GRC004 - Gympie Regional Council Annual Report 2011-2012...GRC004 Gympie Regional Council Annual...

Annual Report

2011-2012Gympie Regional Council

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GRC004 Gympie Regional Council Annual Report 2011-2012

Gympie Regional Council Annual Report 2011-2012

Regional Profile ............................................................................................................................................ 2

Message from the Mayor .............................................................................................................................. 3

Our Councillors ............................................................................................................................................. 4

Chief Executive Officer’s Report ................................................................................................................... 5

Our Organisation .......................................................................................................................................... 6

What we do .................................................................................................................................................. 7

Why we do it ................................................................................................................................................ 9

How we report it ......................................................................................................................................... 10

Strategic Planning Framework ..................................................................................................................... 11

Report Card 2011-2012 ................................................................................................................................ 12

Corporate Governance ................................................................................................................................ 15

Engineering Services ................................................................................................................................... 21

Water and Sewerage .................................................................................................................................. 25

Community Services ................................................................................................................................... 27

Planning and Development ......................................................................................................................... 35

Legislative Information ................................................................................................................................ 39

Financial Report .......................................................................................................................................... 45

Community Financial Report ....................................................................................................................... 46

Appendix A ................................................................................................................................................. 53

Appendix B ................................................................................................................................................. 55

Appendix C ................................................................................................................................................. 61

Appendix D ................................................................................................................................................. 79

Appendix E ................................................................................................................................................. 80

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Regional Profile The Gympie Region in South East Queensland includes a combination of rural, urban and coastal areas across 6,900 square kilometres. Gympie is the main population centre but a considerable proportion of the population live in many smaller communities. These include Imbil, Kandanga and Amamoor; Tin Can Bay, Cooloola Cove and Rainbow Beach; Goomeri, Kilkivan and Woolooga; Gunalda, Curra and Miva; Kybong and Traveston. More than 50,000 residents live in the Gympie Region, with an increase in population of 20,000 expected over the next 20 years. Agriculture remains a key industry with a focus on beef production and forestry. The Region has maintained a tourism sector drawn to the unique heritage, scenic and coastal attractions of the area.

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Cr Ron DyneMayor

Message from the Mayor Welcome to the fourth Annual Report for Gympie Regional Council and the last for the 2008-2012 term of the amalgamated Council. This Annual Report will provide a snapshot of Council activities undertaken in the previous year and as such, covers the period 1 July 2011 to 30 June 2012. Last year I commented on the challenges facing Council related to the January flood event of 2011. The impact of this flood and the following event in March 2012 is still being felt across the Region. Vital repairs to roads damaged during these events were and are being undertaken progressively. They will continue to impact on Council’s works program for the next 12 months. The challenge remains to manage these repairs while staying abreast of regular maintenance and improvements, as well as managing projects related to key responsibilities such as waste management, recreational facilities and important economic development initiatives. It is vital that Council establish a firm footing for developing the Region’s long term sustainability, delivering infrastructure and services which reflect the diverse needs of the community and meet the expectations of the residents of any regional centre and its surrounds. This is a strong community supported by individuals and community groups who continually band together to promote the Region, its people and activities and basically take pleasure in the lifestyle we have developed over the years. I never cease to be amazed by the generosity and dedication of the volunteers throughout this Region. It is fair to say that the result of this year’s Council elections for Gympie Regional Council as compared to other regional centres reflected a view from the community that the first Gympie Regional Council had served the community well and there was no need for drastic change. I would like to recognise the great work and commitment that Councillors and staff have shown over the previous year, thank those Councillors who completed their term at election time and welcome new Councillors as we commence the 2012–2016 term of Council. We will continue to strive to achieve our goals of a vibrant community, sustainable economy and a responsibly managed environment all with strong Council leadership. Working together, Council and residents will continue to make this an area that we are all proud to call home. I look forward to working with each and every one of you to keep this, our home, a place we are proud of.

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Our Councillors

For the Period 1 July 2011 to 28 April 2012

From Left to Right: Back: Mayor Ron Dyne, Cr Tony Perrett, Cr Graham Engeman, Cr Ian Petersen, Cr Larry Friske

Front: Cr Rae Gâté, Cr Julie Walker, Cr Donna Neilson, Cr Jan Watt.

For the Period 29 April 2012 to 30 June 2012

From Left to Right: Back: Cr Larry Friske, Cr Ian Petersen, Cr Tony Perrett, Cr Mick Curran.

Front: Cr Wayne Sachs, Cr Rae Gâté, Mayor Ron Dyne, Cr Julie Walker, Cr Mark McDonald.

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Bernard Smith CEO

Chief Executive Officer’s Report Every year provides its challenges and the last 12 months have been no different. The only constant has been change. Council has progressed well with the restoration of flood damaged infrastructure, but progress has been impacted by subsequent flooding earlier this year. It is expected to be another 12 months before infrastructure will be fully restored. Council has made excellent progress in terms of implementing a new planning scheme and will be one of the first Councils in Queensland to complete the process. This will be a great demonstration of Regional Local Government at work with Council setting in place a planning scheme which will have a key role in determining the future shape of the community. Local Government elections were held in 2012 and the result has been interpreted by some as an endorsement of the way the first term of Gympie Regional Council managed the difficult amalgamation process. The bringing together of former Council areas was a complex and difficult task which presented many challenges and required many difficult decisions by the Council. Queensland is entering a new era with the new State Government acknowledging the role of Local Government by restoring previously held powers. It is hoped that this will lead to Local Government being even more relevant to its community. Vigilance will be needed to ensure that any increase in decision making power is not accompanied by cost shifting from other spheres of Government to Local Government. Council will continue to play a key role in the Gympie Region, being a major business in its own right, the custodian of major community assets and the provider of important services. With this role comes the responsibilities of providing a high level of customer service, being accountable, demonstrating the provision of value for money and continuing to provide community advocacy. The Gympie Region has a committed Council, and a skilled and professional workforce, where every single person is making a positive contribution to the future of the Region. While the challenges ahead are many, there are also tremendous opportunities and I am confident in the ability of the Gympie Regional Council to seize these opportunities.

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Michael Grant Director of

Community Services

Yvonne Oliver Director of

Financial Services

Mike Hartley Director of

Planning and Development

Craig Manson Deputy CEO and Director

of Corporate Services

Bob Fredman Director of

Engineering Services

Our Organisation The Chief Executive Officer and Directors make up Council’s executive management team. This team has the shared responsibility for providing the organisation with leadership and direction to achieve the outcomes determined by Council.

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What we do

Administration Governance and policy Information systems Change management Media and public relations Human resources

Complaints and investigations Elected representative support Customer service

Finance

Community Art Gallery and arts development Museums Civic Centre and The Pavilion Community halls Library services Community events Community development Community grants Youth development Caravan parks (public and private) Cemeteries Community leases Pensioner units

Public amenities Heritage conservation Swimming pools Mosquito control Regulated parking operation and control Rural fire brigades Immunisation Health inspections Local disaster coordination Disaster recovery and resilience building Recreation planning Parks use approvals

Environment Environmental planning Trade waste regulation River and foreshore protection Fire hazard management Environmental licenses Parks and gardens management Dogs, cats, birds, poultry control/registration Rainwater tank installation Beach services Landfill operations Litter enforcement

Overgrown allotments Footpath use (street dining) Footpath trees Natural resource management Noxious weeds spraying Waste collection contract services Street cleaning, litter collection and public refuse collection Rainwater tanks Inspections (vector control) EPA (pollution control) Chemical licensing

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Development Material Change of Use applications Reconfiguration of lots Operational works applications Survey plan endorsements Planning scheme building works assessments Planning and Development certificates Advertising sign regulations Planning advice Planning scheme reviews/consolidation Land use policy Building certification and inspections

Building regulations Plumbing approvals and inspections Building/plumbing advice Strategic regional planning Land development Regional development Business and economic development Industry sector development Mary Valley economic development Business confidence Regional promotion and marketing

Infrastructure Fleet and workshops Footpaths and bikeways Bridges and drains Major and local roads Airport maintenance Boat ramps maintenance Depot operations Licensed gates and grids Operation and maintenance of water supply and sewerage systems Quarries operations Saleyards Stock control and stock permits Workshop operations

Subdivision contract work Sign manufacturing unit Foreshores construction and maintenance Road closures Street lighting Street names and numbers On-site sewerage and septic Composting toilets Water quality assurance systems Plant purchase and management GIS – maps and plans Parking design Asset management Water and Sewerage reticulation and treatment

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Why we do it Council Vision A Vision aims to unite the Region with a sense of purpose and a focus on the future. “Gympie is the Region that people are proud to call home.” This is a Region that – is friendly and a great place to live. provides people with access to vibrant towns, rural and coastal lifestyle opportunities. is family orientated. maintains a strong culture and history. values and protects its natural environment.

Council Mission A mission sets out the purpose of our organisation and demonstrates how we will achieve the community Vision. “A progressive Council that enjoys the confidence of its community.” Key focus – We work with our community. We provide strong leadership to our community. We provide certainty for our community. We are accountable to our community.

Council Values Key Values which will govern our behaviours as a Council. Key Values – We are here for the wellbeing of our community. We have mutual respect between Council, our community and between the Councillors and staff. We have a team‐based approach. We are ethical, open and accountable in our decision making. We focus on getting results but we don’t lose sight of our fiscal responsibility.

Lake Alford Park

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How we report it Corporate and Operational Objectives The purpose of this Annual Report is to provide an assessment of Council’s progress against the outcomes, goals and strategies identified in Council’s planning documents.

Five Year Corporate Plan 2009‐2014 The Gympie Regional Council formally adopted its first Corporate Plan on 25 March 2009 covering the period 2009‐2014. The plan identifies four key outcomes for Council.

1. A Vibrant Community Being a family focused community that has a good demographic balance.

2. A Sustainable Economy Continuing to develop a strong and diverse economy that is growing steadily.

3. A Responsibly Managed Environment Sustaining our Region's healthy lifestyle by responsibly managing our environment.

4. Strong Council Leadership Council is working as a team in providing leadership to the Region.

Operational Plan 2011‐2012 Council’s Operational Plan is prepared for each financial year to outline the specific activities to be undertaken to meet the Corporate Plan’s direction. The Operational Plan consists of the six separate programs which detail the works and services to be provided during the financial year.

Program 1 Corporate Governance Program 2 Engineering Services Program 3 Community Services Program 4 Planning and Development Program 5 Water Program 6 Sewerage

The goals of each program area outlined in the Operational Plan have been reviewed and assessed and form the basis of this Annual Report, as per the Strategic Planning Framework on the following page.

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Strategic Planning Framework

A Vibrant Community

A Sustainable Economy

A Responsibly ManagedEnvironment

Strong Council Leadership

Corporate Governance


Community Services


Water and Sewerage


Engineering ServicesWater and Sewerage

Community Services


Organisational andFinancial Reporting

Infrastructure

Economic Development

Engaged Governance

Environment

Social Wellbeing

Corporate Plan 2009-2014

Operational Plan 2011-2012Annual Report 2011-2012

Gympie Region Community Plan 2030

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Report Card 2011-2012 A Vibrant Community Being a family focused community that has a good demographic balance.

Deliverable: ResultNumber of library loans 426,664Number of library memberships 24,867Number of visitors to The Gallery 14,169Number of volunteer hours (Mary Street information booth, Gallery and Library) 9,525Total number of functions held in Council facilities 682Number of youth and community organisations supported by Council 585Number of facility and land agreements with community organisations 149Number of visitors to Mary Street Information Booth 5,600Total number of copies of ‘The Noise’ magazine published 19,000Number of young people participating in school holiday programs 2,200Number of recreation and school holiday activities 36Number of participants involved in Community Recovery and Wellbeing program 5,000Total length of Council controlled footpaths 101.1 km

A Sustainable Economy Continuing to develop a strong and diverse economy that is growing steadily with a focus on planning and managing our infrastructure.

Deliverable: ResultNumber of business development meetings and workshops held 56Number of workshop participants 819Total length of Council maintained roads 2,266Total length of pipes and mains 5,017 kmNumber of Council’s major contracts (over $100,000) 22Investment in capital infrastructure $41 mTotal spent on road maintenance $5 mNumber of building applications approved 866Number of development applications approved 197Number of organisations showcasing at Regional Career Expo 60Number of young people attending Careers Expo 2,000Number of staff employed by Council 479

A Responsibly Managed Environment Sustaining our Region's healthy lifestyle by responsibly managing our environment.

Deliverable: ResultTotal area of reserves controlled by Council 28.2 km²Tonnes of recycled cardboard and paper 1,393Number of environmentally relevant activities 150Number of dogs registered 4,798Number of cats registered 13,007Number of dogs impounded 683Number of cats impounded 542Number of students participating in animal responsibility program 1,800Number of licensed food businesses 308Number of licensed premises storing flammable and combustible liquids 58Total mega litres of water supplied 3,481Total mega litres of sewage treated 2,250

Strong Council Leadership Council is working as a team in providing leadership to the Region.

Deliverable: ResultNumber of unique visits to Council’s website 72,272Number of media releases and press statements issued 300Number of meetings (Ordinary and Standing Committee) held 61

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Performax


Our Goal

To set and achieve the Council’s goals and objectives for the citizens of the Gympie Region by providing direction, support, coordination, sound resource management policy and achieve effective and efficient management of Council’s assets and resources.

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Corporate Governance Regional Economic Development Regional development activities undertaken by Council include the promotion of business and industry growth opportunities through investment attraction as well as information documents including the Gympie Region Economic Brief and the Gympie Region Investment Prospectus. Partnerships which have been developed with organisations including Regional Development Australia, Australian and Queensland Government Departments and business and industry organisations also facilitate the identification of regional development opportunities and assistance available to businesses in our Region. Gympie Region Economic Development Strategy Gympie Regional Council commissioned the preparation of the Gympie Regional Council Economic Development Strategy, Vision and Implementation Plan (The Strategy) in 2010. This document and the subsequent Mary Valley Addendum and Summary Document were adopted by Council in February and March 2011 respectively. As part of the ongoing review of the Strategy, formation of the Gympie Region Economic Development Advisory Group was approved by Council with expressions of interest being called for membership in June 2012.

Mary Valley Economic Development Fund (MVEDF) The Queensland State Government committed $500,000 to Gympie Regional Council to undertake the study and implementation of job creation, new agricultural businesses and possible economic incentives to attract new businesses to support the growth of the Mary Valley and Gympie environs. An overarching Memorandum of Understanding was executed on 29 July 2011. Stage one was a $200,000 funding allocation for an Economic Development Strategy, Vision and Implementation Plan to guide Council’s actions in facilitating economic development that will complement the relevant Wide Bay Burnett Region and the Queensland State Government economic and planning strategies. Stage one is now complete. Stage two is a $300,000 funding allocation over two years for Council to work collaboratively with the Department of Employment, Economic Development and Innovation, for implementation of Mary Valley job creation and business opportunity projects under the Council's Economic Development Strategy, Vision and Implementation Strategy. Applications for projects through the MVEDF were called in November 2011. Eight applications totalling $266,167 in funding were recommended for approval. These projects have the potential to create employment opportunities for an estimated 109 persons and return in excess of $50 million investment into the Region. Industry Sector Development Established industry sectors underpin our regional economy while emerging industries provide the opportunity to explore additional industry diversification prospects. Funding received through the Queensland Government’s Blueprint for the Bush initiative greatly facilitated the development of the agribusiness, value adding and food processing industry sectors in the Gympie Region. This funding, together with funding from Council, enabled a series of targeted industry development workshops to be held and the industry to be represented at major marketing events. The Gympie Gold Regional Produce website and Facebook page were developed, providing free opportunities for regional businesses to promote themselves, their products and their services. As part of this industry development strategy, the Gympie Region was represented at the 2011 Good Food and Wine Show in Brisbane, where the Gympie Region’s range of regional produce and producers was showcased and promoted to over 15,000 attendees. Funding was also received through the Blueprint for the Bush initiative to assist in the development and promotion of the creative and knowledge base industry sector. This project was implemented as a result of the potential identified by business operators in this sector to promote the Gympie Region as a home for innovation and creativity and so

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build opportunities for industry diversification. In 2011 a network of creative and knowledge based businesses was formed under the banner of Creative Unlimited. Manufacturing industry development was facilitated through collaborations with the Australian Government Department of Industry, Innovation, Science, Research and Tertiary Education, the Australian Government’s Local Employment Coordinator program and the State Government. A key feature of this collaboration was the coordination of workshops delivered to businesses in the Region which focussed on continuous improvement, team and staff development and improving manufacturing processes. Industry Opportunities A Major Projects Forum held in November 2011 was attended by 60 Gympie Regional business and industry representatives, Local, State and Federal Government representatives. This Forum highlighted opportunities for businesses to take advantage of major infrastructure projects planned and underway in and around the Gympie Region. These included the Bruce Highway upgrade, mining industry sector employment and business opportunities. Presentations from Regional Development Australia and the Industry Capability Network also highlighted strategies businesses can implement to stay informed about networking, major projects and supply prospects. Industry Skills Development Council was successful in receiving funding of $105,000 from the Queensland Government for the engagement of a Jobs and Skills Development Officer as part of the 2011 Queensland Natural Disasters Jobs and Skills Package, to work with Council to develop industry linkages and to identify and implement skills and training strategies. This project delivered successful outcomes through the approval of three projects totalling approximately $1.9 million in funding for the Gympie Region. Business Development Providing information and assistance about business growth and development opportunities is a significant focus for the Economic Development Unit. Intending and existing business operators are encouraged to contact Council to discuss plans for business establishment or expansion. The Economic Development Unit is often the first point of call for people seeking to establish or expand their business. 52 meetings were held with people seeking to expand or establish businesses in the Region to discuss business development opportunities. Information provided as a result of these discussions is intended to help the business operator make informed decisions and provide direction regarding future steps to take in the development of their ideas. Business Workshops 56 business workshops and meetings were held throughout the Gympie Region during the period with 819 attendees. These events covered topics ranging from core business skills of marketing, financial management and business planning, to export market development, tendering for Government business and digital marketing. Business leaders meetings were also held throughout the Region to seek information from business organisations about Regional issues and opportunities. A very successful Turning Business Waste into Profit forum was held in April 2012. This forum showcased innovative strategies which regional businesses are implementing to recycle, reuse and reduce the waste and by-products of their business operations. Business Confidence Survey Council has collaborated with stakeholders to design and execute three successful Regional Business Confidence Surveys, averaging 250 respondents per survey, to capture business responses about issues and opportunities within the Gympie Regional Council boundaries. Business Confidence is a unique barometer of the health of a Region and helps capture information about business plans for growth and development in the Region. A particular advantage of developing and designing the surveys in consultation with business and industry is that surveys can focus on topical subjects and provide relevant and up to date information.

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Marketing and Public Relations Council’s marketing and public relations activities focus on providing information about Council’s initiatives, community based projects and other happenings which have the potential to impact on the community. A strong focus is also maintained to promote the Gympie Region as a preferred location to establish and grow business and industry and also as a desirable lifestyle destination. Key Activities during 2011–2012 included:

Over 300 media releases, updates and promotional information prepared and distributed to the regional community, business and industry, radio, television and print media.

Preparation and distribution of monthly Regional Roundup article through the Gympie Times. Representation at three regional trade shows. Monthly articles about Council activities contributed to community publications. Council’s weekly message aired on Radio Zinc 96.1. Promotion of the Gympie Region in business, industry and Local Government publications. Promotion of Council’s activities and initiatives in the Queensland Country Life, Local Business Directory,

Gympie Woman magazine and Councillor magazine. Operation of Mary Street information booth with over 5,600 visitors to the booth during the period.

Regional Promotion Promotion of our Region as a business and lifestyle destination has been very successfully achieved through the promotion of Gympie, Goomeri and Kandanga as recreation vehicle friendly destinations and so assist in the marketing of these localities as destinations for travellers to stay and enjoy our Region’s attractions. Preparation of regional economic information and marketing publications assists in helping to monitor the economic health of our Region and also provide independent information for existing and intending business operators. Documents prepared include the Gympie Region Business Confidence Survey, Regional Economic Profile, Investment Prospectus, Business eNews and the establishment of the Gympie Regional Council Business and Industry Facebook page. Community and Corporate Planning The Gympie Region Community Plan 2030 was adopted by Council in August 2011. As the Region's first ever Community Plan, this significant project has provided Council with a shared 20 year vision for the Region. Following the adoption of the Community Plan, Council has undertaken a full review of its five year Corporate Plan and annual Operational Plan. The new look format of these key planning and accountability documents provides a clear line of sight from the long term vision of the Community Plan through to Council's annual Budget. With the establishment of Portfolio Councillor responsibilities for the newly elected Council, work to consider and progress the many actions identified within the Community Plan is underway.

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Elected Representatives In November 2011 the Queensland Electoral Commission (QEC) delivered their final findings on a review of divisional boundaries for Gympie Regional Council, recommending the introduction of eight divisions and a Mayor. These divisions came into effect at the election held 28 April 2012. Newly elected Councillors were assisted through the maze of legislation impacting on their roles as elected representatives working in a contemporary Local Government environment. The new Council is committed to regional development and strategic thinking. Therefore, eight Portfolios were identified and adopted in May 2012 to ensure that each Councillor has a core set of Region wide responsibilities. Council's existing processes for delivering electronic business papers to elected representatives and the technology used 'live' at Council's Ordinary meetings were also reviewed. From the first meeting of the newly elected Council in May 2012, proceedings at all Council meetings have largely been ‘paperless’. The introduction of the latest in iPad technology has allowed easy delivery of Council business papers to elected representatives in a cost effective electronic format. Councillors now receive all relevant meeting documents on their iPads and directly interact with this technology during Council meetings. Information Management Council continues to evaluate its information technology (IT) disaster management processes in light of recent natural disasters. Significant work in establishing a fully mirrored data storage and server facility remote from Council's main administration centre has been finalised. This remote IT disaster recovery facility utilises the latest in server virtualisation software/hardware further strengthening Council's capacity to minimise system down time in the face of a significant natural disaster. Council's IT networks were expanded to include a new major facility for Planning and Development staff located at the Channon Street premises. Key software upgrades continued to occur across the period including migration to the latest versions of the InfoXpert Records Management product, and the Civica Authority suite of Local Government application software. A significant task of assessing and relocating Council's considerable volume of hard copy records to a centralised, long term records archival and storage area has commenced. When complete, this dedicated records storage area will allow for improved ease of access for staff to essential records information together with enhanced security for public records in accordance with current legislative requirements and expectations. A full revision of the IT systems in place at the Town Hall boardroom, incorporating use of the latest in large format digital TV technology, has further enhanced the public's capacity to view meeting proceedings from the public gallery when attending Council meetings.

Property Council has implemented its Standard Freehold and Trustee Lease documents system. This allows Council to provide all community groups with a consistent and uniform lease. As a result of the standardisation, an improved timeframe and reduction in registration costs have been achieved. Council manages almost 150 leases/agreements with community groups.

Risk Management It continues to be Council's policy to minimise risk while maximising opportunity. As per the Local Government Act 2009 reporting requirements in this area, Council has a published Risk Management Plan and a Strategic Risk Register. Council has identified significant strategic risks and assigned roles and responsibilities for the tasks associated with risk management. Lower level operational risk will continue to be managed within operational teams and management. Progress on risk management and emerging significant risks are reported to the Audit and Risk Management Committee.

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Governance Training and awareness sessions associated with legislative, governance and complaints management related issues were undertaken across the period. Over 90 front counter, administrative and professional staff participated in the training. Right to Information (RTI) Under Queensland’s Right to Information Act 2009 (RTI Act) members of the community are able to apply for access to documents held by Council (subject to certain statutory exemptions). The Information Privacy Act 2009 (IP Act) further allows members of the community to apply to have their personal information details amended, where it is believed such information is incomplete, out-of-date, inaccurate or misleading. Gympie Regional Council has a nominated Officer ensuring applications are processed in a timely manner and in accordance with legislative requirements. Council’s Right to Information and Information Privacy Unit received a total of seven RTI applications during 2011-2012 Financial year. In total, 480 document pages were considered, with 404 document pages being released in full or in part. Details of documents released to applicants under the RTI Act since 1 July, 2009 will be progressively published online via Council’s Disclosure Log. The Disclosure Log makes details of information which has been disclosed to an applicant under the RTI Act available to a wider public audience. Furthermore, the Act requires that Council publish a scheme setting out the classes of information for release and the terms by which it will make the information available. Council’s Publication Scheme has been developed in accordance with the requirements of ss 21 and 78 of the RTI Act and is available on Council’s website. Human Resources Council has a workforce of 479 full time, part time and casual employees. A new Certified Agreement was successfully negotiated and began operating in June 2012. Council will continue to consult with staff and unions to monitor the ongoing implementation of the Agreement. Work Health and Safety Council continues to monitor Work Health and Safety to ensure that high standards are being met. Gympie Regional Council manages Work Health and Safety risks in accordance with the safety management system SAFEPLAN. Staff training Council remains committed to a highly trained and skilled workforce with training needs assessed annually. Staff participation in training and skills development remains high thus ensuring Council’s culture of continuous improvement is implemented. Council have eight cadets and 24 registered trainees and apprentices employed as at 30 June 2012. Throughout the year, 34 staff have completed training leading to a formal qualification. An additional 17 are currently working towards completion of formal qualifications. Code of Conduct As required under the Public Sector Ethics Act 1994 (the Act), Council has reviewed its Officer Code of Conduct resulting in the implementation of a new Code based on the principles outlined in the Act. The review process entailed consultation and engagement with staff and unions, liaising with peak bodies and networking and researching with other similar sized Local Governments. To ensure that all staff are aware of their responsibilities and obligations under the revised Code, extensive training and awareness raising was undertaken by a contracted service provider in May 2012.


Our Goal

To provide well-constructed safe efficient infrastructure networks and engineering services that will meet community needs.

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Engineering Services Roads and Reserves In the 2011-2012 financial year, Council spent more than $5 million on road maintenance. $1.2 million alone was spent on bitumen reseals. The remaining funds were spent on major road construction projects including:

Gympie bus stop upgrades. Neusavale Road bridge replacement. Kinbombi Road culvert replacement. One Mile State School parking facility. Mary Valley State College road works. Moy Pocket Road widening - stage five. Rainbow Beach centre block parking. Wilsons Pocket Road bridge replacement. Gympie asphalt road resurfacing. William Street Imbil drainage. Essex Court drainage.

An ongoing reseal programme to improve waterproofing of road pavement and skid resistance was also undertaken in the 2011-2012 financial year as per the Council’s works program. This program included annual line marking to maintain visibility and safety and shoulder grading on sealed roads. Other Major Projects

2012 flood response and recovery. Gympie Woolooga Road upgrade for Department of Transport and Main Roads. The Natural Disaster Relief and Recovery Arrangements road repair program, where expenditure of $16

million was achieved. Maintenance Program Council’s annual works program ensured pavement defect repairs based on inspections and evaluations were addressed. As part of the annual program, bridges around the Region were inspected and maintenance was carried out to ensure load bearing capacity. Other activities aimed at ensuring resident safety included:

Vegetation Control – an ongoing program to maintain clear view corridors for driver visibility was a priority for Council. Drainage – constructed new drains and maintained existing drains to protect road infrastructure and mitigate localised flooding. Signage – A night audit was undertaken to assess reflectability of signs which impact on road safety. An ongoing maintenance program to repair and replace damaged, vandalised or missing signs has been addressing these safety concerns.

Plant Operations Council spent approximately $2.1 million in the 2011-2012 financial year on upgrading road building plant, equipment and related fleet.

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Parks Improvement Projects More than $190,000 was spent on significant upgrades to parks and reserves in the Region in the 2011-2012 financial year. Gunalda Playground and Park Upgrade Council undertook construction of a picnic shelter, provided a barbeque, replaced old playground equipment, constructed a shade structure to a district level standard, planted shade trees, installed picnic table/seat settings and constructed a concrete pedestrian path linking the new shelter to the existing public amenities. Nelson Reserve Community and Events Hardstand With design input from Queensland Health, the construction of a purpose designed hardstand with the provision of lighting, electricity, water and waste services has been undertaken on the site of the original public amenities in Nelson Reserve. The facility will allow the Red Cross Blood Donation Van and the Sunshine Coast Health District Dental Van to service the public successfully. The site will also be able to be used during large community events by event management, first aid providers etc. Nelson Reserve Drainage and Lighting Improvements Further improvements at Nelson Reserve include:

storm water drainage installed from behind the public amenities to existing pipe work. replacement of a low section of pedestrian path that was often inundated during rain events with a wider

section constructed to required access standards. replacement of old and poorly functioning lighting equipment with improved layout and capabilities to

provide better lighting for large and varied community events utilising the entire event area or only sections of it.

replacement of lighting poles beyond economic repair and not of required relevant Australian standards. Nelson Reserve Shelter and Seating This project enabled the provision of a medium sized shelter, furniture and associated lighting in Nelson Reserve. The positioning of the shelter will encourage use by the public attending community events, awaiting pick-up by family or friends and general park use. Goomeri Town Centre Shelter and Landscaping Improvements Works were undertaken in conjunction with the construction of the new public amenities. A number of parks operational works were also completed at the same time to improve outcomes and to address outstanding issues. Works included:

removal of large woody weed trees and replacement with suitable trees to provide shade and improved aesthetics.

irrigation upgrades. new pedestrian paths and steps that now comply with current Australian access Standards. new shelter and furniture, including an accessible drinking fountain. improved landscaping to highlight the town centre and to provide a better presentation of the town to

visitors and residents alike.

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Chatsworth Park A major upgrade of parking and park facilities catering towards the travelling public was completed over the summer months by Council. Improvements included:

constructed/sealed parking bays and turn around area. widening of the central road with additional parking areas sealed. installation of traffic control barriers to prevent vehicles from damaging grassed areas. installation of furniture in central locations. drainage improvements. planting of shade trees.

Six Mile AFL Grounds Improvements With assistance from a Federal training programme initiative, Council undertook major improvements to the surrounds of the AFL oval, addressing drainage, vehicle access, storm water erosion and safety issues. The outcomes have dramatically improved the ability to maintain the surrounds, reduced the possibility of unauthorised vehicles damaging the playing surface and surrounds, improved the spectator seating area and safety, the condition of the internal access roads as well as access during flood events. Imbil Memorial Park Council, in partnership with the Imbil Chamber of Commerce, has completed the following projects in the village: completion of new pedestrian paths and seating area. installation of park furniture. landscape planting. installation of electricity and lighting to shelters.

Memorial Park

Water and Sewerage

Our Goal

Water- To meet the community needs for potable water by the efficient purchase, treatment, storage and distribution of water to consumers.

Sewerage- To protect public health, safety and the environment by the provision of an efficient system for safe collection, transportation, treatment and disposal of sewage waste.

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Water and Sewerage Quality Assurance Council values quality service to customers and aims for high standards, prompt and effective service and has a commitment to continuous improvement. The process of water and sewerage treatment is quality assured under a range of legislative and reporting requirements set by the Queensland State Government. Water Sampling of all Council operated water supplies occurs on a monthly basis and is monitored for compliance with relevant Australian Drinking Water Guidelines. In the 2011-2012 financial year work commenced on increasing the capacity of the Jones Hill Water Treatment Plant. Since January 2011, fluoride dosing has been legislated by the Queensland Government for Gympie and Tin Can Bay schemes. Council regularly monitors fluoride dosing in real time from sensors located at the treatment plants to ensure safe dosing levels. To assist Council in collecting quality data, smart metering of domestic services has been ongoing. This allows Council to collect data remotely and measure more accurate water usage trends that help identify leaks and wastage. Sewerage Council is in the process of a comprehensive sewer main infrastructure assessment program. This program involves CCTV inspection of sewers and smoke testing to detect illegal connections. This program is part of Council’s ongoing Asset Management Program. Projects Construction of the new Gympie Sewage Treatment Plant was substantially completed during the period. This plant provides for a much higher standard of treatment and greater volumes than the old plant. Reticulation extension of the Southside sewer was completed in Johnston Road and Timothy Court precincts. Appendix C contains a detailed report on Water and Sewerage activities for the 2011-2012 financial year.

Jones Hill Water Treatment Plant

Community Services

Our Goal- To enhance and preserve the lifestyle of all the Gympie Region’s residents and visitors by providing services and facilities for recreation, leisure, sport and cultural enrichment and preserving the entire Region’s heritage.- To provide and preserve a safe and attractive natural and built environment by preservation, protection, maintenance and development of the Region’s open spaces and foreshores in accordance with community needs.- To provide opportunities for the Region’s residents and visitors to access information that will enhance quality of life and facilitate lifelong learning.

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Community Services Youth Development Council have supported 585 youth and community organisations to develop suitable, sustainable organisations and initiatives. This support included assisting with funding applications, event management, training and governance. In December 2011, changes were made to the Region’s youth magazine ‘The Noise’ to improve both the print format and increase the capacity to engage with young people. A committee was formed hosting in excess of 14 recreational events per year and promoting local performance artists through provision of performance spaces at events. ‘The Noise’ magazine is now circulated through a partnership with The Gympie Times, and each quarterly edition boasts 6,000 full colour copies. Currently ‘The Noise’ magazine has a team of 40 young people who actively contribute to the development of the magazine, participate in the planning and implementation of a range of community based projects, provide a forum for young people within the Gympie Region to express ideas, promote initiatives and put forward proposals. In May 2012, ‘The Noise’ magazine project was awarded as the number one youth engagement project in Australia by winning the ‘National Award for Local Government’ in the Youth Engagement and Participation category. Four issues and over 19,000 copies of ‘The Noise’ magazine were published and disseminated throughout the area. The magazine provided young people with relevant information which includes issues that affect them both globally and locally. Council provided 36 recreational and school holiday activities across the Region with more than 2,200 young people participating. Young people were engaged in the planning, development and implementation of these activities as a means of engagement. As a valued and valuable part of the community, young people were promoted throughout National Youth Week. A live concert was held at Nelson Reserve in Gympie featuring three local upcoming bands and two high profile bands from across the state. Council also implemented the Gympie Regional Careers Expo that attracted over 2,000 students from eight of the Region’s high schools. The Expo involved over 60 organisations and service providers showcasing a diverse range of career pathways.

Community Capacity Building Council facilitated nine training sessions and seven forums throughout the Gympie Region with 530 people participating. The Gympie Regional Arts Development Fund held two rounds during 2011-2012 with eight projects funded. The Community Resource Lending Library includes a large variety of sport and recreational resources available for loan to community organisations. In 2011-2012, 34 community organisations utilised the library with 240 items resourced. Housing Council administers a total of 32 pensioner units. These units are located in the townships of Goomeri, Kilkivan, Imbil, Kandanga and Tin Can Bay. Furthermore, Council administers the operations of caravan parks located at Imbil, Gympie and Tin Can Bay. During 2011-2012, Council resolved to enter into 30-year leases for the operation and management of the Gympie Caravan Park and Kingfisher Caravan Park at Tin Can Bay. These arrangements will result in significant infrastructure improvements at both facilities over the term of the leases.

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Community Facilities Council maintained four function venues throughout the Region - Gympie Civic Centre, The Pavilion, Kilkivan Hall and Goomeri Hall. All venues are available for hire to members of the community. Functions held at these venues range from small meetings, through to weddings, balls, live theatre and concerts, large expos and shows. Total functions held:

Gympie Civic Centre 245 The Pavilion 268 Kilkivan Hall 117 Goomeri Hall 52

Council has continued to maintain 35 community managed public halls throughout the Region. Two Gympie Regional Halls Forums were established and held as a way to further support and develop this community infrastructure. These Forums are held twice a year with topics being identified by the hall committees and local service providers. The forums are used as a way for the hall committees to engage with Council, raise issues and work collaboratively.

Sport and Recreation The Sport, Recreation and Parks Coordinating Committee have presented a project plan to Council relating to future development on the old Tozer Park depot site. The plan reflects a preferred site for Gympie and District Netball, an aquatic centre and a youth facility. Council staff participated in the development of the Wide Bay Burnett Regional Recreation and Sport Strategy. The strategy seeks to identify the Region’s recreation and sport requirements for the future, including noisy and hard-to-locate sports such as shooting ranges. Beaches Council continues to facilitate contract lifesaving patrols at Rainbow Beach ensuring the provision of patrols during peak swimming periods including school holidays. Swimming Pools Council’s public swimming pools are located in the townships of Gympie, Kandanga, Tin Can Bay, Goomeri and Kilkivan. Public swimming pools under Council’s control are operated and maintained to a standard that is not only safe but also provides for the enjoyment of users of the facilities. This is achieved through ensuring that all pool managers hold current lifesaving, resuscitation and swimming qualifications as well as ensuring all equipment used in the water disinfection process is operational and maintained to a suitable standard. Council continues to sample and monitor water quality at all Council public swimming pools during the swimming season. During 2011-2012, refurbishment works were undertaken at the Gympie Memorial Swimming Pool including the replacement of filter media in the water treatment system and the replacement of cupboards in the centre. At the Goomeri Pool, the outdoor lighting was upgraded as well as the purchase of new pool blankets and a new pool butler (a device used to handle the pool blankets). A new pool butler was also purchased for use at the Kilkivan Swimming Pool.

Museums Council has continued to support the cataloguing of the Kilkivan Museum collection and general support of the museum. Council’s supporting role in the Woodworks Museum has been ongoing. Council has also continued its interest in maintaining Elgin Vale Mill as a static display. These facilities play an important role in attracting visitors to the Region.

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Heritage Advisory Committee The function of this Committee is to advise Council on matters relating to components of the built and natural environment which have cultural heritage significance, including objects of material culture, buildings and structures, streetscapes and natural landscapes with the aim of conserving cultural heritage for the benefit of the present community and future generations. The Committee continued its assessment of development applications pertaining to the heritage and character places of the Region. Gympie Regional Council is among the first Local Governments in Queensland to complete a Local Heritage Register in accordance with the Queensland Heritage Act 1992. In partnership with the State Government, the Committee is embarking on a research project about the history of Bullock Point Jetty at Rainbow Beach. Gympie Region Heritage Trails Project The heritage and history of buildings and other significant sites in the Gympie Region have come to life thanks to funding received through the Queensland Government’s Building Rural Communities Fund to develop an Interactive Heritage Trail covering the entire Gympie Region. The first stage of the project focused on 23 State Heritage listed places and involves the installation of interpretive signage to provide information about the site and its history. An innovative addition to the sign is a Quick Response Code, commonly referred to as a QR Code, which is designed to be read by a smart phone and will link the user of the trail directly to the Gympie Region Heritage Trail website. The website was been designed to provide the trail user with a photo gallery of the place they are visiting and also enable the user, and more broadly the Gympie Regional community, to tell their story and share their

experience about a place on the trail. Accompanying the website will be the traditional hardcopy brochure displaying maps of how to locate heritage places and details on how to utilise the website and QR Codes. The overall aim of the project is to inform the community about the past and help to give people a sense of connectedness to the Region. It will help tour operators and locals to better inform people and visitors of a place and its history, and give the community a sense of ownership over the heritage place encouraging the community to be more active in the conservation and preservation of its heritage.

Conservation Management Plan for Memorial Park, Gympie Memorial Park in Gympie was recognised as a place of cultural significance to Queensland and was included in the State Heritage Register. As a result of the listing, Council is now obligated by the Queensland Heritage Act 1992 to ensure that the heritage significance of Memorial Park is retained and where possible, enhanced. A Conservation Management Plan helps to inform Council on its future planning of the park, taking into consideration the culturally significant aspects of the park and how these elements can best be conserved. Council has already held community meetings with key stakeholders of the park and will now seek to engage a professional heritage architect to help complete the management plan.

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Regional Gallery The Gympie Regional Gallery is a popular community oriented, facility, celebrating its own professional and amateur artists while introducing a range of high quality exhibitions from elsewhere in Australia. In the last twelve months the Gallery has provided a varied and balanced exhibition program of 38 exhibitions which included:

11 community, 12 local and regional artists, eight from out of the Region and eight touring exhibitions. A couple of highlights were:

o a billboard presence on the highway south of Gympie to promote the Gallery. o the inaugural Youth+Art=Connections project, which involved four professional artists mentoring eight

high school students towards an exhibition. o Our first dinner event with an artist as guest speaker. o The first Suitcase Market on the verandah.

Educational and Public programs included the annual Great Art Debate at Gold Rush, two dedicated Family Day activities linked to the Queensland Art Gallery, and a week of activities for Adult Learners Week. The Gallery also linked with the Gympie Regional Council Heritage Committee to celebrate Heritage Week with a day of speakers and displays and were part of the Heritage Dinner in October.

We managed to accommodate 17 school and community groups for Gallery visits, nine lunchtime talks and artist floor talks and eight short artist-in-residence opportunities.

The school holiday workshops saw 612 children enjoy 45 different workshops, and the young artists enjoyed the eight monthly Friends of the Gallery (FOG-lets) programmes. The Gallery ran its own workshops in connection with separate exhibitions.

The Gallery has maintained a solid base of volunteers who contributed 4,984 hours to carry out various activities including the front desk, installing exhibitions, light maintenance, catering, office and educational activities. Two of our installation volunteers received funding to attend the Museums and Galleries Conference in Mackay.

The Friends of the Gallery (FOGs) provided several opportunities for social interaction through events like the Biggest Morning Tea, the Melbourne Cup and other events. They also ran four successful art groups at the Gallery.

The Gallery continued to provide space for up to 12 regular community groups to meet for many different art workshops, as well as providing a venue for other hirers throughout the year.

In total 14,169 people visited the Gallery over the year.

Disaster Management In accordance with the Disaster Management Act 2003, Council’s Disaster Management Plan needs to be tested at least once a year. Major flooding events in January 2011 and February and March 2012 were significant tests for Council’s disaster response. During these events, the Local Disaster Management Group activated the Disaster Coordination Centre to coordinate responses to the community, and successfully managed these events. Council will continue to support the community in their time of need. Council Disaster Management Plans are reviewed on an annual basis to ensure that emergencies are managed well. During this period two new State Emergency Services buildings have been constructed; the buildings are located on the Southside of Gympie and at Tin Can Bay.

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Community Recovery and Wellbeing Program Since October 2011, the Gympie Community Recovery and Wellbeing Program has involved over 5,000 participants across over 70 various projects and community engagement activities. The Community Development and Engagement Initiative Program received Auditor Approval, as being in full compliance with the Funding Agreements. To date the program has seen Gympie recognised as leaders for:

The Resilience Toolkit (adopted by Cassowary Coast Regional Council with Bundaberg, North Burnett and others to follow). The Toolkit has been nominated for the Resilience Australia Awards.

Peace Begins at Home event (adopted by Mildura Regional Council, Case Study Department of Communities). The Women’s Wellness Days have grown in popularity (300 women) and the establishment of the Woolooga

Community Club and Curra Social and Sports Club have been welcome local community additions. Council’s website now provides significant information on Community Recovery and Wellbeing to assist the community in preparing for disasters.

Local Laws Compliance The Compliance unit deals with various issues, the main concerns the Council addresses for the community are animal nuisances, overgrown allotments, regulated parking, footpath use, abandoned vehicles and visual pollution. As part of animal control regulation, Council registered 13,007 cats and 4,798 dogs across the region. During the period 683 dogs and 542 cats were impounded and held at the Gympie Regional Council Pound Facility.

Gympie Get Ready in the park

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Community Health A comprehensive community immunisation service continues to be facilitated by Council working with local health professionals to ensure that residents within the Gympie Region have ready access to vaccinations. Council further continues to assist in the facilitation of the schools immunisation campaign by assisting service providers. Council receives and processes applications for annual renewal of licenses/permits for:

Food Act 2006; Dangerous Goods Safety Management Regulation 2001; Public Health (Infection Control for Personal Appearance Services) Act 2003; Environmental Protection Act 1994; and Local Government Act 2009 and Council’s Local Laws.

As of 30 June 2011, there were 308 licensed food businesses operating in the Gympie Regional Council area and 58 premises were licensed to store flammable and combustible liquids in accordance with the Dangerous Goods Safety Management Regulation 2001.

Animals and Pets Council delivers an education program to the primary schools of the Gympie Region in regards to animal responsibility. Some of the topics addressed are animal identification, leading your dog on public land, how to avoid a dog attack and playing with your dog etc. All primary Schools were visited with approximately 1,800 students attending the presentations given by Council staff.

Hamish Ellis

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Public Conveniences Council is responsible for the cleaning and maintenance of numerous public conveniences throughout the Region. In the last financial year Council constructed new toilet facilities at Rainbow Beach (near the Surf Lifesaving Tower) and at “Digger Perrett Park”, Goomeri.

Cemeteries Council managed cemeteries are maintained at a standard to provide pleasant and acceptable burial and memorial facilities. During 2011-2012 a “Memorial Garden” for the interment of ashes was constructed at the Goomeri Cemetery.

Libraries The Gympie Regional libraries aim to deliver a library service which provides information to promote knowledge, lifelong learning, leisure, and cultural enrichment for all people in the Gympie Region. Furthermore the service also provides ready access to information and associated new technologies, while also supporting historical initiatives and museums. During the past year, Gympie Regional libraries issued 426,664 library items to members across the Region. Membership at 30 June 2012 was 24,867. These borrowed items included fiction and non-fiction resources, large print titles, audio books, community language materials, literary resources, magazines, indigenous materials and downloadable e-books. The Council’s libraries also offer internet access, internet tutorials, wireless connection and computers which house Microsoft based software programs, free of charge. The Young People’s Services area conducts weekly story-time sessions for pre-schoolers, Baby Bounce sessions, regular school holiday activities and workshops. Due to their popularity, the number of these sessions has increased by 10% in the 2011-2012 financial year. Participant numbers also increased, revealing that our Region is not only growing in size, but that the library service is meeting appropriate targets. Highlights over the past twelve months included:

Adult Learners Week, with over 230 people learning new skills at the variety of activities held at the libraries and the Art Gallery.

The Gold Rush Literary Awards and Bendigo Literary Awards Evening, which drew a crowd of 113 creative people and showcased the literary talent of residents within the Gympie Region.

The official opening of the new and expanded Rainbow Beach Library and Community Hall Complex. A Queensland Day celebration at the Gympie Library, attended by over 70 people who were keen to

acknowledge the history of our state. A number of book launches, including that of “Midnight Express”, written by Geoff Barlow and “Gympie and

the Shamblers: an historical account” written by Keith Parker – both of whom are local residents. 3,221 hours of volunteer time donated to the library service by The Friends of the Gympie Regional Libraries.


Our Goal

To provide a planning framework that stimulates and coordinates investments in the Region while respecting the environmental and community values and infrastructure needs and the enhancement of lifestyles of residents.

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Planning and Development Planning Scheme The new planning scheme for the Gympie Region was submitted for a State interest review in April 2012. The document was revised in regard to State requirements and legislative changes, and resubmitted seeking approval to proceed to public notification. Public notification will commence in October 2012, with adoption of the new planning scheme anticipated by late 2012/early 2013. Priority Infrastructure Plans Given the advanced stage of the new planning scheme, Council discontinued the preparation of the three individual Priority Infrastructure Plans and proceeded to prepare a single, consolidated Region-wide document. The new Priority Infrastructure Plan forms a mandatory part of the new planning scheme and will be publicly notified in October 2012 and subsequently adopted by late 2012/early 2013. Development Applications A total of 197 development applications were approved and issued in the period 1 July 2011 to the 30 June 2012, as outlined below.

Type of Application Nature of Application Applications approved

Material Change of Use Residential 50 Commercial 11 Industrial 12 Environmentally relevant 12 Other 7

Reconfiguring a Lot Subdivisions 42 Boundary realignments 18 Access easements 2

Operational Works Works 34 Advertising devices/signs 9

TOTAL 197

Open Space and Recreation Strategy Review 2012 Council is nearing the completion of its consolidated Open Space and Recreation Strategy. The project has been undertaken to provide a regional approach to open space and recreation planning and will help to complement the existing Wide Bay Burnett Regional Sport and Recreational Strategy which forms part of the Wide Bay Burnett Regional Plan. Recently, an additional component of the strategy involved Council undertaking a comprehensive engagement process with the residents of Imbil. The consultation focused on two areas, firstly for residents to comment on the proposed development of a Village Park on the banks of the Yabba Creek, and secondly to seek advice on the strengths and weaknesses of sport and recreation facilities in the Imbil area. The results of the consultation process will be made available in the final Open Space and Recreation Strategy. Imbil Village Park Planning Forming part of the Open Space and Recreation Strategy review is the development of a conceptual plan to create a recreational park on the banks of Yabba Creek. Due to the pending growth of Imbil and coupled with the limitations of Bert Smith Park, an alternative site for a district level park was required. Council has now progressed to a detailed planning phase of the project. Park construction will occur over several stages, dependent on available funding.

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Gympie Region Walk and Cycle Strategy 2012 Council has officially adopted the new Gympie Region Walk and Cycle Strategy 2012. Council developed the strategy in partnership with the Department of Transport and Main Roads (TMR). The benefits of developing the strategy include:

Council and TMR undertaking a co-coordinated approach to the future development of pedestrian and cyclist facilities on the local and state controlled road networks within the Gympie Regional area;

Identification of gaps or shortfalls in the existing pedestrian and cycle network, highlight constraints along potential routes and provide guidance on the most appropriate cycle and pedestrian treatments; and

Provision of a safe and reliable pedestrian and cycle network which will encourage local communities to adopt a more environmentally friendly form of travel while improving the community’s overall health and wellbeing.

Regional Shooting Facility in the Gympie Region Council continues to advocate for the development of a regional standard shooting facility to house a variety of shooting disciplines at one central location. Council has been actively working with the State Government to secure suitable land to develop such a facility. Council has also been working collaboratively with the Corella Range Complex Association Incorporated to help progress the project.

Albert Park and One Mile Ovals Master Planning Council has commenced a master planning exercise for two of its prominent sporting grounds in the Region, Albert Park and One Mile Ovals. The master planning process is intended to improve the synergy between multiple sports, guide the expansion and improvement of existing playing fields, facilitate the upgrade of sporting facilities and its associated infrastructure, and to ensure that peak body sporting association standards are met. In short, Council wishes to maintain Albert Park and One Mile Ovals as the premier sports grounds in the Region. The development of the master plans prepared by Council will be dependent on the availability of external funding.

Environment Strategy Council adopted the Environment Strategy in December 2011. An Environment Strategy Team has been formed and actions from the Environment Strategy have been progressed.

Cooloola Coastal Reserves and Foreshore Management Plan Mapping for the Cooloola Coastal Reserves and Foreshore Management Plan is progressing with the assistance of Council’s geographic information services section. Separate maps for management and maintenance issues are being drafted ready for community comment and feedback.

Property Management Plans Council engaged a consultant to collect data to inform the property management plans for 40 properties with high environmental values in the Gympie Region. Sustainable Gympie Website The Sustainable Gympie website went live in 2011. The website is designed to help residents of the Region take action and live more sustainably at home and in the community. It contains ideas, tips and inspiration about how small, easy changes can have positive impacts on the environment, health and wellbeing, and may also help to save money. A brochure and magnets were also designed and printed for distribution to residents. Environment Levy Local Environment Community Groups of the Gympie Region received $116,700.00 from the Environment Levy to undertake environmental programs and projects.

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Gladstone Street, Gympie

Legislative Information

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Legislative Information Councillors Information Remuneration: In accordance with s 114(1)(a)(b) and (c) of the Local Government Finance Plans and Reporting Regulation 2010 (the Regulation), the tables below outline the payments made to each Councillor.


Councillor Salary Loading Committee Remuneration

Net Superannuation

Reimburse-ments

Gross Total

Dyne 111,825.75 2,503.61 0.00 114,329.36 13,719.52 0.00 128,048.88Perrett 75,770.05 1,753.57 1,672.45 79,196.07 9,503.53 357.29 89,056.89Neilson 66,677.62 1,536.43 1,672.45 69,886.50 8,386.38 109.09 78,381.97Gâté 66,677.62 1,536.43 0.00 68,214.05 8,185.69 0.00 76,399.74Friske 66,677.62 1,536.43 1,672.45 69,886.50 8,386.38 236.17 78,509.05Engeman 66,677.62 1,536.43 0.00 68,214.05 8,185.69 463.97 76,863.71Petersen 66,677.62 1,536.43 3,345.00 71,559.05 8,587.09 28.60 80,174.74Walker 66,677.62 1,536.43 0.00 68,214.05 8,185.69 0.00 76,399.74Watt 66,677.62 1,536.43 0.00 68,214.05 0.00 0.00 68,214.05Total $654,339.14 $15,012.19 $8,362.35 $677,713.68 $73,139.97 $1,195.12 $752,048.77


Councillor Salary Remuneration Superannuation Reimbursements Gross Total

Dyne 15,613.85 15,613.85 1,873.66 44.55 17,532.06Perrett 9,758.75 9,758.75 1,171.05 0.00 10,929.80Curran 8,294.84 8,294.84 995.38 0.00 9,290.22Friske 8,294.84 8,294.84 995.38 0.00 9,290.22R Gâté 8,294.84 8,294.84 995.38 2314.45 11,604.67McDonald 8,294.84 8,294.84 995.38 0.00 9,290.22Petersen 8,294.84 8,294.84 995.38 0.00 9,290.22Sachs 8,294.84 8,294.84 995.38 0.00 9,290.22Walker 8,294.84 8,294.84 995.38 0.00 9,290.22 Total $83,436.48 $83,436.48 $10,012.37 $2,359.00 $95,807.85

Appendix A contains the Council Resolution for the Remuneration Schedule of Councillors, as required by s 113(a) of the Regulation. Appendix B further outlines Council’s Councillor Expenses Reimbursement Policy as per s 114(1)(d) of the Regulation.

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Meeting Attendance Section 114(1)(e) of the Regulation requires Council to provide details of the number of meetings attended by each Councillor during the year. These particulars are contained in the tables below. Identifies the Chair of the respective committee.


Special General

General Planning and Development

Corporate Governance and Finance

Works and Services

Community and

Economic Development

Dyne 1 17 14 8 7 6Perrett 1 16 14 7 8 6Engeman 1 18 14 8 6 7Gâté 1 18 15 8 8 7Petersen 1 17 11 8 7 6Neilson 1 18 14 8 7 7Walker 1 16 14 7 7 6Watt 1 17 13 8 6 6Friske 0 14 12 6 7 6


Statutory Special Ordinary

Dyne 1 1 2Perrett 1 1 2Curran 1 1 2Gâté 1 1 2Petersen 1 1 2Sachs 1 1 2Walker 1 1 1McDonald 1 1 2Friske 1 1 2

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Complaints about Councillors: Pursuant to s 114(1)(f)(g) and (h) of the Regulation, one complaint received regarded the conduct and performance of all Councillors, including the Mayor. Specifically the complaint was about a perceived conflict of interest and possible official misconduct. This was investigated by the Department and the Crime and Misconduct Commission and found not be official misconduct. A recommendation was made that future community engagement activities be appropriately resourced.

(i) Complaints about the conduct or performance of Councillors assessed as frivolous or vexatious under s 177(4) of the Local Government Act 2009 (the Act);

Nil

(ii) Complaints referred to the department’s chief executive under s 177(5)(a) of the Act; 1

(iii) Complaints referred to the mayor under s 177(5)(b) of the Act; Nil

(iv) Complaints referred to the department’s chief executive under s 177(6) of the Act; 1

(v) Complaints assessed by the chief executive officer as being about official misconduct; 1

(vi) Complaints heard by a conduct review panel; 1

(vii) Complaints heard by the tribunal; Nil

(viii) Complaints dealt with by the chief executive officer under s 177(8) of the Act. Nil

Administrative Action Complaints Section 115 of the Regulation requires Council to report Administrative Action Complaints. Gympie Regional Council is committed to providing a level of customer service that does not attract complaints but acknowledges the right of affected persons to provide feedback, both positive and negative, on its services and/or to lodge a complaint about a decision or other action it takes. Council has developed an Administrative Actions Complaint Process in recognition of the need to manage complaints efficiently, effectively, objectively and fairly, as well as to ensure compliance with relevant legislation. An Administrative Action Complaint Process was adopted by Council on 30 June 2011. This process replaced Council’s General Complaints process. The process consists of a procedure document, information for staff on receiving and recording written and verbal complaints, an Administrative Action Complaints Form. Training for over 90 frontline staff was provided during the period. The Administrative Complaints procedure is available to staff on Council’s Intranet and to the public via the Council website. Between 1 July 2011 and 30 June 2102, Council received 19 Administrative Action Complaints. At 30 June 2012, 18 of the complaints submitted had been resolved with only one complaint outstanding.

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Reserves and Controlled Roads In accordance with s 118 of the Regulation, the following is a table of information about reserves and controlled roads.

Type of Reserve Area in Hectares

All Council reserves 2,883.51 ha

Reserves leased 1,214.52 ha

Reserves not leased 1,668.98 ha

Gympie Regional Council has control of:

1,288 kilometres of sealed roads 978 kilometres of unsealed roads 2,266 total kilometres of road maintained.

Annual Strategic Review Section 119(1)(a) of the Regulation, requires an assessment of the Local Government’s performance in implementing its long-term community plan, five year corporate plan and annual operational plan. In August 2011 Council adopted the Gympie Region Community Plan 2030. This is a 20 year strategic plan that identifies five visions for the Region:

Infrastructure that is planned, connected and safe. Economic Development that is vibrant, strong and resilient. Engaged Governance that is cohesive, responsible and transparent. An environment that is sustainable, managed and healthy. Social wellbeing that is active, diverse, creative and empowered.

The adoption of the Community Plan lead to a review of the Corporate Plan. Significant work was undertaken to develop a new Corporate Plan 2012-2017 that aligns with the Community Plan and ensures the progression of the Community Plan’s visions and objectives. The new Corporate Plan was adopted in June 2012. Council also undertook a review of its Operational Plan parallel to the Corporate Plan review. Subsequently a new Operational Plan was developed based on the new Corporate Planning Framework of five Community Plan visions and 18 Corporate Plan strategic directions. The new look Operational Plan 2012-2013 was adopted in June 2012. To support the implementation of the Community, Corporate and Operational Plans, a new reporting framework has also been developed. Future Annual Reports will be based on this framework and as such will directly report on the progression of all three key planning documents referred to above.

Council Registers Section 119(1)(e) of the Regulation requires Council to report a list of the registers it keeps. These registers are as outlined below:

Councillor’s Interests Register Delegations Register Fees and Charges Register Road Register Local Heritage Register Building Statistics of Monthly Approvals Gifts/Hospitality Register

Register of Impounded Dogs Restricted Dogs Register Register of Development Applications Register of Road Maps Local Laws Register Register of Environmentally Relevant Activities

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Internal Auditor’s Report Section 105 of the Local Government Act 2009 requires that each Local Government must establish an internal audit function. Section 119(1)(g) of the Regulation requires a report on the internal audit for the year. The functions and responsibilities of the internal audit function are set out in Part 10 of the Local Government (Finance, Plans and Reporting) Regulation 2010. Internal Audit operates as an independent function within Council, reporting directly to the Chief Executive Officer and the Audit and Risk Management Committee with respect to audit/investigation findings. The primary role of the Internal Audit function is to assist the Local Government, Chief Executive Officer, management team and Audit Committee to meet their obligations relating to corporate governance, the system of internal controls and to identify more efficient, effective and economical processes. The system of internal control includes all methods and procedures adopted by management and includes management policies for the safeguarding of assets, the prevention and detection of fraud or error, the accuracy and completeness of accounting records and the timely preparation of reliable financial information. The majority of Internal Audit’s effort is directed towards providing assurance that the Council’s network of risk management, control and governance processes as designed and represented by management, is adequate and functioning in a manner that ensures:

risks are appropriately identified and managed; interaction with the various governance groups occurs as needed; significant financial, managerial and operating information is accurate, reliable and timely; activities and actions are in compliance with policies, standards, procedures and applicable laws and

regulations; resources are economically acquired, efficiently used and adequately protected; quality and continuous improvements are fostered in Council’s control processes; significant legislative or regulatory issues impacting Council are recognised and addressed properly; and opportunities for improving management control, sound resource management, and the Council’s image are

communicated to the appropriate level of management.

During the 2011‐2012 financial year, Internal Audit conducted a number of reviews and investigations as well as providing advice on a number of issues. Reviews completed during the year included:

Pre-qualified suppliers. Contracting arrangements. Procurement process. Quarry operations. Business continuity plans. Disaster recovery plans.

Various issues were identified and have been, or are currently being addressed. Internal Audit, the Chief Executive Officer and the Audit Committee continue to monitor any unresolved issues.

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Equal Employment Opportunity Council has implemented an Equal Employment Opportunity (EEO) Management Plan. Gympie Regional Council reviews this plan as it refines its policies and procedures. Council regularly undertakes a number of activities to eliminate unlawful discrimination against, and harassment of, Council employees. These activities include:

Recruitment and selection based on the principle of merit. It is the policy of the Gympie Regional Council to recruit the best person for each vacancy, regardless of race, religion, sex or disability.

The implementation of training and development programs to ensure all managers and staff are aware of their EEO obligations.

All employment procedures and practices continue to focus on clearly defined EEO principles. A staff survey every three years which establishes a target group profile, using a self-determination method.

This survey assists with providing data and identifying issues and actions required. As part of Gympie Regional Council’s induction program, new employees are made aware of their rights and obligations relating to EEO and harassment free workplaces. Employees are also made aware of practices which eliminate discrimination and other unacceptable employer/employee behaviour. Senior Contract Employees Remuneration Pursuant to s 201 Local Government Act 2009 the following table outlines the number of senior contract staff paid at nominated salary package levels.

Number of Senior Contract Employees Remuneration Package Range

4 $160,000 - $229,999

2 $230,000 – $300,000

Grants to Community Organisations Grants to Community Organisations in the 2011/2012 financial year equated to $324,560 All funding for grants to Community Organisations is in accordance with Council’s policy, available on Council’s website. A summary of the allocations to the various categories is as follows:

Culture 40,020

Education 1,350

Public Facilities 94,440

Safety 13,540

Sport & Recreation 58,140

Regional Promotion/Economic Development 115,570

Welfare 1,500

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Financial Report Details of Special Rates and Charges A Rural Fire Brigade Levy – as authorised under s 28 of Local Government (Finance, Plans and Reporting) Regulation 2010 (the Regulation) and ss 106 and 128(a) of the Fire and Rescue Service Act 1990 – in the amount of $25.00 applies to all rateable properties not situated in an urban fire brigade area (as defined by the Queensland Fire and Rescue Service). Summary of Rate Rebates and Concessions Pensioner Remissions Council’s pensioner rate remission to eligible pensioners shall be allowed under s 54(1)(a) of the Regulation. The pensioner remission will be $140.00 per annum. Total expenditure for 2011-2012 was $506,335. Deferment of Liability to Pay Rates In accordance with s 55(b) of the Regulation, the Council may grant a deferral of the time in which to make payments of overdue rates in respect of:

(a) A dwelling in which the applicant resides as his/her principal place of residence; or (b) All other land, where it can be substantiated in writing to the Chief Executive Officer’s satisfaction that the

applicant will not be able to pay all rates and charges within the prescribed period. The Chief Executive Officer shall be authorised to request further evidence that may be necessary in order to substantiate any such claim.

Total expenditure for 2011-2012 was nil. Early Payment Discount Discounts for prompt payments shall be allowed on the Rates and Charges stipulated in Council’s Revenue Statement as having discount applying to them. Such discounts are allowed pursuant to s 64(1) of the Regulation. Discount will be 5% if all rates and charges are paid within 30 days of the issue date. Total expenditure for 2011-2012 was $2,162,055.

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Community Financial Report The Community Financial Report is presented in accordance with the Local Government (Finance, Plans and Reporting) Regulation 2010, s 103, which requires that this report accompany the Financial Statements in the Annual Report. The Community Financial Report is intended to simplify complex financial information, assisting readers to evaluate Council’s financial performance and financial position in a form which is easily understood by the community. The General Purpose Financial Statements are a record of Council’s financial performance for the year ended 30 June 2012. The report highlights areas of importance to allow interested stakeholders the opportunity to make their own informed decisions. The four key financial statements for 2012 and the key performance indicators are described as follows:

Statement of Comprehensive Income - shows revenue, expenses and asset revaluation adjustments for the 2011-2012 year.

Statement of Financial Position - shows the assets and liabilities which make up the community equity as at 30 June 2012.

Statement of Changes In Equity - shows the movement in total community equity as at 30 June 2012. Statement of Cash Flows - shows the nature and amount of Council's cash inflows and outflows from all

activities. Financial Sustainability Ratios – for reviewing Council performance and sustainability.

Statement of Comprehensive Income This statement shows Council's financial performance for the year. It reflects how the money received from Council operations is spent providing services to the community.

Revenue in - Expenses out = Result for the year

2011-2012 2010-2011

Operating Revenue 92,267,722 79,669,013

Operating Expenses -86,668,157 -77,986,347

Operating Result 5,599,565 1,682,666

Net Capital Items 10,327,838 16,913,978

Net result attributable to Council 15,927,403 18,596,644

Asset Revaluation in period -1,016,555 -6,987,920

Total comprehensive income for the period $14,910,848 $11,608,724

The Statement of Comprehensive Income includes both operating revenue and expenses, and capital revenue and expenses. Operating revenue is income from Council’s day to day operations, such as rates, fees and charges etc. Operating expenses are the day to day costs of running the organisation, such as wages, maintenance, materials, depreciation and finance costs. Capital revenue includes grants and developer contributions for funding capital construction projects. Capital expenditure is monies spent on assets and infrastructure, such as parks, roads, water and sewerage, land, buildings, plant and equipment.

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Council's Revenue Total income (revenue) for 2011-2012 was $109 million, being $92 million from operations and $17 million from capital sources. The major source of operating revenue was rates and utility charges of $55 million or around 60% of the total. The number of rateable properties in the Region was 24,111 (2010-2011 23,765).

Operating Revenue 2011-2012 2010-2011

Rates and charges 55,247,835 51,317,497

Fees and other income 11,631,998 13,582,514

Interest received 5,137,501 5,374,301

Grants and subsidies 20,250,388 9,394,701

Total $92,267,722 $79,669,013

A high dependence on rate revenue and low dependence on grant revenue puts the Council in a strong financial position in these uncertain economic times. Grant revenue was extraordinarily high due to grant assistance for repair of flood damaged infrastructure in the previous year.

Operating Revenue 2011-2012

Rates & Charges

60%

Fees & Charges3%

Recoverable Works

9%

Grants & Subsidies

22%

Interest6%

Other<1%

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Council's Expenses Council provides a wide range of more than 100 different services to the Community. The work is done by Council staff and contractors. Council policy is to encourage the use of local suppliers so that the money stays within our community and boosts the local economy. Services provided by Council include planning and development, economic development, tourism, recreation and sport, airport, saleyards, community and culture, health and environment, waste management, water and sewerage, and roads infrastructure.

Operating Expenses 2011-2012 2010-2011

Employee costs 29,547,522 28,316,738

Materials and services 42,758,146 36,084,922

Depreciation 12,609,218 11,756,287

Finance costs and other 1,753,271 1,828,400

Total $86,668,157 $77,986,347

Operating Expenses 2011-2012

Depreciation is the annual consumption of assets or the decline in value of the assets controlled by Council. Council needs to raise sufficient revenue each year to cover the amount of depreciation so that the future replacement of those assets can be funded. The Council has achieved this through the reporting of an operating surplus.

Employee Costs 34%

Materials & Services

49%

Depreciation15%

Finance Costs2%

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Statement of Financial Position The Statement of Financial Position shows what Council owns (assets), what Council owes (liabilities) and our net community wealth (equity). Council's Assets The total value of assets was $1,015 million (2010-2011 $1,000m). Council's assets include land and buildings, roads, water and sewerage infrastructure, and plant and equipment. In addition Council holds other short term assets including cash held in bank accounts and has investments of approximately $83 million. These cash reserves fund future operations of Council including the provision of infrastructure projects. The value of community assets has increased due to revaluations, replacements and assets being provided to support the growing population. Council's funding of these assets is provided through cash resources, grants, contributions and where appropriate, loan funding. Council's Liabilities The total liabilities of Council were $42 million (2010-2011 $42m). Council's liabilities include amounts owing to employees for annual leave, long service leave and sick leave entitlements of $11.1 million (2010-2011 $11.7m), amounts payable to suppliers and contractors $3 million (2010-2011 $3m), monies paid in advance to Council $0.280 million (2010-2011 $0.236m) and loans $26.2 million (2010-2011 $27.2m). Affordability indicators show that Council is well placed to service its debt position. Council's Community Equity Council's Community Equity is the result of Council's assets less Council's liabilities - the wealth of the Region or what our community owns. The Community Equity was $973.4 million (2010-2011 $958.5m).

2011-2012 2010-2011

Assets 1,015,910,984 1,000,837,734

less Liabilities -42,500,743 -42,338,341

Equity 973,410,241 958,499,393

Represented by:

Retained Surplus/Deficit 584,542,405 574,917,994

Asset Revaluation Surplus 309,078,492 310,095,047

General Reserves 79,789,344 73,486,352

$973,410,241 $958,499,393

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Council's Capital Works Council's investment in community infrastructure or completed Capital Works was $34 million (2010-2011 $37m).

Capital Works 2011-2012

Statement of Cash Flows The Statement of Cash Flows shows how Council receives and spends money during the year. Council's cash held at the end of the reporting period was $83.9 million (2010-2011 $77.2m). Cash on hand consists of:

Working capital cash - to meet the day to day funding requirements; and Reserves - funds set aside by Council to meet future identified capital and operating projects.

2011-2012 2010-2011

Cash Opening Balance 77,276,186 84,849,732

Plus Cash Received 120,473,853 95,383,505

Less Cash Spent -113,847,823 -102,957,051

Cash Closing Balance $83,902,216 $77,276,186

Site Improvements2%

Buildings19%

Plant & Equipment10%

Road, Bridge & Drainage

31%

Water9%

Sewerage25%

Other Infrastructure

3%

Other Assets1%

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Council’s Financial Sustainability Relevant Measures The Council’s key measure of sustainability revolves around the maintenance of its capital value and capacity. Council’s Financial Statements and Long Term Financial Forecast are prepared on the consistent basis of identifying its capital value and monitoring the maintenance of that value. The main indicator that capital capacity is being maintained is the achievement of an operating surplus for the reporting period. The Financial Statements for the year to June 2012 show an operating surplus of $5.5 million and for the year to June 2011 $1.6 million. It is forecast that operating surpluses will continue to be achieved each year. Council's capital value at June 2012 was $918 million compared to $908 million at June 2011, with further increases over the next 10 years. Financial Management Strategy The Council’s financial management strategy is focused on the maintenance of the capital value required to deliver community services at a sustainable level into the future. The asset management plans forecast replacement and renewal costs over the next ten years. Funds required to cover this expenditure are compared to the funds provided from the funding of depreciation expense on existing assets. If a shortfall (gap) is identified then alternative strategies are investigated to bridge this funding gap. These include:

1. Surplus funds that may exist from current operating surpluses; 2. Increasing pricing for services rendered; 3. Rescheduling of maintenance and capital works; 4. Long term borrowing; 5. Evaluating the level of service that is affordable.

These strategies are applied within individual business units, eg water and sewerage and the rest of Council programs. Council’s Financial Sustainability Ratios Asset Sustainability Ratio - Capital Expenditure on Replacement Assets divided by Depreciation Expense

Indicator suggests percentage should be >90% This indicator should be averaged over at least 10 years. Not an annual expectation. Shows the amount spent on replacement/renewal assets compared to the annual depreciation of those

assets. Asset Consumption Ratio - Written Down Value of Infrastructure Assets divided by Gross Replacement Cost of those Assets

Indicator Range is between 40% and 80%. The lower the percentage the older the assets and therefore closer to replacement.

Interest Coverage Ratio - Net Interest Expense on debt service divided by Total Operating Revenue

Indicator range is between 0% and 5%. This shows Council’s capacity to fund additional borrowings. Gympie Regional Council has greater interest income than expense, hence the negative percentage result.

Working Capital Ratio - Current Assets divided by Current Liabilities

Guidance range is 1:1 to 4:1. Indicates ability to fund current liabilities from current asset sources.

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Operating Surplus Ratio - Net Result divided by Total Operating Revenue Guidance range is 0% to 10%. Indicates ability to maintain and expand Council’s capital value and services from own resources.

Net Financial Liability Ratio - Total Liabilities less Current Assets divided by Total Operating Revenue

Guidance range is – not greater than 60%. Gympie Regional Council has a negative percentage because current assets exceed total liabilities. This

indicates a very strong financial position.

Actual Results Long Term Financial Plan Projections - Budget Years

Ratio Target 2010-2011

2011-2012

2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

2021-2022

Asset Sustainability

>90% 224.1% 175.7% 155.3% 104.1% 94.6% 87.4% 82.4% 83.4% 78.4% 77.9% 76.6% 80.0%

Asset Consumption

40% - 80%

76.2% 76.1% 75.7% 74.7% 74.0% 73.4% 72.8% 71.6% 71.0% 70.1% 69.5% 68.7%

Interest Coverage

0% - 5% -4.5% -3.7% -1.6% -2.2% -2.0% -1.4% -0.9% -0.6% -0.6% -0.8% -1.1% -1.6%

Working Capital

1:1 - 4:1 7.0:1 4.2:1 4.9:1 4.4:1 4.1:1 4.1:1 4.1:1 4.1:1 4.2:1 4.2:1 4.6:1 4.3:1

Operating Surplus

0% - 10% 2.1% 6.1% 7.1% 3.2% 3.8% 4.4% 4.8% 5.3% 6.2% 7.9% 9.2% 10.6%

Net Financial Liability

<60% -64.8% -59.9% -33.5% -28.3% -16.9% -9.5% -3.8% -2.3% -6.0% -10.5% -20.4% -18.5%

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Councillor Remuneration Resolution G08/01/12

Appendix A

RESOLUTIONS REGARDING COUNCILLOR REMUNERATIONS G08/01/12 - General Meeting 25 January 2012 That in accordance with the determination of the Local Government Remuneration and Discipline Tribunal, Council adopts the 2012 Remuneration Schedule (based on per annum amounts). Further, as detailed in Note 5 to the Schedule, the Mayor, Deputy Mayor and Councillors holding office as at 1 January 2012 shall continue to receive the remuneration and the amalgamation loading determined for a Category 5 Council (as per the 2012 Remuneration Schedule) for the period from 1 January, 2012 through to the conclusion of the 2012 quadrennial election. Mayor - 95% of the rate payable ($137,149 pa) to a Member of the Queensland Legislative Assembly in

accordance with the remuneration range for a Category 5 Local Government. Amalgamation loading $2,770 pa.

Deputy Mayor - 62.5% of the rate payable ($137,149 pa) to a Member of the Queensland Legislative Assembly in


Councillor - 55% of the rate payable ($137,149 pa) to Member of the Queensland Legislative Assembly in


Further, that Council adopts the following remuneration levels as per the Local Government Remuneration and Discipline Tribunal’s Remuneration Schedule for a Category 4 Council to be payable from the conclusion of the 2012 quadrennial election. Mayor - 80% of the rate payable ($137,149pa) to a Member of the Queensland Legislative Assembly in

accordance with the remuneration range for a Category 4 Local Government. Deputy Mayor - 50% of the rate payable ($137,149pa) to a Member of the Queensland Legislative Assembly in

accordance with the remuneration range for a Category 4 Local Government. Councillor - 42.5% of the rate payable ($137,149pa) to Member of the Queensland Legislative Assembly in

accordance with the remuneration range for a Category 4 Local Government. G09/01/11 General Meeting 25 January 2011 That Council adopts the following remuneration levels in accordance with the determination of the Local Government Remuneration and Discipline Tribunal in the Remuneration Schedule effective from 01/01/2011. Mayor - 90% of the rate payable ($133,800pa) to a Member of the Queensland Legislative Assembly in accordance with the remuneration range for a Category 5 Local Government Deputy Mayor - 62.5% of the rate payable ($133,800pa) to a Member of the Queensland Legislative Assembly in accordance with the remuneration range for a Category 5 Local Government. Councillor - 55% of the rate payable ($133,800pa) to Member of the Queensland Legislative Assembly in accordance with the remuneration range for a Category 5 Local Government.

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Councillor Remuneration Resolution G08/01/12

Committee Chairpersons - 2.5% of the rate payable ($133,800pa) to a Member of the Queensland Legislative Assembly in accordance with the remuneration range for a Category 5 Local Government for the Chairpersons of the following Committees:

- Works & Services - Corporate Governance & Finance - Community & Economic Development

In recognition of the additional workload undertaken by the Chairperson of the Planning and Development Committee 5% of the rate payable ($133,800pa) to a member of the Queensland Legislative Assembly in accordance with the remuneration range for a Category 5 Local Government.

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Councillor Expenses Reimbursement Policy Resolution G13/01/11

Appendix B

COUNCILLOR EXPENSES REIMBURSEMENT POLICY

G13/04/11 - General Meeting 25 January 2011 1.1 Legislative requirements: Section 45(1) of the Local Government (Operations) Regulation 2010 states, a Local Government must adopt, by resolution, an expenses reimbursement policy or an amendment of the expenses reimbursement policy. This policy should be read in conjunction with the Local Government (Operations) Regulation 2010 and specifically ss 44-47. In summary the regulation states:

A Local Government must adopt by resolution, an expenses policy that complies with the principles of the Local Government Act 2009 (the Act) and the financial sustainability criteria under s 102 of the Act.

The Local Government must give public notice of the Expenses Reimbursement Policy by publishing a public notice of the policy in a newspaper circulating in the Local Government area and on the Local Government’s website as soon as practicable after adopting the Expenses Reimbursement Policy.

The Local Government’s Annual Report must contain a copy of the Council’s Expenses Reimbursement Policy and a copy of any resolution made during the year authorising payment of expenses or provision of facilities to councillors of the Local Government. Particulars of the reimbursements and facilities provided to Councillors will be included in the Annual Report.

The Local Government may amend, by resolution its Expenses Reimbursement Policy ensuring the same public accountability and transparency requirements are followed. Minor amendments such as spelling and grammatical errors may be made to the policy by Council.

Pursuant to s 44(2) of the Local Government (Operations) Regulation 2010, Local Governments’ Expenses Reimbursement Policy must provide: o Payments to Councillors for reasonable expenses incurred, or to be incurred, for discharging their

duties and responsibilities as Councillors. o The facilities that are to be provided to Councillors for the purpose of discharging their civic duties.

Definitions CEO: Council’s Chief Executive Officer. Expenses: These expenses relate to actual expenses deemed necessary and required for the business of Gympie Regional Council. In addition, expenses are payments reasonably incurred, or to be incurred, in connection with Councillors discharging their duties. The expenses may be either reimbursed to Councillors or paid direct by Council. Expenses are not included as remuneration. Facilities: Facilities provided to Councillors are the “tools of trade” required to enable them to perform their duties with relative ease and at a standard appropriate to fulfil the community expectation of their role. Official Council Business: Activities conducted on behalf of Council where a Councillor is required to undertake certain tasks to satisfy legislative requirements or achieve business objectives for the Council. Official Council business should result in a benefit being achieved either for the Local Government and/or the local community: This includes:

Attendance at Council, Committee and Briefing Meetings; Attendance at prescribed Local Government training/workshops, seminars and conferences; Attendance at civic ceremonies and community events where a formal invitation has been received inviting

Councillors in their capacity to undertake official duty; Attending public meetings, annual meetings or presentation dinners where invited as a Councillor; Attending meetings of community groups where invited to speak about Council programs or initiatives; Attending private meetings with constituents, where arranged through official council channels and details of

discussions are documented in official records or diaries; Attending Civic Reception functions on behalf of the Mayor; and

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Attending organised meetings/inspections/community consultations pertaining to Committee responsibilities.

Private Use of Council Vehicle: Use of a Council vehicle for other than official Council business is private use. For the purposes of this policy only, however, private use does not include:

Travel between a Councillor’s home and official Council business; Any incidental deviations from the direct travel route where the distance travelled is not material (eg. a

Councillor who is attending official Council business could stop en route at the corner store, provided that the Councillor does not make a significant deviation from the most direct route.)

The home garaging of a Council vehicle is permitted. Professional Development:

(a) Mandatory Training: Where one or more Councillors are required to attend training courses, workshops, seminars or conferences for skills development related to a Councillor’s role. Examples of this type of training include Councillor induction, code of conduct, meeting procedures and legislative obligations. Attendance at conferences includes major industry events eg Australian Local Government Association (ALGA), Local Government Association of Queensland (LGAQ) and Australian Local Government Women’s Association (ALGWA) or specific events that are relevant to all Councillors or Committee members.

(b) Discretionary training: Where a Councillor identifies a need to attend a conference, seminar, workshop or training to improve skills relevant to their role as a Councillor, other than mandatory training, the Council may allow for the expenses to be covered to a limit of $5,000 available to each Councillor during their current term in office. The Mayor or Chief Executive Officer is to approve the attendance of a Councillor to the conference, seminar, workshop or training prior to the expense being incurred.

Policy: 1.2 Statement of Principles: Gympie Regional Council acknowledges the core principles underpinning the Local Government Act 2009, those being:

(a) transparent and effective processes, and decision-making in the public interest; (b) sustainable development and management of assets and infrastructure, and delivery of effective services; (c) democratic representation, social inclusion and meaningful community engagement; (d) good governance of, and by, Local Government; (e) ethical and legal behaviour of Councillors and Local Government employees.

Council has formulated this policy in line with the above principles and the financial sustainability criteria referred to in s 102 of the Local Government Act 2009. 2. Expenses: 2.1 Professional Development Council will reimburse expenses incurred for mandatory professional development; and discretionary professional development. Council will meet registration fees, course fees and entrance fees together with reasonable travel, accommodation and sustenance expenses.

Registrations should, where practicable, be made in sufficient time to take advantage of “early bird” discounts.

Councillors will provide a verbal or written report on the outcomes of any Professional Development. 2.2 Travel as Required to Represent Council: Councillors may incur travel costs to attend statutory Council meetings, committee meetings, briefings, and travel to attend conferences, training workshops and seminars.

Any vehicle usage must comply with section 3.1 of this policy. If using their own private vehicles, Councillors are required to keep a log book with details to substantiate

the relevance and distance of the travel. Where appropriate Councillor’s private vehicle usage may be reimbursed by Council if the total travel claim does not exceed the cost of the same travel using economy flights plus the cost of all related taxi transfers.

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Councillors are to maintain the log book and are to calculate the amount of reimbursement in accordance with the scale prescribed by Directive Number 06/07 (or the most current directive) made pursuant to the section 34 of the Public Service Act 1996.

For Councillor purposes a reference in the above Directive to headquarters can be interpreted as individual Councillor residences.

From an insurance viewpoint Councillor’s own vehicles should be covered by either a comprehensive or a third party property damage insurance policy. Councillors are required to produce evidence that the insurance policy has been endorsed to indemnify Gympie Regional Council. It is understood this is a standard type endorsement available on request from all insurance companies. Council will refund any endorsement fees.

The amount reimbursed will be calculated on the actual mileage travelled by the Councillor. Councillors are required to travel via the most direct route using the most economical and efficient mode of

transport. All Councillor travel approved by Council will be booked and paid for by Council. This will occur as soon as

practicable after the decision to attend the event to ensure the most economical method of travel is attained.

Airline tickets are not transferable and can only be procured for the Councillor’s travel on Council business. They cannot be transferred to offset any other unapproved expenses (eg the costs of a spouse accompanying the Councillor).

Economy class is to be used where possible unless a specific resolution of Council specifies another class. 2.3 Accommodation: Councillors may need to stay away overnight to attend to Council business, however for this to be considered as an expense of Council written approval must be obtained from the Mayor/CEO prior to incurring any expense. When attending conferences, seminars, training workshops or courses, and where available, Councillors must utilise the package offered by the conference organisers, unless a more suitable or more economical venue convenient to the event can be obtained. In all other cases, written approval must be obtained from the Mayor/CEO prior to the incurring of the expense for accommodation costs to be reimbursed. All Councillor accommodation for Council business will be booked and paid by Council. Council will pay for the most economical deal available, however where possible the standard for Councillors’ accommodation should be four star rating. 2.4 Hospitality Expenses: Councillors may have occasion to incur hospitality expenses while conducting Council business apart from civic receptions organised by Council. The maximum amount of hospitality expenses which may be reimbursed:

for Councillors is $500 per financial year. for the Mayor is $4,000 per financial year. Reimbursement for hospitality expenses may include alcoholic beverages when supply of such beverages

meets established social customs. 2.5 Meal allowance: Gympie Regional Council shall reimburse the cost of sustenance for Councillors who are travelling for Council business related reasons including professional development when:

the Councillor incurs the cost personally and a meal is not provided within the registration costs of the approved activity/event or during a flight.

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The amount reimbursed shall be: The actual amount, or; For meals the following limits shall apply:

o Breakfast $25.00 o Lunch $30.00 o Dinner $38.00 o whichever is the lesser and to be adjusted with CPI (Brisbane All Ordinaries, March Quarter figures) on

an annual basis.

No alcohol shall be paid for by Council as part of the meal allowance. 2.6 Incidental Allowance: Up to $20 per day may be paid by Gympie Regional Council to cover any incidental costs incurred by Councillors required to travel and who are away from home overnight for official Council business. Examples of incidentals include but may not be limited to: tea/coffee; newspapers; telephone. Incidental expenses must be verified by providing receipts. 2.7 Travel Transfer Costs: Any travel transfer expenses associated with Councillors travelling for Council approved business will be reimbursed. Examples of travel transfer expenses include train, taxi, bus and ferry fares. Cab charge vouchers may also be used where Councillors are required to undertake duties relating to the business of Council. 3. Facilities: Provision of Facilities All facilities provided to Councillors remain the property of Council and must be returned when a Councillor’s term expires. Private Use of Council Owned Facilities. The provision of facilities for use by Councillors is based upon the principle that no private benefit is to be gained from the facilities provided to Councillors. The facilities are to be used for Council business only unless prior written approval has been granted by the Mayor or CEO. 3.1 Gympie Regional Council Office based Administrative tools: For the Mayor specifically:

An office. An administration officer for secretarial support. Use of a Council maintained six cylinder vehicle, as detailed below.

Mayor’s Vehicle: The Mayor shall be provided with use of a Council owned vehicle for use on Council business:

The vehicle shall be a six cylinder vehicle equivalent to a Holden Berlina or Ford Fairmont standard. At all times the vehicle is to be driven by only the Mayor, the Mayor’s spouse or partner, a Councillor or a

Gympie Regional Council employee. In an emergency situation another person may drive the vehicle. Private use of the motor vehicle may be utilised by one of the following options:

Option 1: The Mayor may purchase private use rights of a motor vehicle for private use within Queensland subject to contribution of 2% of the base Mayoral salary.

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Option 2: If option 1 is not chosen private use of the vehicle should be minimal and in line with the principle that no private benefit be gained from the facilities provided to the Councillors. Incidental private use of the Council owned vehicle is to be reimbursed to Council on a monthly basis.

The Mayor is to maintain a log book and the amount of reimbursement will be in accordance with the scale prescribed by Directive Number 14/10 (or the most current directive) made pursuant to the s 54(1) of the Public Service Act 2008.

Fuel for the Council owned vehicle will be provided by Council. Car parking at the Local Government office premises and when away from that premises reimbursement of

parking costs paid by the Mayor when attending to official Council business. Council will be responsible for the ongoing maintenance and wear and tear costs of the Council owned

vehicle. Any fines incurred while travelling in a Council owned vehicle or a privately owned vehicle while attending to

Council business will be the responsibility of the Mayor or other driver if applicable. It is the Mayor’s responsibility to ensure that he/she or any other driver as is applicable, are legally licensed

to drive the Council vehicle or to drive a private vehicle while attending to official Council business. Gympie Regional Council will accept no responsibility for unlicensed or illegal driving matters.

For all Councillors:

Communal office space - with an office provided in Gympie, Imbil library, Kilkivan Branch office and Tin Can Bay library and basic stationery for use in that office.

Postage for items of Council business. Use of a Council landline. Name badge. Safety equipment (eg safety helmet, vest safety shoes, safety glasses where necessary.) Internet access for use with Councillor’s lap top. Email access for use with Councillor’s lap top. Publications. Stationery. Shared access to office equipment.

For Councillors (excluding the Mayor):

A Council maintained vehicle for Council business, as detailed below. Councillor Vehicle (excluding the Mayor): Each Councillor (excluding the Mayor) shall be provided with use of a Council owned vehicle for use on Council business:

The vehicle shall be a four cylinder vehicle equivalent to a Mazda 3 or Ford Focus. At all times the vehicle is to be driven by a Councillor or Gympie Regional Council employee. The Councillor's spouse or partner may drive the vehicle only at such a time as the Councillor is

incapacitated or in such other circumstances as would reasonably require that the Councillor’s spouse or partner drive the vehicle.

In an emergency situation another person may drive the vehicle. Private use of the motor vehicle may be utilised by one of the following options:

Option 1: A Councillor may purchase private use rights of a Council vehicle for private use within Queensland subject to contribution of 2% of the base Councillor salary. Option 2: If option 1 is not chosen private use of the vehicle should be minimal and in line with the principle that no private benefit be gained from the facilities provided to the Councillors. Incidental private use of the Council owned vehicle is to be reimbursed to Council on a monthly basis.

The Councillor is to maintain a log book and to calculate the amount of reimbursement in accordance with the scale prescribed by Directive Number 14/10 (or the most current directive) made pursuant to the s 54(1) of the Public Service Act 2008.

Fuel for the Council owned vehicle will be provided by Council.

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Car parking at the Local Government office premises and when away from that premises reimbursement of parking costs paid by Councillors while attending to official Council business.

Council will be responsible for the ongoing maintenance and wear and tear costs of the Council owned vehicle.

Any fines incurred while travelling in a Council owned vehicle or privately owned vehicle while attending to Council business will be the responsibility of the Councillor or other driver if applicable.

It is the Councillor’s responsibility to ensure that he/she or any other driver as applicable, are legally licensed to drive the Council vehicle or to drive a private vehicle while attending to official Council business.

Gympie Regional Council will accept no responsibility for unlicensed or illegal driving matters. Use of Council pool vehicles for Council business: Councillors, when necessary, may have access to a Council pool vehicle for official Council business. 3.2 Home Office: Council shall provide each Councillor with:

A fax machine A laptop computer with appropriate software as decided by the CEO. A mobile telephone and car kit. Where personal calls are made on this telephone, Councillors shall reimburse

the costs of the private calls on a monthly basis. Internet access or where Councillors have an existing home office set up with internet access, Council shall reimburse the equivalent cost of monthly internet access at a level set by the CEO.

Basic stationery. Maintenance of Council owned equipment.

3.3 Legal Costs and Insurance Cover: Council may decide to cover costs incurred through any inquiry, investigation, hearing or legal proceeding into the conduct of a Councillor, or arising out of or in connection with, the Councillor’s performance of his/her functions. Councillors may be covered under Council insurance policies while discharging civic duties. Specifically insurance cover may be provided for public liability, professional indemnity, Councillor’s liability, personal accident, international and domestic travel insurance. 3.4 Other: The Chief Executive Officer will provide an administration process to facilitate payment of private reimbursement costs to Council.

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GRC016 Annual Water Report - SAMP and CSS 2011-2012

Appendix C

ANNUAL REPORT ON STRATEGIC ASSET MANAGEMENT PLAN AND CUSTOMER SERVICE STANDARD

2011-2012

Registered Service Provider No: SP485 1. INTRODUCTION The Water Supply (Safety and Reliability) Act 2008 requires registered service providers, such as Gympie Regional Council, to prepare an annual report on their approved Strategic Asset Management Plan (SAMP) and Customer Service Standard (CSS). The Customer Service Standard and Strategic Asset Management Plan outline the level of service that Council will provide and the measures Council plans to take to ensure the long term viability of its infrastructure. This annual report includes:

Comparison of actual performance against targets set in the SAMP and CSS; Key actions taken to implement the SAMP including funding; Results of reviews and audits of the SAMP; and Results of reviews of the CSS.

2. OVERVIEW OF SERVICES Council operates and maintains water supply schemes in Gympie, Imbil, Kandanga, Amamoor, Kilkivan, Goomeri, Rainbow Beach and Tin Can Bay/Cooloola Cove and sewerage schemes in Gympie, Imbil, Kilkivan, Goomeri, Rainbow Beach, Tin Can Bay and Cooloola Cove. Summaries of scheme statistics are shown in the following tables. Detailed scheme statistics are presented in Appendix A. Table 1: Water Supply Summary

No of Assessments

Total Water Used (ML)

Average Metered Yearly Water Use Per Assessment (kL)

Total Length of Water Mains (m)

13,278 3481 183 437,539 Table 2: Sewerage Summary

No of Assessments

Sewage Treated (DWF-ML)

Average Annual Dry Weather Flow Per Assessment (kL)

Total Length of Sewer Mains (m)

13,960 2,250 158 394,892 3. PERFORMANCE ASSESSMENT - STRATEGIC ASSET MANAGEMENT PLAN AND

CUSTOMER SERVICE STANDARD A summary of performance indicators, targets, actual performance and confidence levels for Council's water supply and sewerage schemes are presented in Tables 3 and 4 below. A commentary is provided for non-compliance with SAMP and CSS targets, outlining explanations and further actions. The confidence levels (reliability and accuracy bands) used in our annual report are based on those in the Department of Environment and Resource Management Guidelines for Preparing Strategic Asset Management Plans. An excerpt explaining the application of these confidence levels is included in Appendix B.

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Table 3 Gympie Regional Council – Water Services Performance Assessment

Performance Indicator

Performance Measure

Target Actual Target

Reached (Yes/No)

Confidence Grading

Reliability Accuracy

Day to day continuity -Extent of unplanned

interruptions (incidents)

Number/ 100 km mains/

year <10 9.87 Y C 3

Time for restoration of services

% restored within 5 hours

90% 95 Y C 3

Relative incidence of planned incidents

Ratio of unplanned:

planned 1:1 1:0.88 Y C 3

Response/Reaction time to incidents

Average response time for complaints

< 1.5 hrs

1.5 Y C 4

Adequacy and quality of normal supply -

Minimum pressure/flow

m head

L/min

>12m head

>20 L/ minute

100% Y A 1

Drinking water quality (physical and

chemical parameters)

% compliance >98% 100% Y A 1

Drinking water complaints [#1]

Number/1000 connections/

year <10 27 N D 6

Drinking water quality complaints

[#2]

Number incidents/

year <10 33 N C 5

Continuity in the long term -Water main breaks

and leaks Per year <50 27 Y A 2

System water loss litres/

connection/ day

<100 86 Y A 2

Number of customers

experiencing 3 repeat interruptions in 12 month period

Number of customers

<3 0 Y C 3

Provision of Services -

Provide 48 hours notice for

interruptions

% of planned interruptions

where 48 hours notice given

90% 95% Y C 2

Installation or connection within 10 working days

% of connections completed within 10

working days

90% 95% Y C 2

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[#1] Drinking Water Complaints A change to the corporate customer management system has resulted in an increase for this indicator. Further training of customer service staff in transitioning to and using the system is required to improve record keeping and accuracy. Some real increase in customer calls has been received as a result of the commencement of the Meter Replacement Program. Many older poorly maintained internal services tend to leak after being disturbed when the meter is replaced. [#2] Drinking Water Quality Complaints The quality of water was good. Availability of water supplies has allowed mains flushing programs to be continued. Resultant higher chlorine residuals in many areas led to complaints. Discolouration of water resulted from sediment disturbance caused by the flushing of mains which had not experienced regular flushing velocities for a number of years. Table 4 Gympie Regional Council – Sewerage Services Performance Assessment

Performance Indicator

Performance Measure

Target Actual Target

Reached (Yes/No)

Confidence Grading

Reliability Accuracy

Effective transport of waste effluent

Total sewage overflows

Number/ 100 km

mains/year <10 3.26 Y B 2

Odour complaints Number/1000

connections/year <5 1.6 Y B 2

Response/Reaction time to incidents

Average-Hours < 1.5 hrs 1.5 Y C 3

Continuity in the long term -

Sewer main breaks and chokes[#1]

Number/ 100 km mains/

Year <10 1.86 Y B 2

Sewer inflow/ infiltration

Ratio of peak day flow:average day

flow <8 6.34 Y A 2

Provision of Services -Installation or

connection within 10 working days

% of connections completed within 10 working days

90% 95% Y B 3

IMPROVEMENTS IN 2011-2012 Improvements to service performance compared to 2010-2011 include:

More sewerage pump stations have been upgraded and refurbished. New pump stations have been brought into service to accommodate growth in residential populations in the

area and the expansion of the sewer network to parts of Southside. Overflows have decreased. Sewer Inflow and Infiltration levels have been controlled by remediation work to more serious network faults

and follow up work to illegal connections uncovered in the smoke testing program. Ongoing CCTV program will identify more areas where preventative action would be beneficial.

4. ACTIONS TAKEN TO IMPLEMENT THE SAMP INCLUDING FUNDING Actions to implement the SAMP are detailed in Table 5 Status of SAMP Actions, together with current status, comments and budget estimates.

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Table 5: Status of SAMP Actions

Action Status Comments Budget

Allocation Actual Future Operations Actions

Operate system to meet CSS and

regulatory requirements

In place Ongoing - Included in Operational

Budget

Included in Operational

Budget

Develop database for collection of operational data

Implemented in early 2009

Training and Optimisation Continuing; State-wide application developed;

implementation possible soon

- Included above

Included above

Merge Job Sheets with Council’s

Authority System Implemented

Further training and development

required

- Included above

Included above

Carry out regular performance monitoring on

schemes

Enabled by New Database and Job

Sheet Systems

Ongoing -Authority System requires

refinement

- Included in

Admin Budget Included in

Admin Budget

Develop operational manuals and procedures

Commenced

Ongoing -considerable work required and changes to systems

- Included in


Admin Budget

Review IEMS Obsolete-no longer

required New system to be developed

- Included in


Admin Budget

Develop and implement risk

assessment model and procedures

Review commenced.

Drinking Water Quality

Management Plan under review by

Regulator

Ongoing (Awaiting

directions from Regulator)

- Included in


Admin Budget

Develop failure management plans

As identified under DWQMP

Ongoing awaiting final approval of DWQMP

- Included in


Admin Budget

Maintenance Actions

Develop computer based maintenance

management system

Under Investigation –

Awaiting Outcomes

New Council-wide system

proposed -

Included in Admin Budget


Develop maintenance

manual & procedures

Ongoing- Awaiting provision of new

system


proposed -

Included in Maintenance

Budget


Budget

65



Allocation Actual Future Develop

preventative maintenance

program

Data collection underway


proposed -


Budget


Budget

Implement asset condition

assessment program

Mains Assessment program

progressing

10-year program

$270,000 $270,000 $270,000+/year

Renewals Actions Update asset register to incorporate condition

assessment

New Programs under assessment

and review

Council not incorporating

condition assessment at

this stage

- - -

Evaluate options for condition assessment.

Collection and assessment of data underway

Ongoing Incl in Admin

Budget Incl in Admin

Budget Incl in Admin

Budget

Develop asset management plan

for rehab/replacement

of assets

Deferred due to new regulator requirements

Council considering

options




Update 10 year financial plans annually for all

schemes

Deferred Incorporated in SAMP- review

in 2012-13




Replace Imperial Meters

Commenced Remote smart meters being

fitted $400,000 $400,000 $400,000/annum

Water Supply Renewals Actions GWTP1 - Jones Hill

WTP Upgrading Works

Upgrades almost complete

Completion expected 2012/13

$2,700,000 $2,700,000 $1,200,000

TCBW1 - Tin Can Bay WTP Upgrade

Planning complete Building

Completed Works deferred

Plant upgrade 2012/13

- $100,000 -

W6 - Mains replacement

Program Commenced

Reduced failures due to system change

$360,000 $230,000 $300,000/annum

Bulk water main Teewah Creek to

TCB/CC WTP Duplication

Delayed by EPA. Pipeline now Commenced

In progress - complete 2012-

13 $450,000 $450,000 $1,800,000

Sewerage Renewals Actions

Implement Infiltration/Inflow

Reduction Program Commenced

CCTV and smoke testing 80% complete;

Data Assessment

Pending

$37,654 $200,000 $200,000/annum

GS1 - Gympie STP Upgrade

Construction Completed

Plant operating

$16,000,000 $16,000,000 $6,500,000

66



Allocation Actual Future GS2 - Gympie

Sewage Transport System

Upgrade/Rehab/ replacement

Planning commenced and

some stages complete

Awaiting results of I/I

studies $200,000 $200,000 $200,000/annum

GS5 - Combined Drain Replacement

Program in place Ongoing $50,000 $50,000 $50,000/annum

CCS1 - Tin Can Bay STP Upgrade

Commissioning Completed

Completed $22,882 $15,000 -

CCS2 - Cooloola Cove STP Upgrade


Completed $65,790 $15,000 -

CCS3 - Rainbow Beach STP Upgrade


Completed $30,000 $30,000 -

CCS5 - Replacement of Rising Main from

PS R1 to Treatment Plant

Completed

Rising main performance

being monitored

- - -

Mains Replacement

In place - - - $400,000/annum

Maintain up to date planning reports on all

schemes

Deferred -


and capital works

- Included in

Admin Budget

Develop capital and maintenance

work plans In place In SAMP


- Included in

Admin Budget

Tin Can Bay Pump Station

Refurbishment Completed Completed $75,000 $45,000 -

3 Tin Can Bay Pump Station

Upgrade Completed Completed $293,464 $170,000 -

Rainbow Beach Pump Station Refurbishment

Completed Completed $80,000 $80,000 -

5. REVIEWS Review of SAMP Council's SAMP was approved in June 2008. It was reviewed, updated and submitted to the regulator in that operating year. This review of the SAMP meets timeframes set by the Regulator. Review of CSS A review of the CSS was undertaken prior to the completion of the Budget in July 2012. The General Manager of Water and Sewerage Division undertook the review in consultation with the Director of Engineering. No revisions were made to the Customer Service Standard.

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6. AUDITS Council’s SAMP and CSS complied fully with the regulator’s requirements during the last specified audit period. No Audits were specified by the regulator in this reporting cycle. GLOSSARY

AD Average Day

CSS Customer Service Standard

EP Equivalent Population

MD Maximum Day

MDMM Mean Day Maximum Month

SAMP Strategic Asset Management Plan

kL Kilolitre

ML Megalitre

L Litre

68


APPENDIX A

SCHEME STATISTICS 2011-2012 Gympie Water Supply

Scheme Name Gympie Water Supply SchemeSource Mary River

Allocation 3455 ML/annum - High Priority

Treatment Plant Process Coagulation, sedimentation, filtration, pH correction and

disinfection and fluoridation. Capacity 18,000 kL/day (20 hours)

Reservoirs Number 8Capacity (ML) 27.88

Reservoir Details

Zone Location Capacity (ML)North Side Low Zone Ferguson Hill 9.1 x 2North Side High Zone Ferguson Hill 0.27

South Side Low Zone Jones HillJones Hill

Lindsay Street LL

3.7 4.4 0.68

South Side High Zone Lindsay Street HL 0.14 Noosa Road Zone Noosa Road 0.49

Pump Stations 3 Length of Mains (km) 253.5Scheme Statistics

2011-2012 2010-2011Population Serviced 21487 19,430Connections 8953 8,096Annual Water Consumption (ML) 2,493 2,186 Estimated Unaccounted Water (kL)[*1] 791 449 Consumption:Allocation 0.72:1 0.63:1MDMM:Plant Capacity 0.48:1 0.35:1No of Years Growth at 1% Before Allocation Exceeded 15 23 MD (kL/day) 12,096 7,938MDMM (kL/day) 8,607 6,367AD (kL/day) 6,829 5,990Average Water Consumption (L/EP/day) [*2] 342 308 Rainfall (mm) 1,400 1,877

Chemical UsageChemical 2011-2012 2010-2011 Use/ML Treated Alum (kg) 71,125 59,025 28.5 27

Chlorine (kg) 8,343 8,738 3.35 4.0 Lime (kg) - 59,025 - 7.3

Polyelectrolyte (L) - - - - PACL (L) 5,774 8,474 2.3 3.9 Soda (kg) 26,500 34,450 10.6 15.8

Power Used (kWh) 1,341,337 1,242,083Sludge Produced 521,668 469,595

[*1] Total of all unmetered water. [*2] Average water use per equivalent person, including unaccounted water and non-residential uses. Includes water supplied to large industrial users.

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Imbil Water Supply

Scheme Name Imbil Water Supply SchemeSource Yabba Creek

Allocation 160 ML/annum - High and Medium Priority

Treatment Plant Process Contact Filtration and disinfection

Capacity 600 kL/day


Pump Stations 1 Length of Mains (km) 7.9 Scheme Statistics

2011-2012 2010-2011 Population Serviced 646 577 Connections 269 240 Annual Water Consumption (ML) 80.1 58 Estimated Unaccounted Water (kL) [*1] 8,306 13,300 Consumption:Allocation 0.5:1 0.36:1 MDMM:Plant Capacity 0.48:1 0.32:1 Years Growth at 1% until system capacity exceeded 109 MD (kL/day) 271 252 MDMM (kL/day) 289 194 AD (kL/day) 220 160 Average Water Consumption (l/EP/day) 340 277 Rainfall (mm) 1,242 1,840 Power Used (kWh) 40,519 49,195

Chemical UsageChemical Used (L) 2011-2012 2010-2011 Use per ML Treated (L/ML)

Chlorine 6,305 4,607 78.8 79.4 Polymer 466 337 5.8 5.8 PACL 75 196 0.94 3.4

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Kandanga Water Supply

Scheme Name Kandanga Water Supply SchemeSource Kandanga Creek and Kandanga Bore

Allocation 59 ML/annumTreatment Plant Process Contact filtration and disinfection

Capacity 400 kL/dayReservoirs Number 1

Capacity (ML) 0.255 Pump Stations 2 Length of Mains (km) 3.4

Scheme Statistics 2011-2012 2010-2011 Population Serviced 269 263 Connections 112 110 Annual Water Consumption (ML) 19.8 22 Estimated Unaccounted Water (kL)[*1] 2,076 6,100 Consumption:Allocation 0.34:1 0.37:1 MDMM:Plant Capacity 0.28:1 0.2:1 No of Years Growth at 1% Before Allocation Exceeded[*3] 197 59 MD (kL/day) 158 108 MDMM (kL/day) 73 80 AD (kL/day) 54 61 Average Water Consumption (L/EP/day) 202 231 Rainfall (mm) 972 1,522 Power Used (kWh) 10,566 11,735


Chlorine 1,654 1,048 83.5 47.6 Polymer 156.5 58.5 7.9 2.7 PACL 38.3 62.4 1.9 2.8

[*1] Total of all unmetered water. [*2] Average water use per equivalent person including unaccounted water and non-residential uses. [*3] Growth rate changed between years.

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Amamoor Water Supply

Scheme Name Amamoor Water Supply SchemeSource Amamoor Creek

Allocation 31.78 ML/annum

Treatment Plant Process Contact filtration and disinfectionCapacity 400 kL/day

Reservoirs Number 1Capacity (kL) 90

Pump Stations 1 Length of Mains (Km) 2.9 Scheme Statistics

2011-2012 2010-2011Population Serviced[*3] 221 206 Connections[*3] 92 86 Annual Water Consumption (ML) 14.5 12 Estimated Unaccounted Water (kL) [*1] 2,076 4,800 Consumption:Allocation 0.46:1 0.38:1 MDMM:Plant Capacity 0.14:1 0.09:1 No of Years Growth at 1% Before Allocation Exceeded 119 169 MD (kL/day) 89 49 MDMM (kL/day) 55 36 AD (kL/day) 40 32 Average Water Consumption (L/EP/day) 180 157 Rainfall (mm) 1,170 1,117 Power Used (kWh) 7,152 7,010


Chlorine 982 589 67.7 83.1 Polymer 65.1 38.6 4.5 3.2 PACL 23.7 23.6 1.6 2.0

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Kilkivan Water Supply

Scheme Name Kilkivan Water Supply SchemeSource Wide Bay Creek

Allocation 150ML/annum plus bores

Treatment Plant Process Reverse Osmosis Filtration and Chlorination Capacity 200kL/day

Reservoirs Number 1Capacity (kL) 210,000

Pump Stations 1 Length of Mains (Km) 26.6 Scheme Statistics

2011-2012 2010-2011Population Serviced 624 596 Connections 260 248 Annual Water Consumption (ML) 37.9 28 Estimated Unaccounted Water (kL)[*1] 8,598 13,800MD (kL/day) 199 120 MDMM (kL/day) 126 117 AD (kL/day) 103.6 78 Average Water Consumption (L/EP/day) 166 131 Rainfall (mm) 897 1,978

[*1] Total of all unmetered water. [*2] Average water use per equivalent person including unaccounted water and non-residential uses. Goomeri Water Supply

Scheme Name Goomeri Water Supply SchemeSource Bores and Off-stream Storage

Allocation 150ML/annum plus bores

Treatment Plant Process BAC, Alum, OzoneCapacity 120kL/day

Reservoirs Number 2Capacity (kL) 210,000

Pump Stations 1 Length of Mains (Km) 22.9 Scheme Statistics 2011-2012 2010-2011

Population Serviced[*3] 790 758 Connections[*3] 329 316 Annual Water Consumption (ML) 53.5 41 Estimated Unaccounted Water (kL)[*1] 8,598 17,500 MD (kL/day) 217 145 MDMM (kL/day) 181 141 AD (kL/day) 147 113 Average Water Consumption (L/EP/day) 186 148 Rainfall (mm) 897 1,978

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Tin Can Bay/Cooloola Cove Water Supply

Scheme Name Tin Can Bay/Cooloola Cove Water Supply SchemeSource Teewah Creek

Allocation 1950 ML/annum

Treatment Plant Process

Coagulation, sedimentation, filtration, pH correction, chlorination and fluoridation.

Capacity 3,600 kL/day

Reservoirs Number 3 Length of Mains (km) 91.1 Capacity (ML) 6.32

Reservoir Details

Zone Location Capacity (ML) Cooloola Cove Cooloola Cove 5.0 Tin Can Bay LZ Tin Can Bay 1.18 Tin Can Bay HZ Tin Can Bay 0.14

Pump Stations 4Scheme Statistics 2011-2012 2010-2011

Population Serviced 6,612 6,212 Connections 2,755 2,588 Annual Water Consumption(ML) 425 416 Estimated Unaccounted Water(kL)[*1] 67,243 143,500 Consumption:Allocation 0.22:1 0.21:1 MDMM:System Capacity 0.34:1 0.28:1 No of Yrs Growth at 1% ‘til Allocation Exceeded 94 97 MD kL/day 4,136 1,643 MDMM kL/day 1,220 1,018 AD kL/day 1,165 1,141 Average Water Consumption (L/EP/Day) 176 184 Rainfall (mm) 1,885 1,822 Power Used (kWh) 136,601 147,179


Alum 49,400 45,000 110.8 108 Chlorine 1,545 1,507 3.5 3.6 Polymer 29 29.6 0.07 0.07 Soda Ash 42,600 37,201 95.6 89.4

[*1] Total of all unmetered water. [*2] Average water use per equivalent person including unaccounted water and non-residential uses.

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Rainbow Beach Water Supply

Scheme Name Rainbow Beach Water Supply SchemeSource 4 bores

Allocation 730 ML/annum

Treatment Plant Process pH correction and chlorinationCapacity 2,520 kL/day


Reservoir Details Zone Location Capacity (ML)

Rainbow Beach Rainbow Beach 0.48 Rainbow Beach Rainbow Beach 2.25

Pump Stations 2 Length of Mains (km) 29.3 Scheme Statistics

2011-2012 2010-2011Population Serviced (Year Round Average) 2,729 2,106 Connections 1,137 916 Annual Water Consumption (ML) 357.6 317 Estimated Unaccounted Water (kL)[*1] 33,261 50,800 Consumption:Allocation 0.49:1 0.43:1 No of Years Growth at 1% Before Allocation Exceeded 21 26 MD kL/day 2,068 2,026 MDMM kL/day 1,260 1,018 AD kL/day 980 869 Average Water Consumption (L/EP/Day)[*2] 359 413 Rainfall (mm) 2,236 2,528 Power Used (kWh) 202,220 182,233


Chlorine 830 1,059 2.3 3.3 Soda Ash 46,600 43,550 130.3 137.3

Lime - - 0 0

[*1] Total of all unmetered water. [*2] Average water use per equivalent person including unaccounted water and non-residential uses.

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Gympie Sewerage

Scheme Name Gympie SeweragePopulation Served 21,487 EP

Treatment Plant Process BNRCapacity 30,000 EP

EPA Effluent Standards

Advanced Secondary Treated Sewage:COD 52/40mg/L BOD5: 15/10 mg/L TSS: 20 mg/L TN: 15mg/L TP: 3/0.5mg/L pH: 6.5 – 8.5 Minimum DO: 2 mg/L min Free Chlorine Residual: <0.05 mg/L FC: av.100 Org/100mL

Pump Stations 5 main and 35 smaller pumping stationsLength of Mains 237.9km

Scheme Statistics 2011-2012 2010-2011

No of Connections 8,953 6,718 Total Annual Flow (ML) [#1] 2,106 1,801

Annual Dry Weather Flows (ML) 1,201 1,556 Peak Wet Weather Flow (kL/d) 28,845 23,897

Average Daily Flow (kL) 5,770 4,935 Rainfall (mm) 1,400 1,877

Resource Usage 2011-2012 2010-2011 Use/ML Treated Chlorine kg 27,425 28,677 13 15.9 Power kWh - 140,749 - 78.2

Sludge DetailsVolume of Sludge Produced - 26,657kL

% of Effluent Reused 0 15

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Tin Can Bay Sewerage

Scheme Name Tin Can Bay SeweragePopulation Served 3,317 EP

Treatment Plant Process BNR plant with dosing for phosphorus

removal – irrigation to natural vegetation Capacity 4,000 EP


BOD: 20 mg/LES: 800 TSS: 20 mg/L FC: 4/5<200cfu/100mL pH: 6.5 – 8.5 Minimum DO: 2 mg/L TN: 10mg/L TP: 2mg/L

Pump Stations 11 Length of Mains 37.4km


No of Connections 1,382 1,046 Total Annual Flow (ML) [#1] 559 528

Annual Dry Weather Flows (ML) 946 490 Peak Wet Weather Flow (kL/d) 4,019 4,165


% of Effluent Irrigated 100 100

[#1] Includes WWF. Cooloola Cove Sewerage

Scheme Name Cooloola Cove SeweragePopulation Served 3,480 EP

Treatment Plant Process BNR plant with dosing for phosphorus

removal – irrigation to natural vegetation Capacity 4,000 EP

EPA Effluent Standards Secondary Treated Sewage Minimum Detention – 60 days


BOD5: 20 mg/LES: 800 TSS: 20 mg/L FC: 4/5<200cfu/100mL pH: 6.5 – 8.5 Minimum DO: 2 mg/L TN: 10mg/L TP: 2mg/L



No of Connections[*2] 1,450 1,475 Total Annual Flow (ML) [#1] 347 417




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Rainbow Beach Sewerage

Scheme Name Rainbow Beach SeweragePopulation Served 2,866 EP [*3]

Treatment Plant Process BNR plant with dosing for phosphorus removal –

irrigation to natural vegetation Capacity 4,000 EP


BOD5: 20 mg/LES: 800 TSS: 20 mg/L FC: 4/5<200cfu/100mL pH: 6.5 – 8.5 Minimum DO: 2 mg/L TN: 10mg/L TP: 2mg/L



No of Connections[*2] 1,194 970 Total Annual Flow (ML) [#1] 274 216


Average Daily Flow (kL) 750 593 Rainfall (mm) 2,236 2,528


[#1] Includes WWF [*2] Better source figures became available this year for calculations. [*3] Estimated average. Kilkivan Sewerage

Scheme Name Kilkivan SeweragePopulation Serviced 722 EP

Treatment Plant Process Imhoff tank/lagoonsCapacity 800 EP

Pump Stations 0


BOD5: 40 mg/LTSS: 60 mg/L pH: 6.5 – 8.5 Minimum DO: 2 mg/L FC: 80th% 1000Org/100mL TDS: 1000mg/L

Length of Mains 9.4kmConnections[*2] 301


Total Annual Flow (ML)[#1] 32 41 Peak Wet Weather Flow (KL/d) 254 289

Average Daily Flow (KL) 87.4 113 Rainfall (mm) 897 1,978


78


Goomeri Sewerage

Scheme Name Goomeri SeweragePopulation Served 902 EP

Treatment Plant Process Imhoff tank/lagoonsCapacity 1000 EP

Pump Stations 1


BOD5: 40 mg/LTSS: 60 mg/L pH: 6.5 – 8.5 Minimum DO: 2 mg/L FC: 80th% 1000Org/100mL TDS: 1000mg/L

Length of Mains 10.2kmConnections 376


Total Annual Flow (ML)[#1] 37.5 58 Peak Wet Weather Flow (KL/d) 199 402

Average Daily Flow (KL) 103 158 Rainfall (mm) 897 1,978


[#1] Includes WWF Imbil Sewerage

Scheme Name Imbil SeweragePopulation Serviced 730 EP

Treatment Plant Process Biological Element Discs to commercial forest

irrigation Capacity 1000 EP

Pump Stations 2


BOD5: 20 mg/LEC: 800 TSS: 30 mg/L pH: 6.5 – 8.5 FC: Med. 10,000 Org/100mL Minimum DO: 2 mg/L

Length of Mains 11.4kmScheme Statistics

2011-2012 2010-2011 No of Connections[*2] 304 231

Total Annual Flow (ML)[#1] 40.9 45 Peak Wet Weather Flow (kL/d) 357 240

Average Daily Flow (kL) 112 123 Rainfall (mm) 1,242 1,840


[#1] Includes WWF [*2] Better source figures became available this year for calculations.

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Appendix D

ANNUAL REPORT ON SAMP AND CSS 2011-2012

APPENDIX B

DEPARTMENT OF ENVIRONMENT AND RESOURCE MANAGEMENT

GUIDELINES FOR PREPARING STRATEGIC ASSET MANAGEMENT PLANS

4.1.3 Confidence Gradings for Level of Service Data A service provider should assign a “confidence grading” when reporting the actual level of service achieved against the level of service standards. The “confidence grading” should identify a “reliability band” and an “accuracy band” for each item of data. Relevant bands include:

Reliability BandsA Highly reliable Data is based on sound records, procedures, investigations or analyses that are

properly documented and recognised as the best available assessment methods. B Reliable Generally as in “A”, but with minor shortcomings eg some of the documentation

is missing, the assessment is old, or some reliance on unconfirmed reports; or there is some extrapolation made (eg extrapolations from records that cover more than 50% of the service provider’s system).

C Unreliable Generally as in “A” or “B”, but data is based on extrapolations from records that cover more than 30% (but less than 50%) of the service provider’s system.

D Highly unreliable Data is based on unconfirmed verbal reports and/or cursory inspections or analysis, including extrapolations from such reports/inspections/analysis.

Accuracy Bands

1 +/- 1%

2 +/- 5%

3 +/- 10%

4 +/- 25%

5 +/- 50%

6 +/- 100% Example In reporting on achievement against the level of service target for the number of Drinking Water Quality Complaints per 1,000 connections, the confidence grading assigned was A1, ie the data was based on sound records. Highly reliable - Band A) estimated to be within +/- 1% (Accuracy Band - 1). The grading assigned depends on the type and sophistication of monitoring systems that are in place. For example, system water loss could be measured by comprehensive metering (higher grading) or simply by a drop test (lesser grading). The feasibility of employing different measurement tools will vary between service providers depending on the size, nature and complexity of the system and available resources.

GYMPIE REGIONAL COUNCIL

Financial Statements

For the year ended 30 June 2012

Table of contents

Note

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Statement of Cash Flows

Notes to the financial statements

1 Significant accounting policies

2 Analysis of results by function

3 Revenue analysis

4 Grants, subsidies, contributions and donations

5 Capital income

6 Gain (loss) on the disposal of capital assets

7 Employee benefits

8 Materials and services

9 Finance costs

10 Depreciation

11 Capital expenses

12 Loss on write-off of capital assets

13 Loss on impairments

14 Cash assets and cash equivalents

15 Trade and other receivables

16 Inventories

17 Land purchased for development and sale

18 Property, plant and equipment

19 Trade and other payables

20 Provisions

21 Borrowings

22 Other liabilities

23 Asset revaluation surplus

24 Retained surplus

25 Reserves

26 Commitments for expenditure

27 Events after balance date

28 Contingent liabilities

29 Superannuation

30 Trust funds

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

32 Minor correction for assets not previously recognised

33 Financial Instruments

34 National competition policy

Management Certificate

Independent Audit Report

80


Appendix E


Statement of Comprehensive Income


2012 2011

Note $ $

Income

Revenue

Recurrent revenue

Rates and levies 3 (a) 55,247,835 51,317,497

Fees and charges 3 (b) 3,019,392 3,632,904

Interest received 3 (c) 5,137,501 5,374,301

Sales of contract and recoverable works 3 (d) 8,468,689 9,532,969

Other income 3 (e) 143,917 416,641

Grants, subsidies, contributions and donations 4 (i) 20,250,388 9,394,701

Total recurrent revenue 92,267,722 79,669,013

Capital revenue

Grants, subsidies, contributions and donations 4 (ii) 16,896,422 21,876,035

16,896,422 21,876,035

Total revenue 109,164,144 101,545,048

Capital income 5 597,745 -

Total income 2 109,761,889 101,545,048

Expenses

Recurrent expenses

Employee benefits 7 (29,547,522) (28,316,738)

Materials and services 8 (42,758,146) (36,084,922)

Finance costs 9 (1,753,271) (1,828,400)

Depreciation 10 (12,609,218) (11,756,287)

Total recurrent expenses (86,668,157) (77,986,347)

Capital expenses

Other capital expenses 11 (7,166,329) (4,962,057)

Total expenses (93,834,486) (82,948,404)

Net result 15,927,403 18,596,644

Other comprehensive income

23 (1,016,555) (6,987,920)

Total other comprehensive income (1,016,555) (6,987,920)

Total comprehensive income for the period 14,910,848 11,608,724

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

81



Statement of Financial Position

As at 30 June 2012

2012 2011

Note $ $

Current Assets

Cash assets and cash equivalents 14 83,902,216 77,276,186

Trade and other receivables 15 (a) 12,012,337 15,232,426

Inventories 16 1,861,763 2,037,138

97,776,316 94,545,750

Non-current Assets

Trade and other receivables 15 (b) 31,732 44,550

Property, plant and equipment 18 (a) 918,102,936 906,247,434

918,134,668 906,291,984

TOTAL ASSETS 1,015,910,984 1,000,837,734

Current Liabilities

Trade and other payables 19 9,153,607 8,267,757

Provisions 20 4,791,350 4,016,210

Borrowings 21 1,037,463 970,356

Other 22 280,677 235,793

15,263,097 13,490,116

Non-current Liabilities

Trade and other payables 19 925,446 1,429,931

Provisions 20 1,088,144 1,157,965

Borrowings 21 25,224,056 26,260,329

27,237,646 28,848,225

TOTAL LIABILITIES 42,500,743 42,338,341

NET COMMUNITY ASSETS 973,410,241 958,499,393

Community Equity

Asset revaluation surplus 23 309,078,492 310,095,047

Retained surplus (deficiency) 24 584,542,405 570,346,142

Reserves 25 79,789,344 78,058,204

TOTAL COMMUNITY EQUITY 973,410,241 958,499,393


82


GYMPIE REGIO

NAL COUNCIL

Statement of Changes in Equity

Fo

r th

e y

ear

end

ed 3

0 J

un

e 2

01

2

To

tal

Ret

ain

ed s

urp

lus

Res

erv

es

Ass

et r

eval

uat

ion

(def

icit

)su

rplu

s

No

teNote 24

Note 25

Note 23

20

12

20

11

20

12

20

11

20

12

20

11

20

12

20

11

$$

$$

$$

$$

Bal

ance

at

beg

inn

ing

of

per

iod

95

8,4

99

,39

3

94

6,8

90

,66

9

57

0,3

46

,14

2

55

0,9

08

,89

5

78

,05

8,2

04

78

,89

8,8

07

31

0,0

95

,04

7

31

7,0

82

,96

7

Net

res

ult

15

,92

7,4

03

18

,59

6,6

44

15

,92

7,4

03

18

,59

6,6

44

-

-

-

-

Oth

er c

om

pre

hen

siv

e in

com

e fo

r th

e p

erio

d

Rev

alu

atio

ns:

Pro

per

ty,

pla

nt

& e

qu

ipm

ent

18

(9,9

76

,14

8)

(6,9

52

,01

7)

-

-

-

-

(9,9

76

,14

8)

(6

,95

2,0

17

)

Imp

airm

ents

:

Pro

per

ty,

pla

nt

& e

qu

ipm

ent

18

-

(35

,90

3)

-

-

-

-

-

(35

,90

3)

Total comprehensive income for period

5,9

51

,25

5

11

,60

8,7

24

15

,92

7,4

03

18

,59

6,6

44

-

-

(9,9

76

,14

8)

(6

,98

7,9

20

)

Gai

n a

risi

ng

fro

m a

sset

s n

ot

pre

vio

usl

y r

eco

gn

ised

32

8,9

59

,59

3

8,9

59

,59

3

-

Tra

nsf

ers

(to

) fr

om

ret

ain

ed e

arn

ing

s

and

rec

urr

ent

rese

rves

24

-

-

(2,6

68

,64

1)

-

2,6

68

,64

1

-

-

-

Tra

nsf

ers

(to

) fr

om

ret

ain

ed e

arn

ing

s

and

cap

ital

res

erv

es2

4-

-

9

37

,50

1

84

0,6

03

(9

37

,50

1)

(84

0,6

03

)

-

-

-

-

-

-

-

-

-

-

Bal

ance

at

end

of

per

iod

97

3,4

10

,24

1

95

8,4

99

,39

3

58

4,5

42

,40

5

57

0,3

46

,14

2

79

,78

9,3

44

78

,05

8,2

04

30

9,0

78

,49

2

31

0,0

95

,04

7


83



Statement of Cash Flows


2012 2011

Note $ $

Cash flows from operating activities :

Receipts

Receipts from customers 97,631,752 74,217,711

Interest received 5,297,213 5,257,102

Payments

Payments to suppliers (78,464,495) (69,895,400)

Interest expense (1,728,655) (1,781,825)

Net cash inflow (outflow) from operating activities 31 22,735,815 7,797,588

Cash flows from investing activities:

State Government subsidies & grants 12,653,986 10,123,450

Capital contributions 2,921,082 4,559,264

Payments for property, plant and equipment (32,685,507) (30,100,842)

Proceeds from sale of property plant and equipment 6 1,957,002 1,221,239

Net movement in loans to community organisations 12,818 4,739

Net cash inflow (outflow) from investing activities (15,140,619) (14,192,150)

Cash flows from financing activities:

Repayment of borrowings 21 (969,166) (1,178,984)

Net cash inflow (outflow) from financing activities (969,166) (1,178,984)

Net increase (decrease) in cash and cash equivalents held 6,626,030 (7,573,546)

Cash and cash equivalents at beginning of the financial year 77,276,186 84,849,732

Cash and cash equivalents at end of the financial year 14 83,902,216 77,276,186


84



Notes to the Financial StatementsFor the year ended 30 June 2012

1 Significant accounting policies

1. 1 Basis of preparation

These general purpose financial statements are for the period 1 July 2011 to 30 June 2012 and have been

prepared in compliance with the requirements of the Local Government Act 2009 and the Local

Government (Finance, Plans and Reporting) Regulation 2010. Consequently, these financial statements

have been prepared in accordance with all Australian Accounting Standards, Australian Accounting

Interpretations and other authoritative pronouncements issued by the Australian Accounting Standards

Board.

These financial statements have been prepared under the historical cost convention except for the

revaluation of certain non-current assets.

1. 2 Statement of compliance

These general purpose financial statements comply with all accounting standards and interpretations

issued by the Australian Accounting Standards Board (AASB) that are relevant to Council's operations

and effective for the current reporting period. Because the Council is a not-for-profit entity and the

Australian Accounting Standards include requirements for not-for-profit entities which are inconsistent

with International Financial Reporting Standards (IFRS), to the extent these inconsistencies are applied,

these financial statements do not comply with IFRS. The main impacts are the offsetting of revaluation

and impairment gains and losses within a class of assets, and the timing of the recognition of non-

reciprocal grant revenue.

1. 3 Constitution

The Gympie Regional Council is constituted under the Queensland Local Government Act 2009 and is

domiciled in Australia.

1. 4 Date of authorisation

The financial statements are authorised for issue on the date it was submitted to the Auditors for final

signature. This is the date the management certificate is signed.

1. 5 Currency

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

1. 6 Adoption of new and revised Accounting Standards

In the current year, Council adopted all of the new and revised Standards and Interpretations issued by

the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for

the current reporting period. The adoption of the new and revised Standards and Interpretations has not

resulted in any material changes to Council's accounting policies.

At the date of authorisation of the financial statements, the Standards and Interpretations

listed below were in issue but not yet effective.

Effective for annual

report periods

beginning on are

after:

AASB 9 Financial Instruments (December 2009) 1 January 2013

AASB 10 Consolidated Financial Statements 1 January 2013

AASB 11 Joint Arrangements 1 January 2013

AASB 12 Disclosure of interests in other entities 1 January 2013

AASB 13 Fair Value Measurement 1 January 2013

AASB 119 Employee benefits (completely replaces existing standard) 1 January 2013

AASB 127 Separate Financial Statements (replaces the existing standard together with AASB 10) 1 January 2013

AASB 128 Investments in Associates and Joint Ventures (replaces the existing standard) 1 January 2013

AASB 1053 Application of Tiers of Australian Accounting Standards 1 July 2013

2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (December 2009) 1 January 2013

AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure

Requirements

1 July 2013

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) 1 January 2013

AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying

Assets

1 January 2012

AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for

First-time Adopters

1 January 2013

AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans-Tasman

Convergence Project – Reduced Disclosure Requirements

1 July 2013

AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the

ABS GFS Manual and Related Amendments

1 July 2012

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management

Personnel Disclosure Requirements

1 July 2013

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation,

the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements

1 July 2013

85




AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint

Arrangements Standards

1 January 2013

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 1 January 2013

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other

Comprehensive Income

1 July 2012

AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September

2011)

1 January 2013

AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure

Requirements

1 July 2013

AASB 2011-12 Amendments to Australian Accounting Standards arising from Interpretation 20 (AASB 1) 1 January 2013

AASB 2011-13 Amendments to Australian Accounting Standard - Improvements to AASB 1049 1 July 2012

Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine 1 January 2013

AASB 9, which replaces AASB 139 Financial Instruments: Recognition and Measurement, is effective

for reporting periods beginning on or after 1 January 2013 and must be applied retrospectively. The main

impact of AASB 9 is to change the requirements for the classification, measurement and disclosures

associated with financial assets. Under the new requirements the four current categories of financial

assets stipulated in AASB 139 will be replaced with two measurement categories: fair value and

amortised cost and financial assets will only be able to be measured at amortised cost where very

specific conditions are met.

As a result, Council will be required to measure its financial assets at fair value.

Consolidation Standards

The AASB issued a suite of six related accounting standards which are effective for annual reporting

periods beginning on or after 1 January 2013. These standards:

· AASB 11 Joint Arrangements

· AASB 12 Disclosure of Interests in Other Entities

· AASB 127 Separate Financial Statements

· AASB 128 Investments in Associates and Joint Ventures

· AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation

and Joint Arrangements Standards.

aim to improve the accounting requirements for consolidated financial statements, joint arrangements

and off balance sheet vehicles. The AASB is still considering whether these standards need to be

modified for application by not-for-profit entities. Consequently, not-for-profit entities are not currently

permitted to apply these standards prior to the mandatory application date. As council is a not-for-profit

entity, no assessment has been made of the potential impact. An assessment of the impact will be made

when the not-for-profit requirements are finalised.

86




AASB 13 Fair Value Measurement (AASB 13)

AASB 13 applies to reporting periods beginning on or after 1 January 2013. The standard sets out a new

definition of "fair value", as well as new principles to be applied when determining the fair value of

assets and liabilities. The new requirements will apply to all of the Council's assets and liabilities

(excluding leases) that are measured and/or disclosed at fair value or another measurement based on fair

value. The potential impacts of AASB 13 relate to the fair value measurement methodologies used, and

financial statement disclosures made in respect of, such assets and liabilities.

The Gympie Regional Council has commenced reviewing its fair value methodologies (including

instructions to valuers, data used and assumptions made) for all items of property, plant and equipment

measured at fair value to determine whether those methodologies comply with AASB 13.

To the extent that the methodologies don't comply, changes will be necessary. While the Council is yet

to complete this review, no significant changes are anticipated, based on the fair value methodologies

presently used. Therefore, and at this stage, no consequential material impacts are expected for the

Gympie Regional Council's property, plant and equipment in 2013-14.

AASB 13 will require an increased amount of information to be disclosed in relation to fair value

measurements for both assets and liabilities. To the extent that any fair value measurement for an asset

or liability uses data that is not "observable" outside the Council, the amount of information to be

disclosed will be relatively greater.

Amendments to AASB 101 Presentation of Financial Statements

The AASB 101 Amendments require council to group items presented in other comprehensive income

into those that, in accordance with other standards: (a) will not be reclassified subsequently to profit or

loss and (b) will be reclassified subsequently to profit or loss when specific conditions are met. It is

applicable for annual periods beginning on or after 1 July 2012. The Council’s management expects this

will change the current presentation of items in other comprehensive income; however, it will not affect

the measurement or recognition of such items.

Amendments to AASB 119 Employee Benefits

A revised version of AASB 119 Employee Benefits applies from reporting periods beginning on or after

1 January 2013. The revised AASB 119 is generally to be applied retrospectively.

The revised standard includes changed criteria for accounting for employee benefits as "short-term

employee benefits".

Had the Gympie Regional Council applied the revised standard this year annual leave currently

classified as a 'short-term benefit' would have been reclassified as a 'long-term benefit'. However, no

reported amounts would have been amended as the Council already discounts the annual leave liability

to present value in respect of amounts not expected to be settled within 12 months (refer Note 1.19).

The concept of "termination benefits" is clarified and the recognition criteria for liabilities for

terminations benefits will be different. If termination benefits meet the timeframe criterion for "short-

term employee benefits", they will be measured according to the AASB 119 requirements for "short-term

employee benefits". Otherwise, termination benefits will need to be measured according to the AASB

119 requirements for "other long-term employee benefits". Under the revised standard, the recognition

and measurement of employer obligations for "other long-term employee benefits" will need to be

accounted for according to most of the requirements for defined benefit plans.

The revised AASB 119 also includes changed requirements for the measurement of employer

liabilities/assets arising from defined benefit plans, and the measurement and presentation of changes in

such liabilities/assets.

Gympie Regional Council contributes to the Local Government Superannuation Scheme (Qld) as

disclosed in note 29. The revised standard will require Gympie Regional Council to make additional

disclosures regarding the Defined Benefits Fund element of the scheme.

The reported results and position of the council will not change on adoption of the other pronouncements

as they do not result in any changes to the council’s existing accounting policies. Adoption will,

however, result in changes to information currently disclosed in the financial statements. The council

does not intend to adopt any of these pronouncements before their effective dates.

87




1. 7 Critical accounting judgements and key sources of estimation uncertainty

In the application of Council's accounting policies, management is required to make judgements,

estimates and assumptions about carrying values of assets and liabilities that are not readily apparent

from other sources. The estimates and associated assumptions are based on historical experience and

other factors that are considered to be relevant. Actual results may differ from these estimates. The

estimates and ongoing assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

Judgements, estimates and assumptions that have a potential significant effect are outlined in the

following financial statement notes:

Valuation and depreciation of property, plant and equipment - note 1.16 and note 18 (b)

Impairment of property, plant and equipment - note 1.17 and note 18 (a)

Provisions - note 20

Contingencies - note 28

1. 8 Revenue

Rates, levies, grants and other revenue are recognised as revenue on receipt of funds or earlier upon

unconditional entitlement to the funds.

1. 8 (a) Rates and levies

Where rate monies are received prior to the commencement of the rating/levying period, the amount is

recognised as revenue in the period in which they are received, otherwise rates are recognised at the

commencement of rating period.

1. 8 (b) Grants and subsidies

Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue in the

year in which Council obtains control over them. An equivalent amount is transferred from retained

earnings to the relevant reserve until the funds are expended. Unspent non-reciprocal capital grants are

placed in the constrained grants, subsidies and contributions reserve.

Generally, Council spends all recurrent grants in the year received. An exception to this has occurred for

the 2011/12 year. The Council received advance payment of part of the Financial Assistance Grant for

the 2012/13 year. A grants received in advance reserve has been created to preserve this recurrent

funding to be used in the 12/13 year.

Where grants are received that are reciprocal in nature, revenue is recognised as the various performance

obligations under the funding agreement are fulfilled. Council does not currently have any reciprocal

grants.

1. 8 (c) Non-cash contributions

Non-cash contributions with a value in excess of the recognition thresholds, are recognised as revenue

and as non-current assets. Non-cash contributions below the thresholds are recorded as revenue and

expenses.

Physical assets contributed to Council by developers in the form of road works, stormwater, water and

wastewater infrastructure and park equipment are recognised as revenue when the development becomes

"on maintenance" (i.e. the Council obtains control of the assets and becomes liable for any ongoing

maintenance) and there is sufficient data in the form of drawings and plans to determine the approximate

specifications and values of such assets. All non-cash contributions are recognised at the fair value of the

contribution received on the date of acquisition.

1. 8 (d) Cash contributions

Developers also pay infrastructure charges to construct assets such as roads and footpaths and to connect

new property developments to water and sewerage networks in the local government area. These

infrastructure charges are not within the scope of AASB Interpretation 18 because there is no

performance obligation associated with them. Consequently, the infrastructure charges are recognised as

income when received.

88




1. 8 (e) Rental income

Rental revenue from investment and other property is recognised as income on a periodic straight line

basis over the lease term. Council has no revenue from investment properties in the reporting period.

1. 8 (f) Interest

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

1. 8 (g) Sale of Contract and Recoverable Works

Sale of contract and recoverable works are recognised as revenue when the service is delivered. An

invoice for the amount of works is raised at that time.

1. 8 (h) Fees and Charges

Fees and charges are recognised upon unconditional entitlement to the funds. Generally this is upon

lodgement of the relevant applications or documents, issuing of the infringement notice or when the

service is provided.

1. 9 Financial assets and liabilities

Council recognises a financial asset or a financial liability in its Statement of Financial Position when,

and only when, Council becomes a party to the contractual provisions of the instrument.

Gympie Regional Council has categorised and measured the financial assets and financial liabilities held

at balance date as follows:

Financial assets

Cash and cash equivalents (note 1.10)

Receivables - measured at amortised cost less any impairment (note 1.11)

Financial liabilities

Payables - measured at amortised cost (note 1.18)

Borrowings - measured at amortised cost (note 1.20)

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

been applied.

The fair value of financial instruments is determined as follows:

The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and

financial liabilities approximate their carrying amounts and are not disclosed separately.

The fair value of borrowings, as disclosed in note 21 to the financial statements, is determined by

reference to published price quotations in an active market and/or by reference to pricing models and

valuation techniques. It reflects the value of the debt if the Council repaid it in full at balance date.

As it is the intention of the Council to hold its borrowings for their full term, no adjustment provision

is made in these financial statements.

The fair value of trade receivables approximates the amortised cost less any impairment. The fair

value of payables approximates the amortised cost.

Gympie Regional Council does not recognise financial assets or financial liabilities at fair value in the

Statement of Financial Position.

All other disclosures relating to the measurement and financial risk management of financial instruments

are included in note 33.

89




1. 10 Cash and cash equivalents

Cash and cash equivalents includes cash on hand, all cash and cheques receipted but not banked at the

year end, deposits held at call with financial institutions, other short-term, highly liquid investments with

original maturities of three months or less that are readily convertible to known amounts of cash and

which are subject to an insignificant risk of changes in value, and bank overdrafts.

1. 11 Receivables

Trade receivables are recognised at the amounts due at the time of sale or service delivery i.e. the agreed

purchase price / contract price. Settlement of these amounts is required within 30 days from invoice

date.

The collectability of receivables is assessed periodically and if there is objective evidence that Council

will not be able to collect all amounts due, the carrying amount is reduced for impairment. The loss is

recognised in finance costs. The amount of the impairment is the difference between the asset’s carrying

amount and the present value of the estimated cash flows discounted at the effective interest rate.

All known bad debts were written-off at 30 June. Subsequent recoveries of amounts previously written

off in the same period are recognised as finance costs in the Statement of Comprehensive Income. If an

amount is recovered in a subsequent period it is recognised as revenue.

Because Council is empowered under the provisions of the Local Government Act 2009 to sell an

owner's property to recover outstanding rate debts, Council does not impair any rate receivables.

Loans and advances are recognised in the same way as other receivables. Terms are usually a maximum

of five years with interest charged at negotiated rates. Security is not normally obtained.

1. 12 Inventories

Stores and raw materials held for resale are valued at the lower of cost and net realisable value and

include, where applicable, direct material, direct labour and an appropriate portion of variable and fixed

overheads. Costs are assigned on the basis of weighted average cost.

Inventories held for distribution (internal consumption) are:

• goods to be supplied at no, or nominal, charge, and

• goods to be used for the provision of services at no, or nominal, charge.

Inventory for distribution is valued at cost, adjusted when applicable for any loss of service potential.

Land acquired by Council with the intention of reselling it (with or without further development) is

classified as inventory. This land is valued at the lower of cost or net realisable value. As an inventory

item, this land held for resale is treated as a current asset. Proceeds from the sale of this land will be

recognised as sales revenue on the signing of a valid unconditional contract of sale.

1. 13 Other financial assets

Other financial assets are recognised at cost.

At present Council does not have any other financial assets.

90




1. 14 Non current assets held for sale

Items of property, plant and equipment are reclassified as non-current assets held for sale when the

carrying amount of these assets will be recovered principally through a sales transaction rather than

continuing use. Non-current assets classified as held for sale are available for immediate sale in their

present condition and management believe the sale is highly probable. Non-current assets held for sale

are measured at the lower of their carrying amount and fair value less cost to sell and are not depreciated.

On the eventual sale of these assets a gain or loss is recognised.

1. 15 Investments

As term investments are available to Council at Council's discretion, all cash investments are classed as

cash equivalents.

1. 16 Property, plant and equipment

Each class of property, plant and equipment is stated at cost or fair value less, where applicable, any

accumulated depreciation and accumulated impairment loss. Items of plant and equipment with a total

value of less than $5,000, and infrastructure assets and buildings with a total value of less than $5,000

are treated as an expense in the year of acquisition. All other items of property, plant and equipment are

capitalised.

The classes of property plant and equipment recognised by the council are reported in note 18 (a).

(a) Acquisition of assets

Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets

given as consideration plus costs incidental to the acquisition, including freight in, architect's fees and

engineering design fees and all other establishment costs.

Property, plant and equipment received in the form of physical contributions, are recognised as assets

and revenues at fair value by Council valuation where that value exceeds the recognition thresholds for

the respective asset class. Fair value means the amount for which an asset could be exchanged, or a

liability settled, between knowledgeable, willing parties in an arm's length transaction.

(b) Capital and operating expenditure

Wage and materials expenditure incurred for the acquisition or construction of assets are treated as

capital expenditure. Routine operating maintenance, repair costs and minor renewals to maintain the

operational capacity of the non-current asset is expensed as incurred, while expenditure that relates to

replacement of a major component of an asset to maintain its service potential is capitalised.

(c) Valuation

Land and site improvements, buildings, other assets, heavy plant and all infrastructure assets are

measured on the revaluation basis, at fair value, in accordance with AASB 116 Property, Plant &

Equipment.

Non-current physical assets measured at fair value are revalued, 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 or council engineers to determine the

fair value for each class of property, plant and equipment assets at least once every 3 years. This process

involves the valuer physically sighting a representative sample of Council assets across all asset classes

and making their own assessments of the condition of the assets at the date of inspection.

Interim valuations for periods in between formal valuations by internal experts are performed annually

using the Queensland Treasury, Engineering Construction index on the Roads, Water and Sewerage

classes where there has been a positive or negative cumulative change in the index of greater than 5% as

outlined in policy NCAP 4.3. A desktop valuation is applied to all other classes as provided by the

registered valuer who carried out the last comprehensive valuation.

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 to that asset class.

On revaluation, accumulated depreciation is restated proportionately with the change in the carrying

amount of the asset and any changes 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.

Details of valuers and methods of valuations are disclosed in Note 18 (b).

91




(d) Capital work in progress

The cost of property, plant and equipment being constructed by the Council includes the cost of

purchased services, materials, direct labour and an appropriate proportion of labour overheads.

(e) Depreciation

Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and

equipment assets is calculated on a straight-line basis so as to write-off the net cost or revalued amount

of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to

the Council. Management believe that the straight-line basis appropriately reflects the pattern of

consumption of all Council assets.

Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from

the time an asset is completed and commissioned ready for use.

Where assets have separately identifiable components that are subject to regular replacement, these

components are assigned useful lives distinct from the asset to which they relate. Any expenditure that

increases the originally assessed capacity or service potential of an asset is capitalised and the new

depreciable amount is depreciated over the remaining useful life of the asset to the Council.

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 depreciated current replacement cost are used to estimate the useful lives of these

assets at each reporting date.

Details of the range of estimated useful lives for each class of asset are shown in note 18 (a).

(f) Land under roads

Land under roads acquired before 30 June 2008 is recognised as a non-current asset where the Council

holds title or a financial lease over the asset. The Gympie Regional Council currently does not have any

such land holdings.

Land under the road network within the Council area that has been dedicated and opened for public use

under the Land Act 1994 or the Land Title Act 1994 is not controlled by council but is controlled by the

state pursuant to the relevant legislation. Therefore this land is not recognised in these financial

statements.

1. 17 Impairment of non current assets

Each non-current physical and intangible asset and group of assets is assessed for indicators of

impairment annually. If an indicator of possible impairment exists, the Council determines the asset's

recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount

is recorded as an impairment loss. The recoverable amount of an asset is the higher of its fair value less

costs to sell and its value in use.

An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the

asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment

loss is offset against the asset revaluation surplus of the relevant class to the extent available.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the

revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the

carrying amount that would have been determined had no impairment loss been recognised for the asset

in prior years. A reversal of an impairment loss is recognised as income unless the asset is carried at a

revalued amount, in which case the reversal of the impairment loss is treated as a revaluation surplus

increase.

92




1. 18 Payables

Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the

agreed purchase/contract price net of applicable discounts other than contingent discounts. Amounts

owing are unsecured and are generally settled on 30 day terms.

1. 19 Liabilities - employee benefits

Liabilities are recognised for employee benefits such as wages and salaries, annual leave and long

service leave in respect of services provided by the employees up to the reporting date. Liabilities for

employee benefits are assessed at each reporting date. Where it is expected that the leave will be paid in

the next twelve months the liability is treated as a current liability. Otherwise the liability is treated as

non-current.

(a) Salaries and wages

A liability for salaries and wages is recognised and measured as the amount unpaid at the reporting date

at current pay rates in respect of employees' services up to that date. This liability represents an accrued

expense and is included in note 19 as a payable.

(b) Annual leave

A liability for annual leave is recognised. Amounts expected to be settled within 12 months (the current

portion) are calculated on current wage and salary levels and includes related employee on-costs.

Amounts not expected to be settled within 12 months (the non-current portion) are calculated on

projected future wage and salary levels and related employee on-costs, and are discounted to present

values.

(c) Sick leave

A liability for sick leave is recognised where this entitlement is vested to the employee under their

employment contract. The current portion (based on the expected payment date) is calculated on current

wage and salary levels and includes related employee on-costs. The non current portion is calculated on

projected future wage and salary levels and related employee on-costs, discounted to present values.

This liability represents an accrued expense and is reported in note 19 as a payable.

(d) Superannuation

The superannuation expense for the reporting period is the amount of the contribution the local

government makes to the superannuation plan which provides benefits to its employees.

Details of those arrangements are set out in note 29.

(e) Long service leave

A liability for long service leave is measured as the present value of the estimated future cash outflows to

be made in respect of services provided by employees up to the reporting date. The value of the liability

is calculated using current pay rates and projected future increases in those rates and includes related

employee on-costs. The estimates are adjusted for the probability of the employee remaining in the

Council's employment or other associated employment which would result in the Council being required

to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to date,

and the result is discounted to present value. The interest rates attaching to Commonwealth Government

guaranteed securities at the reporting date are used to discount the estimated future cash outflows to

their present value.

This liability is reported in note 20 as a provision.

1. 20 Borrowings

Borrowings are initially recognised at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition these liabilities are measured at amortised cost.

In accordance with the Local Government (Finance, Plans and Reporting) Regulation 2010, Council

adopts an annual debt policy that sets out Council's planned borrowings for the next nine years.

Council's current policy is to only borrow for capital projects and for a term no longer than the expected

life of the asset. Council also aims to comply with the Queensland Treasury Corporation's borrowing

guidelines and ensure that sustainability indicators remain within acceptable levels at all times.

All borrowing costs are expensed in the period in which they are incurred. No borrowing costs are

capitalised on qualifying assets.

Borrowings are classified as current liabilities except for the principle amount that is due and payable,

under the contractual terms of the loan agreement, 12 months after the end of the reporting period. This

amount is classified as a non current amount.

Further details are provided in note 21.

93




1. 21 Asset revaluation surplus

The asset revaluation surplus comprises adjustments relating to changes in value of property, plant and

equipment that do not result from the use of those assets. Net incremental changes in the carrying value

of classes of non-current assets since their initial recognition are accumulated in the asset revaluation

surplus.

Increases and decreases on revaluation are offset within a class of assets.

Where a class of assets is decreased on revaluation, that decrease is offset first against the amount

remaining in the asset revaluation surplus in respect of that class. Any excess is treated as an expense.

When an asset is disposed of, the amount reported in surplus in respect of that asset is retained in the

asset revaluation surplus and not transferred to retained surplus.

1. 22 Retained surplus (deficit)

This represents the amount of Council's net funds not set aside in reserves to meet specific future needs.

1. 23 Reserves held for funding future capital expenditure

These are cash backed reserves and represent funds, from revenue sources, that are accumulated to meet

anticipated future capital asset funding requirements. In each case the amount relates to a perceived

future requirement which is not currently a liability.

Future capital asset sustainability reserve

Where the Council has accumulated unspent cash arising from the funding of depreciation, (i.e. revenues

have been received to fund the write down in the capital assets value through use (depreciation)), but

this cash has not been reinvested in capital assets at the reporting date; the Council restricts the future

use of this cash to capital asset purchases only, to ensure the maintenance of its capital capacity to

deliver future services, (future sustainability). The amounts reported in this reserve at balance date

correspond to the amount of cash (reported within cash and cash equivalents) that is held for this

purpose. Should the asset management plans indicate a shortfall in funding, additional funding can be

transferred from the retained surplus account.The timing of future expenditure from this reserve is based

on the Council's 10 year asset management plans.

Unspent loan cash reserve

The amounts reported in this reserve at balance date correspond to the amount of cash (reported within

cash and cash equivalents) which has been received in respect of approved loan funds from QTC that

have been drawn down but not expended on the specific capital projects. As the funds are expended they

are transferred to the Council's capital account. Refer notes 14 and 25 (a) .

Constrained grants and subsidy contributions reserve

This reserve is credited with all non-reciprocal grants, subsidies and contributions of monetary revenue

received during the reported period and constrained for the purpose of funding non-specific capital

expenditure (eg. Headworks). As the funds are expended on capital assets the equivalent amounts are

transferred from the reserve to the capital account. The closing balance reported at the period end

represents funds not yet expended and must be retained until the obligation is satisfied.

Grants, subsidies and contributions reimbursed reserve

This reserve is credited with grants, subsidies and contributions of monetary revenue received during the

reported period which the council has identified as being a reimbursement of capital funds expended in a

prior period.

Capital Projects reserve

This reserve was created and holds funds to contribute to the future replacement of the Council's assets.

94




Capital Projects - Waste Management reserve

This reserve was created and holds funds to contribute to the future replacement of the Council's waste

management assets.

Sewerage reserve

This reserve was created to provide funds for future extensions to Council's Sewerage System.

Water reserve

This reserve was created to provide funds for future water reticulation services.

Special Projects reserve

This reserve was created to contribute to future funding of contingent capital works projects that will

arise from time to time.

1. 24 Reserves held for funding future recurrent expenditure:

These are cash backed reserves and represent funds that are accumulated within the Council to meet

anticipated future recurrent or operating expenditure needs. In each case the amount relates to a

perceived future requirement which is not currently a liability.

General Purpose reserve

This reserve was created to meet the unexpected operational costs thoughout the year.

Grants Received in Advance reserve

This reserve was created to preserve Federal Grant monies received in advance. These funds will be

used to fund expenditure in the 2012/13 year.

1. 25 National Competition Policy

The Council has reviewed its activities and has identified 4 activities that are business activities. Details

of these activities can be found in note 34.

1. 26 Rounding and comparatives

The financial statements have been rounded to the nearest $1.

Comparative information has been restated where necessary to be consistent with disclosures in the

current reporting period.

1. 27 Financial Risk Management

The Council minimises its exposure to financial risk in the following ways:

Investments in financial assets are only made where those assets are with a bank or other financial

institution in Australia and are for a period of less than one year. The Council does not invest in

derivatives or other high risk investments. When the Council borrows, it borrows from the Queensland

Treasury Corportation, taking into account any risk. Borrowing by the Council is constrained by the

provisions of the Statutory Bodies Financial Arrangement Act 1982.

Details of financial instruments and the associated risks are shown at note 33.

1. 28 Trust funds held for outside parties

Funds held in the trust account on behalf of outside parties include those funds from the sale of land for

arrears in rates, deposits for the contracted sale of land, security deposits lodged to guarantee

performance and unclaimed monies (e.g. wages) paid into the trust account by the Council. The Council

performs only a custodian role in respect of these monies and because the monies cannot be used for

Council purposes, they are not considered revenue nor brought to account in the financial statements.

For details see note 30.

1. 29 Taxation

Income of local authorities and public authorities is exempt from Commonwealth taxation except for

Fringe Benefits Tax and Goods and Services Tax (‘GST’). The net amount of GST recoverable from the

ATO or payable to the ATO is shown as an asset or liability respectively.

The Council pays payroll tax to the Queensland Government on certain activities.

95





2 (a) Components of council functions

The activities relating to the Council's components reported on in Note 2 (a) are as follows :


To set and achieve the Council's goals and objectives for the citizens of the Gympie Region by providing direction,

support, co-ordination, sound resource management policy and achieve effective and efficient management of

Council's assets and resources.

Engineering

To provide well constructed safe efficient infrastructure networks and engineering services that will meet community

needs.

Community Services

To enhance and preserve the lifestyle of all the Gympie Region's residents and visitors by providing services and

facilities for recreation, leisure, sport and cultural enrichment and preserving the entire Region's heritage.

To provide and preserve a safe and attractive natural and built environment by preservation, protection, maintenance

and development of the Region's open spaces and foreshores in accordance with community needs. To provide

opportunities for the Region's residents and visitors to access information that will enhance quality of life and

facilitate life-long learning.


To provide a planning framework that stimulates and co-ordinates investments in the Region while respecting the

environmental and community values and infrastructure needs and the enhancement of lifestyles of residents.

Water Program

To meet the community needs for potable water by the efficient purchase, treatment, storage and distribution of water

to consumers.

Sewerage Program

To protect public health, safety and the environment by the provision of an efficient system for safe collection,

transportation, treatment and disposal of sewage waste.

96





2 Analysis of results by function

(b) Revenue, expenses and assets have been attributed to the following functions :

Functions Income Total Total Net Assets

Grants Other income expenses result

for period

2012 2012 2012 2012 2012 2012

$ $ $ $ $ $

Corporate Governance 5,332,787 32,201,374 37,534,161 9,521,066 28,013,095 142,932,140

Engineering 20,701,495 13,170,017 33,871,512 41,617,526 (7,746,014) 573,000,507

Community Services 1,451,911 12,068,288 13,520,199 20,784,020 (7,263,821) 115,088,177

Planning and Development 10,000 1,114,843 1,124,843 3,868,801 (2,743,958) 59,152

Water Program - 8,784,007 8,784,007 6,756,846 2,027,161 77,420,761

Sewerage Program 5,352,581 9,574,586 14,927,167 11,286,227 3,640,940 107,410,247

Total 32,848,774 76,913,115 109,761,889 93,834,486 15,927,403 1,015,910,984

Prior Year

Functions Income Total Total Net Assets

Grants Other income expenses result

for period

2011 2011 2011 2011 2011 2011

$ $ $ $ $ $

Corporate Governance 5,273,997 30,630,124 35,904,121 6,104,600 29,799,521 144,137,064

Engineering 8,523,100 19,898,938 28,422,038 40,062,224 (11,640,186) 559,680,247

Community Services 1,733,030 10,750,184 12,483,214 18,409,897 (5,926,683) 115,879,182

Planning and Development - 1,625,346 1,625,346 3,906,973 (2,281,627) 246,586

Water Program 531,092 8,740,851 9,271,943 6,279,796 2,992,147 76,247,500

Sewerage Program 3,337,966 10,500,420 13,838,386 8,184,914 5,653,472 104,647,155

Total 19,399,185 82,145,863 101,545,048 82,948,404 18,596,644 1,000,837,734

97





2012 2011

Note $ $

3 Revenue analysis

(a) Rates and levies 1.8(a)

General rates 29,012,361 27,156,018

Separate rates 4,456,198 4,254,614

Environment/Rural Fire Brigade/Waste Levy 1,053,337 904,058

Water 7,320,765 6,716,408

Water consumption, rental and sundries 745,892 761,066

Sewerage 8,239,808 7,701,440

Garbage charges 7,087,864 6,383,734

Rates and utility charge revenue 57,916,225 53,877,338

Less: Discounts (2,162,055) (2,063,170)

Less: Pensioner remissions (506,335) (496,671)

Net rates and utility charges 55,247,835 51,317,497

(b) Statutory fees and charges

Other statutory fees 1,583,475 2,106,816

User fees and charges 1,435,917 1,526,088

3,019,392 3,632,904

(c) Interest received

Investments 4,560,274 4,934,637

Over due rates and utility charges 577,227 439,664

5,137,501 5,374,301

(d) Sales of contract and recoverable works

Revenue 8,468,689 9,532,969

8,468,689 9,532,969

The amount recognised as revenue from contract works during the period is the

amount receivable in respect of invoices issued during the period.

There are no contracts in progress at the period end.

The contract work carried out is not subject to retentions.

(e) Other recurrent income

Other income 143,917 416,641

143,917 416,641

4 Grants, subsidies, contributions and donations 1.8(b)

(i) Recurrent - grants, subsidies, contributions

and donations are analysed as follows:

General purpose grants 7,004,179 6,957,385


Donations 50,227 107,436

Contributions 5,373 11,530

Total recurrent revenue 20,250,388 9,394,701

Part of the 2013 Financial Assistance Grant for the amount of $2,879,386 was paid

to Council in June 2012.

(ii) Capital - grants, subsidies, and contributions

are analysed as follows:

(a) Monetary revenue designated for capital funding purposes:


Contributions 2,921,082 4,559,264

15,575,068 14,682,714

(b) Non-monetary revenue received is analysed as follows: 1.8(c)

Developer assets contributed by developers at fair value 1,321,354 7,193,321

1,321,354 7,193,321

Total capital revenue 16,896,422 21,876,035

98





2012 2011

Note $ $

(iii) Conditions over contributions

Non-reciprocal grants and contributions which were recognised as revenues during

the reporting period and which were obtained on the condition that they be

expended in a general specified manner (eg.headworks) by the contributor but had

not been expended at the reporting date:

Grants for infrastructure 3,546,576 4,785,437

Contributions for infrastructure 2,921,082 4,545,987

6,467,658 9,331,424

Non-reciprocal grants and contributions which were recognised as revenues during a

previous reporting period and were expended during the current reporting period.

Grants for infrastructure 4,749,437 4,695,100

Contributions for infrastructure 5,715,459 5,084,562

10,464,896 9,779,662

5 Capital income

Gain on the sale of capital assets 6 597,745 -

597,745 -

6 Gain (loss) on the disposal of capital assets

(a) Proceeds from the sale of plant and equipment 1,057,060 895,143

Less: Book value of plant and equipment sold (959,420) (769,138)

97,640 126,005

(b) Proceeds from the sale of land and buildings 899,942 326,096

Less: Book value of land and buildings sold (399,837) (480,000)

500,105 (153,904)

Total gain (loss) on the disposal of capital assets 5 & 11 597,745 (27,899)

7 Employee benefits

Total staff wages and salaries 22,541,464 21,812,334

Councillors' remuneration 764,477 759,594

Annual, sick and long service leave entitlements 5,174,427 4,856,509

Superannuation 29 3,184,056 2,967,099

31,664,424 30,395,536

Other employee related expenses 1,473,312 1,239,405

33,137,736 31,634,941

Less : Capitalised employee expenses (3,590,214) (3,318,203)

29,547,522 28,316,738

Councillor remuneration represents salary, and other allowances paid in respect of

carrying out their duties.

Total Council employees at June 2012: 2012 2011

Elected members 9 9

Administration staff 247 249

Depot and outdoors staff 221 225

Total full time equivalent employees 477 483

8 Materials and services

Audit of annual financial statements by the Auditor-General of Queensland 126,795 117,085

Other services provided by auditor 12,660 -

Donations paid 324,560 344,367

Legal fees 580,457 340,118

Other material and services 41,713,674 35,283,352

42,758,146 36,084,922

9 Finance costs

Finance costs charged by the Queensland Treasury Corporation 1,728,655 1,781,825

Bank charges 37,293 21,980

Impairment of receivables and bad debts written off (12,677) 24,595

1,753,271 1,828,400

99





2012 2011

Note $ $

10 Depreciation 1.16(e)

Depreciation of non-current assets

Land and Site Improvements 421,372 408,879

Buildings 722,062 731,689

Plant and equipment 1,779,834 1,948,187

Road, bridge and drainage 4,980,478 4,909,552

Water 1,872,795 1,798,802

Sewerage 2,577,930 1,704,773

Other Infrastructure 167,938 168,781

Other Assets 86,809 85,624

12,609,218 11,756,287

11 Capital expenses

Loss on the sale of capital assets 6 - 27,899

Loss on write-off of capital assets 12 7,166,329 4,934,158

Total capital expenses 7,166,329 4,962,057

12 Loss on write-off of capital assets are as follows:

Land and Site Improvements - 2,515

Buildings 2,084,606 350,740

Plant and equipment - 2,578


Water 155,673 109,549

Sewerage 3,465,199 1,558,073

Other Infrastructure - 5,930

Other Assets - 15,683

11 7,166,329 4,934,158

13 Loss on impairments

Loss on impairment of property plant and equipment 18 (a)

Buildings - 35,903

Flood damage to some buildings restricted their use and market value at the

reporting date.

Total impairment losses - 35,903

Less impairment losses offset against the asset revaluation surplus - (35,903)

Impairment losses treated as an expense - -

14 Cash assets and cash equivalents 1.10

Cash in operating bank account 7,187,221 2,710,541

Cash in other banks and on hand 6,110 6,760

Investments with approved deposit taking institutions at variable interest rates 8,000,000 11,000,000

Deposits and investments held with QTC at variable interest rate 68,708,885 63,558,885

Balance per statement of cash flows 83,902,216 77,276,186

Externally imposed expenditure restrictions at the reporting date

relate to the following cash assets:

Unspent loan monies 25 (a)(ii) 3,420,012 4,571,852

Unspent government grants and subsidies 25 (a)(iii) 3,582,573 4,785,437

Unspent developer contributions 25 (a)(iii) 11,502,330 14,296,707

Total unspent restricted cash for capital projects 18,504,915 23,653,996

Cash and deposits at call are held in the Commonwealth Bank in a normal business

cheque account and by investment with various Banks and Building Societies.

100





2012 2011

Note $ $

15 Trade and other receivables 1.11

(a) Current

Rateable revenue and utility charges 6,643,932 4,808,705

Accrued interest 343,008 502,720

GST recoverable 470,816 811,470

Other debtors 3,809,100 8,737,157

Less: Impairment provision - (12,519)

11,266,856 14,847,533

Prepayments 732,535 371,947

Loans and advances to community organisations 12,946 12,946

12,012,337 15,232,426

(b) Non-current

Loans and advances to community organisations 31,732 44,550

31,732 44,550

Interest is charged on outstanding rates at a rate of 11% per annum.

No interest is charged on other debtors. There is no concentration of credit risk for

rates and utility charges, fees and other debtors receivable.

All loans and advances relate to loans made to various community bodies. These

loans arise from time to time and are subject to negotiated interest rates. The credit

risk on these loans is considered low.

Movement in accumulated impairment losses (trade and other receivables)

is as follows:

Opening balance 12,519 25,176

Impairment adjustment in period (12,519) (12,657)

Closing balance - 12,519

16 Inventories 1.12

Current

Inventories for internal use:

Stores and materials 1,800,563 1,975,938

1,800,563 1,975,938

Valued at cost, adjusted when applicable for any loss of

service potential.

Land purchased for development and sale 17 61,200 61,200

1,861,763 2,037,138

17 Land purchased for development and sale 1.14

Balance at the beginning of financial year 61,200 61,200

Balance at end of the financial year 61,200 61,200

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

realisable value.

101


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75

,76

2

10

,35

5,8

53

2

26

,11

1

35

,58

6

1

73

,66

4

-

2

31

,20

3

Inte

rnal

tra

nsf

ers

bet

wee

n a

sset

cla

sses

-

-

(15

,06

3,6

32

)

1

5,0

63

,63

2

(26

5,9

54

)

-

-

2

65

,95

4

-

-

Clo

sin

g g

ross

val

ue

71

,16

2,4

73

1

05

,62

2,8

19

6,3

74

,49

5

2

5,6

39

,39

4

65

7,7

45

,97

7

1

23

,45

5,7

60

14

0,5

16

,76

0

8

,28

7,2

55

3,0

42

,84

7

2

9,4

96

,30

8

1,1

71

,34

4,0

88

Accumulated depreciation and impairment

Op

enin

g b

alan

ce3

,53

0,9

84

11

,63

0,0

22

5

,47

9,5

42

-

1

27

,65

1,5

47

53

,54

4,3

32

4

3,9

62

,93

8

1,4

97

,87

9

2

,81

5,4

42

25

0,1

12

,68

6

Dep

reci

atio

n p

rov

ided

in

per

iod

42

1,3

72

7

22

,06

2

1,7

79

,83

4

-

4,9

80

,47

8

1

,87

2,7

95

2,5

77

,93

0

1

67

,93

8

86

,80

9

1

2,6

09

,21

8

Dep

reci

atio

n o

n d

isp

osa

ls-

-

(7

47

,36

2)

-

-

-

-

-

-

(74

7,3

62

)

Dep

reci

atio

n o

n w

rite

-off

s-

-

-

-

(3

16

,59

3)

(16

5,0

10

)

(8

,13

0,4

20

)

-

(1

,36

9,1

25

)

(9,9

81

,14

8)

Rev

alu

atio

n a

dju

stm

ent

to t

he

AR

S*

(2,6

59

,22

1)

(2

51

,27

2)

-

9

,89

2,2

03

(5,7

11

,88

7)

3

4,7

15

26

6

(57

,04

6)

-

1

,24

7,7

58

Inte

rnal

tra

nsf

ers

to o

ther

ass

et c

lass

es-

-

(3

,98

1,1

39

)

3,9

81

,13

9

-

-

-

-

-

-

Clo

sin

g a

ccu

mu

late

d d

epre

ciat

ion

and

im

pai

rmen

t b

alan

ce1

,29

3,1

35

12

,10

0,8

12

2

,53

0,8

75

13

,87

3,3

42

1

26

,60

3,5

45

55

,28

6,8

32

3

8,4

10

,71

4

1,6

08

,77

1

1

,53

3,1

26

25

3,2

41

,15

2

Net

val

ue

at 3

0 J

un

e 2

01

26

9,8

69

,33

8

93

,52

2,0

07

3

,84

3,6

20

11

,76

6,0

52

5

31

,14

2,4

32

68

,16

8,9

28

1

02

,10

6,0

46

6,6

78

,48

4

1

,50

9,7

21

29

,49

6,3

08

9

18

,10

2,9

36

Ran

ge

of

esti

mat

ed u

sefu

l li

fe i

n y

ears

Imp

's:

15

- 1

50

15

- 1

50

1 -

15

6 -

15

20

- 1

00

15

- 1

50

15

- 8

08

- 1

00

2 -

10

0

Ro

ad,

bri

dg

e an

d

dra

inag

e

Lan

d a

nd

Sit

e

Imp

rov

emen

tsB

uil

din

gs

Pla

nt

and

eq

uip

men

tH

eav

y p

lan

tW

ork

s in

pro

gre

ssT

ota

lW

ater

Sew

erag

eO

ther

In

fras

tru

ctu

reO

ther

Ass

ets

102


GYMPIE REGIO

NAL COUNCIL


Fo

r th

e y

ear

end

ed 3

0 J

un

e 2

01

2

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

Bas

is o

f m

easu

rem

ent

Val

uat

ion

Val

uat

ion

Co

stV

alu

atio

nV

alu

atio

nV

alu

atio

nV

alu

atio

nV

alu

atio

nV

alu

atio

nC

ost

20

11

20

11

20

11

20

11

20

11

20

11

20

11

20

11

20

11

20

11

20

11

Asset Values

$$

$$

$$

$$

$$

$

Op

enin

g g

ross

val

ue

94

,61

9,4

88

9

9,4

90

,36

4

17

,97

6,4

12

-

62

0,4

85

,07

4

1

15

,80

6,7

78

10

2,9

99

,77

5

6

,49

8,5

12

3,8

06

,66

6

7

0,0

67

,16

3

1,1

31

,75

0,2

32

Ad

dit

ion

s at

co

st-

-

-

-

-

-

-

-

-

30

,10

0,8

42

3

0,1

00

,84

2

Co

ntr

ibu

ted

ass

ets

at v

alu

atio

n-

-

-

-

5

,49

0,8

42

58

3,2

75

1

,11

9,2

04

-

-

7,1

93

,32

1

Inte

rnal

tra

nsf

ers

fro

m w

ork

in

pro

gre

ss1

,07

6,1

26

1,5

10

,15

3

2

,90

2,3

12

-

6

,55

1,1

88

20

0,7

41

2

1,1

20

,91

2

30

6,6

88

2

25

,50

6

(33

,89

3,6

26

)

-

Dis

po

sals

(4

80

,00

0)

-

(1

,35

4,5

54

)

-

-

-

-

-

-

(1,8

34

,55

4)

Wri

te-o

ffs

(6,3

00

)

(40

1,8

54

)

(4

,80

7)

-

(5,4

41

,07

5)

(2

42

,61

8)

(4,7

86

,82

5)

(5

,93

0)

(1

33

,58

3)

-

(11

,02

2,9

92

)

Rev

alu

atio

n a

dju

stm

ent

to t

he

AR

S*

-

-

-

-

(17

1,0

46

)

-

-

3

44

,31

7

-

1

73

,27

1

Clo

sin

g g

ross

val

ue

95

,20

9,3

14

1

00

,59

8,6

63

19

,51

9,3

63

-

62

6,9

14

,98

3

1

16

,34

8,1

76

12

0,4

53

,06

6

7

,14

3,5

87

3,8

98

,58

9

6

6,2

74

,37

9

1,1

56

,36

0,1

20

Accumulated depreciation and impairment

Op

enin

g b

alan

ce3

,12

5,8

90

10

,91

3,5

44

4

,11

9,0

00

-

1

16

,75

9,7

66

51

,87

8,5

99

4

5,4

86

,91

7

2,7

38

,02

4

2

,84

7,7

18

23

7,8

69

,45

8

Dep

reci

atio

n p

rov

ided

in

per

iod

40

8,8

79

7

31

,68

9

1,9

48

,18

7

-

4,9

09

,55

2

1

,79

8,8

02

1,7

04

,77

3

1

68

,78

1

85

,62

4

1

1,7

56

,28

7

Dep

reci

atio

n o

n d

isp

osa

ls-

-

(5

85

,41

6)

-

-

-

-

-

-

(58

5,4

16

)

Dep

reci

atio

n o

n w

rite

-off

s(3

,78

5)

(5

1,1

14

)

(2

,22

9)

-

(2,5

51

,98

5)

(1

33

,06

9)

(3,2

28

,75

2)

-

(11

7,9

00

)

(6

,08

8,8

34

)

Rev

alu

atio

n a

dju

stm

ent

to t

he

AR

S*

-

-

-

-

8,5

34

,21

4

-

-

(1

,40

8,9

26

)

-

7

,12

5,2

88

Imp

airm

ent

adju

stm

ent

to t

he

AR

S*

-

3

5,9

03

-

-

-

-

-

-

-

3

5,9

03

Clo

sin

g a

ccu

mu

late

d d

epre

ciat

ion

-

-

-

-

-

-

-

-

-

and

im

pai

rmen

t b

alan

ce3

,53

0,9

84

11

,63

0,0

22

5

,47

9,5

42

-

1

27

,65

1,5

47

53

,54

4,3

32

4

3,9

62

,93

8

1,4

97

,87

9

2

,81

5,4

42

25

0,1

12

,68

6

Net

val

ue

at 3

0 J

un

e 2

01

19

1,6

78

,33

0

88

,96

8,6

41

1

4,0

39

,82

1

-

4

99

,26

3,4

36

62

,80

3,8

44

7

6,4

90

,12

8

5,6

45

,70

8

1

,08

3,1

47

66

,27

4,3

79

9

06

,24

7,4

34

Ran

ge

of

esti

mat

ed u

sefu

l li

fe i

n y

ears

Imp

's:

5 -

99

15

- 1

50

1 -

15

20

- 1

00

15

- 1

50

15

- 8

08

- 1

00

2 -

10

0N

ot

dep

reci

ated

* A

RS

den

ote

s -

Ass

et R

eval

uat

ion

Su

rplu

s

Lan

d a

nd

Sit

e

Imp

rov

emen

tsB

uil

din

gs

Pla

nt

and

eq

uip

men

tH

eav

y p

lan

tR

oad

, b

rid

ge

and

dra

inag

eW

ater

Wo

rks

in p

rog

ress

To

tal

Sew

erag

eO

ther

In

fras

tru

ctu

reO

ther

Ass

ets

103





18 (b) Property, plant and equipment valuations were determined by reference

to the following:

Land and Site Improvements

The fair value of land is measured at current market value as at 30 June 2012 as

independently determined by Australia Pacific Valuers Pty Ltd. Fair value was

derived by reference to the available market evidence. This used the direct

comparison approach to the land valuations and excludes contaminated sites and

zoning in value consideration.

The fair value of site improvements is measured at current market value as at 30

June 2012 was independently determined by Australia Pacific Valuers Pty Ltd. Fair

value was derived by reference to the available market evidence. This used the direct

comparison approach to the land valuations and excludes contaminated sites and

zoning in value consideration.

Physical inspections were completed by the 29th February 2012 and any additions

acquired since that date are recorded at cost.

Buildings

There is no market for Council's Buildings as these are held to provide essential

services to the community. Accordingly, the fair value of all buildings is measured at

written down current replacement cost. The fair value of buildings as at 30 June

2012 was independently determined by Australia Pacific Valuers Pty Ltd using a

"desktop" approach (refer note 1.16). Fair value was derived by reference to various

construction guides, data from the Australian Bureau of Statistics and their own

internal research.

This approach determined that the below index movements:

Building Category Index %

Residential 5%

Commercial 2.5%

Industrial 2.5%

Civic 4%

Amenities 4%

The last physical inspections were completed by Australia Pacific Valuers Pty Ltd in

June 2010.

Condition was assed using the below table:

Phase Points Description

0 Very high level of remaining service potential

1 High level of remaining service potential

2 Adequate level of remaining service potential

3 Adequate level of remaining service potential

but some concerns

4 Very low level of remaining service potential

5 No longer providing an acceptable level of service

(H) High end of the scale

(M) Mid-way to the next phase

Plant and equipment

Other plant and equipment is measured at original cost less accumulated

depreciation.

104





Heavy plant

The fair value of heavy plant is measured at current market value as at 30 June 2012

was independently determined by Australia Pacific Valuers Pty Ltd. Fair value was

derived by reference to costing guides and directly contacting manufacturers /

suppliers and market sale prices of heavy plant in similar condition and age.

Physical inspections were completed during February 2012 and any additions

acquired since that date are recorded at cost.

Infrastructure

There is no market for Council's infrastructure assets as these are held to provide

essential services to the community. Accordingly, the fair value of all infrastructure

assets is measured at written down current replacement costs.

Road, bridge and drainage

The fair value of road, bridge and drainage infrastructure as at 30 June 2012 was

determined by management based on the relevant indexation information.

Management has considered the movement in the Queensland Treasury Engineering

Construction index and note that the cumulative movement of 3.5% is under the 5%

materiality threshold and the uplift in the index is not recognised in the financial

statements. Asset conditions are assessed on an ongoing basis.

The valuation of road, bridge and drainage infrastructure assets was performed by

Council Engineers as at 30 June 2010. This valuation reviewed the condition rating,

unit rates, useful lives, residual values and any market conditions that impact their

values. Complex assets are reviewed at a component level. The revaluation process

was controlled by an internal expert. Any additions acquired since that date are

recorded at cost.

During January 2011 and 2012 some of Council's road and drainage network was

damaged by flooding. Any damage still outstanding as at the 30 June 2012 has been

reflected in the current values of these roads and drainage assets and the asset

revaluation surplus adjusted to reflect their condition.

Water and Sewerage

The fair value of water and sewerage infrastructure as at 30 June 2012 was

determined by management based on the relevant indexation information.

Management has considered the movement in the Queensland Treasury Engineering

Construction index and note that the cumulative movement of 3.5% is under the 5%

materiality threshold and the uplift in the index is not recognised in the financial

statements. Asset conditions are assessed on an ongoing basis.

The valuation of water and sewerage infrastructure assets was performed by Council

Engineers as at 30 June 2010. This valuation reviewed the condition rating, unit

rates, useful lives, residual values and any market conditions that impact their

values. Complex assets are reviewed at a component level. The revaluation process

was controlled by an internal expert. Any additions acquired since that date are

recorded at cost.

105





Other Infrastructure

There is no market for Council's Other Infrastructure as these are held to provide

essential services to the community. Accordingly, the fair value of all other

infrastructure is measured at written down current replacement cost. The fair value

of other infrastructure as at 30 June 2012 was independently determined by

Australia Pacific Valuers Pty Ltd using a "desktop" approach (refer note 1.16). Fair

value was derived by reference to various construction guides, data from the

Australian Bureau of Statistics and their own internal research.

This approach determined that the below index movements:

Building Category Index %

Other Structures 3%

Car Parks and Internal Roads 3%

Storm Water Drainage 3%

Kerb and Channelling 3%

Bridges 3%

Condition was assessed per the condition table in buildings above.

The last physical inspections were completed by Australia Pacific Valuers Pty Ltd in

June 2011.

Other Assets

Other assets were last revalued at their written down current replacement cost as at

21 June 2009 by Rushtons Asset Val Pty Ltd, Valuer. No revaluation was processed

for this class due to the change in indexation considered not to materially affect the

fair value of this class as at 30 June 2012.

Other Assets acquired since that date are recorded at cost.

106





2012 2011

Note $ $

19 Trade and other payables 1.19

Current

Creditors and accruals 2,837,250 3,010,823

Employee related accruals 1,564,786 1,349,968

Superannuation defined contributions 116,508 107,241

Annual leave 1.19(b) 3,164,421 2,303,148

Sick leave 1,470,642 1,496,577

9,153,607 8,267,757

Non Current

Annual leave 1.19(b) 305,585 936,388

Sick leave 619,861 493,543

925,446 1,429,931

Employee benefit expenses are calculated at current pay levels and adjusted for

inflation and likely future changes in salary level.

The non-current portion of annual leave and long service leave is then discounted to

the present value. Further details on employee entitlements are reported in Note 1.20

20 Provisions

Current

Future election costs 319,923 135,000

Long service leave 1.19(e) 4,471,427 3,881,210

4,791,350 4,016,210

Non-Current

Long service leave 1.19(e) 1,088,144 1,157,965

1,088,144 1,157,965

Details of movements in provisions:

Long service leave

Balance at the beginning of financial year 5,039,175 5,195,832

Amount provided for in the period 593,999 461,751

Amount paid in the period (73,603) (618,408)

Balance at end of the financial year 5,559,571 5,039,175

Future election costs

Opening balance 135,000 110,000

Net movement during the reporting period 184,923 25,000

Balance at end of the financial year 319,923 135,000

Current portion 319,923 135,000

Non-current portion - -

319,923 135,000

107





2012 2011

Note $ $

21 Borrowings 1.20

(a) Bank overdraft

The council has an approved overdraft facility with the Commonwealth Bank of

Australia of: 200,000 200,000

The unexpired balance (excess) of the facility at the reporting date was: 200,000 200,000

This facility is available in the next reporting period.

(b) Unsecured borrowings

Unsecured borrowings are provided by the Queensland Treasury Corporation.

All borrowings are in $A denominated amounts and carried at amortised cost,

interest being expensed as it accrues. No interest has been capitalised during the

current or comparative reporting period. Expected final repayment dates vary from

15 July 2013 to 19 February 2030.

Principal and interest repayments are made quarterly in arrears.

Details of borrowings at balance date are:

Current

Queensland Treasury Corporation 1,037,463 970,356

Non Current

Queensland Treasury Corporation 25,224,056 26,260,329

Details of movements in borrowings:

Queensland Treasury Corporation


Principal repayments (969,166) (1,178,984)


Classified as :

Current 1,037,463 970,356

Non-current 25,224,056 26,260,329

26,261,519 27,230,685

The loan market value at the reporting date was $29,606,879. This represents the

value of the debt if Council repaid it at that date. As it is the intention of Council

to hold the debt for its term, no provision is required to be made in these

accounts.

No assets have been pledged as security by the council for any liabilities.

Borrowings are all in $A and are underwritten by the Queensland State

Government.

22 Other liabilities

Current

Unearned revenue 280,677 235,793

280,677 235,793

108





2012 2011

Note $ $

23 (i) Asset revaluation surplus 1.21

Movements in the asset revaluation surplus were as follows:


(a) Adjustments to property, plant and equipment through revaluations: 18

Land and Site Improvements (22,639,499) -

Buildings 4,414,219 -

Heavy plant 683,559 -

Road, bridge and drainage 7,334,863 (8,705,260)

Other Infrastructure 230,710 1,753,243

(9,976,148) (6,952,017)

(b) Adjustments to property, plant and equipment through impairments:

Buildings - (35,903)

- (35,903)

(c) Gain on assets not previously recognised

Road, bridge and drainage 8,732,877 -

Water 191,396 -

Sewerage 35,320 -

8,959,593 -


(ii) Asset revaluation surplus analysis

The closing balance of the asset revaluation surplus is comprised of the

following asset categories:

Land and Site Improvements 30,746,849 53,386,348

Buildings 54,388,085 49,973,866

Heavy plant 683,559 -


Water 14,777,061 14,585,665

Sewerage 13,118,802 13,083,482

Other Infrastructure 1,983,953 1,753,243

Other Assets 351,987 351,987

309,078,492 310,095,047

24 Retained surplus 1.23

Movement in retained surplus


Net result 15,927,403 18,596,644

586,273,545 569,505,539

Transfers (to)/ from capital reserves for future capital project funding, or from

reserves funds that have been expended:

Constrained grants and subsidy contributions reserve 3,997,241 (509,166)

Grants, subsidies and contributions reimbursed reserve - 944,127

Future capital asset sustainability reserve 1,194,813 (3,510,895)

Unspent loan cash reserve 1,151,840 6,458,416

Capital projects reserve (4,401,558) (1,470,821)

Capital Projects - waste m'gnt reserve (1,009,913) (873,440)

Sewerage reserve 5,078 -

Water reserve - 2,382

Special projects reserve - (200,000)

937,501 840,603

Transfers (to) recurrent reserves for future project funding, or from reserves

funds that have been expended:

General purpose reserve 210,745 -

Grants Received in advance reserve (2,879,386) -

(2,668,641) -


109





2012 2011

Note $ $

25 Reserves 1.24

(a) Restricted capital reserves

(i) Future capital asset sustainability reserve


Funded depreciation on capital assets in period 12,609,218 11,756,287

Less: Funds utilised in the period (13,804,031) (8,245,392)


(ii) Unspent loan cash reserve

This cash forms part of council's capital value as the balance represents loan cash

drawn down but unspent at balance date. The cash is restricted to specific project

funding.


Loan cash expended in period. (1,151,840) (6,458,416)


(iii) Constrained grants and subsidy contributions reserve


Transfer from retained earnings non reciprocal grants, subsidies and

contributions received and allocated to specific capital projects 15,575,068 14,682,714

Transfer to retained earnings funds expended (19,572,309) (14,173,548)


Total restricted capital reserves 40,482,550 46,826,444

(b) Other reserves

(1) Summary of capital reserves held for funding future projects:

(i) Grants, subsidies and contributions reimbursed reserve - 2,702,169

(ii) Capital Projects reserve 24,824,049 20,422,491

(iii) Capital Projects - Waste M'gnt reserve 5,409,532 4,399,619

(iv) Sewerage reserve 1,822,038 120,422

(v) Water reserve 995,475 -

(vi) Special Projects reserve 1,792,638 1,792,638

34,843,732 29,437,339

(2) Summary of recurrent reserves held for funding future projects:

(i) General Purpose reserve 1,583,676 1,794,421

(ii) Grants Received in Advance reserve 2,879,386 -

4,463,062 1,794,421

Total general reserves 39,306,794 31,231,760

Movements in capital reserves are analysed as follows:

(i) Grants, subsidies and contributions reimbursed reserve


Transfer to retained earnings funds expended - (944,127)

Reallocation of funds to other capital reserves (2,702,169) -

Balance at end of the financial year - 2,702,169

(ii) Capital Projects reserve


Transfer from retained earnings for future expenditure 5,554,494 2,548,373

Transfer to retained earnings funds expended (1,152,936) (1,077,552)


(iii) Capital Projects - Waste Management reserve


Transfer from retained earnings for future expenditure 1,271,814 1,114,505

Transfer to retained earnings funds expended (261,901) (241,065)


(iv) Sewerage reserve

Balance at the beginning of financial year 120,422 120,422

Transfer from the grants, subsidies and contributions reimbursed reserve 1,706,694 -

Transfer to retained earnings funds expended (5,078) -

Balance at end of the financial year 1,822,038 120,422

110





2012 2011

Note $ $

(v) Water reserve

Balance at the beginning of financial year - 2,382

Transfer from the grants, subsidies and contributions reimbursed reserve 995,475 -

Transfer to retained earnings funds expended - (2,382)

Balance at end of the financial year 995,475 -

(vi) Special Projects reserve


Transfer from retained earnings for future expenditure - 200,000


Movements in recurrent reserves are analysed as follows:

(i) General Purpose reserve


Transfer to retained earnings funds expended (210,745) -


(ii) Grants Received in Advance reserve

Balance at the beginning of financial year - -

Transfer from retained earnings for future expenditure 2,879,386 -

Balance at end of the financial year 2,879,386 -

26 Commitments for expenditure

Contractual Commitments

Contractual commitments at balance date but not recognised

in the financial statements are as follows:

Contract for Refuse Disposal - expires June 2014 - per year 3,034,850 3,580,925

Contract for Refuse Disposal - expires September 2013 - per year 72,300 203,720

3,107,150 3,784,645

Capital Commitments

Commitment for the construction of the following assets contracted for

at the reporting date but not recognised as liabilities are as follows:

Buildings 192,085 2,689,599

Infrastructure & Other infrastructure 1,571,272 7,560,110

Plant - 131,420

Land & improvements 220,168 133,940

1,983,525 10,515,069

These expenditures are payable :

Within one year 1,983,525 10,515,069

Later than 1 year but not later than 5 years - -

Later than 5 years - -

1,983,525 10,515,069

27 Events after balance date

There were no material financial adjusting events after balance date.

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28 Contingent liabilities

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

Local Government Workcare

The Gympie Regional Council is a member of the Queensland local

government workers compensation self-insurance scheme, Local Government

Workcare. Under this scheme the Council has provided a bank guarantee

to cover bad debts which may remain should the self insurance licence

be cancelled and there was insufficient funds available to cover outstanding

liabilities. Only the Queensland Government's workers compensation authority

may call on any part of the guarantee should the above circumstances arise.

The Council's maximum exposure to the bank guarantee is: 994,379 935,619

Local Government Mutual

The Council is a member of the local government mutual liability self-insurance pool,

LGM Queensland. In the event of the pool being wound up or it is unable to meet its

debts as they fall due, the trust deed and rules provide that any accumulated deficit

will be met by the individual pool members in the same proportion as their

contribution is to the total pool contributions in respect to any year that a deficit

arises.

As at 30 June 2011, the financial statements reported an accumulated surplus and it

is not anticipated any liability will arise.

112





2012 2011

Note $ $

29 Superannuation

The Gympie Regional Council contributes to the Local Government

Superannuation Scheme (Qld) (the scheme). The scheme is a Multi-employer Plan

as defined in the Australian Accounting Standard AASB119 Employee Benefits.

The Queensland Local Government Superannuation Board, the trustee of the scheme,

advised that the local government superannuation scheme was a complying

superannuation scheme for the purpose of the Commonwealth Superannuation

Industry (Supervision) legislation.

The scheme has two elements referred to as the Defined Benefits Fund (DBF) and the

Accumulation Benefits Fund (ABF). The ABF is a defined contribution scheme as

defined in AASB 119. Council has no liability to or interest in the ABF other than the

payment of the statutory contributions as required by the Local Government Act 2009.

The DBF is a defined benefit plan as defined in AASB119. The Council is not able to

account for the DBF as a defined benefit plan in accordance with AASB119 because

the scheme is unable to account to the Council for its proportionate share of the

defined benefit obligation, plan assets and costs.

Any amount by which either fund is over or under funded would only affect future

benefits and contributions to the DBF, and is not an asset or liability of the Council.

Accordingly there is no recognition in the financial statements of any over or under

funding of the scheme.

The audited general purpose financial report of the scheme as at 30 June 2011 (the

most recent available) which was not subject to any audit qualification, indicates that

the assets of the scheme are sufficient to meet the vested benefits.

The most recent actuarial assessment of the scheme was undertaken as at 1 July 2009.

The actuary indicated that “the DBF is in a very modest financial position with regard

to the net asset coverage of vested liabilities. Investment returns will be volatile under

the required investment strategy, particularly over short periods. The DBF therefore

needs sufficient reserves to be able to withstand a reasonable range of such influences.

Because the DBF is now running down and cash flows are negative, the VBI (vested

benefit index) should not be allowed whenever possible to retreat below 100%. Once

below 100%, benefits drawn reduce the available assets for remaining members and

hence the nest asset coverage of vested benefits declines further.

In order to withstand a one in ten ‘low return’ outcome, the DBF would need reserves

of the order of 8% to 10% having regard to the investment strategy adopted. Given the

current position of the DBF, such reserve can essentially only eventuate from either

excess investment returns over salary increases or additional employer contributions.

Council has been advised by the trustee of the scheme, following advice from the

scheme’s actuary, that additional contributions may be imposed in the future at a level

necessary to protect the entitlements of DBF members. Under the Local Government

Act 2009 the trustee of the scheme has the power to levy additional contributions

on councils which have employees in the DBF when the actuary advises such

additional contributions are payable - normally when the assets of the DBF are

insufficient to meet members' benefits.

The next actuarial investigation will be made as at 1 July 2012.

The amount of superannuation contributions paid by Gympie Regional Council

to the scheme in this period for the benefit of employees was: 3,184,056 2,967,099

30 Trust funds 1.28

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 764,256 56,106

Security deposits 1,284,556 2,058,231

2,048,812 2,114,337

The Gympie Regional Council performs only a custodial role in respect of these

monies, and because the monies cannot be used for Council purposes, they are not

brought to account in these financial statements.

113





2012 2011

Note $ $

31 Reconciliation of net result for the year to net cash

inflow (outflow) from operating activities

Net result 15,927,403 18,596,644

Non-cash operating items:

Impairment of receivables and bad debts written off 9 (12,677) 24,595

Depreciation and amortisation 10 12,609,218 11,756,287

12,596,541 11,780,882

Investing and development activities:

Capital grants, subsidies and contributions 4 (16,896,422) (21,876,035)

Capital income 5 (597,745) -

Capital expenses 11 7,166,329 4,962,057

(10,327,838) (16,913,978)

Changes in operating assets and liabilities :

(Increase) decrease in receivables 3,593,354 (6,269,121)

(Increase) decrease in inventories (excluding land) 175,375 505,534

Increase (decrease) in payables 20,777 215,624

Increase (decrease) in provisions 705,319 (131,657)

Increase (decrease) in other liabilities 44,884 13,660

4,539,709 (5,665,960)

Net cash inflow from operating activities 22,735,815 7,797,588

32 Minor correction for assets not previously recognised

During the financial year Council became aware of some assets in property plant and

equipment that were not previously recognised as well as some assets previously

recognised that should not have been recognised.

The asset classes affected are disclosed in notes indicated.

Summary details of assets not previously recognised are as follows:

Gross value of property, plant and equipment 18 10,617,550 -

Less: Accumulated depreciation 18 (1,657,957) -

Gain from assets not previously recognised 5 8,959,593 -

The gain has been recognised in the asset revaluation reserve.

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33 Financial Instruments

Gympie Regional Council's activities expose it to a variety of financial risks including interest rate risk, credit risk,

and liquidity risk.

Exposure to financial risks is managed in accordance with Council approved policies on financial risk management. These

policies focus on managing the volatility of financial markets and seek to minimise potential adverse effects on the financial

performance of the Council. The Council minimises its exposure to financial risk in the following ways:

- Investments in financial assets are only made where those assets are with a bank or other financial institution in

Australia. The Council does not invest in derivatives or other high risk investments.

- When the Council borrows, it borrows from the Queensland Treasury Corporation unless another financial institution

can offer a more beneficial rate, taking into account any risk. Borrowing by the Council is constrained by the

provisions of the Statutory Bodies Financial Arrangements Act 1982.

Gympie Regional Council measures risk exposure using a variety of methods as follows:

Risk exposure Measurement method

Credit risk Ageing analysis

Liquidity risk Maturity analysis

Interest rate risk Sensitivity analysis

(i) Credit Risk

Credit risk exposure refers to the situation where the Council may incur financial loss as a result of another party to a

financial instrument failing to discharge their obligations.

In the case of rate receivables, the Council has the power to sell the property to recover any defaulted amounts.

In effect this power protects the Council against credit risk in the case of these debts.

In other cases, the Council assesses the credit risk before providing goods or services and applies normal business

credit protection procedures to minimise the risk.

The Council is exposed to credit risk through its investments with the Queensland Treasury Corporation (QTC) and

deposits held with banks or other financial institutions (if applicable). The QTC Cash Fund is an asset management

portfolio that invests with a wide variety of high credit rating counterparties. Deposits are capital guaranteed.

Other investments are held with highly rated/regulated banks/financial institutions and whilst not capital guaranteed,

the likelihood of a credit failure is remote.

By the nature of the Councils operations, there is a geographical concentration of risk in the Council's area. Because

the area is largely agriculture and tourism, there is also a concentration of risk in the agriculture and tourism sectors.

sector. The maximum exposure to credit risk at balance date in relation to each class of recognized financial asset is the

gross carrying amount of those assets inclusive of any provisions for impairment.

No collateral is held as security relating to the financial assets held by the Council.

The following table represents the Council's maximum exposure to credit risk:

Note 2012 2011

Financial Assets $ $

Cash and cash equivalents - Bank 14 7,193,331 2,717,301

Cash and cash equivalents - QTC 14 68,708,885 63,558,885

Investments with approved deposit

taking institutions 14 8,000,000 11,000,000

Receivables - rates 15 6,643,932 4,808,705

Receivables - other 15 4,667,602 10,096,324

Other credit exposure

Guarantee 28 994,379 935,619

Total 96,208,129 93,116,834

115





33 Financial instruments - continued

Past due or impaired

No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at

the carrying amounts as indicated.

The following table represents an analysis of the age of the Council's financial assets that are either fully performing, past due

or impaired:

Fully Past due Less Total

Performing Less than 30 31 to 60 61 to 90 Over 90 Impaired

days days days days

$ $ $ $ $ $ $

Receivables:

2012 10,601,032 350,030 6,019 354,453 - 11,311,534

2011 9,914,479 - 9,524 79,025 4,914,520 (12,519) 14,905,029

(ii) Liquidity risk

Liquidity risk refers to the situation where the Council may encounter difficulty in meeting obligations associated

with financial liabilities that are settled by delivering cash or another financial asset.

The Council is exposed to liquidity risk through its trading in the normal course of business and borrowings from the

Treasury Corporation for capital works.

The Council manages its exposure to liquidity risk by maintaining sufficient undrawn facilities, both short and long

term, to cater for unexpected volatility in cash flows. These facilities are disclosed in the borrowings note 21.

The following table sets out the liquidity risk of financial liabilities held by the Council in a format as it might be provided

to management. The amounts disclosed in the maturity analysis represent the contractual undiscounted cash flows at

balance date (excluding employee entitlements as defined by AASB132 Financial Instruments para 4(b)):

0 to 1 year 1 to 5 years Over 5 years Total contractual Carrying

cash flows amount

2012 $ $ $ $ $

Trade and other payables 4,518,544 - - 4,518,544 4,518,544

Loans QTC 2,697,821 10,624,839 29,507,996 42,830,656 26,261,519

7,216,365 10,624,839 29,507,996 47,349,200 30,780,063

2011

Trade and other payables 4,468,032 - - 4,468,032 4,468,032

Loans QTC 2,697,821 10,772,350 32,609,964 46,080,135 27,230,685

7,165,853 10,772,350 32,609,964 50,548,167 31,698,717

The outflows in the above table are not expected to occur significantly earlier and are not expected to be for

significantly different amounts than indicated in the table.

Financing Arrangements

Unrestricted access was available at balance date to the lines of credit listed below:

2012 2011

$ $

QTC unused loan facility - -

Bank overdraft facility 200,000 200,000

116





33 Financial instruments - continued

(iii) Interest rate risk

The Council is exposed to interest rate risk through its borrowings from the Queensland Treasury Corporation and

investments held with financial institutions.

The risk in borrowing is effectively managed by borrowing mainly from the Queensland Treasury Corporation and

having access to a mix of floating and fixed funding sources such that the desired interest rate risk exposure can

be constructed. Interest rate risk in other areas is minimal.

The Council does not undertake any hedging of interest rate risk.

Interest Rate Sensitivity Analysis

The following interest rate sensitivity analysis is based on a report similar to that which would be provided to

management, depicting the outcome to profit and loss should there be a 1% increase in market interest rates.

The calculations assume that the rate would be held constant over the next financial year, with the change occurring

at the beginning of that year.

It is assumed that interest rates on overdue rates would not change. If the rates decreased by 1%, the impact would be

equal in amount in the reverse direction.

Net carrying amount Profit/(loss) Equity

Financial assets and liabilities that are 2012 2011 2012 2011 2012 2011

held at variable interest rates total: $ $ $ $ $ $

Financial assets 76,708,885 74,558,885 767,089 745,589 767,089 745,589

Financial liabilities 26,261,519 27,230,685 (262,615) (272,307) (262,615) (272,307)

Net total 50,447,366 47,328,200 504,474 473,282 504,474 473,282

(iv) Fair Value

Gympie Regional Council does not recognise financial assets or liabilities at fair value in its Statement of Financial Position.

117





34 National Competition Policy

(a) Activities to which the code of competitive conduct is applied

A "business activity" of a local government is divided into two categories :

(a) Roads business activity:

(i) the construction or maintenance of State controlled roads for which the local government submits an offer to

carry out work in response to a tender invitation, other than through a sole supplier arrangement.

(ii) submission of a competitive tender for construction or road maintenance on the local government's roads which

the local government has put out to tender, or called for by another local government.

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

(i) trading in goods and services to clients in competition with the private sector, or

(ii) the submission of a competitive tender in the local government's own tendering process in competition with others

for the provision of goods and services to its self. Excluded activities are (a) library services, and (b) an activity or

part thereof prescribed by legislation.

Local government may elect to apply a Code of Competitive Conduct (CCC) to their identified business activities. This requires

the application of full cost pricing, identifying the cost of community service obligations (CSO) and eliminating the advantages and

disadvantages of public ownership within that activity. The application of the CCC to the roads business activity is compulsory.

The CSO value is determined by Council, and represents an activities cost(s) which would not be incurred if the activities primary

objective was to make a profit. The Council provides funding from general revenue to the business activity to cover the cost of

providing non-commercial community services or costs deemed to be CSO's by the Council. Notwithstanding CSO's, the council

is committed to operating these activities as business activities in accordance with the CCC.

Recoverable Works

Building Services

Water & Sewerage

Refuse Management

The following table summaries the financial results for these, including competitive neutrality adjustments if applicable.

Full information is available for inspection at the council offices.

118





34 National Competition Policy - continued

(b) Financial performance of activities subject to competition reforms:

Recoverable Works Building Services Water & Sewerage

2012 2011 2012 2011 2012 2011

$ $ $ $ $ $

Revenue for services provided to the Council

Revenue for services provided to external clients 598,572 739,115 136,756 232,797 17,070,666 15,945,272

* Community service obligations 758,471 748,765

598,572 739,115 136,756 232,797 17,829,137 16,694,037

Less : Expenditure 598,931 759,546 266,002 316,720 13,626,363 12,460,977

Surplus (deficiency) (359) (20,431) (129,246) (83,923) 4,202,774 4,233,060

Refuse Management

2012 2011

$ $

Revenue for services provided to the Council

Revenue for services provided to external clients 8,991,973 8,101,371

* Community service obligations 457,961 452,564

9,449,934 8,553,935

Less : Expenditure 7,442,040 6,795,796

Surplus (deficiency) 2,007,894 1,758,139

(c) CSO's were paid during the reporting period to the following activities.

Activities CSO description Actual

Water & Sewerage Council services 758,471

Refuse Management Cleaning & refuse collection services 457,961

119



FINANCIAL STATEMENTS For the year ended 30 June 2012

MANAGEMENT CERTIFICATE


These general purpose financial statements have been prepared pursuant to Section 102 of the Local Government

(Finance, Plans and Reporting) Regulation 2010 (the Regulation) and other prescribed requirements.

In accordance with Section 161 of the Regulation we certify that these general purpose financial statements :

(i) have been prepared in accordance with the relevant accounting documents; and

(ii) accurately reflect the local government's financial performance and position for the financial year.

In addition we certify that, in our opinion:

(i) the prescribed requirements of the Local Government Act 2009 and associated Regulations for the

establishment and keeping of accounts have been complied with in all material respects; and

(ii) the general purpose financial statements, as set out herewith, have been prepared in accordance

with Australian accounting standards (including Australian Accounting Interpretations and other authoritative

pronouncements issued by the Australian Accounting Standards Board); and

(iii) the general purpose financial statements present a true and fair view of the Council's financial position as at

30 June 2012 and of its financial performance and cash flows for the financial year ended on that date.

Mayor Chief Executive Officer

Date: 13/09/2012 Date: 13/09/2012

120


INDEPENDENT AUDITOR'S REPORT

To the Mayor of Gympie Regional Council

Report on the Financial Report

I have audited the accompanying financial report of Gympie Regional Council, which comprises the statement of financial position as at 30 June 2012, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and certificates given by the Mayor and Chief Executive Officer.

The Council's Responsibility 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 prescribed accounting requirements identified in the Local Government Act 2009 and Local Government (Finance, Plans and Reporting) Regulation 2010, including compliance with Australian Accounting Standards. The Council's responsibility also includes such internal control as the Council determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view 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 entity's internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial report.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

Independence

The Auditor-Genera/ Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General's opinion are significant.

121


Basis for Qualified Opinion

As disclosed in Note 18(b ), in January 2011, flooding caused extensive damage to the Gympie Regional Council's road, bridge and drainage assets. While the Council attempted to quantify the impact the floods had on its road, bridge and drainage assets, the Council was not in a position to undertake a full condition assessment of these assets as at 30 June 2011. Accordingly, there was insufficient documentation to support the reported valuation decrement of $8,705,260 to this class of assets as at 30 June 2011 reported in Note 23(i)(a). Consequently, the Council was unable to demonstrate that the written down value of its road, bridge and drainage assets of $499,263,436 at 30 June 2011 reported in Note 18(a), did not differ materially from their fair value at that date as required by' Australian Accounting Standard AASB 116 Property, Plant and Equipment. Therefore, in my 2010-2011 report, I was unable to and did not express an opinion on the reported written down value of these assets and the associated asset revaluation surplus balance of $176,960,456 as at 30 June 2011 disclosed in Note 23(ii). The impact on the financial report was unable to be quantified due to the absence of reliable information and I still remain unable to form an opinion on these 2011 comparative balances as reported in the financial report for the year ended 30 June 2012.

Qualified Opinion

In accordance with s.40 of the Auditor-General Act 2009-

(a) I have received all the information and explanations which I have required; and

(b) in my opinion, except for the matter included in the Basis for Qualified Opinion-

(i) the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects; and

(ii) the financial report presents a true and fair view, in accordance with the prescribed accounting standards, of the financial performance and cash flows of Gympie Regional Council for the financial year 1 July 2011 to 30 June 2012 and of the financial position as at the end of that year.

Other Matters - Electronic Presentation of the Audited Financial Report

This auditor's report relates to the financial report of Gympie Regional Council for the year ended 30 June 2012. Where the financial report is included on Gympie Regional Council's website the Council is responsible for the integrity of Gym pie Regional Council's website and I have not been engaged to report on the integrity of Gympie Regional Council's website. The auditor's report refers only to the subject matter described above. lt does not provide an opinion on any other information which may have been hyperlinked to/from these statements or otherwise included with the financial report. If users of the financial report are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited financial report to confirm the information contained in this website version of the financial report.

These matters also relate to the presentation of the audited financial report in other electronic media including CD Rom.

K JOHNSON FCA (as Delegate of the Auditor-General of Queensland) Queensland Audit Office

Brisbane

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