (341), South Toowoomba - Toowoomba Rangers Rugby Union Club Inc

1

Irongate Memorial School of Arts Inc. - Irongate Road (938), Irongate

1

Jondaryan Public Hall Committee Inc. - Duke Street (6-10), Jondaryan

1

Kingsthorpe Sporting Association Incorporated - Goombungee Road, Kingsthorpe

1

Laurel Bank Croquet Club Inc. - Herries Street (209), Toowoomba

1

Lifeline Darlling Downs and South West Queensland Limited - Chalk Drive (12), Toowoomba City

1

Lions Club of Cecil Plains Incorporated - Cheetham Street, Cecil Plains

1

Lions Club of Toowoomba Inc. - New England Highway (12728-12752), Hodgson Vale

1

Lions Club of West Toowoomba Incorporated - Cress Street (8), North Toowoomba

1

Little Country Kids Club Inc. - Cheetham Street (40), Cecil Plains

1

Millmerran and District Historical Society Inc. (Cecil Plains Branch) - Taylor Street, Cecil Plains

1

Millmerran and District Historical Society Inc. (Millmerran Branch) - Charlotte Street (22-26), Millmerran

1

Millmerran Golf Club Inc - Golf Club Road, Millmerran 1

Millmerran Mens Shed Inc - Flynn Street (6), Milllmerran 1

Millmerran Mens Shed Incorporated - Saleyards Road (15), Millmerran

1

Millmerran Show Society Inc. - Millmerran-Cecil Plains Road (171), Millmerran

1

Millwood Hall Committee - Millmerran-Inglewood Road (2222), Millwood

1



Milne Bay Military Museum Inc - Willims Road (64), Cranley

1

Mt. Tyson Tennis Club Inc. - Jondaryan-Mount Tyson Road (2), Mt Tyson

1

North-Eastern Downs Highfields Lions Club Inc. - Shostaki Road, Cabarlah

1

Oakey & District Pony Club Incorporated - 101 Oakey-Cooyar Road, Oakey

1

Oakey & District Race Club Inc. - 101 Oakey-Cooyar Road, Oakey

1

Oakey Agricultural Pastoral and Rodeo Society Incorporated - 101 Oakey-Cooyar Road, Oakey

1

Oakey Art Group Incorporated - Stanley Street, Oakey 1

Oakey Historical Museum Society Incorporated - Ramsay Street, Oakey

1

Oakey Soccer Club Inc - York Street, Oakey 1

Pampas Community Hall - Gore Highway (6179), Pampas

1

Parent to Parent Association Queensland Inc. - Alexander Street (11-15), North Toowoomba

1

Peranga Community Association inc. - Denham Street (1), Peranga

1

Perseverance Aquatic Club Inc - Perseverance Dam (820), Crows Nest

1

Pittsworth and District Mens Shed Inc - Pioneer Way (16), Pittsworth

1

Pittsworth Crafty Quilters Inc. - Yandilla (83) Street, Pittsworth

1

Pittsworth Fitness Club - Briggs Street, Pittsworth 1

Pittsworth Judo Club Inc. - Briggs Street, Pittsworth 1

Pittsworth Kindergarten Association Incorporated - Short Street (43), Pittsworth

1

Pittsworth Leagues Club Inc - Short Street, Pittsworth 1

Pittsworth Senior Citizens Association Inc - Yandilla Street (83), Pittsworth

1

Pittsworth Tennis Club Incorporated - Hume Street, Pittsworth

1

Pittsworth Woodcrafters Club Inc. - Pioneer Way (16), Pittsworth

1

Qld Police Service - Shuttlewood Court (1-11), Mt Kynoch

1

Qld Police Service - Wyangapinni (390) Road, Stoneleigh

1

Queensland Corrective Services - Nass Road (24), Charlton

1

Queensland Police - Citizens Youth Welfare Association - James Street (219A), Toowoomba City

1

Queensland Police - Citizens Youth Welfare Association - Neil Street (104B), Toowoomba South

1

Quinalow & District Progress Association Inc. - Pechey-Maclagan Road, Quinalow

1

RBA Holdings Pty Ltd - Grapetree Road, Grapetree 1

Returned & Services League of Australia (Queensland Branch) Crows Nest Sub-Branch Inc. - William Street (22A-30), Crows Nest

1

Returned & Services League of Australia (Queensland Branch) Djuan & District Sub Branch Inc. - Djuan Road, Djuan

1


Returned & Services League of Australia (Queensland Branch) Toowoomba United Sub Branch Inc. - Herries Street (149), Toowoomba

1

Rosalie Shire Historical Society Inc - George Street (12-14), Goombungee

1

RSL Pittsworth - Pioneer Way (16), Pittsworth 1

Southbrook Hall Association Incorporated - John Street (15-17), Southbrook

1

Southbrook Sports Club Inc - Southbrook-Felton Road (71), Southbrook

1

Southern Qld Aero Modellers Inc (SQAM) - Boundary Road (80), Pittsworth

1

St Mary's College Toowoomba - Groomsville Road (640), Cooby Dam

1

The City Golf Club Inc. - South Street (250), South Toowoomba

1


1


1

The City Golf Club Inc. - South Street (254A), South Toowoomba

1

The Corporation of the Synod of the Diocese of Brisbane - Geraghty Street (24), Cecil Plains

1

The Creche and Kindergarten Association Limited - Stanley Street, Oakey

1

The Crow's Nest & District Bowls Club Inc - Toowoomba Road, Crows Nest

1

The Crows Nest Squash Club Inc. - William Street (22A -30), Crows Nest

1

The Friends of the State Rose Garden in Newtown Park Incorporated - Holberton Street (129D), Newtown

1

The Lions Club of Toowoomba - Wilsonton Inc. - Hill Street (50), Toowoomba

1

The Lions Club of Toowoomba - Wilsonton Inc. - Rome Street (49), Newtown

1

The Scout Association of Australia Queensland Inc. - Cecil Crescent, Highfields

1

The Scout Association of Australia Queensland Inc. - Devine Street (33-41), Harristown

1

The Scout Association of Australia Queensland Inc. - Heller Street (1B), Rangeville

1

The Scout Association of Australia Queensland Inc. - Quarry Street, Pittsworth

1

The Scout Association of Australia Queensland Inc. - Stenner Street (512A), Drayton

1

The Scout Association of Australia Queensland Inc. - Tor Street (245-247), Wilsonton Heights

1

The Sister Kenny Memorial Project Committee Incorporated - Tooth Street (7), Nobby

1

The State of Queensland (Represented by Department of Child Safety, Youth and Women) - Perseverance Dam Road, Crows Nest

1

The State of Queensland (represented by Public Safety Business Agency) - Beckman Street (7), Kulpi

1

The State of Queensland (represented by Public Safety Business Agency) - Camellia Court (32), Millmerran

1



The State of Queensland (represented by Public Safety Business Agency) - Cooke Street (31), Goombungee

1

The State of Queensland (represented by Public Safety Business Agency) - Denham Street (32), Peranga

1

The State of Queensland (represented by Public Safety Business Agency) - New England Highway (9918), Cabarlah

1

The State of Queensland (represented by Public Safety Business Agency) - Rosella Avenue (5), The Pines (Millmerran)

1

The State of Queensland (represented by Public Safety Business Agency) - School Road (2), Southbrook

1

The State of Queensland (represented by Public Safety Business Agency) - Timber Street, Crows Nest

1

The State of Queensland (represented by Public Safety Business Agency) - Tip Road (7), Pittsworth

1

The State of Queensland (represented by Public Safety Business Agency) - Yalangar-Lilyvale (581) Road, Lilyvale

1

The State of Queensland (represented by the Department of Education, Training and Employment) - Hume Street (141), Toowoomba City

1

The Toowoomba Tennis Association Inc. - Water Street (41-55), South Toowoomba

1

Toowoomba & Darling Downs Family History Society Inc. - South Street (452), Harristown

1

Toowoomba and District Old Machinery Society Inc - Oakey-Cooyar Road, Oakey

1

Toowoomba Bridge Club Incorporated - Stuart Street (53), Harlaxton

1

Toowoomba Buddhist Centre Inc. - Cress Street (4-6), North Toowoomba

1

Toowoomba City Bowls Club Inc. - Victoria Street (41), Toowoomba City

1

Toowoomba Clay Target Club Inc. - Warrego (10648) Highway, Charlton

1

Toowoomba Dog Obedience Club Inc - Hursley Road (16A), Newtown

1

Toowoomba Historical Society Inc. - Lindsay Street (43-73), East Toowoomba

1

Toowoomba Horse Riding for the Disabled Association Inc. - Goombungee Road (123 - 185), Cranley

1

Toowoomba Hospice Association Inc - O'Quinn Street (57B), Harristown

1

Toowoomba Live Steamers Inc - Lemway Avenue (22-52), Kearney Springs

1

Toowoomba Mothercraft Association Incorporated - Little Street (6), Toowoomba City

1

Toowoomba Polocrosse Club Inc. - 101 Oakey-Cooyar Road, Oakey

1

Toowoomba Rugby Football League Ltd - Cress Street (10), North Toowoomba

1

Toowoomba Senior Citizens Welfare Association Incorporated - Victoria (39) Street, Toowoomba City

1

Toowoomba Table Tennis Association Incorporated - Herries Street (82A), East Toowoomba

1


TPI Association - Little Street, Toowoomba City 1

Treasure Island - Clifton Community Child Care Assoc Inc - Tooth Street (26), Clifton

1

Unit Support Group - T.S. Toowoomba Inc. - Memory Street (18B), Harristown

1

Unit Support Group - T.S. Toowoomba Inc. - Sebastapool Road, Cressbrook

1

University of Southern Queensland (USQ) - 20 Regent Street, Darling Heights

1

Wattles Senior Rugby League Football Club Inc - Morton Street (12), Clifton

1

West Toowoomba Croquet Club Incorporated - Taylor Street, (147A) Newtown

1

Westbrook Hall Committee Incorporated - Main Street (114), Westbrook

1

Wylahra Grove Progress Association Inc - Camellia Court (32), Millmerran

1

Yarraman Memorial Hall Society Inc - Browne Street (11-13), Yarraman

1

Yarraman Over 50's Club Incorporated - Emmert Street, Yarraman

1

TOTAL 158

Monies paid to assist Toowoomba Carnival of Flowers Parade Entrants

Value

CatholicCare Services / Whaddup $500

Cedar Centre $500

Centenary Heights $300

Cosplayers $300

DISCO $400

Falun Dafa Association of Australia, Qld Branch Inc $500

Girl Guides $400

Girls & Boys Brigade $400

Gowrie Little Plain Rural Fire Brigade $500

Hand Heart Pocket- Freemasons $200

Klub VW $400

Newtown P & C $300

Phillipine Australia Cultural Society $500

Rotary Edge Club $56

RSPCA Toowoomba $300

Scouts Assn Aust QLD $400

Scouts Assoc of Australia QLD Darling Downs Region $400

Toowoomba Hospital Foundation $500

Toowoomba Trail Ride Club $400

TWB African Women Alliance $500

TWB Clubhouse $700

TWB North State School $300

TWB West Anglican Parish $300

Victory Life $500

Yellow Bridge QLD Ltd $300

YWCA $500

TOTAL 26


Monies paid as token of appreciation to Toowoomba Carnival of Flowers Chronicle Garden Competition entrants

Value

Annette Armitage $230

Kenneth Barclay $230

Christine Bartkowski $230

Ruby Brunner $230

Mervyn Buckley $230

Leonie Chapman $230

Keven & Amanda Corbett $230

Shirley Cronk $230

Matthew Dolley $230

Kevin Drew $230

John & Lenore Ferris $230

Robert Ford $230

Mervyn Fowler $230

Cheryl & John Ganzer $230

Ann Heffernan $230

Des & Val Hohn $230

Anthony Hurle $230

David & Gaye Kearey $230

Keith & Patricia Kelly $230

Allan Kenna $230

Rob Kennedy $230

Carl & Judy Kuhn $230

Linda Lane $230

Jeffrey Latham $230

Russell Lavender $230

Vicki Layton $230

John & Lynette McGuinn $230

Neville & Heather McNalty $230

Peter & Carol Mullen $230

Shirley Mundt $230

Tim & Kylie Munn $230

Anne Newsham $230

Peter Ferris & Thuy Nguyen $230

Rodney & Jill Osborne $230

Robert Pearce $230

Ray & Glenda Postle $230

Ronald Power $230

John Prasser $230

Gordon & Maria Reynolds $230

Joe & Judy Rockemer $230

Warwick & Ellen Rostad $230

Paul & Noela Rubb $230

Mark & Cindy-Jane Ryan $230

Geoffrey Robert Sams $230

Wayne & Narelle Schick $230

Monies paid as token of appreciation to Toowoomba Carnival of Flowers Chronicle Garden Competition entrants

Value

Robyn Rolfe & Timo Shivola $230

David Stanfield $230

Kevin & Lola Steinmuller $230

Leslie & Margaret Stephson $230

Ted & Joyce Taylor $230

Maria & Ian Weatherby $230

Alma Williams $230

Charmaine & Peter Williamson $230

Noel Zischke $230

Anthony Zorzi $230

Marjorie Martin $230

Mark & Anne O'Brien $230

Valerie Peachey $230

Adrian & Gail Wockner $230

Trudy Griffin $110

Ken & Jacelle Hansen $110

Alan & Auriel Hirning $110

Kathryn Jowett $110

Roslyn Morley $110

Beryl Osborne $110

Pauline Palmer $110

Leslie & Susan Smith $110

Betty Sullivan $110

Bill Van Mourik $110

Thelma Wilson $110

TOTAL 70


Community Economic Development Grants

Round one:• Toowoomba Chamber of Commerce: $4,900• Clifton & District Chamber of Commerce & Industry Inc.:

$5,000• Canvas Coworking Inc.: $3,100• Oakey Agricultural, Pastoral and Rodeo Society Inc.: $4,000• Story Artist Run Collective Inc.: $2,400• Tourism Darling Downs Ltd.: $4,600• Crow's Nest and District Tourist and Progress Association

Inc.: $4,700Round two:• Crows Nest Agricultural, Horticultural and Industrial Society

Inc.: $3,500• Downs Industry Schools Co-op (DISCO) Inc.: $4,131.68• Oakey Community & Tourist Information Centre - Sub

Committee of Oakey Chamber of Commerce Inc.: $963.20

Community support grant programs

Round one:• Crows Nest District Mens Shed Inc.: $1,671• The Toowoomba Caledonian Society and Pipe Band Inc.:

$1,200• Lions Club of Crows Nest Inc.: $1,100• Toowoomba Turners and Woodworkers Club Inc.: $1,000• Queensland State Rose Garden in Newtown Park Inc.:

$1,000• Cecil Plains Progress, Tourism & Recreation Association Inc.:

$1,399• Toowoomba Older Mens Network (TOMNET) Inc.: $2,000• Toowoomba Amateur Radio Model Aero Club Inc.: $2,000• AEIOU Foundation Inc.: $1,500• Crows Nest QCWA Inc.: $1,000• Metro Care Toowoomba Inc.: $1,849• Toowoomba Mountain Bike Club Inc.: $1,200• Groom Park Hall Association Inc.: $2,000• Toowoomba Community Organic Gardens Association Inc.:

$500Round two:• Cecil Plains Crier Inc.: $1,665• Crows Nest District Mens Shed Inc.: $800• Days for Girls Toowoomba Inc.: $1,250• Epilepsy Queensland Inc.: $420.69• Eva's Place Pregnancy & Early Parenting Support Inc.: $1,586• Gowrie Little Plain Community Centre Inc.: $636.36• Oakey Historical Museum Society Inc.: $500• Quota International of Toowoomba Inc.: $2,000• Safer Toowoomba Regional Partnerships Inc.: $1,200• Sailability Darling Downs Inc.: $1,800• The Pyjama Foundation Ltd. (NPO): $1,650• Toowoomba Basketball Assoc. Inc. & Toowoomba

Mountaineers Ltd.: $1,550• Toowoomba Together Inc.: $2,00• Toowoomba Ukulele Group Inc.: $2,000• Weight Reduction Club Toowoomba Inc.: $438• Yarraman & District Historical Society Inc.: $1,200• Yarraman Memorial Hall Society Inc.: $1,068

The Cultural and Arts Support program (CAS)

Round one:• Shoebox Theatre auspiced by Arts Council Toowoomba Inc.:

$3,000• Toowoomba Municipal Band and Drayton Memorial Hall

Association Inc.: $3,000• First Coat Studios auspiced by Backbone Youth Arts

Association Inc.: $3,000• St Luke's Anglican Church: $1,500• Millmerran Commerce and Progress Inc.: $2,992• Millmerran District Historical Society Inc.: $2,680Round two:• Empire Theatre Projects Company Pty Ltd.: $3,000• Pittsworth Art Group Inc.: $1,000• Toowoomba Concert Band Inc.: $2,590

Environment Grants

Round one:• Royal Agricultural Society of Queensland Inc.: $5,000• Friends of the Escarpment Parks Toowoomba Inc.: $5,000• North East Downs Landcare Inc.: $2,354• South Myall Catchment Landcare Group Inc.: $3,582Round two:• Clifton Landcare Group Inc.: $5,000• Crows Nest Community Solutions Ltd.: $5,000• Householders Options to Protect the Environment Inc.:

$4,947.50• Ravensbourne and District Landcare Inc.: $2,200• Ravensbourne and District Landcare Inc.: $2,200• Royal Agricultural Society of QLD Inc.: $5,000• The Scout Association of Australia Qld Branch Inc.

(auspicing the Darling Downs Region): $2,724.55

Events support grant program

Round one:• AEIOU Foundation (Australian charities and no-for-profit

organisation): $250• Boodau Public Hall Association Inc.(Boodau Christmas

Party): $1,000• Boodau Public Hall Association Inc.(The Boodau Bash):

$1,500• Boodau Public Hall Association Inc. (auspicing Haden Hall

Committee): $1,500• Curious Arts Inc.: $10,000• Darling Downs Rose Society Inc.: $400• Downs Polo Association Inc.: $10,000• High Altitude Harmony Inc.: $1,100• High Country Festivals Inc.: $7,500• High Country Festivals Inc.: $1,500• Highfields Pioneer Village, Museum & Park Inc.: $5,000• Klub VW Darling Downs Inc.: $1,400• Pittsworth Art Group Inc.: $750• Pittsworth District Alliance Inc.: $3,000• The Scout Association of Australia Qld Branch Inc.

(auspicing the Darling Downs Region): $5,000• Southbrook Sports Club Inc.: $1,000• Toowoomba & District Old Machinery Society Inc.: $2,500• Toowoomba & District Woodcrafters Inc.: $1,100• Toowoomba City Care Inc.: $10,000• Toowoomba Clivia Society Inc.: $550• Toowoomba Hospital Foundation (Australian charities and

no-for-profit organisation): $250• Toowoomba Orchid Society Inc.: $750• Youth With A Mission Toowoomba Inc.: $3,000• Anglican Parish of St Andrew Pittsworth: $250• Pittsworth Art Group Inc. (auspicing the Gidgee Coal Bush

Ballad Awards): $1,100• Pittsworth Rugby League Football Club Inc.: $1,500Round two:• •Boodua Public Hall Association Inc.: $1,500• Crows Nest Agricultural, Horticultural and Industrial Society

Inc.: $1,500• Crows Nest and District Tourism and Progress Association

Expenditure on grants to community organisations

(Section 189 - Local Government Regulation 2012)


Inc. (Sub ctee HCH or High Country Hamlets): $1,500• Darling Downs Rose Society Inc.: $742• Darling Downs Samoan Cultural Community Inc.: $1,330• Felton Hall Association Inc.: $600• Garden City Country Music Association Inc.: $1,095• Highfields North Eastern Downs Lions Club Inc.: $1,200• Islamic Interfaith and Multicultural Organisation Inc.

(auspicing Thai Community of Toowoomba): $1,193• Leafmore Garden Society Inc. Toowoomba: $1,300• Lions Club of Toowoomba West Inc.(auspicing Mother's Day

Classic Toowoomba Committee): $250• Queensland Cake Decorators Association Darling Downs

Branch Inc.: $850• Queensland Program of Assistance to Survivors of Torture

and Trauma (QPASTT)(Association Inc.): $300• Scout Association of Australia Qld Branch Inc. - Darling

Downs Region: $6,000• Tenpin Bowling Association of Qld Inc.: $10,000• Toowoomba Bonsai Group Inc.: $850• Toowoomba Choral Society Inc.: $750• Toowoomba Hospice Association Inc.: $9,366• Toowoomba Hot Rodders Inc.: $3,066• Toowoomba International Multicultural Society (TIMS) Inc.:

$1,500• Toowoomba Lapidary Club Inc.: $1,000

Sport and recreation grants

Round one:• Clifton Bowls Club Inc.: $36,675.15• Pittsworth Amateur BasketBall Association Inc.: $6,945• Darling Downs and Districts EightBall Association Inc.:

$2,045.45• Southbrook Sports Club Inc.: $2,291.03• Toowoomba BMX Club Inc.: $2,692

• Highfields & District Branch Little Athletics Centre Inc.: $5,190• Highfields F.C. Inc.: $16,958.87Round two:• Brothers Toowoomba Rugby League Football Club Inc.:

$3018.64• Darling Downs Aero Club Ltd.: $925.31• Fillipino Australian Community in Oakey (FACO) Inc.: $6,125• Highfields and Districts Netball Association Inc.: $4,170.45• Highfields and Districts Railway Criket Club Inc.: $15,179.09• Highfields FC Inc.: $30,082.68• Highfields Junior Rugby Club Inc.: $16,872.73• Kearneys Spring Sports Reserve Management Association

Inc.: $15,725• Millmerran Memorial Bowls Club Inc. $8,090.50• Oakey and District Tennis Association Inc.: $33,255• Toowoomba Cricket Inc.: $20,724.96• Toowoomba Junior Rugby League Inc.: $4,162.50• Toowoomba Motocross Club Ltd.: $59,080.38• Toowoomba Motorcycle Club Inc.: $7,369.76• Toowoomba Mountain Bike Club Inc.: $31,500• Clifton Golf Club Inc.: $10,000• Glenholme Sports and Community Hub Inc.: $13,612.50

Sports tourism grants

• South West Indigenous Network Inc.: $5,000• Toowoomba Tennis Association Inc.: $12,500• City Golf Club Inc.: $15,000• Toowoomba Motocross Club: $1,000• National Cutting Horse Association: $5,000• Toowoomba Mountain Bike Club Inc.: $1,500• Bowls Queensland: $3,000• Millmerran Pony Club Inc.: $5,000• Downs Rugby Ltd: $5,000• Pittsworth Leagues Club Inc.: $5,000



2018-19 SNAPSHOTNet operating surplus for the fifth year running

No new loans

COMMUNITY FINANCIAL REPORTThe purpose of the Community Financial Report is to give community members an understandable, easy to follow summary of Council’s Financial Statements in accordance with Section 179 of Local Government Regulation 2012. Council’s Financial Statements are prepared on an accrual basis, meaning that most transactions are recognised when the event, or performance obligation, occurs rather than when cash is physically received or paid. Council’s Financial Statements must be certified by both the Mayor and the Chief Executive Officer as “presenting fairly” Council’s financial results for the year. They are also required to be adopted by Council – ensuring both responsibility for and ownership of the Financial Statements by management and elected representatives.In addition, Council’s financial statements are audited by the Queensland Audit Office. The auditor provides an audit report which gives an opinion on whether the financial statements are fairly presenting Council’s financial performance and position.This report focuses on:• Statement of Comprehensive Income • Statement of Financial Position • Statement of Changes in Equity

• Statement of Cash Flows• Measures of Financial Sustainability.

Statement of Comprehensive IncomeThe Statement of Comprehensive Income is often referred to as the Profit and Loss statement. This statement shows what Council has earned (revenue) and what costs Council has incurred (expenses) throughout the year.

In summary, Council’s result for the reporting period was:

$’000’sWhat we have earned (Revenue) Recurrent Revenue 326,899Capital Revenue 61,105Total Revenue 388,004 What we have spent (Expenses) Recurrent Expenses 323,818Capital Expenses 35,729Total Expenses 359,547 Net Result 28,457

2018-2019


The Net Result does not necessarily represent surplus cash funds available for general use as certain income items are restricted to specific use. For example, capital grants are generally allocated to maintain or expand Council’s infrastructure.

Some revenue and expenses are of a non-cash nature – for example, contributed infrastructure assets (such as roads, sewerage and water mains) constructed by a developer on behalf of Council in conjunction with land sub-divisions or property developments are considered non-cash revenue. Likewise, depreciation expense on assets is considered a non-cash expense.

What we have earnedThere are two main categories of revenue for the financial year – recurrent revenue and capital revenue.

What we have earned

Rates & levies 78%

Fees & charges 12%

Contract works 3%

Grants, subsidies & contributions 6%

Interest revenue 1%

Recurrent RevenueCouncil’s recurrent revenue is money raised which is used to fund the day-to-day operations of Council. Recurrent revenue is the major source of revenue for Council and primarily earned from sources such as Rates and Fees and Charges.

Council also aims to maximise its revenue from other sources by actively pursuing grants and subsidies from the State and Federal Government and investing surplus funds to earn interest.

Capital RevenueCouncil’s capital revenue is used to construct Council’s assets now and in the future. Council’s capital revenue consists of grants, contributions and subsidies, developer contributions as well as profits on the disposal of fixed assets. $61.1 million was received in grants and contributions to fund capital projects this year.

What we have spentCouncil incurs both recurrent expenses and capital expenses. Capital expenditure is used to renew and expand our asset infrastructure and is therefore added to the carrying value of the assets.

Recurrent expenses are the main expense of Council and represent the day-to-day cost of providing services, operating facilities and maintaining assets. These include employee costs, materials and services, finance costs and depreciation.

Recurrentexpenses

Employee costs 37%

Materials and services 30%

Finance costs 3%

Depreciation and amortisation 30%

Expenses are monitored constantly throughout the year. Detailed estimates are prepared at the beginning of each financial year and performance against these estimates is measured through regular budget reviews to ensure the most efficient use of Council’s funds.

Depreciation and amortisation expense make up nearly one-third of Council’s operating expenses. This item represents an allocation of the use or deterioration of the community assets over the assets expected life. How Council’s performance in managing its assets is explained in the Statement of Financial Position and Measures of Financial Sustainability sections of this report.

Where the money is

spent

Community services 21%

Planning and development 4%

Finance and business strategy 19%

Waste management 8%

Infrastructure services 21%

Water services 17%

Wastewater services 7%

Corporate governance 3%

Statement of Financial Position The Statement of Financial Position is often referred to as the Balance Sheet and is a snapshot of the financial position of Council at 30 June. The statement measures what Council owns (Assets) and what Council owes (Liabilities). The difference between these two components is the net wealth (Equity) of Council and our community.The notes that support this statement explain how Council’s assets and liabilities are valued and how various values are determined.In summary, Council’s position at 30 June 2019 was: $’000’sAssets (what we own) 4,729,101Liabilities (what we owe) 341,967 Equity (Community Wealth) 4,387,134

What do we own?Council’s major asset class is Property, Plant and Equipment. These assets make up 96% of Council’s assets. Road, drainage, water and wastewater infrastructure assets make up the bulk of the property, plant and equipment which provide direct benefit to the community.

What areour assets

Receivables 1%

Property, plant and equipment 96%

Cash assets and cash equivalents 3%

What did we spend on assets?What we spend to build or enhance our assets is reflected in the Statement of Financial Position as it increases the value of our assets.

A significant amount of Council’s activities is focussed on the maintenance, upgrade and construction of fixed assets


Community services 21%

Planning and development 4%

Waste management 8%

Infrastructure services 21%

Water services 17%

Wastewater services 7%

Finance and business strategy 19%

Where the money is

spent

Corporate governance 3%


to ensure there are adequate infrastructure services for community use. These activities are undertaken in accordance with Council’s long-term asset management plan which covers a period of ten years.

This year Council spent $153 million to renew, upgrade and build new assets for the community. The graph below shows the how the money was spent in different asset classes.

Capitalexpenditure

by assetclass

Road & bridge network 38%

Site improvements 9%

Water 14%

Waste 3%

Wastewater 4%

Buildings 20%

Plant & equipment 12% What do we owe?Liabilities are the amounts Council owes to suppliers, employees and lenders both now and in the future. This also includes provisions for future entitlements which comprise of money which will pay our employees in the future (e.g. long service leave); and amounts set aside to fund the future rehabilitation of our refuse and quarry sites.

Long-term loans are taken out to undertake the construction and purchase of community assets. Council reviews its loan requirements on an annual basis. No loans were drawn down during the year. Total liabilities as at 30 June 2019 were $342 million.

What do we owe

Trade & other payables 13%

Provisions 40%

Borrowings 44%

Other 3%

Statement of Changes in EquityThe difference between assets and liabilities is the total community equity or the net wealth of the Council. The Statement of Changes in Equity shows the overall change in Council’s “net wealth” over the year. At 30 June 2019 this was an amount of $4,387 million (that is, assets of $4,729 million less liabilities of $342 million).

This community equity consists of an asset revaluation reserve and retained surpluses. The asset revaluation reserve increased this year by $275 million and the retained surplus increased by $28 million.

The asset revaluation surplus comprises amounts representing the change in the value of Council’s assets over time. Asset revaluations are completed on a cyclical basis per asset class.

Council’s retained surplus represents amounts available to be invested into assets (now or in the future) to provide

services to the community. With good planning, surpluses can be used to place less reliance on loans and withstand any unforeseen financial shocks or adverse changes to our business. A portion of our retained surplus is cash-backed by an appropriate level of internally imposed restrictions to limit amounts available for future use.

Equity (net wealth)

Investment in capital assets 60%

Asset revaluation surplus 40%

Statement of Cash FlowsThe Statement of Cash Flows shows where Council’s cash came from and how it was spent throughout the year. This differs from the earlier reports as ‘non-cash items’, such as depreciation and donated assets, are excluded.

The Statement of Cash Flows categorises all cash payments made and received throughout the year into three groups:• Operating activities – represent day-to-day cash flows• Investing activities – represent cash payments from movements in

assets and liabilities, such as purchase and sales of assets and any capital income (grants, contributions) received

• Financing activities – represent cash flows relating to how Council is financed, including new loans and loan repayments.

$’000’sOpening Balance 139,190Plus Cash Received 381,671Less Cash Spent (379,132)Cash Available at End of Year 141,729

Cash available is used to invest and utilise for future outlays. Much of this is restricted for specific purposes, such as future infrastructure. Council’s cash is wisely invested in accordance with our investment policy, so the interest earned contributes to the funding of operational expenses.

Financial Sustainability MeasuresThe financial sustainability statement and the associated measures (ratios) provide evidence of Council’s ability to continue operating and provide an acceptable level of service and infrastructure to the community both now and into the future. Section 168 (5) of Local Government Regulation 2012 outlines the three relevant measures of financial sustainability on which Council must report. In addition, the Department of Local Government, Racing and Multicultural Affairs sets target ranges for each of these measures.

As part of Council’s 2014-2019 Corporate Plan we aim to implement sustainable financial management. Council’s performance in these three key measures is an indication of whether we are delivering on this goal.

1. Asset Sustainability RatioThis indicates if Council is renewing or replacing existing infrastructure assets at the same rate that the assets are wearing out. The target for 2019 was a ratio of greater than 90%. If the target ratio is not reached over the medium to long term, Council may face a reduction in the asset’s service levels and/or useful lives which would create a burden on future ratepayers.


The current year results of 62.83% are lower than the target previously estimated. Integration of Council’s current focus on asset management planning and continued long-term financial planning will improve Council’s ability to make informed decisions regarding asset management into the future.

2. Net Financial Liabilities RatioIndicates the extent to which operating revenue raised by Council can cover what it owes (i.e. net liabilities). The target ratio over the long-term is less than 60%. A ratio above the target level over a long-term is indicative of a Council that is undertaking or has undertaken significant infrastructure investment. Ratios over the target levels for a long period can be maintained with Council’s sound financial management systems and the ability to service current and projected debt levels.

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Net Financial Liabili�esTarget Range is less than 60% Net Financial Liabili�es Ra�o

3. Operating Surplus RatioIndicates the extent to which revenue raised by Council (excluding capital grants and contributions) covers its operational expenses. The target range for this ratio is between 0% and 10%. Should the target ratio not be maintained over the medium to long-term, Council may be unable to withstand unexpected financial events without needing to significantly increase rates, borrow money or reduce capital expenditure programs.

0.94%

-2.10%

0.50% 0.50% 0.60% 0.50% 0.60% 0.70% 0.60% 0.60% 0.60%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

2018/192019/202020/212021/222022/232023/242024/252025/262026/272027/282028/29

Opera�ng Surplus Ra�oTarget Range = 0% to 10%

Council’s result this year was 0.94% which is higher than the original budget of 0.2%, mainly due to employee costs being lower than budgeted.

62.83%

83.40%70.70% 66.60%

61.10%67.50% 65.50% 68.60% 65.50% 64.60%

47.70%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

Asset Sustainability Ra�oTarget Range => 90% Asset Sustainability Ra�o

SummaryCouncil delivered an operating result above the original budgeted surplus. Toowoomba Regional Council is in a sound financial position to deliver its budgeted projects and services for the 2019/20 financial year and beyond.

49


ContentsFINANCIAL REPORT

For the year ended 30 June 2019

Primary Financial Statements ....................................... 52Statement of Comprehensive Income ................................. 52Statement of Financial Position .............................................. 53Statement of Changes in Equity ............................................. 54Statement of Cash Flows .......................................................... 55Notes to the Financial Statements ............................... 561. Significant Accounting Policies ..................................... 562. Analysis of Results by Function .................................... 593. Revenue ..................................................................................614. Grants, Subsidies, Contributions and Donations .... 625. Employee Benefits .............................................................636. Materials and Services ..................................................... 647. Finance Costs ......................................................................648. Capital Income and Expenses ..................................... 659. Cash, Cash Equivalents and Investments .................. 6610. Receivables ..........................................................................6711. Property, Plant and Equipment ..................................... 6812. Fair Value Measurements ................................................7213. Intangible Assets ................................................................7614. Payables ................................................................................ 7715. Borrowings ...........................................................................7816. Provisions ..............................................................................7917. Asset Revaluation Reserve ..............................................8118. Commitments for Expenditure ...................................... 8219. Contingent Liabilities .........................................................8320. Superannuation ..................................................................8421. Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities ...... 8522. Reconciliation of Liabilities Arising from Finance Activities .................................................... 8623. Correction of Error/s relating to a Previous Reporting Period .................................................................8724. Financial Instruments and Financial Risk Management ........................................................................8825. National Competition Policy ........................................... 9226. Controlled Entities that have not been Consolidated ............................................................9327. Transactions with Related Parties .................................94Management Certificate ..................................................97Independent Auditor's Report ....................................... 98Current-year Financial Sustainability Statement ....... 101Certificate of Accuracy - Current Year Financial Sustainability Statement ...............102Independent Auditor's Report ................................................ 103Unaudited Long-term Financial Sustainability Statement ........................................................................106 Certificate of Accuracy - Long-term Sustainability Statement ...................................... 107

51

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


The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. Page 1


Statement of Comprehensive Income For the year ended 30 June 2019

Restated

2019

2018

Notes $'000

$'000

INCOME

Revenue

Recurrent Revenue

Rates, Levies and Charges

3a 256,158

242,741

Fees and Charges

3b 36,770

35,866

Interest and Investment Revenue

3c 4,546

4,661

Sales Revenue

3d 10,077

10,589

Other Income

1,189

2,225

Grants, Subsidies, Contributions and Donations

4a 18,159

17,158

Total Recurrent Revenue

326,899

313,240

Capital Revenue

Grants, Subsidies, Contributions and Donations

4b 61,105

80,837

Total Income

388,004

394,077

EXPENSES

Recurrent Expenses

Employee Benefits

5 118,872

109,222

Materials and Services

6 97,672

87,943

Depreciation and Amortisation Charges

11, 13 98,459

94,511

Finance Costs

7 8,815

9,418

Total Recurrent Expenses

323,818

301,094

Capital Expenses

8 35,729

5,393

Total Expenses

359,547

306,487

Net Result

28,457

87,590

OTHER COMPREHENSIVE INCOME

Amounts which will not be reclassified to Net Result

Increase/(Decrease) in Asset Revaluation Reserve

17 274,961

(320,287) Total Other Comprehensive Income

274,961

(320,287)

Total Comprehensive Income

303,418

(232,697)





Statement of Financial Position As at 30 June 2019

Restated

2019

2018

Notes $'000

$'000

ASSETS

Current Assets

Cash, Cash Equivalents and Investments

9 141,729

139,190

Receivables

10 40,231

47,237

Inventories

3,317

4,088

Total Current Assets

185,277

190,515

Non-Current Assets

Property, Plant and Equipment

11 4,530,444

4,206,354

Intangible Assets

13 13,360

13,787

Other Financial Assets

20

20

Total Non-Current Assets

4,543,824

4,220,161

Total Assets

4,729,101

4,410,676

LIABILITIES

Current Liabilities

Payables

14 43,134

38,980

Borrowings

15 11,045

10,485

Provisions

16 17,978

13,554

Other Liabilities

3,930

3,819

Waste Levy Refund Received in Advance

4,832

-

Total Current Liabilities

80,919

66,838

Non-Current Liabilities

Borrowings

15 140,995

151,715

Provisions

16 120,053

108,407

Total Non-Current Liabilities

261,048

260,122

Total Liabilities

341,967

326,960

Net Community Assets

4,387,134

4,083,716

COMMUNITY EQUITY

Asset Revaluation Reserve

17 1,742,100

1,467,139

Retained Surplus/(Deficiency)

2,645,034

2,616,577

Total Community Equity

4,387,134

4,083,716





Statement of Changes in Equity For the year ended 30 June 2019

Asset Revaluation Reserve

Retained Surplus Total Equity

Notes $'000 $'000 $'000

2019

OPENING BALANCE

1,467,139

2,616,577

4,083,716

Net Result for the Year

-

28,457

28,457

Increase/(Decrease) in Asset Revaluation Reserve 17 274,961

-

274,961

Total Comprehensive Income for the Year

274,961

28,457

303,418

BALANCE AS AT 30 JUNE 2019

1,742,100

2,645,034

4,387,134

2018

OPENING BALANCE

1,787,426

2,528,987

4,316,413

Net Result for the Year (Restated)

-

87,590

87,590

Increase/(Decrease) in Asset Revaluation Reserve 17 (320,287)

-

(320,287)

Total Comprehensive Income for the Year

(320,287)

87,590

(232,696)


1,467,139

2,616,577

4,083,716





Statement of Cash Flows For the year ended 30 June 2019

2019 2018 Notes $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Customers

315,366

267,624

Payments to Suppliers and Employees

(207,007)

(195,950)

108,359

71,674

Interest and Investment Revenue Received

5,321

4,359

Recurrent Grants, Subsidies, Contributions and Donations 4a 18,159

17,158

Net Cash Inflow from Operating Activities

21 131,839

93,191

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Disposal of Property, Plant and Equipment 8 4,994

4,318

Commonwealth Government Subsidies and Grants 4b 7,714

10,734

State Government Subsidies and Grants

4b 19,150

13,099

Contributions

4b 27

18,317

Infrastructure Charges

4b 10,940

16,790

Purchase of Property, Plant and Equipment

11 (152,010)

(157,130)

Payments for Intangible Assets

13 (1,139)

(4,394)

Net Cash Outflow from Investing Activities

(110,324)

(98,266)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of Borrowings and Advances

15 (10,488)

(10,995)

Borrowing Costs

(8,488)

(9,067)

Net Cash Outflow from Financing Activities

(18,976)

(20,062)

Net Increase/(Decrease) in Cash and Cash Equivalents Held

2,539

(25,137)

Plus: Cash and Cash Equivalents at the Beginning of the Financial Year

139,190

164,327

Cash and Cash Equivalents at the End of Financial Year 9 141,729

139,190


Financial Statements 2019


Page 5

Notes to the Financial Statements For the year ended 30 June 2019 Note 1. Significant Accounting Policies

(a) Basis of Preparation The Toowoomba Regional Council is constituted under the Queensland Local Government Act 2009 and is domiciled in Australia. These general purpose financial statements are for the period 1 July 2018 to 30 June 2019. They are prepared in accordance with the Local Government Act 2009 and the Local Government Regulation 2012. They comply with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB). Council is a not-for-profit entity and the Australian Accounting Standards include requirements for not-for-profit entities, which are inconsistent with International Financial Reporting Standards (IFRS). Therefore, in some instances these financial statements do not comply with IFRS. The main impacts are the offsetting of revaluation gains and losses within a class of assets and the timing of recognition of non-reciprocal grant revenue. These financial statements have been prepared under the historical cost convention except for financial assets and liabilities and certain classes of property, plant and equipment, which are measured at fair value.

(b) 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

y Australian Accounting Standards and Interpretations that have been issued but are not yet effective. This year Council has applied AASB 9 Financial Instruments for the first time. AASB 9 replaces AASB 139 and relates to the recognition, classification and measurement of financial assets and financial liabilities. Implementing AASB 9 has resulted in a change to the way Council calculates impairment provisions, which are now based on expected credit losses instead of incurred credit losses. Council has not restated comparative figures. This means the new impairment rules are reflected in the receivables balance as at 30 June 2019, but not 30 June 2018. On 1 July 2018 (the date of initial application), Council re-assessed the classification, measurement category and carrying amount of each financial instrument (listed below) in accordance with AASB 9. There were some changes to classification, but this did not result in changes to measurement categories (listed below).

Financial Asset/Liability Measurement Category (unchanged) Cash and Cash Equivalents Amortised Cost Receivables Amortised Cost Borrowings Amortised Cost

Some Australian Accounting Standards and Interpretations have been issued but are not yet effective. Those standards have not been applied in these financial statements. Council will implement them when they are effective. The standards that are expected to have a material impact upon Council's future financial statements are:

Standard and Impact Date Council will Apply the Standard

AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not-for-Profit Entities and AASB 2016-8 Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit Entities

1 July 2019

AASB 1058 clarifies and simplifies the income recognition requirements that apply to not-to-profit (NFP) entities, in conjunction with AASB 15, and AASB 2016-8. These Standards supersede the majority of income recognition requirements relating to public sector NFP entities, previously in AASB 1004 Contributions.

Identifiable impacts at the date of this report are: Some grants received by the Council will be recognised as a liability, and subsequently recognised progressively as revenue as the Council satisfies its performance obligations under the grant. At present, such grants are recognised as revenue upfront. Grants that are not enforceable and/or not sufficiently specific will not qualify for deferral, and continue to be recognised as revenue as soon as they are controlled. Council receives several grants from the Federal Government and State Government for which there are no sufficiently specific performance obligations. These are expected to continue being recognised as revenue upfront assuming there is no change to the current grant arrangements.




Notes to the Financial Statements For the year ended 30 June 2019

Note 1. Significant Accounting Policies (continued)

Page 6

Depending on the respective contractual terms, the new requirements of AASB 15 may potentially result in a change to the timing of revenue from sales of Council's goods and services such that some revenue may need to be deferred to a later reporting period to the extent that the Council has received payment but has not met its associated performance obligations (such amounts would be reported as a liability in the meantime). Prepaid rates will not be recognised as revenue until the relevant rating period starts. Until that time, these receipts will be recognised as a liability (unearned revenue). There will be no impact upon the recognition of other fees and charges.

inancial year it would have had the following impacts:

Revenue decrease of $7.624 million due to deferral of grant funding and prepaid rates (based on the facts available to Council at the date of assessment).

There would be an equal reduction in the reported equity as the reduced revenue will require an increase in recognition of contract liabilities, and statutory receivables.

Net result would be lower on initial application as a result of decreased revenue. A range of new disclosures will also be requir Transition Method The Council intends to apply AASB 15, AASB 1058 and AASB 2016-8 initially on 1 July 2019, using the modified retrospective approach. The recognition and measurement principles of the standards will be retrospectively applied for the current year and prior year comparatives as though the standards had always applied, consistent with AASB108 Accounting Policies, Changes in Accounting Estimates and Errors. Standard and Impact Date Council will Apply the Standard AASB 16 Leases, AASB 2018-4 Australian Implementation Guide for Not For Profit Public Sector 1 July 2019 Licensors; AASB 2018-8 Right of Use Assets for Not For Profit Entities

The Council has assessed the impacts of the new standard that initial application of AASB16 will have on its financial statements, however, the actual impacts may differ as the new accounting policies are subject to change until the Council presents its first financial statements that include the date of initial application. AASB16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current standard i.e. lessors continue to classify leases as finance or operating leases.

Leases in which the Council is a Lessee The Council will recognise new assets and liabilities for its operating leases of buildings (see Note 18b). The nature of expenses related to those leases will now change because the Council will recognise a depreciation charge for right-of-use assets and interest expense on lease liabilities. Previously, the Council has recognised an operating lease expense on a straight-line basis over the term of the lease, and recognised assets and liabilities only to the extent that there was a timing difference between actual lease payments and the expense recognised.

-time adoption of AASB 16 for the year ending 30 June 2020 will have the following impacts:

Lease assets and financial liabilities on the balance sheet will increase by $3.346 million respectively (based on the facts available to Council at the date of assessment).

There will be a reduction in the reported equity as the carrying amount of lease assets will reduce more quickly than the carrying amount of lease liabilities.

Net result will be lower on initial application as depreciation and the lease liability interest will be initially higher than operating lease expenses previously recorded.

Peppercorn Leases Council is the leasee of a number of Deed of Grant in Trust leases, for which no or little lease payments are made. These have been identified as peppercorn leases which are currently not recognised in Council's financial statements. Council intends to elect to apply the fair value measurement requirements to these leases until such time as this requirement is mandated.





Note 1. Significant Accounting Policies (continued)

Page 7

Transition Method The Council intends to apply AASB 16 initially on 1 July 2019, using the modified retrospective approach. Therefore, the cumulative effect of adopting AASB 16 will be recognised as an adjustment to the opening balance of retained earnings at 1 July 2019, with no restatement of comparative information.

(c) Estimates and Judgements

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. Judgements, estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes:

Receivables impairment/credit losses Note 10 Valuation and depreciation of property, plant and equipment Notes 11 and 12 Provisions Note 16 Contingent liabilities Note 19 Amortisation of intangibles Note 13

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. Council has categorised and measured the financial assets and financial liabilities held at balance date as follows: Financial Assets Cash and cash equivalents Note 9 Receivables measured at amortised cost less any impairment Note 10 Investments

Financial Liabilities Payables measured at amortised cost Note 14 Borrowings measured at amortised cost Note 15

Financial assets and financial liabilities are presented separately from each other and offsetting has not been applied.

(d) Rounding and Comparatives The financial statements are in Australian dollars that have been rounded to the nearest $1,000. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.

(e) Taxation The income of local government and public authorities is exempt from Income Tax. However, Council is subject to Fringe Benefits Tax (FBT), Goods and Services Tax (GST) and Payroll Tax on certain activities. The net amount of GST recoverable from the ATO or payable to the ATO is shown as an asset or liability respectively.

(f) Waste Levy Received in Advance The State Government made an advance payment to Council in June 2019 to mitigate the impacts on households for 2019-20 of the State Waste Levy, which takes effect from 1 July 2019. The Council will be liable to the State for payment of the Levy on most forms of commercial and household waste delivered to its disposal sites from 1 July 2019. The State is required to make an annual payment to the Council that essentially refunds the Council for the portion of the Levy that relates to households. Council will fund the portion of the Levy that relates to commercial waste through charges to commercial users of disposal sites from 1 July 2019. As the receipt from the State in June 2019 is for a





Page 8

Note 2. Analysis of Results by Function

(a) Components of Council Functions Details relating to Council's functions/activities as reported in part (b) are as follows: Corporate Governance The objective of Corporate Governance is to be a well governed, responsive Council, providing effective leadership and management, and respecting community values. This function includes strategic planning, risk management, legal and administrative support. The Mayor, Councillors and Chief Executive Officer are included in corporate governance. Finance and Business Strategy Finance and Business Strategy provides quality and dependable corporate and financial services across Council. This function includes customer service, human resources, information technology, stakeholder engagement and communication and finance. Its goals are to provide service delivery in line with customer and community expectations, attract and retain a skilled workforce, implement reliable and contemporary information, knowledge and management systems, engage in continuous improvement and implement sustainable financial management and effective procurement practices. Environment and Community Services The goal of Environment and Community Services is to provide a safe, healthy and equitable community that celebrates diversity and enjoys a quality lifestyle. This function provides community, cultural and sporting facilities, as well as ensuring the effective delivery of health and environmental standards, community safety and disaster management capability. Planning and Development The goal of Planning and Development is to ensure regional growth and change is well managed, integrated and connected which respects community, environmental and heritage values as well as ensuring the region's environmental assets (including natural areas and resources, open space and agricultural land) are conserved and enhanced for future generations. This function includes strategic planning and economic development, regional planning scheme, priority infrastructure plan, development applications and certification and compliance for building, plumbing, drainage and development. Infrastructure Services Infrastructure Services are responsible for the integrated and timely provision and management of sustainable infrastructure for the region that facilitates the development of the region and maximises the utilisation of existing assets. Its goals include ensuring infrastructure meets the needs and priorities of Council, the community and industry; provide a safe, sustainable and efficient road network; plan and deliver stormwater management and flood resilience plans and implement urban improvement works that enhance local character and conserve and improve the region's streetscapes and parkland. Waste Management Waste Management incorporates the operation and management of Council's waste transfer and disposal facilities together with the management of Council's waste collection and recycling contracts. Its objective is to provide efficient and sustainable waste management infrastructure and services, as well as to minimise the impacts of waste generation and landfill emissions. Water Services Water Services delivers and manages efficient and sustainable, high quality, water supply systems throughout the region. It is responsible for the planning, co-ordination and maintenance of the water network, water treatment and dams as well as the provision of drinking water. Wastewater Services Wastewater Services is responsible for the planning, co-ordination and maintenance of the wastewater trunk and reticulation networks and related fixed plant and equipment and SCADA systems for wastewater infrastructure. Its aim is to deliver and manage a high quality sewerage network and treatment facilities and effective and efficient use of recycled water.


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(24,

727)

(3

69)

(25,

096)

2

1,21

3 2

7,59

5 5

27,3

95

1

8,15

9 3

08,7

40

26,

997

34,

108

388

,004

(3

23,8

18)

(35,

729)

(3

59,5

47)

3,0

81

28,

457

4,7

29,1

01

Net R

esul

t fr

om

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rrin

g O

pera

tions

Ne

t Res

ult

To

tal A

sset

s Fu

nctio

ns

Gro

ss P

rogr

am In

com

e To

tal I

ncom

e G

ross

Pro

gram

Exp

ense

s To

tal

Expe

nses

Recu

rrin

g Ca

pita

l

Gra

nts

Oth

er

Gra

nts

Oth

er

Oth

er

Recu

rrin

g Ca

pita

l

2018

(Res

tate

d)

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0

Cor

pora

te G

over

nanc

e

2

116

-

-

1

18

(8,6

75)

-

(8,6

75)

(8,5

57)

(8,5

57)

-

Fina

nce

and

Busi

ness

Stra

tegy

8

,277

1

28,5

57

-

38,6

88

175

,522

(3

9,38

4)

(9,4

75)

(48,

859)

9

7,45

0 1

26,6

64

206

,841

Envi

ronm

ent a

nd C

omm

unity

Ser

vice

s 1

,960

1

2,78

2 2

,556

3

,390

2

0,68

8 (7

2,73

0)

295

(7

2,43

5)

(57,

988)

(5

1,74

6)

545

,146

Plan

ning

and

Dev

elop

men

t 2

62

7,8

83

-

-

8,1

45

(12,

329)

-

(1

2,32

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(4,1

84)

(4,1

84)

-

Infra

stru

ctur

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ervi

ces

6,4

70

12,

755

19,

026

7,8

85

46,

135

(66,

793)

1

53

(66,

640)

(4

7,56

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(20,

505)

2

,372

,867

Was

te M

anag

emen

t 1

87

23,

864

-

-

24,

051

(18,

983)

4

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(1

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er S

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71,

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(57,

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(4

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(58,

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8

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1

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Was

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vice

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4,07

3 9

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47,

774

(24,

521)

(2

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(24,

817)

1

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1

7,15

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721

55,

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394

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(3

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94)

(5,3

93)

(306

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) 1

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6 8

7,59

0 4

,410

,675

* Cou

ncil

has

mad

e a

retro

spec

tive

rest

atem

ent a

s a

cons

eque

nce

of a

cor

rect

ion

of p

rior p

erio

d er

rors

and

ther

efor

e, in

acc

orda

nce

with

AAS

B101

has

re-s

tate

d th

e va

lues

for t

he c

ompa

rativ

e ye

ar (3

0 Ju

ne 2

018)

.





Page 10

Note 3. Revenue

Revenue is recognised at the fair value of the consideration received or receivable, at the time indicated below.

2019 2018

Notes $'000 $'000

(a) Rates, Levies and Charges

Rates are recognised as revenue at the start of the rating period. If a ratepayer pays their rates before the start of the rating period, they are recognised as revenue when they are received.

General Rates

139,470

134,780

Separate Rates

7,138

6,750

Water

42,935

40,896

Water Consumption, Rental and Sundries

34,284

29,937

Sewerage

36,128

34,072

Sewerage Trade Waste

1,830

1,828

Garbage Charges

19,066

18,126

Total Rates and Utility Charge Revenue

280,851

266,389

Less: Rate Discounts

(22,517)

(21,558)

Less: Rate Concessions

(2,176)

(2,090)

Total Rates, Levies and Charges

256,158

242,741

(b) Fees and Charges

Fees and charges are recognised when Council is unconditionally entitled to those funds. Generally this is upon lodgement of the relevant applications or documents, issuing of the infringement notice or when the service is provided.

Fees and Charges

36,770

35,866

Total Fees and Charges

36,770

35,866

(c) Interest and Investment Revenue

Interest received from term deposits is accrued over the term of the investment. Dividends are recognised upon receipt. Interest is charged on outstanding rates at a rate of 10% per annum, calculated and charged half yearly. No interest is charged on other debtors.

Interest Received from Investments

4,026

4,221

Interest from Overdue Rates and Utility Charges

520

440

Total Interest and Investment Revenue

4,546

4,661

(d) Sales Revenue

The sale of goods is recognised when the customer has taken delivery of the goods. Revenue from services is recognised when the service is rendered. Revenue from contracts and recoverable works generally comprises a recoupment of material costs together with an hourly charge for use of equipment and employees. This revenue and the associated costs are recognised by reference to the stage of completion of the contract activity at the reporting date. Where consideration is received for the service in advance it is included in other liabilities and is recognised as revenue in the period when the service is performed. There are no contracts in progress at the year end. The contract work carried out is not subject to retentions.

Contract and Recoverable Works

10,077

10,589

Total Sales Revenue

10,077

10,589





Page 11

Note 4. Grants, Subsidies, Contributions and Donations

Grants, subsidies, donations and contributions that are non-reciprocal in nature are recognised as revenue when Council obtains control over them, which is usually upon receipt of funds. 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. Non-cash contributions with a value in excess of the recognition thresholds are recognised as non-current assets. Those below the thresholds are recorded as expenses. Where grants are received that are reciprocal in nature, revenue is recognised as the various performance obligations under the funding agreement are fulfilled. Capital Revenue includes grants and subsidies received which are tied to specific projects for the replacement or upgrade of existing non-current assets and/or investment in new assets. It also includes non-cash contributions which are usually infrastructure assets received from developers.

2019 2018 Notes $'000 $'000

(a) Recurrent

General Purpose Grants

13,605

13,826


2,629

2,138

Commonwealth Government Subsidies and Grants

977

574

Donations

10

-

Contributions

938

620

Total Recurrent Grants, Subsidies, Contributions and Donations

18,159

17,158

(b) Capital


19,150

13,099

Commonwealth Government Subsidies and Grants

7,714

10,734

Contributions

133

1,888


10,834

33,218

Non-Monetary Revenue received is analysed as follows:

Donations from Third Parties at Fair Value

23,274

21,898

Total Capital Grants, Subsidies, Contributions and Donations

61,105

80,837





Page 12

Note 5. Employee Benefits

2019 2018 Notes $'000 $'000

Wages and Salaries 92,587 90,987

Annual, Sick and Long Service Leave Entitlements 25,921 24,743

Superannuation 20 16,756 12,590

Councillor's Remuneration 1,378 1,347

136,642 129,667

Other Employee Related Expenses 1,846 1,777

138,488 131,444

Less: Capitalised Employee Expenses (19,616) (22,222)

Total Employee Benefits

118,872

109,222 Councillor remuneration represents salary, and other allowances paid in respect of carrying out their duties.




Page 13

Note 6. Materials and Services

2019 2018 Notes $'000 $,000

Advertising

777

845

Administration Supplies and Consumables

1,316

1,553 Audit of Annual Financial Statements by the Auditor-General of Queensland*

244

195

Bulk Road and Other Materials

2,962

3,957

Communications and IT

5,353

4,552

Conferences and Seminars

833

1,020

Consultants

6,113

6,488

Contractual Expenses

15,720

10,242

Donations Paid

4,286

4,217

Electricity

13,908

12,458

Equipment Hire

4,460

4,749

Fuel and Chemicals

6,379

5,986

Garbage Collection Services

10,799

9,908

Minor Equipment and Other Materials

1,368

993

Professional Services

6,346

5,502

Repairs and Maintenance

3,323

3,336

Operating Leases - Rentals

1,500

1,542

Other Utilities

6,659

5,568

Other Materials and Services

5,326

4,832

Total Materials and Services

97,672

87,943

* The agreed audit fee for 2018-19 as per client strategy is $207,000

Note 7. Finance Costs

Borrowing costs are expensed as they fall due for payment in line with their agreed loan repayment schedules.

2019 2018 Notes $'000 $'000

Finance Costs - Queensland Treasury Corporation

8,298

8,884

Bank Charges

517

534

Total Finance Costs

8,815

9,418





Page 14

Note 8. Capital Income and Expenses

2019 2018

Notes $'000 $'000

(a) (Profit)/Loss on Disposal of Non-Current Assets

Proceeds from the Disposal of Property, Plant and Equipment

4,994

4,318

Less: Book Value of Property, Plant and Equipment Disposed 11 (4,779)

(4,268)

(Profit)/Loss on Disposal of Non-Current Assets (215)

(50)

(b) Provision for Restoration of Land

Discount Rate Adjustment - Refuse Restoration 16 8,923

(3,846)

Discount Rate Adjustment - Quarry Rehabilitation 16 735

(30)

Increase/(Decrease) in Rehabilitation Provision - Refuse Restoration 16 144

(502)

Increase/(Decrease) in Rehabilitation Provision - Quarry Rehabilitation 16 3,458

134

13,260

(4,244)

(c) Other Capital Expenses

Loss on Write-off of Assets

Land

420

1,111

Buildings

6,232

213

Plant and Equipment

176

85

Road and Bridge Network

10,549

7,514

Water Infrastructure

3,191

386

Wastewater Infrastructure

219

296

Drainage

81

6

Heritage Assets

143

75

Site Improvements

1,655

1

Aerodromes Infrastructure

18

-

22,684

9,687

Total Capital Expenses

35,729

5,393





Page 15

Note 9. Cash, Cash Equivalents and Investments Cash and cash equivalents include 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 cash and which are subject to an insignificant risk of changes in value. Cash at bank is held in normal business accounts at the Commonwealth Bank. Deposits at call are held at the Commonwealth Bank and Queensland Treasury Corporation. Term deposits are held at the Commonwealth Bank, National Australia Bank, Bendigo Bank, Bank of Queensland, Suncorp Bank and Heritage Bank. Cash at bank and on hand at 30 June 2019 includes $4,832,442 received from the State Government to mitigate the direct impacts on households of the State Waste Levy, which comes into effect from 1 July 2019. This money has been set aside to help fund the Council2019-20 Levy expense. In accordance with the Local Government Act 2009 and Local Government Regulation 2012, a separate trust bank account and separate accounting records are maintained for funds held on behalf of outside parties. Funds held in the trust account include those funds from the sale of land for arrears in rates, deposits for the contracted sale of land, security deposits lodged to guarantee performance and unclaimed monies (e.g. wages). 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.

2019 2018 Notes $'000 $'000

Cash and Cash Equivalents

Cash at Bank and on Hand

1,064

490

Deposits on Call

90,240

43,285

Term Deposits

50,425

95,415

Total Cash, Cash Equivalents and Investments 141,729

139,190

Restricted Cash, Cash Equivalents and Investments

Council's Cash and Cash Equivalents are subject to a number of Internal and External Restrictions that limit amounts available for discretionary or future use. These Internal Restrictions were previously allocated to Reserves. These include:

Internally imposed Expenditure Restrictions at the reporting date:

Funds Set Aside by Council and held in Reserves for Future Projects 120,820

112,023

Externally imposed Expenditure Restrictions at the reporting date:

Waste Levy Refund Received in Advance

4,832

-

Total Unspent Restricted Cash, Cash Equivalents and Investments

125,652

112,023

Trust Funds Held for Outside Parties

Monies collected or held on behalf of other Entities yet to be paid out to or on behalf of those Entities 5,129

5,913

Security Deposits

15,137

18,656

Total Trust Funds Held for Outside Parties

20,265

24,569





Page 16

Note 10. Receivables

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 statement date. Council applied AASB 9 for the first time this year. As a result, Council has calculated the impairment of receivables in a different way for 2019, using a lifetime expected loss allowance. There has not been an adjustment because the impact has been assessed to not be material as a result of introducing the new standard.

2019 2018 Notes $'000 $'000

Current

Rateable Revenue and Utility Charges

12,233

10,200

Other Debtors

12,231

1,652

Accrued Revenues

- Interest on Investments

499

1,274

Fees and Charges

15,377

34,256

Total

40,340

47,382

Less: Provision for Impairment

Adjustment to Opening Balance upon Application of AASB 9

-

-

Other Debtors

(109)

(145)

Total Provision for Impairment - Receivables

(109)

(145)

Total Current Receivables

40,231

47,237 The fair value of receivables is assumed to approximate the value of the original transaction, less any allowance for impairment.





Page 17

Note 11. Property, Plant and Equipment

(a) Recognition

Plant and equipment with a total value of less than $5,000, 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. Replacement of a major component of an asset, in order to maintain its service potential, is treated as the acquisition of a new asset. However, routine operating maintenance, repair costs and minor renewals to maintain the operational capacity and useful life of the non-current asset is expensed as incurred. Expenditure incurred in accordance with Natural Disaster Relief and Recovery Arrangements on road assets is analysed to determine whether the expenditure is capital in nature. The analysis of the expenditure requires Council engineers to review the nature and extent of expenditure on a given asset. For example, expenditure that patches a road is generally maintenance in nature, whereas a kerb to kerb rebuild is treated as capital. Material expenditure that extends the useful life or renews the service potential of the asset is capitalised. Land under Roads Land under the roads and reserve land which falls under the Land Act 1994 or the Land Title Act 1994 is controlled by the Queensland Government pursuant to the relevant legislation. This land is not recognised in these financial statements.

(b) Measurement Property, plant and equipment 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. Direct labour and materials and an appropriate proportion of overheads incurred in the acquisition or construction of assets are also included in their cost. Subsequently, each class of property, plant and equipment is stated at cost or fair value less, where applicable, any accumulated depreciation and accumulated impairment loss. Property, plant and equipment received in the form of 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.

(c) Depreciation 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, at which time they are reclassified from work in progress to the appropriate property, plant and equipment class. Land and Heritage Assets are not depreciated as they have unlimited useful lives. 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. 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. Major spares purchased specifically for particular assets that are above the asset recognition threshold are capitalised and depreciated on the same basis as the asset to which they relate. The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated useful lives of the improvements to the Council or the unexpired period of the lease, whichever is the shorter. 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 written down current replacement cost are used to estimate the useful lives of these assets at each reporting date.

(d) Impairment Property, plant and equipment is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines as an impairment loss.





Page 18

Note 11. Property, Plant and Equipment (continued)

(e) Valuation Land and Site Improvements, Buildings, and all Infrastructure assets are measured on the revaluation basis, at fair value, in accordance with AASB 116 Property, Plant and Equipment and AASB 13 Fair Value Measurement. Other Plant and Equipment, Heritage Assets and Work in Progress are measured at cost. Non-current physical assets measured at fair value are re-valued, where required, so that the carrying amount of each class of asset does not materially differ from its fair value at the reporting date. This is achieved by engaging independent, professionally qualified valuers to determine the fair value for each class of non-current assets at least once every three years. This process involves the valuer physically sighting a representative sample of Council assets across all asset classes and making their own assessments on the condition of the assets at the date of inspection. In the intervening years, Council uses internal engineers and asset managers to assess the condition and cost assumptions associated with all infrastructure assets, the results of which are considered in combination with an appropriate cost index for the region. Together these are used to form the basis of a management valuation for infrastructure asset classes in each of the intervening years. With respect to the valuation of the land and site improvements, buildings and major plant asset classes in the intervening years, management engages independent, professionally qualified valuers to perform a "desktop" valuation. A desktop valuation involves management providing updated information to the valuer regarding additions, disposals and changes in assumptions such as useful life, residual value and condition rating. The valuer then determines suitable indices which are applied to each of these asset classes. An analysis performed by management has indicated that, on average, the variance between an indexed asset value and the valuation by an independent valuer when performed is not significant and the indices used by Council are sound. Further details in relation to valuers, the methods of valuation and the key assumptions used are disclosed in Note 12. 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. On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life. Separately identified components of assets are measured on the same basis as the assets to which they relate.


F

inan

cial

Sta

tem

ents

201

9 To

owoo

mba

Reg

iona

l Cou

ncil

Not

es to

the

Fina

ncia

l Sta

tem

ents

F

or th

e ye

ar e

nded

30

June

201

9

Page

19

N

ote

11. P

rope

rty, P

lant

and

Equ

ipm

ent (

cont

inue

d)

30 J

une

2019

La

nd

Site

Impr

ovem

ents

Bu

ildin

gs

Plan

t and

Equ

ipm

ent

Roa

d an

d Br

idge

N

etw

ork

Wat

er In

frast

ruct

ure

Was

tew

ater

In

frast

ruct

ure

Dra

inag

e Ae

rodr

ome

Infra

stru

ctur

e H

erita

ge A

sset

s C

apita

l Wor

k in

Pr

ogre

ss

Tota

l

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

Mea

sure

men

t Bas

is

Not

e Fa

ir Va

lue

Fair

Valu

e Fa

ir Va

lue

Cos

t Fa

ir Va

lue

Fair

Valu

e Fa

ir Va

lue

Fair

Valu

e Fa

ir Va

lue

Fair

Valu

e C

ost

Ope

ning

Gro

ss B

alan

ce -

at C

ost

-

-

-

1

28,7

36

-

-

-

-

-

-

178

,510

3

07,2

46

Ope

ning

Gro

ss B

alan

ce -

at F

air V

alue

264

,747

1

91,8

89

358

,742

-

2

,441

,504

1,

433,

103

6

64,0

40

383

,754

2

0,46

8

15,

994

-

5,7

74,2

41

Ope

ning

Gro

ss B

alan

ce

2

64,7

47

191

,889

3

58,7

42

128,

736

2

,441

,504

1

,433

,103

66

4,04

0

383,

754

2

0,46

8

15,

994

1

78,5

10

6,0

81,4

87

Addi

tions

-

-

-

-

-

-

-

-

-

-

153

,149

1

53,1

49

Con

tribu

ted

Asse

ts

1

,770

-

-

-

7

,330

3,

269

4

,681

6,

223

-

-

-

23,

273

Dis

posa

ls

8 (9

08)

(2,7

15)

(9,4

45)

(12,

061)

(1

7,38

7)

(8,7

16)

(902

) (8

4)

(25)

(1

43)

- (5

2,38

6)

Rev

alua

tion

Incr

emen

ts/(D

ecre

men

ts) t

o Eq

uity

(AR

R)

17

-

8,6

13

9,0

67

-

32,

668

(1

15,4

20)

34,

420

1

4,81

4

310

6

70

-

(14,

858)

Wor

k In

Pro

gres

s Tr

ansf

ers

6

05

35,

914

2

7,75

1

15,

421

7

2,82

4

18,

706

6

,367

1

9,44

3

38

4

22

(199

,323

) (1

,832

)

Inte

rnal

Tra

nsfe

rs b

etw

een

Asse

t Cla

sses

-

2

,727

1

19

758

(2

,073

) (9

0)

-

1,5

27

-

(2,7

34)

- 2

34

Expe

nsed

Cap

ital W

orks

- Pr

ior F

inan

cial

Yea

rs

-

-

-

-

-

-

-

-

-

-

(1

,799

) (1

,799

)

Tota

l Gro

ss V

alue

of P

rope

rty, P

lant

and

Equ

ipm

ent -

at C

ost

-

-

-

132

,854

-

-

-

-

-

-

130

,537

2

63,3

91

Tota

l Gro

ss V

alue

of P

rope

rty, P

lant

and

Equ

ipm

ent -

at F

air V

alue

266

,214

2

36,4

28

386

,234

-

2

,534

,866

1

,330

,852

7

08,6

06

425

,677

2

0,79

1

14,2

09

- 5

,923

,877

Tota

l Gro

ss V

alue

of P

rope

rty,

Plan

t and

Equ

ipm

ent

266

,214

2

36,4

28

386

,234

1

32,8

54

2,5

34,8

66

1,3

30,8

52

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Page 21

Note 12. Fair Value Measurements Council measures and recognises the following assets at fair value on a recurring basis:

Equity Investments Land Buildings Road and Bridge Network Water and Wastewater Infrastructure Drainage Site Improvements Aerodrome Infrastructure

The fair value of borrowings disclosed in Note 15 is provided by the Queensland Treasury Corporation and represents the contractual undiscounted cash flows at balance date (Level 2). The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature (Level 2). In accordance with AASB 13 fair value measurements are categorised on the following basis:

Fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) Fair value based on inputs that are directly or indirectly observable, such as prices for similar assets, for assets or liabilities (Level

2) Fair value based on unobservable inputs for assets and liabilities (Level 3)

There were no transfers between levels 1 and 2 during the year, nor between levels 2 and 3.

out of the fair value hierarchy levels as at the end of the reporting period. Valuation Techniques used to Derive Fair Values Where Council is unable to derive fair valuations using quoted market prices of identical assets (i.e. Level 1 inputs), Council instead utilises a spread of both observable inputs (Level 2 inputs) and unobservable inputs (Level 3 inputs). When applying Level 2 inputs, the fair value is derived by reference to Level 2 market based evidence including observable historical sales data for assets of a similar nature and specification within the Toowoomba Regional Council and surrounding areas. The most significant input into this valuation approach is price per square metre. When applying Level 3 inputs, the fair value is determined Replacement Cost of the modern equivalent (or cost of reproduction where relevant) and then adjusting for the level of consumed future economic benefit and impairment. Equity Investment South Burnett Community Enterprises Limited (formerly known as Yarraman Financial Services) - fair value was derived by reference to Level 2 market based evidence. The share price as at 30 June 2019 published by the National Stock Exchange of Australia was used. These shares are not actively traded. Land

8. Fair value was derived by reference to Level 2 market based evidence. A review of market movements since the last valuation was undertaken by the same valuers and it was determined that no indexation was required as at 30 June 2019.

year. Buildings A comprehensive valuation of Buildings fair values was determined by independent, external registered valuers as at 30 June 2017. Fair value was derived by reference to both Level 2 and Level 3 inputs where relevant. Level 2 inputs were used to determine the 2016/17 fair value of a range of properties including residential properties using the market approach or direct comparison approach. Due to their saleable value, residential properties fair value have been derived from sales prices of comparable properties after adjusting for differences in key attributes such as property size. The most significant input into this valuation approach is price per square metre.




Notes to the Financial Statements For the year ended 30 June 2019 Note 12. Fair Value Measurements (continued)

Page 22

Level 3 inputs were used to determine the 2016/17 replacement cost of specialised buildings. While rates based on square metre were considered for these properties, other factors including residual value, useful life, pattern of consumption and asset condition were utilised by professional valuers to determine fair value under the cost approach. Replacement cost is determined by actual construction or purchase

nst other valuations, land and devel The following table shows the breakdown between Level 2 and Level 3 for Buildings as at 30 June 2019.

Buildings $'000

Level 2 - Residential 1,767

Level 3 Specialised 246,216

Total 247,983 Council applied an indexation rate of 3.0% to the 30 June 2017 determined fair value to ascertain fair value as at 30 June 2018 and a further 2.5% as at 30 June 2019. The valuers report for the 30 June 2019 indexation advised that the building assets were assessed by analysing

tralian Bureau of Statistics 2019. The indexation assessment was based on inputs from the producer price data, construction indices and recent construction cost guides and was cross-referenced with comparable local government areas that reflect similar characteristics to Toowoomba Regional Council. A comprehensive valuation of Council's Building assets is scheduled for the 2019/20 financial year. Road and Bridge Network

as at 31 March 2018 using Level 3 inputs under the cost approach. The Cost Approach requires a number of inputs in order to determine Fair Value. There are also various techniques recommended (such as componentisation) that provide a more accurate assessment. Each of these inputs are discussed briefly below. The first step in estimating a modern equivalent asset (MEA) is to determine the price that a market participant would have access to in order to create an alternative that could provide the same utility. The replacement cost is required to reflect all incidental costs that would be incurred by a market participant (such as professional fees and preliminaries). It is sometimes the case that an asset may include features that are redundant, or no longer provide economic benefit, therefore a hypothetical buyer would not pay for these features deemed obsolete. Likewise, the modern replacement asset could include features not included in the subject asset (termed betterment). These features would therefore need to be removed to come to the net MEA. This shows how a prudent buyer would seek to establish a price that replaced the service potential offered by the asset at the least cost (cost minimisation approach). A reproduction cost is the estimated cost to construct an exact replica of the asset as much as possible to the same specifications and using

lculated using a trending factor and ignores functional and economic obsolescence. In determining the most appropriate replacement cost of an asset, the nature of the asset, the nature of available comparative cost data and the purpose of the valuation will be taken into consideration along with the application of Greenfield unit rates and project cost assumptions. In order to ascertain appropriate rate inputs for tangible and non-tangible assets, the valuer will utilise observable and unobservable sources such as construction guide and handbook data, actual construction cost information for similar asset types, discussions with local and active construction companies and suppliers, as well as an internal database of construction cost data. The Greenfields approach to calculate unit rate inputs, models how Council (or hypothetical market participant) would actually replace/upgrade or build individual, groups or networks of assets in a Greenfield setting. We call this model the Incremental Greenfields Approach, because in the case of networks, we do not assume the whole network is replaced at once (full Greenfields) but rather analyse historical projects to estimate the likely project size and apply unit rate assumptions based on these quantities. This method is important because in a supply constrained remote market, prices can fluctuate widely based on demand. The basic Greenfields approach differs from a Brownfields approach in the unit rates through rework/repairs, low quantity construction activities and traffic management being excluded. The useful life (UL) for asset components under the cost approach was varied based on the asset type (i.e. sealed road or kerbing), and component type (i.e. concrete, steel and/or asphalt).





Page 23

laboration with Council representatives as well as observing the pattern of service potential exhibited for equivalent assets within the geographical area (climate, usage, public expectations etc.). Inputs were reviewed by Council for appropriateness, some lives were altered where instructed by Council officers. In order to determine the remaining service potential (remaining life input) of a comprehensively valued asset, the valuer will undertake a condition assessment process taking into account physical deterioration, functional obsolescence, and economic obsolescence. For the comprehensive valuation approach, Council have collated inspection report data, visual condition scoring and photographic evidence to arrive at a condition rating. The prospect of applying either an indexation percentage or a desktop valuation was considered prior to the end of the 2018/19 financial year.

to 30 June 2019. To ensure consistency with the comprehensive valuation undertaken as at 31 March 2018 using the Greenfields approach to unit rates, professional valuers were engaged to perform a desktop valuation on these projects as at 30 June 2019. For desktop assessments, movements in construction markets are calculated through the analysis of a number of sources including; discussions with cost estimators within the industry or in-house Council representatives that manage procurement and project constructions; analysis of industry or sector indices (such as produce price, local government, construction, wage, engineering design and management indices) as well as price guides and quotes from market participants; and analysis of historical and current construction costs for new assets (where available). Indexation rates, as supplied and justified by the same professional valuers who provided the desktop valuation, were applied to all other assets within the Road and Bridge Network asset Class. For transport type infrastructure assets, an indexation rate is assigned to each asset

ectrical. The civil structures index is a combination of the engineering construction index and the road and bridge index and is 3.03% for the 2018/19 financial year. The mechanical index is a combination of the producer price index mix and currency index and is 2.67% for the 2018/19 financial year. The electrical index is based on the producer price index mix and is 1.87% for the 2018/19 financial year. A comprehensive valuation of Council's Road and Bridge Network assets is scheduled for the 2020/21 financial year. Water and Wastewater Infrastructure The fair value of Council's Water and Wastewater active and passive assets was determined by independent, external registered valuers as at 31 December 2018 using Level 3 inputs under the cost approach. Replacement cost (including indices) where cost approach was used, utilised a range of sources including; actual construction or purchase prices from recent projects paid by Council which included contacting suppliers for any recent price movements and for larger complex projects involved disaggregating the overall cost into greater detail; accessing the valuers database where records of actual cost from recent

imilar (eg

The valuers identified that allowances were made to adjust for condition and comparability as per AASB 13. The physical inspection of the assets during a comprehensive valuation is a critical aspect of the process involving the validation of key attributes such as material type and dimensions. Assets valued using the cost approach were physically inspected where a building structure was present. Assets not inspected (such as underground structures, pipes and pits) were unable to be inspected due to their nature and the cost involved in undertaking extensive engineering assessments, therefore reliance was placed on age, condition assessment and attribute

The valuation applied as at 31 December 2018 remained unchanged due to no material movement in current replacement costs to 30 June 2019 as advised by professional valuers. A comprehensive valuation of Council's Water and Wastewater asset class is scheduled for the 2021/22 financial year. Drainage A comprehensive valuation of the Drainage assets was undertaken by independent external registered valuers using Level 3 inputs under the cost approach, effective 30 June 2017. Council applied an indexation rate of 4.0% to the 30 June 2017 determined fair value to ascertain fair value as at 30 June 2018 and a further 3.8% as at 30 June 201composite civil index combining the Road and Bridge Index, the Engineering Design and Management Index and the Concrete Product Manufacturing Index. The weighting of each index is based on an estimated project costs breakdown of 40%, 30% and 30% respectively.

Due to the specialised nature of Council's drainage assets, valuations have been undertaken on a cost approach, an accepted valuation methodology under AASB 13. While the replacement cost of the assets could be supported by market supplied evidence (Level 2), the other unobservable inputs (such as estimates of useful life, and asset condition) were also utilised (Level 3). A comprehensive valuation of Council's Drainage assets is scheduled for the 2020/21 financial year.





Page 24

Site Improvement Assets A comprehensive valuation of Site Improvement assets was undertaken by independent, external, registered valuers, using Level 3 inputs under the cost approach, effective 30 June 2017. Council applied an indexation rate of 3.0% to the 30 June 2017 determined fair value to ascertain fair value as at 30 June 2018 and a further

ssessed by applying a composite civil index combining the Road and Bridge Index, the Engineering Design and Management Index and the Concrete Product Manufacturing Index. The weighting of each index is based on an estimated project costs breakdown of 40%, 30% and 30% respectively. These indices were then compared to Queensland T Due to the specialised nature of Council's site improvement assets, valuations have been undertaken on a cost approach, an accepted valuation methodology under AASB 13. While the replacement cost of the assets could be supported by market supplied evidence (Level 2), the other unobservable inputs (such as estimates of useful life, and asset condition) were also utilised (Level 3). A comprehensive valuation of Council's Site Improvement assets is scheduled for the 2019/20 financial year. Aerodrome Infrastructure A comprehensive valuation of Aerodrome Infrastructure assets was undertaken by independent, external, registered valuers, using Level 3 inputs under the cost approach, effective 31 March 2018. Due to this asset class consisting of a variety of asset types, Council applied varying indices as recommended by the independent, external, registered valuers to the 31 March 2018 determined fair value to ascertain fair value as at 30 June 2019. The indexation percentages for the construction of Aerodrome Asset classes have been derived from reference to costing guides issued by the Australian Institute of Quantity

internal market research and costings. Assets that are infrastructure in nature were indexed with a percentage ranging from 0.9 3.2% depending on their type (signage, stormwater pits, footpaths etc.), electrical assets were indexed at 1.2%, buildings at 2.0% and civil assets at 2.2%. A comprehensive valuation of Council's Aerodrome Infrastructure assets is scheduled for the 2020/21 financial year. Heritage Assets A comprehensive valuation of Heritage assets was undertaken by independent, external, registered valuers, effective 31 December 2018. Due to the specialised nature of Council's Heritage assets, an audit of the asset class was undertaken to validate the significance and nature of the assets. Following advice from the valuers, it was agreed to value assets which met the criteria of requiring considerable capital works and therefore activating depreciation. These assets were valued using Level 3 inputs under the cost approach. A range of sources were utilised including; actual construction or purchase prices from recent projects paid by Council which included contacting suppliers for any recent price movements and for larger complex projects involved disaggregating the overall cost into greater detail; and accessing the

ocations. After the valuation process of Heritage Assets was complete, these identified assets (valuing $2.734M) were transferred to the Site Improvements asset class for depreciation as at 1 January 2019 and will be included in the comprehensive valuation scheduled for the 2019/20 financial year. The Heritage Assets class will no longer be included in the revaluation schedule.





Page 25

Note 13. Intangible Assets

Intangible assets with a cost or other value exceeding $5,000 are recognised as intangible assets in the financial statements, items with a lesser value being expensed. Costs associated with the development of computer software are capitalised and 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.

2019

2018

Notes $'000 $'000

Intangible Assets represent identifiable non-monetary asset without physical substance.

Intangible Assets are as Follows:

Opening Gross Carrying Value

23,515

19,121

Acquired at Cost

1,832

4,394

Transfers

(233)

-

Disposals

(460)

-

Closing Gross Carrying Value

24,654

23,515

Opening Accumulated Amortisation and Impairment

(9,728)

(8,029)

Amortisation Charges

(2,096)

(1,699)

Transfers

70

-

Disposals

460

-

Closing Accumulated Amortisation and Impairment

(11,294)

(9,728)

Total Intangible Assets - Net Book Value

13,360

13,787

The majority of Council's intangible assets are software assets which have a finite useful life estimated at 10 years. Straight line amortisation, with no residual value, has been used for these assets.

The remaining intangible assets are land easements which have indefinite useful lives. For that reason these assets are not amortised.





Page 26

Note 14. Payables

Creditors are recognised when goods or services are received, at the amount owed. Amounts owing are unsecured and are generally settled on 30 day terms. Liabilities are recognised for employee benefits such as wages and salaries and annual leave in respect of services provided by the employees up to the reporting date. The liability is calculated using the present value of remuneration rates that will be paid when the liability is expected to be settled and includes related on-costs. As Council does not have an unconditional right to defer settlement of annual leave beyond twelve months after the reporting date, annual leave is classified as a current liability.

2019 2018 Notes $'000 $'000

Current

Creditors

32,029

27,880

Annual Leave

11,105

11,100

Total Current Payables

43,134

38,980

The fair value of payables is assumed to approximate the value of the original transaction.





Page 27

Note 15. 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. Borrowing costs are expensed as they fall due for payment in line with their agreed loan repayment schedules. Principal and interest repayments are made quarterly on or around 15 September, 15 December, 15 March and 15 June. All borrowings are in $AUD denominated amounts and interest is expensed as it accrues. No interest has been capitalised during the current or comparative reporting period. Expected final repayment dates vary from 15 March 2021 to 15 March 2036. There have been no defaults or breaches of the loan agreement during the period. 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.

2019 2018 Notes $'000 $'000

Current

Loans - Queensland Treasury Corporation

11,045

10,485

Total Current Borrowings

11,045

10,485

Non-Current


140,995

151,715

Total Non-Current Borrowings

140,995

151,715

Reconciliation of Loan Movements for the Year


Opening Balance at Beginning of Financial Year

162,200

172,844

Principal Repayments

(10,161)

(10,644)

Book Value at End of Financial Year

152,040

162,200

The Queensland Treasury Corporation (QTC) loan market value at the reporting date was $180,336,095.82 (2018: $180,522,117.45). 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, however, all loans are guaranteed by the Queensland Government.





Page 28

Note 16. Provisions

(a) Long Service Leave The provision for long service leave represents the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. The liability is 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. Where employees have met the prerequisite length of service and Council does not have an unconditional right to defer this liability beyond 12 months, long service leave is classified as a current liability. Otherwise it is classified as non-current.

(b) Restoration Provisions

A provision is made for the cost of restoration in respect of refuse dumps and quarries where it is probable that Council wil l 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 are classified as site improvement assets. The provision for restoration is, therefore, included as a site improvement asset. Changes in the provision not arising from the passing of time are added to or deducted from the asset revaluation surplus. If there is no available revaluation surplus, increases in the provision are treated as an expense and recovered out of future decreases (if any). The Council has the following restoration provisions: 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. 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.




Notes to the Financial Statements For the year ended 30 June 2019 Note 16. Provisions (continued)

Page 29

2019 2018 Notes $'000 $'000

Current

Long Service Leave

14,277

13,514

Quarry Rehabilitation

158

40

Superannuation

20 3,543

-

Total Current Provisions

17,978

13,554

Non-Current

Long Service Leave

1,087

2,583


8,616

4,541

Refuse Restoration

110,350

101,283

Total Non-Current Provisions

120,053

108,407

Details of Movements in Provisions


Balance at Beginning of Financial Year

4,581

4,365

Remeasurement Due to Discounting

735

(172)

Additional Provision/(Excess Provision)

3,458

388

Balance at End of Financial Year

8,774

4,581

Refuse Rehabilitation


101,283

105,631

Remeasurement Due to Discounting

8,923

(3,845)

Additional Provision/(Excess Provision)

144

(503)


110,350

101,283

Long Service Leave


16,097

16,735

Long Service Leave Entitlement Arising

2,106

1,698

Long Service Entitlement Paid

(2,838)

(2,336)


15,365

16,097





Page 30

Note 17. Asset Revaluation Reserve

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.

2019 2018 Notes $'000 $'000

Movements in the Asset Revaluation Reserve


1,467,139

1,787,426

Net adjustment to non-current assets at end of period to reflect a change in current fair value:

Land

-

14,023

Site Improvements

6,223

2,813

Buildings

5,697

5,587


16,425

(355,152)


164,343

-


73,128

-

Drainage

10,348

9,943

Aerodrome Infrastructure

225

2,206

Heritage Assets

(1,428)

293

11 274,961

(320,287)

Balance at End of Financial Year 1,742,100

1,467,139

Asset Revaluation Reserve Analysis

The closing balance of the Asset Revaluation Reserve comprises the following asset categories:

Land

67,845

67,845

Site Improvements

9,036

2,813

Buildings

74,210

68,512


742,475

726,050


524,736

360,394


214,481

141,353

Drainage

94,940

84,592

Aerodrome Infrastructure

2,807

2,582

Heritage Assets

11,570

12,998


1,742,100

1,467,139





Page 31

Note 18. Commitments for Expenditure Payments made under operating leases are expensed in 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.

2019 2018 Notes $'000 $'000

(a) Capital Commitments

Capital expenditure committed for at the reporting date but not recognised in the financial statements as liabilities:

Property, Plant and Equipment Buildings

55,191

10,163

Infrastructure

903

10,278 Other

5,436

1,769

Total Commitments

61,530

22,210

These Expenditures are Payable as Follows:

Within the Next Year

60,687

20,018 Later than 1 Year and Not Later than 5 Years

843

2,192

Later than 5 Years

-

- Total Payable

61,530

22,210

(b) Operating Leases (Non Cancellable)

Payments made under operating leases are expensed in 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. Minimum Lease Payments in Relation to Non-Cancellable Operating Leases as Follows:


1,811


1,688

3,066

Later than 5 Years

698

767

4,197

5,347

The Council has entered into operating leases on some buildings with lease terms between 3 and 10 years. The Council has the option, under some of its leases, to lease the assets for additional terms of 3 to 10 years.

During the year, an amount of $1.49 million (2018: $1.54 million) was recognised as an expense in the Statement of Comprehensive Income in respect of operating leases.

(c) Contractual Commitments

Contractual commitments at the end of the financial year but not recognised in the financial statements are as follows:


3,833

15,030 Buildings

2,952

5,711

Waste

2,430

2,045 Water

31,750

28,151

Other

32,619

56,156

73,584

107,093

These Expenditures are Payable as Follows:


40,859


31,993

49,822

Later than 5 Years

732

724 Total Payable

73,584

107,093





Page 32

Note 19. Contingent Liabilities Details and estimates of maximum amounts of contingent liabilities are as follows: 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 2019 the financial statements reported an accumulated surplus and it is not anticipated any liability will arise. Local Government Workcare The Council is a member of the Queensland Local Government worker's compensation self-insurance scheme, Local Government Workcare. Under this scheme the Council has provided an indemnity towards 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. 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 $1,946,689.20. Other Contingent Liabilities

2019 2018 Notes $'000 $'000

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

Various claims are pending against Council. In the opinion of the Council's solicitors

the potential loss on all claims should not exceed:

744

682





Page 33

Note 20. Superannuation Council contributes to the LGIA Super Regional Defined Benefits Fund (the scheme), at the rate of 12% for each permanent employee who is a defined benefit member. This rate is set in accordance with the LGIA Super trust deed and may be varied on the advice of an actuary. The Regional Defined Benefits Fund is a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation and is also governed by the Local Government Act 2009. The scheme is a defined benefit plan, however Council is not able to account for it as a defined benefit plan in accordance with AASB119 because LGIA Super is unable to account for its proportionate share of the defined benefit obligation, plan assets and costs. Any amount by which the scheme is over or under funded may affect future benefits and result in a change to the contribution rate, but has not been recognised as an asset or liability of the Council.

ld that local government be unable to meet them. However the risk of this occurring is extremely low and in accordance with the LGIA Super trust deed changes to council's obligations will only be made on the advice of an actuary. The last completed actuarial assessment of the scheme was undertaken as at 1 July 2018 ate of 1 July 2018, the net assets of the scheme exceeded the vested benefits and the scheme was in a satisfactory financial position as at the valuation date." The Council is not aware of anything that has happened since that time that indicates the assets of the scheme are not sufficient to meet the vested benefits, as at the reporting date. No changes have been made to prescribed employer contributions which remain at 12% of employee assets and there are no known requirements to change the rate of contributions. The next triennial actuarial review is not due until 1 July 2021. The most significant risks that may result in LGIA Super increasing the contribution rate, on the advice of the actuary, are:

Investment risk - The risk that the scheme's investment returns will be lower than assumed and additional contributions are needed to fund the shortfall.

Salary growth risk - The risk that wages or salaries will rise more rapidly than assumed, increasing vested benefits to be funded.

There are currently 62 entities contributing to the scheme and any changes in contribution rates would apply equally to all 62 entities. Toowoomba Regional Council made 5.24% of the total contributions to the plan in the 2018/19 financial year.

2019 2018 Notes $'000 $'000

Superannuation contributions made to the Regional Defined Benefits Fund (RDBF)

886

928 Other superannuation contributions for employees

12,327

11,662

The amount of Superannuation Contributions paid by Council to the Scheme in this period for the benefit of employees was:

5

13,213

12,590

Superannuation unpaid as at 30 June 2019 5, 16 3,543

2020

$'000

Contributions Council expects to make to the RDBF for 2019/20

832





Page 34

Note 21. Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities

2019 2018 Notes $'000 $'000

Net Result from Income Statement

28,457

87,590

Non-Cash Items

Depreciation and Amortisation

11,13 98,460

94,511

Accrued Interest Expense

22 328

351

Prior Year Capital Expenditure Expensed in Current Year

11 1,799

1,625

Non Cash Capital Contributions

4 (23,274)

(21,898)

77,313

74,589

Investing and Development Activities

Net Losses/(Gains) on Disposal of Assets

8 (215)

(50)

Loss on Write-off of Assets

8 22,683

9,687

Capital Grants and Contributions

4 (37,831)

(58,940)

Borrowing Costs

8,488

9,067

(6,875)

(40,236)

Changes in Operating Assets and Liabilities

(Increase)/Decrease in Receivables

7,039

(24,095)

Increase/(Decrease) in Provision for Doubtful Debts

(35)

(5)

(Increase)/Decrease in Inventories

770

(95)

Increase/(Decrease) in Payables and Accruals

4,154

81

Increase/(Decrease) in Employee Leave Entitlements

(732)

(638)

Increase/(Decrease) in Other Liabilities

4,945

132

Increase/(Decrease) in Other Provisions

16,803

(4,132)

32,944

(28,752)

Net Cash provided from/(used in) Operating Activities from the Statement of Cash Flows

131,839

93,191





Page 35

Note 22. Reconciliation of Liabilities Arising from Finance Activities

As at 30 June

2018 Cash flows

Non-Cash Changes

As at 30 June

2019 Notes $'000 $'000 $'000 $'000

Loans

162,200

(10,488)

328

152,040

15 162,200

(10,488)

328

152,040

As at 30 June 2017

Cash flows

Non-Cash Changes

As at 30 June 2018

Notes $'000 $'000 $'000 $'000

Loans 172,844

(10,995)

351

162,200 15 172,844 (10,995) 351 162,200





Page 36

Note 23. Correction of Error/s relating to a Previous Reporting Period

year Financial Statements had been overstated by $1,044,883.48. This was due to charges relating to Council owned properties being recorded in the

There was an additional prior year correction relating to the timing of recognition of Contributed Assets (Donations by Third Parties), resulting in the Financial Statements being understated by $12,409,302.35. The discovery of these errors resulted in Council reviewing the transactions relating to Capital Revenue, Receivables and Property, Plant and Equipment for the year ended 30 June 2018. These errors have been corrected by adjusting the comparative amounts for 2017/18 in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. The adjustments are as follows: Reconciliation of Restated Comparatives as at 30 June 2018 Financial Report Line Item/Balance Affected:

Previous

Restated

2018

Correction

2018

Notes $'000

$'000

$'000

STATEMENT OF COMPREHENSIVE INCOME

Revenue

Capital Revenue

Increase Grants, Subsidies, Contributions and Donations

69,473

11,364

80,837

Total Income

382,713

11,364

394,077

Net Result

76,226

11,364

87,590

Total Comprehensive Income

(244,061)

11,364

(232,697)

STATEMENT OF FINANCIAL POSITION

ASSETS

Current Assets

Receivables

48,282

(1,045)

47,237

Total Current Assets

191,560

(1,045)

190,515

Non-Current Assets

Property, Plant and Equipment

4,193,944

12,409

4,206,354

Total Non-Current Assets

4,207,751

12,409

4,220,161

Total Assets

4,399,311

11,364

4,410,676

Net Community Assets

4,072,352

11,364

4,083,716

COMMUNITY EQUITY

Increase Retained Surplus/(Deficiency)

2,605,213

11,364

2,616,577

Total Community Equity

4,072,352

11,364

4,083,716

STATEMENT OF CHANGES IN EQUITY

OPENING BALANCE

2,528,987

-

2,528,987

Net Result for the Year

76,226

11,364

87,590 Total Comprehensive Income for the year

76,226

11,364

87,590


2,605,213

11,364

2,616,577





Page 37

Note 24. Financial Instruments and Financial Risk Management

(a) Financial Assets and Financial Liabilities

bed in Note 1b. Comparative information has not been restated to reflect the requirements. Council has exposure to the following risks arising from financial instruments:

Credit risk Liquidity risk Market risk

Risk Management Framework Council is responsible for the establishment and oversight of the risk management framework, together with developing and monitoring risk

credit, liq propriate limits and controls and to monitor these risks and adherence against limits. Council aims to manage volatility to minimise potential adverse effects on the financial performance of Council.

Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit and Risk Committee. Council does not enter into derivatives. Credit Risk Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its contractual obligations. These obligations arise

lysis of counterparty ability to meet payment obligations. The carrying amount of financial assets represents the maximum credit exposure. Investments in financial instruments are required to be made with Queensland Treasury Corporation (QTC) or financial institutions in Australia, in line with the requirements for the Statutory Bodies Financial Arrangements Act 1982 investment policy. No collateral is held as security relating to the financial assets held by Council. The carrying amounts of financial assets at the end of the reporting period represent the maximum exposure to credit risk for the Council. Cash and Cash Equivalents Council may be exposed to credit risk through its investments in the QTC Cash Fund. The QTC Cash Fund is an asset management portfolio that invests with a wide range of high credit rated counterparties. Deposits in the QTC Cash Fund are capital guaranteed. Other Financial Assets Other investments are held with financial institutions, which are rated A1+ and long term rating of BBB+ based on Standard anratings, and whilst not capital guaranteed, the likelihood of a credit failure is assessed as remote. Receivables In the case of rate receivables, Council has the power to sell the property to recover any defaulted amounts. In effect, this power protects Council against credit risk in the case of all defaults. In other cases, Council assesses the credit risk before providing goods or services and applies normal business credit protection procedures to minimise the risk. In the case of Infrastructure Charge Receivables, Council registers a charge over the subject land once the receivable is considered overdue (generally over 90 days). This protects Council against credit risk in the case of defaults. Council does not require collateral in respect of receivables. Council does not have trade receivables for which no loss allowance is recognised because of collateral. As at 30 June, the exposure to credit risk for trade receivables by type of receivable was as follows:

2019 2018

Notes

$'000 $'000

Property Charges

12,232

10,200

GST Recoverable

2,705

1,652


12,154

16,790

Other

13,140

18,595

Total

10

40,231

47,237 Refer to Note 10 for further details.





Page 38

Note 24. Financial Instruments and Financial Risk Management (continued) A summary of Council's exposure to credit risk for trade receivables is as follows:

2019 2018

Not Credit Impaired

Credit Impaired

$'000 $'000 $'000

Subject to Impairment

Not Past Due

12,675

-

18,262

Past due 31-60 days

266

-

209

Past due 61-90 days

49

-

29

More than 90 days

259

-

240

Total Gross Carrying Amount

13,249

-

18,740

Loss Allowance

(109)

-

(145)

13,140

-

18,595

Not Subject to Impairment

Property Charges

12,232

-

10,200

GST Recoverable

2,705

-

1,652


12,154

-

16,790

Total Gross Carrying Amount

27,091

-

28,642

40,231

-

47,237

Expected Credit Loss Assessment as at 1 July 2018 and 30 June 2019 Council has power to sell land to cover rates arrears and some Infrastructure Charges debtors, therefore these debts are not expected to

stages of

delinquency to write-off. A summary of Council's exposure to credit risk for trade receivables is as follows:

2019

Average Loss Rate

Gross Carrying Amount

Loss Allowance

Credit Impaired

$'000 $'000

Not Past Due

0.21%

12,675

27

No

Past due 31-60 days

5.42%

266

14

No

Past due 61-90 days

49.50%

49

24

No

More than 90 days

5.77%

259

15

Yes

Total

13,249

80

Loss rates are based on actual credit loss experience over the last four years. Council believes these rates to be an accurate depiction of the write off rates for future years due to the stable economy of the region. At end of period Council determined that there had been no change to Lifetime Expected Credit Loss. The movement in the allowance for impairment in respect of trade receivables during the year was $35,300.61. All debtors that were written





Page 39

Note 24. Financial Instruments and Financial Risk Management (continued) Accounting Policies Receivables Receivables are measured at amortised cost which approximates fair value at reporting date. Receivables are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts is required within 30 days from invoice date. Accounting Policies Grouping When Council has no reasonable expectation of recovering an amount owed by a debtor, and has ceased enforcement activity, the debt is written-off by directly reducing the receivable against the loss allowance. If the amount of debt written off exceeds the loss allowance, the excess is recognised as an impairment loss. Accounting for impairment losses is dependent upon the individual group of receivables subject to impairment. The loss allowance for grouped receivables reflects lifetime expected credit losses and incorporates reasonable and supportable forwardlooking information. Economic changes impacting debtors, and relevant industry data form part of the impairment assessment. Council has identified 4 distinctive groupings of its receivables: Rates and Charges (Property Charges), GST Recoverable, Infrastructure Charges and Other Debtors. Rates and Charges and Infrastructure Charges: these groups of receivables to possess a credit enhancement, Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property to recover outstanding rate and/or infrastrcuture charges debts. This results in immaterial Expected Credit Losses. Tropical Council does not impair Rates Charges or Infrastructure Charges. Impairment will exist only if arrears are deemed to be greater than the proceeds Council would receive from the sale of the respective property. Other Debtors: Council identifies other debtors as receivables which are not rates and charges; GST recoverable; or Infrastructure Charges. Liquidity Risk Liquidity risk is the risk that Council will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

liabilities when they are on.

Exposure to Liquidity Risk Council is exposed to liquidity risk through its normal course of business and through its borrowings with QTC. Council manages its exposure to liquidity risk by maintaining sufficient cash deposits, both short and long term, to cater for unexpected volatility in cash flows. The following table sets out the liquidity risk in relation to financial liabilities held by Council. It represents the remaining contractual cash flows (principal and interest) of financial liabilities at the end of the reporting period, excluding the impact of netting agreements:

0 - 1 Year 1 - 5 Years Over 5 Years

Total Contractual Cash Flows

Carrying Amount

Notes $'000 $'000 $'000 $'000 $'000

2019

Payables 14 43,134

-

-

43,134

43,134

Loans - QTC 15 18,459

69,814

115,575

203,848

152,040

61,593

69,814

115,575

246,982

195,174

2018

Payables 14 38,980

-

-

38,980

38,980

Loans - QTC 15 18,459

71,425

132,423

222,307

162,200

57,439

71,425

132,423

261,287

201,180

The outflows in the above table are not expected to occur significantly earlier or for significantly different amounts than indicated in the table. Market Risk Market ings of financial instruments. Interest Rate Risk Council is exposed to interest rate risk through investments and borrowings with QTC and other financial institutions. Council has access to a mix of variable and fixed rate funding options through QTC so that interest rate risk exposure can be minimised.





Page 40

Note 24. Financial Instruments and Financial Risk Management (continued) Sensitivity Sensitivity to interest rate movements is shown for variable financial assets and liabilities based on the carrying amount at reporting date. Council does not account for any fixed-rate financial assets or financial liabilities at Fair Value through Profit and Loss, therefore a change in interest rates at the reporting date would not affect profit or loss. The following interest rate sensitivity analysis depicts what effect a reasonably possible change in interest rates (assumed to be 1%) would have on the profit and equity based on the carrying values at the end of the reporting date. The calculation assumes the change in interest rates would be held constant over the period. Net Carrying

Amount Effect on Net Result Effect on Equity

1% Increase 1% Decrease 1% Increase 1% Decrease

Notes $'000 $'000 $'000 $'000 $'000

2019

At Call Funds 9 90,240

902 (902)

902 (902)

902 (902)

902 (902)

2018

At Call Funds 9 43,285

433 (433)

433 (433)

433 (433)

433 (433)

QTC Fixed Rate Loan financial instruments with fixed interest rates which are carried at amortised cost are not subject to interest rate sensitivity.

(b) Fair Value The fair value of trade and other receivables and payments is assumed to approximate the value of the original transaction, less any allowance for impairment. The fair value of borrowings with QTC is based on the market value of the debt outstanding. The market value of a debt obligation is the discounted value of future cash flows based on prevailing market rates and represents the amount required to be repaid if this was to occur at balance date. The market value of debt is provided by QTC and is disclosed in Note 15. QTC applies a book rate

funding. The book value represents the carrying value based on amortised cost using the effective interest method.





Page 41

Note 25. National Competition Policy Business Activities to which the Code of Competitive Conduct is Applied Toowoomba Regional Council applies the competitive code of conduct to the following activities: Water and Wastewater Fleet and Plant Services Quarry Operations Waste Management Other Roads Building Certification Cemetery Operations Aerodromes Private Works Aquatics and Indoor Sports Highfields Cultural Centre Laboratory Services 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 CSO value is determined by Council, and represents an activities cost(s) which would not be incurred if the primary objective of the activities was to make a profit. The Council provides funding from general revenue to the business activity to cover the cost of providing non-commercial community services or costs deemed to be CSO's by the Council. The following Activity Statements are for Activities Subject to the Competitive Code of Conduct:

Water and

Wastewater Other Roads

Cemetery Operations

Fleet and Plant

Services

$'000 $'000 $'000 $'000

Revenue for Services Provided to the Council 1,433

35,298

-

34,036 Revenue for Services Provided to External Clients 117,813

3,570

798

928

Community Service Obligations 19,641

-

467

-

138,887

38,868

1,265

34,964

Less: Expenditure (83,753)

(38,271)

(1,169)

(26,631) Surplus/(Deficit) 55,134

597

96

8,333

Building

Certification

Aquatics and Indoor Sports

Laboratory

Services Private Works

$'000 $'000 $'000 $'000

Revenue for Services Provided to the Council 3 41 1,812 - Revenue for Services Provided to External Clients 724 2,376 427 8,699 Community Service Obligations -

3,637

-

-

727

6,054

2,239

8,699

Less: Expenditure (714)

(5,399)

(2,028)

(6,100) Surplus/(Deficit) 13

655

211

2,599

Highfields

Cultural Centre

Waste Management

Aerodromes

$'000 $'000 $'000

Revenue for Services Provided to the Council 438 4,322 - Revenue for Services Provided to External Clients 483

25,872

485

Community Service Obligations 79

2,668

1,220

1,000

32,862

1,705

Less: Expenditure (1,156)

(26,779)

(1,785) Surplus/(Deficit) (156)

6,083

(80)




Notes to the Financial Statements for the year ended 30 June 2019

Page 42

Note 25. National Competition Policy (continued) Actual

Activities CSO Description $'000

Water and Wastewater

To provide pensioner rebates on water and wastewater activities.

1,138

Water and Wastewater

Uneconomical service supply.

18,503

Waste Management

To provide public dumping facilities.

2,668

Highfields Cultural Centre

Provide recreational facilities to as wide as possible cross section of the community.

79

Aquatics and Indoor Sports

Provide recreational facilities to as wide as possible cross section of the community.

3,637

Cemeteries To maintain historical headstone sections and to provide cemetery facilities to rural areas.

467

Aerodromes To provide an economic benefit to the region and to provide airport facilities to rural areas.

1,220 Note 26. Controlled Entities that have not been Consolidated Toowoomba Regional Council has a number of controlled entities that are not consolidated because their size and nature means that they are not material to Council's operations. The financial statements for each of these entities are subject to separate audit certification by the Queensland Auditor-General or his delegate.

A summary of those entities, their net assets and results for the year ended 30 June 2019 follows:

Controlled Entities - Financial Results:

Interest in Ownership

Revenue

Expenses

Profit

Assets

Liabilities

Details % $'000 $'000 $'000 $'000 $'000

2019

Empire Theatres Pty Ltd 1 100

3,962 3,915 47 2,477 1,602 Empire Theatre Projects Pty Ltd 2 100

739 716 23 241 506

Empire Theatres Foundation 3 100

83 140 (57) 809 26 Jondaryan Woolshed Pty Ltd 4 100

1,776 1,766 10 1,424 265

Toowoomba and Surat Basin Enterprise Pty Ltd 5 100

3,136 3,124 12 1,409 696

TSBE Export and Investment Development Ltd 6 100

11 - 11 12 -

Interest in Ownership

Revenue

Expenses

Profit

Assets

Liabilities

Details % $'000 $'000 $'000 $'000 $'000

2018

Empire Theatres Pty Ltd 1 100

4,437

4,363

74

2,040

1,213 Empire Theatre Projects Pty Ltd 2 100

373

485

(112)

94

383

Empire Theatres Foundation (restated) 3 100

137

66

71

856

19 Jondaryan Woolshed Pty Ltd 4 100

1,930

1,812

118

1,541

392

Toowoomba and Surat Basin Enterprise Pty Ltd 5 100

3,128

2,684

444

1,348

647

TSBE Export and Investment Development Ltd 6 100

-

-

-

1

1





Page 43

Note 26. Controlled Entities that have not been Consolidated (continued) 1. Empire Theatres Pty Ltd (ACN 086 482 288) is a Heritage Listed, purpose built performing arts theatre. It stages a wide variety of theatre, music and entertainment performances and is also a venue for hire. 2. Empire Theatre Projects Pty Ltd (ACN 135 705 878) is a wholly owned subsidiary of Empire Theatres Pty Ltd and undertakes projects to provide training and performance opportunities to the local community. 3. Empire Theatres Foundation was established to provide performing arts opportunities to young people in the Toowoomba region, to promote the performing arts for the benefit of the local community and preserve the cultural heritage associated with the Empire Theatre. 4. Jondaryan Woolshed Pty Ltd (ACN 128 419 983) is a historical museum and tourist attraction which also hosts annual events and corporate and private functions. 5. Toowoomba and Surat Basin Enterprise Pty Ltd (ACN 128 419 983) was established in 2011 to focus on growing investment and business activity in the region. 6. TSBE Export and Investment Development Ltd (ACN 608 575 104) was established in 2015 to promote industry in the Toowoomba and Surat Basin regional areas, both domestically and internationally.

Note 27. Transactions with Related Parties (a) Transactions with Controlled Entities

Toowoomba Regional Council has a number of controlled entities that are not consolidated because their size and nature means that they are not material to Council's operations. The group consists of Toowoomba Regional Council and six controlled entities. The controlled entities are not consolidated with Council and details are disclosed in Note 26.

The following transactions occurred with subsidiaries:

Subsidiary

Grants and Subsidies provided by Council

(Note 1)

Goods and Services provided by Council, on

normal terms and conditions (Note 2)

Goods and Services provided to Council, on

normal terms and conditions (Note 3)

2019 2018 2019 2018 2019 2018

$'000 $'000 $'000 $'000 $'000 $'000

Empire Theatre Projects Pty Ltd 33 3 - - 7 4

Empire Theatres Pty Ltd 1,180 1,123 501 502 45 70

Empire Theatres Foundation - - - - - -

Jondaryan Woolshed Pty Ltd 902 920 80 1 26 -

Toowoomba and Surat Basin Enterprise 457 450 - 2 - - TSBE Export and Investment Development Limited - - - - - -

Total 2,572 2,496 581 505 78 74

Note 1 - Operating Grants and Sponsorship paid by Council to the controlled entity (GST exclusive)

Note 2 - Rental of Buildings, Plant and Equipment provided by Council to the controlled entity (GST exclusive)

Note 3 - Goods and Services provided by the controlled entity to Council (GST exclusive)

(b) Transactions with Key Management Personnel (KMP)

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of Council, directly or indirectly. Key management personnel include the Mayor, Councillors, Council's Chief Executive Officer and some Executive and General Managers.





Page 44

Note 27. Transactions with Related Parties (continued)

The compensation paid to key management personnel comprises:

Compensation Paid to Key Management Personnel 2019 2018

$'000 $'000

Short-Term Employee Benefits

2,677 2,817

Post-Employment Benefits

482 505

Long-Term Benefits

43 37

Termination Benefits

- 200

Total

3,202 3,559

(c) Outstanding Balances

The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:

Receivables (owing from Controlled Entity or Related Party to Council) 2019 2018

$'000 $'000

Current (within 30 days)

50 -

Past due 31-60 days

- -

Past due 61-90 days

- -

More than 90 days overdue

- -

Total

50 -

Payables (owing from Council to Controlled Entity or Related Party) 2019 2018

$'000 $'000

Current (within 30 days)

13 6

Past due 31-60 days

- -

Past due 61-90 days

- -

More than 90 days overdue

- -

Total

13 6

All amounts owing from or owing to controlled entities and related parties are within normal terms and conditions.

(d) Transactions with Other Related Parties

Other related parties include the close family members of KMP or their close family members. Close family members include a spouse, child or dependent of a KMP or their spouse.

Details of transactions between Council and other related parties are disclosed below:

Details of Transactions Additional Information

2019 2018

$'000 $'000

Purchase of materials and services from entities controlled by key management personnel Note 1 86 94

Total

86 94

Note 1 - Toowoomba Regional Council purchased materials and services from other related parties. All purchases were at arm's length and on normal terms and conditions in the normal course of Council operations.





Page 45

Note 27. Transactions with Related Parties (continued)

(e) Loans to/from Related Parties

Council does not make loans to or receive loans from related parties.

(f) Transactions with Related Parties that have not been disclosed

Most of the entities and people that are related parties of Council live and operate within the Toowoomba Region. Therefore, on a regular basis ordinary citizen transactions occur between Council and its related parties. Examples include:

alties included in Council's Register of Local Laws and Subordinate Local Laws

is deemed immaterial

Council has not included these types of transactions in its disclosure, where they are made on the same terms and conditions available to the general public.



To the Councillors of Toowoomba Regional Council

Report on the Audit of the Financial Report Opinion

I have audited the financial report of Toowoomba Regional Council.

In my opinion, the financial report:

a) gives a true and fair view of the as at 30 June 2019, and of its financial performance and cash flows for the year then ended

b) complies with the Local Government Act 2009, the Local Government Regulation 2012 and Australian Accounting Standards.

The financial report comprises the statement of financial position as at 30 June 2019, the statement of comprehensive income, statement of changes in equity and statement of cash flows the year then ended, notes to the financial statements including significant accounting policies and other explanatory information, and the certificate given by the Mayor and Acting Chief Executive Officer.

Basis for opinion

I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the responsibilities for the audit of the financial report section of my report.

I am independent of the council in accordance with the ethical requirements of the Code of Ethics for

Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Other information

Other information comprises the information included in Toowoomba Regional Council annual report for the year ended 30 June 2019, but does not include the financial report and

port the the current year financial sustainability statement and long-term financial sustainability statement and the annual report.

My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon. However, as required by the Local Government Regulation 2012, I have expressed a separate opinion on the current year financial sustainability statement.


In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report and my knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this information, I am required to report that fact. I have nothing to report in this regard.

Responsibilities of the council for the financial report

The council is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Local Government Act 2009, the Local Government Regulation 2012 and Australian Accounting Standards, and for such internal control as the council determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

The council is also responsible for assessing the council's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless it is intended to abolish the council or to otherwise cease operations.

eport

My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an

l of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the council's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the council.


Conclude on the appropriateness of the council's use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the council's ability to continue as a going concern. If I conclude that a material uncertainty exists, I

financial report or, if such disclosures are inadequate, to modify my opinion. I base my

However, future events or conditions may cause the council to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report on other legal and regulatory requirements In accordance with s.40 of the Auditor-General Act 2009, for the year ended 30 June 2019:

a) I received all the information and explanations I required.

b) In my opinion, the prescribed requirements in relation to the establishment and keeping of accounts were complied with in all material respects.

Sri Narasimhan

30 September 2019

Queensland Audit Office as delegate of the Auditor-General Brisbane



Page 48

Toowoomba Regional Council Current Year Financial Sustainability Statement For the year ended 30 June 2019

Actual Target 2019 2019

Measures of Financial Sustainability

Council's performance at 30 June 2019 against key financial ratios and targets.

PERFORMANCE INDICATORS

1. Operating Surplus Ratio

Net Result (excluding capital items)

0.94%

0 - 10% Total Operating Revenue (excluding capital items)

An indicator of which the extent to which revenues raised cover operational expenses only or are available for capital funding purposes or other purposes.

2. Asset Sustainability Ratio

Capital Expenditure on the Replacement of Assets (renewals)

62.83%

more than 90% Depreciation Expense

An approximation of the extent to which the infrastructure assets managed are being replaced as these reach the end of their useful lives.

3. Net Financial Liabilities Ratio

Total Liabilities less Current Assets

47.93%

less than 60% Total Operating Revenue (excluding capital items)

An indicator of the extent to which the net financial liabilities can be serviced by its operating revenue.

Note 1 - Basis of Preparation

The current year financial sustainability statement is a special purpose statement prepared in accordance with the requirements of the Local Government Regulation 2012 and the Financial Management (Sustainability) Guideline 2013. The amounts used to calculate the three reported measures are prepared on an accrual basis and are drawn from the Council's audited general purpose financial statements for the year ended 30 June 2019.



To the Councillors of Toowoomba Regional Council

Report on the current year financial sustainability statement

Opinion

I have audited the accompanying current year financial sustainability statement of Toowoomba Regional Council (the council) for the year ended 30 June 2019 comprising the statement, explanatory notes, and the certificate of accuracy given by the Mayor and the Acting Chief Executive Officer.

In accordance with section 212 of the Local Government Regulation 2012, in my opinion, in all material respects, the current year financial sustainability statement of Toowoomba Regional Council for the year ended 30 June 2019 has been accurately calculated.

Basis of opinion

I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the responsibilities for the audit of the current year financial sustainability statement section of my report.

I am independent of the council in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the statement in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of matter basis of accounting

I draw attention to Note 1 which describes the basis of accounting. The current year financial sustainability statement has been prepared in accordance with the Financial Management (Sustainability) Guideline 2013 for the purpose of fulfilling the cresponsibilities under the Local Government Regulation 2012. As a result, the statement may not be suitable for another purpose. My opinion is not modified in respect of this matter.

Other Information

Other information comprises the information included in Toowoomba Regional Council annual report for the year ended 30 June 2019, but does not include the current year financial sustainability statement report report, the other information was the general purpose financial statements, the long-term financial sustainability statement and the annual report.

My opinion on the current year financial sustainability statement does not cover the other information and accordingly I do not express any form of assurance conclusion thereon. However, as required by the Local Government Regulation 2012, I have expressed a separate opinion on the general purpose financial report.


In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report and my knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this information, I am required to report that fact. I have nothing to report in this regard.

Responsibilities of the council for the current year financial sustainability statement

The council is responsible for the preparation and fair presentation of the current year financial sustainability statement in accordance with the Local Government Regulation 2012. The council s responsibility also includes such internal control as the council determines is necessary to enable the preparation and fair presentation of the statement that is accurately calculated and is free from material misstatement, whether due to fraud or error.

udit of the current year financial sustainability statement

My objectives are to obtain reasonable assurance about whether the current year financial sustainability statement as a whole is free from material misstatement, whether due to fraud

my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this statement.

My responsibility does not extend to forming an opinion on the appropriateness or relevance of the reported ratios, nor on the c

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

Identify and assess the risks of material misstatement of the statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the council

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the council.

Evaluate the overall presentation, structure and content of the statement, including the disclosures, and whether the statement represents the underlying transactions and events in a manner that achieves fair presentation.


I communicate with the council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Sri Narasimhan

30 September 2019

Queensland Audit Office as delegate of the Auditor-General Brisbane


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131 872 I [email protected] I www.tr.qld.gov.au/annualreport PO Box 3021 Toowoomba QLD 4350 I Toowoomba Regional Council

Inners are printed on Australian made 100% recycled paper stock. Cover is not Australian made.

Documents

Toowoomba Regional Council Annual Report 2018-19 · 2019. 10. 23. · Contents About this report Our Annual Report summarises Council’s 2018-19 activities, our many achievements,