Central Highlands Regional Council - Annual Report 2023-24

Acknowledgement OF TRADITIONAL OWNERS

Central Highlands Regional Council acknowledge the First Peoples – the Traditional Owners of the lands where we live and work, and we recognise their continuing connection to land, water and community.

We pay respect to Elders – past and present –and acknowledge the important role Aboriginal Peoples and Torres Strait Islanders continue to play within the Central Highlands region.

Connect with us

1300 242 686 (including after hours) enquiries@chrc.qld.gov.au

www.chrc.qld.gov.au

All council offices are open from 8.30 am to 5.00 pm Monday to Friday.

„ Corner of Egerton and Borilla Streets, Emerald

„ 10 Mackenzie Street, Blackwater

„ 4 Conran Street, Capella

„ 12 William Street, Duaringa

„ 12 Eclipse Street, Springsure

Transaction centres

17 Warrijo Street, Rolleston

(9.00 am to 12.30 pm and 1.00 pm to 4.30 pm)

Corner Grasstree and Anncrouye Street, Tieri

(8.30 am to 5.00 pm)

Get Connected WITH CENTRAL HIGHLANDS REGIONAL COUNCIL

www.chrc.qld.gov.au

Marjorie Nelson, "Highway Scene", CHRC Art Collection

About the annual report

This annual report provides a comprehensive overview of the performance and activities of the Central Highlands Regional Council for the period 1 July 2023 to 30 June 2024. It is the culmination of corporate planning, performance and reporting framework that is central to guiding how we prioritise and deliver programs and services in the short, medium and long-term.

The framework begins with the Central Highlands 2022 Community Plan, which informs the 2022-2027 Corporate Plan. The corporate plan then guides the annual budget, capital works program and operational plan, underpinning all our decision-making and connecting the community’s vision to what we do.

This report is divided into 5 chapters.

Chapter 1: Setting the scene – includes a profile of the Central Highlands region, and an overview of council's role within the community.

Chapter 2: Your councillors – includes a message from the mayor, profiles our councillors and responds to the statutory information required for councillors' governance.

Chapter 3: Our organisation – shows our organisational structure, includes a message from the CEO, and responds to the statutory information required for corporate governance.

Chapter 4: Reporting the organisation's performance – outlines our strategic direction, summarises our performance against the annual operational plan and the corporate plan’s long-term destination goals, details highlights and statistics for each department.

Chapter 5: Legislative disclosure requirements and financial reporting – responds to statutory information required for corporate governance, and includes our audited and certified General Purpose Financial Statements that detail council's financial position for the year ending 30 June 2024.

An aerial shot of road works on Arcadia Valley Road.

A council employee mows a sporting field in Springsure.

A reproduction of Van Gogh's sunflower painting in Morton Park, Emerald.

CHAPTER 1

Setting the scene

The region

The Central Highlands region is in Central Queensland, Australia—considered a gateway to the outback. The region’s central business area, Emerald, is a 3-hour drive from Rockhampton on the coast and nearly 900 kilometres from Brisbane.

The region is approximately 60,000 square kilometres, which is likened to the size of Tasmania. It stretches from Arcadia Valley in the south to the Peak Ranges in the north, east from Boolburra to Bogantungan in the west.

Around 29,000 people call the Central Highlands home, and they live in the 13 communities of Arcadia Valley, Bauhinia, Blackwater, Bluff, Capella, Comet, Dingo, Duaringa, Emerald, Rolleston, Sapphire Gemfields, Springsure and Tieri.

Naturally the region is rich—in minerals, in grazing land, in dryland and irrigated agricultural land, in water from the Nogoa and Comet rivers and the Fairbairn Dam (3 times the size of Sydney Harbour), in national parks and wilderness areas like Blackdown Tableland and Carnarvon Gorge, and in gems, with the largest sapphire-producing fields in the Southern Hemisphere.

Travellers in big rigs and small abound with major freight routes through the region, including the north-south link between Charters Towers and northern New South Wales and the Capricorn Highway leading to all points west.

This is a vibrant region with a diverse economy based on:

„ a globally competitive coal mining industry.

„ robust and resilient agriculture and horticultural industries, including beef, grain, cotton, grapes, melons, nuts and citrus.

„ dynamic small to medium size businesses.

„ professional and government sectors.

„ adequate availability of commercial, industrial and residential land.

„ an evolving tourism offering.

„ major health and education services.

„ significant new infrastructure and construction projects.

Brisbane

Longreach

Rockhampton

Bauhinia

Arcadia Valley

Rolleston

Springsure

Duaringa

Dingo Bluff Comet

Community snapshot

Information supplied by REMPLAN, the Queensland Government Statistician’s Office, the 22016 and 2021 Australian Bureau of Statistics Census data, and RP Data.

Housing

There were 9,284 households in the region, of which 85.7% were separate houses and 22.2% were fully owned.

The median monthly mortgage repayment is $1,500, while the median weekly rental payment for a 3-bedroom house for 20232024 was $380. There were 876 residential dwelling sales and the median sale price was $291,500.

There were 10 new houses approved in the Central Highlands this year.

Culturally diverse

The top countries of birth for Central Highlands’ residents include Australia, New Zealand, England, Philippines and South Africa. Aboriginal and Torres Strait Islander people make up 5.9% of the Central Highlands population.

Population

As at June 2023, the estimated resident population was 28,973 people and the median age was 34 years. The population has seen an average annual growth rate of 0.3% over 5 years. The Central Highlands had 6,763 families and 5-9 year olds represented the largest cohort of the population at 8.2% (2,295).

Central Highlands visitor economy

Natural attractions, such as Carnarvon Gorge, the Sapphire Gemfields and Blackdown Tableland National Park, drive an emerging visitor economy.

The industry contributes more than $209 million to the local economy and generates 1,227 jobs.

Between 2020 and 2023, the region attracted an average of 635,000 visitors per annum.

Domestic day Domestic night

Employment

Our top 5 industry subdivisions of employment were:

1. Coal mining

2. Agriculture

3. Preschool and school education

4. Food and beverage services

5. Construction services

The unemployment rate in the region at the end of the March 2024 quarter was 3.8%, 0.2% less than the Queensland rate.

22.5% of employed people work in the mining industry and 12.6% work in agriculture, forestry and fishing. The labour force participation rate for the Central Highlands is 76%.

There were 3,509 businesses in the region.

Industry

Our economy generates an estimated $19.7 billion output, representing over 29% of the $67.9 billion output generated by Central Queensland.

The top five output generating sectors in the Central Highlands are:

„ mining

„ agriculture, forestry, fishing

„ construction

„ manufacturing

„ rental, hiring and real estate services.

The role of council

Vision

A progressive region creating opportunities for all.

Mission

We are a council committed to continuous improvement, a sustainable future and efficient investment in our communities.

Values

Respect and integrity

Building trust, teamwork, communication and a shared understanding.

Actively listening to our communities.

Accountability and transparency

Equal opportunities, fair and open consultation and communication.

Accepting responsibility for our actions.

Providing value

Best value for money outcomes for our community.

Collaboration, managing expectations and working towards common goals.

Deliver efficiency and effectiveness in all that we do.

Commitment and teamwork

Continually improve on our achievements and drive innovative solutions.

Lead change and continuous improvement in delivering for our community.

Promote a positive health and safety culture.

Long-term destination goals

Deliver, enable and advocate for reliable services to our community

Protect and grow a diverse and prosperous economy

Support and enhance resilient, safe, vibrant and inclusive communities

Drive our council and the region towards a digital future

Develop a future-focused workforce to support council and our region

Responsibly manage our natural environment

Prepare for a low carbon future and adapt to a changing climate

How council works

The CEO and executive leadership team drive the business of council and offer councillors advice.

Governance principles.

Council establishes operational and strategic priorities that align with the community plan, corporate plan and operational plan.

The audit committee provides an independent external review of our governance, financials and internal control framework.

Community elects the councillors and mayor and provides input through the community plan and consultations to determine the region’s priorities.

Australian and Queensland governments provide authority to council under the Local Government Act 2009 and endow funding for various programs.

Central Highlands Development Corporation manages the economic and tourism facets of the local government area. Board members comprise of councillors, the CEO and independent directors.

CHRC

CHRC Chapter

What we look after

29,000 residents 13 communities Approximately 15,000 rateable properties

60,000 square kilometres

465 current staff (as at 30 June 2024)

132 km of footpaths 1 saleyard

10 library locations

7 customer service centres

An aerial shot of McIndoe Park sporting grounds in Emerald.

What we provide

A-Z of services

„ Advocacy

„ Art galleries

„ Cemeteries

„ Citizenship ceremonies

„ Community consultation

„ Community grants

„ Community housing

„ Culture – citizenship, sister city relations, heritage and history

„ Customer service

„ Disaster management and planning

„ Economic development – business support

„ Emerald Airport and landing areas

„ Emerald Saleyards

„ Environmental management – feral animal control, weeds, flying foxes, mosquitoes, magpies

„ Event planning and support

„ Flood mitigation planning

„ Food and personal appearance (hairdressers, tattooists, beauty salons etc.) compliance and registration

„ Indigenous cultural support

„ Library services

„ Major economic project development

„ Park and community hall bookings

„ Parks and gardens maintenance

„ Pest and weed control

„ Planning and building

„ Playground maintenance and building

„ Plumbing inspections

„ Public relations

„ Ranger services – animal management, livestock control, pounds

„ Roads, bridges, culverts and footpaths

„ Sporting and recreation areas – planning and maintenance

„ Sporting and active recreation club support

„ Stock route management

„ Street lighting and signage

„ Streetscape and tree management

„ Swimming pools

„ Swimming pool fence safety compliance

„ Waste and recycling services

„ Water and wastewater management

„ Workplace health and safety

„ Youth services

A parks and gardens crew member cleans a path at the Emerald Regional Botanic Gardens.

Chapter 1: Setting the scene

term.

Mayor and councillors elected for the 2024-2028

CHAPTER 2 Your councillors

Mayor and councillors

Cr Janice Moriarty MAYOR

Mayor Janice Moriarty served as a councillor in the 2020-2024 term and is now serving as mayor for the 20242028 term.

Mayor Moriarty has lived in the region for almost 32 years and prior to being elected to council ran her own small consultancy business specialising in community/social development and research projects.

Mayor Moriarty’s career highlights include working at the Central Queensland University Emerald campus, Central Highlands Development Corporation (CHDC), the former Department of State Development, Trade and Innovation (Queensland Government) and Central Highlands Regional Council.

She holds a Bachelor of Arts, Master of Business Administration and Doctorate focused on regional and rural community planning.

Mayor Moriarty is an Associate Fellow of the Institute of Managers and Leaders and is a graduate member of the Australian Institute of Company Directors.

Her greatest achievement has been raising her 3 children and being the proud grandmother of 6 grandchildren.

E: mayor@chrc.qld.gov.au

P: 0418 145 317

Cr Rachael Cruwys DEPUTY MAYOR

Councillor Rachael Cruwys was first appointed to the vacant councillor position left by Cr Natalie Curtis' resignation on 24 May 2023 following a written application and informal ballot process. Cr Cruwys will now serve her first full term of council and is humbled to have been chosen by her fellow councillors as deputy mayor.

Cr Cruwys is a lifelong resident of Capella having grown up on a cattle and grain property east of the town. Having both commercial and stud cattle interests, she continues her involvement in the cattle industry. Through her passion for the industry, Cr Cruwys was awarded the Samuel and Eileen Gluyas Winston Churchill Fellowship, travelling abroad to research improved genetics and domestic marketability of Brahman cattle.

E: r.cruwys@chrc.qld.gov.au

P: 0418 431 727

Cr Joseph Burns

Councillor Joseph Burns is serving his second term as a councillor.

Cr Burns was born and raised in Emerald, living in the region for 37 years. Cr Burns works in a supervisory/trainer assessor role for Wolff Mining at Coronado Curragh Mine, Blackwater. Career highlights include studying law at James Cook University, his role as supervisor of dozer push operations, and being one of the first in Australia to learn and operate the Caterpillar Semi Autonomous Tracked Systems

E: jburns@chrc.qld.gov.au

P: 0419 017 968

Cr Robert Donaldson

Councillor Robert Donaldson is serving his first term as a councillor.

Cr Robert Donaldson has lived in the Central Highlands his entire life growing up on a mixed farming property north of Capella, that his family still owns. Cr Donaldson attended Capella State School for primary education and boarding school in Brisbane for his secondary education. Cr Donaldson pursued further education at Queensland Agricultural College, Gatton.

After Gatton, Cr Donaldson returned home to Capella to work in the family business and worked for Ross Ford Contracting operating dozers for 12 months.

In 1993, Cr Donaldson married his wife Gayle, and they moved to their property just east of Bogantungan. Together they raised 4 children, 2 girls who live in Brisbane, and 2 boys who work in the mining industry and at home on the farm.

E: rdonaldson@chrc.qld.gov.au P: 0472 789 236

Cr Craig Hindmarsh

Councillor Craig Hindmarsh is serving his first term as a councillor.

Cr Craig Hindmarsh moved to the Central Highlands from the North Burnett in 1994 to take up employment at Comet. Since then, Cr Hindmarsh has held various employment positions, most within the Central Highlands region, from feedlot hand, property manager, rural contractor, livestock transport driver, and almost 8 years as a contract rural fuel sales/logistics coordinator. Most recently, Cr Hindmarsh has taken a role as a civil earthmoving operator for a contractor within the mining industry.

Cr Hindmarsh and his wife have been permanent residents of the Duaringa district for almost 20 years, raising their 3 boys and being actively involved with the P & C Association and other local initiatives. From these experiences, Cr Hindmarsh has developed an extensive geographical knowledge of the Central Highlands.

E: chindmarsh@chrc.qld.gov.au

P: 0484 387 135

Cr Karen Newman

Councillor Karen Newman is serving her first term as a councillor.

Cr Newman was born in Springsure where she resided for the years prior to coming to Emerald in 2009.

Cr Newman has worked as an officer across multiple local government departments over 17 years, specialising in community engagement, development, strategic planning and economic development.

Cr Newman has a background in the rural sector and her family have been involved in the transportation industry for generations.

Cr Newman has been actively involved in Central Highlands community groups for over 35 years in education, resource industry advisory committees, tourism, innovation, sports, heritage and the arts. Highlights include the Springsure 150 Years celebrations, Community Cabinet advocacy, Central Queensland Priority Country Area Program (PCAP) Advisory Committee and multiple regional events.

Cr Newman is a current member of the Australian Institute of Project Management, Australian Smart Communities Association, Welcoming Cities Australia, volunteers in the community and has her own consultancy business.

E: k.newman@chrc.qld.gov.au

P: 0419 489 772

Cr Gai Sypher

Councillor Gai Sypher is serving her fourth term on council having been first elected in 2012.

She believes it is a privilege to serve her communities and works diligently to listen, respond, and achieve. She has always had a strong focus on tourism and is an active participant on the Central Highlands Development Corporation's Tourism Advisory Committee.

Cr Sypher has a Bachelor of Arts with majors in Sociological Welfare and Aboriginal Studies, as well as a Master of Management (Human Resources).

Cr Sypher is an experienced grant writer and works closely with her community to support them to grow and thrive.

She enjoyed an 18-year career with Central Queensland University in Emerald in an executive management position, an achievement she rates as a career highlight.

E: gsypher@chrc.qld.gov.au P: 0407 842 622

Cr Christopher Whiteman

Councillor Christopher Whiteman is serving his first term as a councillor.

He grew up near Rolleston in the south of the Central Highlands region on a cattle property.

Cr Whiteman still lives on a cattle property in the region and has long-term plans to continue living there. Cr Whiteman spent his life working on the land as a grazier and farmer before turning his hand to mining over the last few years and now is adding councillor to his busy schedule.

Cr Whiteman’s business experience gives him financial literacy and management skills, his work in the corporate world has given him the ability to work within imperfect systems while keeping goals in mind to achieve efficient outcomes.

Cr Whiteman’s spare time is spent focused on family.

E: cwhiteman@chrc.qld.gov.au

P: 0436 328 142

Cr Gillian Wilkins

Councillor Gillian Wilkins is serving her first term as a councillor.

She graduated in 1987 from the University of Queensland as a veterinary surgeon and although semi-retired from vet practice, she still does the odd locum in Brisbane. Cr Wilkins started her own practice in 2005 and sold it in 2017. The same year, Cr Wilkins moved to Emerald to be with her husband.

After Cr Wilkins moved here, she decided on a career change and pursued a teaching degree. Cr Wilkins graduated in July 2020, with a Masters of Teaching (Secondary - Science/Biology and Maths).

Cr Wilkins currently does supply teaching and tutoring in between her councillor obligations.

Since moving to Emerald, Cr Wilkins has loved the small-town lifestyle and becoming a councillor is a way for her to ensure this lifestyle is maintained or improved upon.

E: gwilkins@chrc.qld.gov.au

P: 0427 092 705

Former councillors March 2020 - March 2024

Kerry Hayes

Kerry Hayes was first elected as a councillor to the Emerald Shire Council in 1997 and served 3 terms. He then served 4 years on the newly formed Central Highlands Regional Council. Mr Hayes was elected Mayor in 2016 and re-elected unopposed in 2020.

He was not re-elected in 2024.

Christine Rolfe

Christine Rolfe served 2 terms with council, as a councillor from 2016-2020 and as deputy mayor from 2020-2024.

She did not stand for re-election in 2024.

Charlie Brimblecombe

Charlie Brimblecombe served 3 terms as a councillor from 2012-2024.

He was not re-elected in 2024.

Anne Carpenter

Anne Carpenter served her first term with council from 2020-2024.

She did not stand for re-election in 2024.

Megan Daniels

Megan Daniels served 2 terms with council from 2016-2024. She did not stand for re-election in 2024.

The former elected council of the 2020-2024 term.

Message from the mayor

It is with immense pride that I reflect on the achievements of the Central Highlands Regional Council for 2023-2024. This year has been a testament to our commitment to delivering improved services, enhancing infrastructure, and fostering community connections that contribute to a vibrant and resilient region.

Firstly, I acknowledge the outstanding leadership of former Mayor Kerry Hayes and the councillors of the 2020-2024 term. Their dedication, vision, and hard work have laid a strong foundation for the progress we are seeing today.

A key highlight of this period is securing $30 million from the state government’s Resources Community Infrastructure Fund, which will finance several significant regional projects. These include upgrades to sporting fields, entertainment venues, and major infrastructure improvements to community assets such as the Springsure Aquatic Centre, Capella’s Bridgeman Park and the Emerald Regional Botanical Gardens. These projects are a direct result of council’s ongoing advocacy efforts, ensuring our region continues to thrive and prosper.

This year, we also made tremendous strides in critical infrastructure. The refurbishment of the Park Avenue Wastewater Treatment Plant and the replacement of 8 km of the Capella to Tieri pipeline ensured continued reliable water supply for our communities. Our road construction team also continued work on vital upgrades to Wyntoon Road and Mulchays Road, which will improve the accessibility of these important transport links.

Community projects have also been a priority this year. Construction began on the Ghungalu Nunee Gardens, a new Indigenous tourism experience in Blackwater. In Sapphire, a new purpose-built facility at Roy Day Park now serves as a hub for the Gemfields community, and $500,000 in upgrades were completed at the Duaringa community building, Duaringa council office, and the Rolleston and Dingo halls, extending their lifespan and usability.

In terms of improved service delivery, the launch of the internal ‘Connie’ knowledge management system has transformed our customer service, and the migration of our records management system to the cloud has greatly improved efficiency.

Culturally, we celebrated the 30-year anniversary of the Annual Art Awards and the return of the Sister City Exchange Program with Ichinoseki, Japan, after a fouryear hiatus. We proudly supported over 60 regional events through the first year of our Event Assistance Program and launched a new online booking system for our community venues.

As we look to the future, the recently developed Central Highlands 2043 Community Vision sets a clear path for our region’s aspirations, and the draft Towards Net Zero Greenhouse Gas Action Plan reflects our commitment to sustainability.

I extend my heartfelt thanks to council staff, community members, and stakeholders for their ongoing support. Through strong advocacy and collaboration, we continue to build a vibrant, connected, and sustainable Central Highlands.

Mayor Janice Moriarty

CENTRAL HIGHLANDS REGIONAL COUNCIL

a general council meeting in the Emerald chambers.

Regional collaboration

Group

Bowen Basin Regional Roads and Transport Group

Central Queensland Regional Organisation of Councils (CQROC)

Councillor representative(s) to March 2024

Former Mayor Kerry Hayes

Former Deputy Mayor Christine Rolfe (Chair)

Former Mayor Kerry Hayes

Former Deputy Mayor Councillor Christine Rolfe

Former CEO Sharon Houlihan (to 15 December 2023)

Former Acting CEO Ross Higgins

Councillor representative(s) from April 2024

Mayor Janice Moriarty

Deputy Mayor Rachael Cruwys

General Manager Infrastructure and Utilities Jason Hoolihan

Mayor Janice Moriarty

Deputy Mayor Rachael Cruwys

Former Acting CEO Ross Higgins

Central Queensland Regional Waste Management and Resource Recovery Infrastructure Plan Working Group

Central Queensland Stakeholder Advisory Group Meeting

Central Queensland Senior Officers Network

Central Queensland Regional Water Assessment - Stakeholder Advisory Group

Former Cr Megan Daniels

Former Cr Charlie Brimblecombe (as alternative)

Former Mayor Kerry Hayes

General Manager Infrastructure and Utilities Jason Hoolihan

Former Mayor Kerry Hayes

General Manager Infrastructure and Utilities Jason Hoolihan

Cr Gillian Wilkins

Cr Karen Newman (alternate)

Mayor Janice Moriarty

General Manager Infrastructure and Utilities Jason Hoolihan

CQROC representatives on a parliamentary visit to Brisbane in 2024.

Group

LGAQ Climate Risk Management and Resilience Advisory Group

LGAQ Natural Assets and Natural Resource Management Advisory Group

LGAQ Planning and Development Advisory Group

LGAQ Regional Economic Development Advisory Group

LGAQ Roads and Transport Advisory Group

LGAQ Waste Management and Resource Recovery Advisory Group

LGAQ Water and Sewerage Advisory Group

Reef Guardian Executive

Stock Route Management Working Group

Capricorn Pest Management Group

Councillor representative(s) to March 2024

Former Cr Megan Daniels

Former Cr Natalie Curtis

Councillor representative(s) from April 2024

Cr Janice Moriarty

Former Mayor Kerry Hayes

Former Deputy Mayor Christine Rolfe

Former Cr Megan Daniels

Former Cr Charlie Brimblecombe

Former Cr Megan Daniels

Former Cr Charlie Brimblecombe

Former Deputy Mayor Christine Rolfe

Former Deputy Mayor Christine Rolfe

Former Cr Charlie Brimblecombe (as proxy)

Cr Gillian Wilkins

Cr Gai Sypher

Cr Robert Donaldson

Cr Craig Hindmarsh (as proxy)

Representing the region

Event Attendee/s

Local Government Association of Queensland (LGAQ) Bush Council Convention

25 to 27 July 2023

Goondiwindi

National Saleyards Expo

25 to 27 July 2023

Gold Coast

GasFields Commission Queensland Community Leaders Council 2023

7 September 2023

Chinchilla

Australian Local Government Association (ALGA)

National Local Roads and Transport Congress September 2023

Canberra

Local Government Association of Queensland (LGAQ) Annual Conference

October 2023

Gladstone

Local Government Association of Queensland (LGAQ) Civic Leaders Summit

21 to 22 May 2024

Gold Coast

Former Mayor Kerry Hayes

Former Deputy Mayor Christine Rolfe

Cr Gai Sypher

Cr Jospeh Burns

Former Cr Anne Carpenter

Former Cr Megan Daniels

Former Mayor Kerry Hayes

Former Deputy Mayor Christine Rolfe

Former Mayor Kerry Hayes

Former Deputy Mayor Christine Rolfe

Former Cr Charlie Brimblecombe

Deputy Mayor Rachael Cruwys

Mayor Janice Moriarty

Deputy Mayor Rachael Cruwys

Former Acting CEO Ross Higgins

The Yamala Enterprise Area east of Emerald, one of council's advocacy projects.

Advisory committees

External and internal boards/committees

Audit Committee Meeting

Blackwater Community Advisory Network Group

Blackwater International Coal Centre Board

Central Highlands Arts and Cultural Advisory Committee Meeting / Regional Arts Development Fund (RADF)

Central Highlands Community Grants Panel

Central Highlands Gemfields Planning Study Project Steering Group

Central Highlands Gemfields Planning Study Community and Engagement Stakeholder Project Reference Group

Central Highlands Natural Spaces Advisory Group

Central Highlands Resource Use Planning Project (CHRRUP)

Central Highlands Sport and Recreation Advisory Group

Emerald Airport Advisory Committee

Councillor representative(s) to March 2024

Former Deputy Mayor Christine Rolfe

Mayor Janice Moriarty

Mayor Janice Moriarty

Former Cr Charlie Brimblecombe (alternate)

Former Cr Charlie Brimblecombe

Cr Joseph Burns

Mayor Janice Moriarty

Cr Joseph Burns

Former Mayor Kerry Hayes

Former Cr Megan Daniels

Mayor Janice Moriarty

Cr Gai Sypher

Former Deputy Mayor Christine Rolfe

Councillor representative(s) from April 2024

Deputy Mayor Rachael Cruwys

Cr Gillian Wilkins

Emerald Saleyards Committee

Local Buying Foundation Advisory Group

Springsure and Rolleston Community Advisory Network Committee

Mayor Janice Moriarty (Chair)

Former Cr Megan Daniels

Former Cr Charlie Brimblecombe

Mayor Janice Moriarty

Cr Joseph Burns (alternate)

Former Cr Anne Carpenter (Chair)

Former Cr Charlie Brimblecombe

Cr Gai Sypher

Former Mayor Kerry Hayes (Chair)

Cr Gai Sypher

Cr Joseph Burns

Cr Joseph Burns (Chair)

Former Cr Anne Carpenter

Cr Gai Sypher

Former Deputy Mayor Christine Rolfe

Cr Gillian Wilkins

Cr Gai Sypher

Cr Joseph Burns

Cr Karen Newman

Mayor Janice Moriarty

Cr Robert Donaldson

Cr Karen Newman

Cr Robert Donaldson

Cr Gillian Wilkins

Cr Joseph Burns

Cr Gillian Wilkins

Cr Craig Hindmarsh

Cr Joseph Burns

Cr Gai Sypher

Cr Craig Hindmarsh

Cr Robert Donaldson (chair)

Cr Christopher Whiteman

Cr Craig Hindmarsh

Cr Robert Donaldson (Chair)

Deputy Mayor Rachael Cruwys

Cr Joseph Burns

Cr Joseph Burns

Cr Karen Newman

External and internal boards/committees

Tourism Advisory Panel

Councillor representative(s) to March 2024

Cr Gai Sypher

Former Cr Charlie Brimblecombe

+ 2 CHDC Board Members (Former Deputy Mayor Christine Rolfe and former Cr Megan Daniels)

Water Security Advisory Committee

Community Reference Group –Arcadia Valley

Community Reference Group –Bauhinia

Community Reference Group –Blackwater

Cr Joseph Burns

Former Cr Megan Daniels

Cr Gai Sypher

Former Cr Charlie Brimblecombe

Former Cr Charlie Brimblecombe

Mayor Janice Moriarty

Community Reference Group – Bluff Mayor Janice Moriarty

Former Cr Charlie Brimblecombe

Councillor representative(s) from April 2024

Community Reference Group –Capella

Community Reference Group –Comet

Community Reference Group –Dingo

Community Reference Group –Duaringa

Community Reference Group –Emerald

Community Reference Group –Gemfields

Community Reference Group –Rolleston

Community Reference Group –Springsure

Community Reference Group – Tieri

Cr Gai Sypher

Former Cr Megan Daniels

Former Cr Anne Carpenter

Former Cr Charlie Brimblecombe

Former Cr Anne Carpenter

Former Cr Charlie Brimblecombe

Former Cr Anne Carpenter

Mayor Janice Moriarty

Former Deputy Mayor Christine Rolfe

Cr Joseph Burns

Former Cr Megan Daniels

Former Cr Anne Carpenter

Former Deputy Mayor Christine Rolfe

Former Cr Anne Carpenter

Former Deputy Mayor Christine Rolfe

Cr Gai Sypher

Mayor Janice Moriarty

Cr Craig Hindmarsh

Cr Gillian Wilkins (alternate)

Cr Christopher Whiteman

Cr Gai Sypher (alternate)

Cr Gai Sypher

Cr Karen Newman (alternate)

Cr Gillian Wilkins

Cr Christopher Whiteman (alternate)

Cr Craig Hindmarsh

Cr Robert Donaldson (alternate)

Deputy Mayor Rachael Cruwys

Cr Gai Sypher (alternate)

Cr Joseph Burns

Cr Gillian Wilkins (alternate)

Cr Craig Hindmarsh

Cr Robert Donaldson (alternate)

Cr Craig Hindmarsh

Cr Karen Newman (alternate)

Cr Jospeh Burns

Cr Gillian Wilkins (alternate)

Cr Robert Donaldson

Cr Craig Hindmarsh (alternate)

Cr Christopher Whiteman

Cr Karen Newman (alternate)

Cr Karen Newman

Cr Robert Donaldson (alternate)

Cr Gai Sypher

Deputy Mayor Rachael Cruwys (alternate)

Councillors and executive leadership at a general council meeting in the Emerald chambers.

Councillor other expenses

Councillor community consultations

Area

Willows/Bogantungan/Lochington 18 July 2023

Rubyvale/Clermont-Rubyvale Road 1 August 2023

Rolleston/Toprain/Carnarvon Gorge/Arcadia Valley 16 August 2023

Springsure 25 October 2023

Gindie 15 May 2024

Blackwater 29 May 2024 Comet 6 June 2024 Orion 19 June 2024

A councillor community consultation at Theresa Creek crossing in 2024.

The Emerald council office.

Executive leadership team

Chief Executive Officer

Ross Higgins (acting November 2023 to June 2024)

Ross

(acting from June 2024)

Chief Financial Officer

General Manager Communities

General Manager Infrastructure and Utilities

General Manager Commercial and Corporate Services

General Manager People, Safety and Legal

Sharon Houlihan (to November 2023)

Arun Dias

Daryl Hitzman (August 2023 to June 2024)

Jason Hoolihan

Carolyn Knudsen

John McDougall (to June 2024)

Musgrove

Organisational structure

„ Executive services

„ Strategic projects and advocacy

„ Community representation

„ Strategic decision making

„ Advocacy

COMMERCIAL AND CORPORATE SERVICES

„ Customer service

„ Saleyards

„ Airport

„ Governance and information management

„ Information communication and technology (IT solutions, corporate applications)

PEOPLE, SAFETY AND LEGAL

„ People and culture (recruitment, payroll, training and development)

„ ■Safety and wellness

„ ■Property services (community and council housing, lease management (Native Title)

„ Legal services

„ Economic development (business facilitation, agribusiness, regional development)

„ Visitor economy (industry development, visitor information centres)

„ Support services (finance, human resources, events, research, communications, collateral and administration)

COMMUNITIES INFRASTRUCTURE AND UTILITIES

„ Parks and recreation (including cemeteries, community facilities, sport and entertainment venues)

„ Disaster management (emergencies, community resilience, flood mitigation)

„ Planning and land management (development, building and plumbing, strategic land use, ranger services)

„ Public relations

„ Resource recovery (waste) and environmental health

„ Fleet, workshops and depots

„ Infrastructure (road construction, road corridor management, road maintenance, footpaths, bridge and drain maintenance, natural resourcesgravel extraction)

„ Project management office

„ Water and sewerage utilities

OFFICE OF THE CHIEF FINANCIAL OFFICER

„ Financial services (management accounting, financial accounting, rates and revenue, taxation, treasury and accounts payable)

„ Strategic contracts and procurement

OFFICE OF THE CHIEF EXECUTIVE OFFICER

CENTRAL HIGHLANDS DEVELOPMENT CORPORATION

Message from the CEO

It is my privilege to present the Central Highlands Regional Council Annual Report for 20232024, a year marked by resilience, progress, and sustainable growth.

Our sound financial position, demonstrated by an operating surplus of $4.9 million, underscores our commitment to careful planning and financial management. This surplus positions us well for continued delivery of high-quality services and infrastructure to our community.

Our financial independence remains robust, with 81% of our revenue generated from local sources, including rates, sales, and fees. This self-sufficiency highlights our ability to control our financial destiny while continuing to deliver vital services without heavy reliance on external grants.

There is, however, a heavy reliance on revenue from the resources industry. It will be necessary for council to carefully manage future capital and operational expenses if the coal industry activity declines as forecast by the Queensland Government.

This year, we made significant strides in asset management and capital works, with 88.2% of capital projects completed within one phase of forecast. These investments will ensure our community’s infrastructure continues to meet the needs of residents and businesses alike.

Our community infrastructure assets increased by $63 million, reflecting both ongoing capital works and revaluation adjustments. These investments, particularly in our extensive road and water networks, demonstrate our commitment to building a stronger future for all. Our long-life infrastructure remains in good condition, and we are confident that it will continue to deliver for our community well into the future.

Within this annual report, you will find many highlights, achievements and interesting statistics from the year that was, painting a picture of what we do and how we do it.

Thank you to our staff, partners, and community members for their contributions. We look forward to continuing to work hard, deliver and provide for our region as we move into a new year.

Sincerely,

Ross Musgrove

ACTING CHIEF EXECUTIVE OFFICER CENTRAL HIGHLANDS REGIONAL COUNCIL

Senior Management Remuneration (S201)

Pursuant to the provisions of section 201(1)(a) of the Local Government Act 2009 (Qld), the following summary shows the range of total remuneration packages payable for the 12-month period to 30 June 2024, for Council’s senior executive employees.

Senior executive employees (the CEO, CFO and General Managers) are engaged under fixed-term, performancebased contracts. The remuneration packages include base salary, superannuation, allowances, and nonmonetary benefits (for example housing, vehicle, training and professional memberships). It is noted that not all senior executive employees have been employed

for the full financial year and therefore the remuneration calculation is based on the paid amount.

The Duaringa council office.

The workforce

Aboriginal and Torres Strait Islander employees

Aging workforce trend (56 years and over)

CHAPTER 4

Reporting the organisation’s performance

Financial performance snapshot

Council is in a sound financial position. The financial year operating result reflects a positive short-term performance, and the 2024-2025 budget and long-term forecast indicates that council expects to maintain this favourable position over the medium term.

Council achieved an operating surplus of $4.9 million.

A net surplus of $8.0 million was recorded after adding capital revenue and deducting capital expenses from the operating surplus.

Where does the money come from?

Rates, sales, contract works, and fees and charges account for 95% of council’s $188 million operating revenue, and 86% of the combined operating and capital revenue of $207 million.

Where is the money spent?

$183 million was spent on day-to-day operations during the year.

What we own

Cash holdings increased from $109 million to $114 million and include term deposit investments of $3 million.

Inventory held and money owed by ratepayers and other customers of council totals $42 million.

The value of community infrastructure assets including assets under construction increased by $63 million to a total of $1.8 billion.

What we owe

Total borrowings at the end of the year are $70 million.

Amounts owed to suppliers and other commitments are $68 million.

Community

worth

Community equity has increased from $1.7 billion to $1.8 billion which is equal to what we own less what we owe.

The Emerald Airport.

Capital performance snapshot

A capital project is one that helps to maintain or improve a local government asset, often called infrastructure. It’s new construction, expansion, renovation or replacement of an existing facility or facilities. This financial year, 88.2% of capital projects were completed within one phase of forecast, with 98.4% of the adopted capital budget spent.

CAPITAL PROJECTS WITHIN ONE PHASE OF FORECAST

CAPITAL EXPENDITURE TO BUDGET

88.2%

Governance,

98.4%

CAPITAL EXPENDITURE BY KEY STRATEGIES

Rolleston's Beazley Park.

The annual operational plan outlines what council will do during the financial year to achieve the long-term destination goals in our corporate plan.

Each long-term destination goal has associated activities that are expected to be completed within the financial year. In 2023-2024, a total of 30 activities were identified to be actioned.

A parks and gardens crew member at a sporting field in Springsure.

Long-term destination goalS

Long-term destination goal 1

DELIVER, ENABLE AND ADVOCATE FOR RELIABLE SERVICES TO OUR COMMUNITY

Airports

Passenger numbers travelling through the Emerald Airport continued to rise. Increased income balanced with increased operating expenses resulted in the airport managing within this financial year’s budget.

The airport worked with airlines to enable the larger and more modern Embraer E190 jets to begin operating through Emerald in May 2024, making travel more comfortable and quicker to and from Brisbane.

Emerald Airport has continued to increase its medivac presence in the region with the commencement of a Royal Flying Doctors Service (RFDS) Patient Transfer Hub, as well as increased facilities support for charitable medivac groups including Angel Flight, Qld Mission Critical Helicopters, and Little Wings.

The airport team also looks after 5 aircraft landing areas, including Rolleston, which underwent a rejuvenation of its runway. This project was completed just in time to be operational to support aerial surveillance and aerial fire fighting in the Carnarvon Gorge areas.

Strategic asset management

A full review and ranking of almost 110,000 lines of asset data was undertaken. 10-year asset management plans for all asset classes were drafted and presented to council for endorsement. These adopted plans will inform future asset management and financial requirements. They will form the basis for an annual asset management plan review and asset management improvement plan.

Customer service

Council went live with a new knowledge management system, ‘Connie’, in June 2024. Connie, short for Constance – the Latin word for constant knowledge, is an innovative internal knowledge management system designed to assist council’s customer service team and enhance customer service efficiency and satisfaction.

In a recent survey, our customers told us that they want their interactions with council to be as smooth and efficient as possible. Connie, is a single source of truth, providing our customer service team with direct answers to customer questions, shortening interactions so our customers can get on with their busy lives.

Infrastructure and road management

A pathway construction program in Emerald saw new footpaths built at Park Avenue and Brief Street, as well as Pilot Farm Road which was jointly funded by the Department of Transport and Main Roads.

The Mayfair Estate road and stormwater rehabilitation project continued this year, with stage 1 complete. New road surfacing and retrofitted stormwater mains have been completed on Mitchell Street, Baird Street and on Mayfair Drive from Desgrand Street to Mitchell Street. An additional drainage outlet was constructed at Baird Street as well, allowing for improved stormwater immunity.

The road maintenance team constructed additional water points at key regional locations to assist with the efficient delivery of road maintenance and construction in the future.

The road construction team also continued upgrades to Wyntoon Road, improving access to this important grain transport link for all vehicles in wet weather, as well as Mulchays Road. This project, partially funded by Santos and the Queensland Government, will seal the remaining section of road between the Carnarvon Highway and the Arcadia Valley Gas Fields.

Project management

The project management office (PMO) developed a Project Governance Framework to be used for the delivery of all projects. This framework will ensure project delivery is managed in a way that provides consistent high-standard outcomes.

Information management

A 4-year operational project to migrate council’s enterprise records management system, ECM, into the cloud alongside the rest of council’s corporate enterprise system was completed. The system upgrade enhances the connectivity of council’s information transfer processes across the TechnologyOne suite.

The Records Management Business Process Improvement Process was implemented, setting a foundation for the management of council’s physical records holdings and more effective delivery of day-today functions of the information management team. This included the development of a Digitisation and Disposal Plan, an Original Source Records Disposal Procedure and new team key performance indicators (KPIs), ultimately improving how council manages our records.

144 boxes of source records were also digitised.

Emerald Saleyards

Former Saleyards Manager Tim Maguire was awarded the Australian Livestock Markets Association/Australian Livestock Saleyards Association 2024 Saleyards Industry Champion Award.

Ten projects totalling $396,400 were completed on time and on budget providing significant improvements to operational infrastructure with positive animal welfare and workplace health and safety outcomes. This included a reseal of the carpark and the concept and design for a roof over the selling pens.

The continued increase in demand within the market and quality spelling facilities has seen a dramatic (116%) increase in this revenue stream, and we look forward to continued growth.

Water supply and sewerage

Phase 1 of the smart water meter trial in Capella was rolled out, allowing both council and local residents to track and trend water consumption data. This will help reduce water losses and costs from concealed leaks.

A major capital improvement and maintenance project was completed at the Park Avenue Wastewater Treatment Plant in Emerald. These works included the refurbishment, reseeding and recommissioning of the Bioreactor (Bathurst Box) to bring the plant back online, having been previously offline for over 2 years.

An 8 km stretch of the water pipeline from Capella to Tieri was replaced. This will ensure a consistent supply of high-quality drinking water for the Capella community, improve water security and unlock the town’s economic development opportunities.

Following the adoption of the Central Highlands Regional Council Water Security Strategy 2022-2042, council developed and adopted a Water Demand Management Plan 2023-2028. The plan establishes council’s response framework with recommended actions and responsibilities before, during and after a drought event.

Strategies, plans and policies

„ Airport Emergency Plan testing and review

„ Audit reviews and updates of Aviation Compliance for airport certification

„ Commencement of Airport Master Plan refresh for asset management

„ Asset Management Plans for all asset classes adopted

„ Water Demand Management Plan 2023-2028 adopted

Statistics

„ 41,326 documents registered in council’s document management system, ECM

„ 966 information management service desk tickets were actioned.

„ 11 applications for external funding to a value of $47.7 million submitted, with $36.9 million successful

„ 22,051 calls received through council’s 1300 number, including 622 after-hours

„ 37,335 customer service enquiry emails received

„ 21,852 customer requests lodged in customer request management (CRM) system

„ 1,965 km of roads graded

„ Managed 2,174 ML of wastewater

„ Supplied 6,664 ML of treated water for town water supply

„ Produced 1,693 ML of recycled water for beneficial reuse

Operational plan performance report

Long-term destination goal 2

PROTECT AND GROW A DIVERSE AND PROSPEROUS ECONOMY

Building, planning and development

This year has seen a steady flow of development applications, plumbing applications, records searches and compliance matters.

Most of the development applications processed are for commercial and industrial development across the region, with some new residential development or extensions to dwellings. The majority of applications processed in the financial year were for properties in Emerald and Blackwater.

The increase in records searches from the previous financial year reflects the strong real estate market in the region over the last 12 months.

Economic development

Please see Central Highlands Development Corporation (CHDC) Annual Report

Visitor economy

Please see CHDC Annual Report

Procurement

A Procurement Planning project was implemented by the team to support council’s procurement process. Once rolled out, it will reduce manual work, enhance efficiency, and minimise errors, while streamlining stakeholder approvals and improving visibility and auditability. It will drive cost reduction, mitigate risks, and enforce compliance through built-in safeguards, such as conflictof-interest checks and adherence to policy procedures.

Statistics

„ 381 building and plumbing records search requests

„ 148 development applications processed/determined

„ 80 plumbing applications processed/determined

„ 24 planning and building compliance matters resolved

„ 48 formal pre-lodgement meetings/requests for advice

„ 78 planning and development certificates issued

Strategies, plans and policies

Operational plan performance report

„ Central Highlands Economic Master Plan Action Plan

„ Regional Tourism Organisation Transition „ Economic Stimulus Policy „ Industrial Commercial and Residential Land Study

A construction site in Emerald.

Long-term destination goal 3

SUPPORT AND ENHANCE RESILIENT, SAFE, VIBRANT AND INCLUSIVE COMMUNITIES

Arts and culture

Acoustic treatment to the Emerald Art Gallery was completed in March 2024. Wall panels and hanging sculptural structures were installed to reduce the amount of reverberation within the space of up to 70%.

This year we celebrated the 30-year anniversary of the Annual Art Awards in Emerald. Over 200 entries were received for the exhibition and awards, and five longentering artists were recognised for their contribution to the awards with handmade trophies by Lawrie Stanton. Over 150 attendees came to the exhibition opening and awards presentation.

Metal in March 2024 was held across the Central Highlands with a variety of activities and events. These included:

„ 13 metal art-based workshops in Emerald, Springsure, Blackwater, Capella and Sapphire

„ a free community concert in the park featuring local jazz bands

„ re-use, recycle, re-invent metal art competition and public display in partnership with the resource recovery team

„ Metal Art Tourist Trail both online and as a tourist brochure.

Over 500 community members participated in the events across the Metal in March program.

Other highlights included the 2024 Annual Art Awards Springsure, 2024 Annual Youth Art Awards, and continuation of the Artists in the Spotlight campaign.

Community engagement and development

The Community Engagement Review project was finalised. Draft documents were shared with community for feedback, and the Community Engagement System was endorsed by council in October 2023. The system includes key documents and actions to enhance council’s community engagement practice over a 5-year period from January 2024 to December 2028.

The Central Highlands 2043 Community Vision was developed, outlining what we aspire to be and achieve, our priorities for the future, what we like and what can be improved for the Central Highlands region overall and our 13 communities. This document was received by council and shared with community in December 2023.

The annual seniors luncheon was held on Thursday 5 October 2023 in Blackwater. This event saw over 200 seniors from across the region come together to celebrate Seniors Month. Seniors enjoyed lunch, entertainment and connecting.

Public assets and facilities

$500,000 in projects were completed at the Duaringa community building, Duaringa council office, and Rolleston and Dingo halls. These works will assist in extending the life of each of these buildings and contribute to their overall use and efficiencies.

The Dingo hall was repainted inside and out, and the toilet at the end of the library refitted for disabled and parent use. This room is now accessible from inside the hall.

The old timber fence at the Duaringa community building was replaced with a new colourbond fence. This has allowed the use of this area by the Duaringa community play group.

The Rolleston hall had a facelift with painting, repairs and windows replaced. The addition of a storage container has also allowed materials and stock to be moved out of the dressing rooms.

Works at the Duaringa council office included internal painting, new security glass and one third of the front counter replaced with a more modern look and feel. The entry was resealed and the cracks in the main foyer were rectified to avoid possible injury.

A library officer runs a First Five Forever session.

A student takes part in a consultation session about Dempsey Park in Blackwater.

Student Mayoral Summit 2024

Community project delivery

Construction began on a new indigenous tourism experience at Blackwater, Ghungalu Nunee Gardens. Major infrastructure of the parkland is in place and tree planting is expected to be complete by December 2024.

The design for funding applications and eventual construction of the Springsure Aquatic Centre upgrades was prepared. Council was pleased to receive $10 million in funding to complete this $12.5 million project. Construction was due to commence in September 2024.

Ahead of major upgrades in the Emerald Regional Botanic Gardens next year, a new nursery was constructed to assist in growing our own plants and specialist species.

A new purpose-built facility was finished at Roy Day Park in Sapphire, providing a large venue for the Gemfields community.

Flood mitigation

Council has enhanced its road and stream flood monitoring system with the addition of 4 new cameras at key locations:

„ Belcong Creek (Lilyvale Road)

„ Belcong Creek (Yan Yan Road)

„ St Helens Creek (Selma Road)

„ Theresa Creek (Clermont-Rubyvale Road)

This expansion brings the total number of monitoring sites to 16, all of which are accessible to the public through our Emergency Management Dashboard, significantly boosting community awareness and safety. These cameras are equipped for remote control and live streaming by disaster management staff during critical events, ensuring real-time monitoring and response capabilities.

The team have also continued to progress the implementation of a new Digital Tier III Private Mobile Radio Network. This is a major project involving 14 microwave linked repeater sites, 16 office base stations, the fit-out of 200 vehicles and 6 public citizen band repeaters. There have been some unavoidable delays this financial year on some sites, but the project should make good progress in 2024-2025.

Disaster management

This year, we partnered with QIT Plus to enhance our Emergency Management Dashboard, adding internal capabilities for configuration and extending its functionality to display event-specific updates automatically.

Phase 1 upgraded the dashboard to a new content management system, allowing us to manage certain content directly. Phase 2 introduced new functionalities, enabling the dashboard to display automatically updated event-specific information, such as fire, flood, or storm statuses. The system is designed to handle multiple events simultaneously, ensuring clear and accurate information for the community.

The department coordinated multiple significant events throughout the year. The Carnarvon fire, which began on 25 September 2023 and concluded on 27 November 2023, required an international effort, with support from local crews, greater Queensland, New South Wales, Victoria, and New Zealand. Additionally, the region faced heightened heatwaves into January 2024 and severe storm activity due to low-pressure systems and exTropical Cyclones Kirrily and Jasper.

Council’s Local Disaster Coordinator Glenn Bell was also deployed to Wujal Wujal Aboriginal Council to assist with disaster response efforts in early 2024.

Youth

After a 4-year hiatus due to COVID-19, our Sister City Exchange Program with Ichinoseki, Japan made a vibrant return. Eight enthusiastic students and their families successfully raised $34,000, which funded their enriching journey to Japan. From 24 June to 5 July 2024, students immersed themselves in Japanese customs, culture, and language, whilst forging lifelong friendships and sharing their own traditions.

The 15th Annual Mayoral Student Leaders Summit took place in Blackwater on 16 May 2024, drawing 187 student leaders from 27 schools across the region. This year’s summit featured guest speaker Kerry-Lee Gockel, the “Wingless Warrior,” whose inspiring story captivated attendees. The event included school presentations and leadership activities aimed at equipping students with vital skills and fostering a collaborative spirit.

Dingo and Duaringa hosted tailored events for both boys and girls, made possible through council’s partnership with Magnetic South Mine.

Community relationships

The team continued work on council’s second Reconciliation Action Plan (RAP), moving from the Reflect to the Innovate level.

National Reconciliation Week (NRW) and NAIDOC Week celebrations were great opportunities to extend invitations and encourage non-Aboriginal people in our communities to learn about the rich culture and histories of Aboriginal and Torres Strait Islander peoples.

For NRW, a range of craft and storytime activites were held in libraries across the region, and council staff participated in a ‘Walk on Country’ to Blackdown Tableland.

NAIDOC events were held in Blackwater, Emerald and Duaringa in July 2023, and Springsure in June 2024.

Libraries

The second year of the single-sided shelving project was successfully completed in Springsure, Rolleston and Capella libraries. Meeting industry and safety standards, the new shelving is an improvement to the facilities and allows for future developments. Bay-end panels have also been installed to the shelving allowing for better promotion of resources, engagement and future technological advancements.

Throughout the year, First5Forever (F5F) programs were conducted at the region’s 9 branches, attracting 2,884 children and 2,382 adults to Baby Rhyme Time, Wriggle and Rhyme, and Storytime sessions. These programs are designed to promote early literacy skills in children while also connecting parents with a variety of resources provided by the library to support their child’s development.

Public relations

A consultant was engaged to redesign council’s corporate website, with a focus on improved usability and accessibility. The new site should be live by December 2024.

Council’s 2022-2023 Annual Report received gold in the Australasian Reporting Awards for the second year in a row, a project managed by the public relations team.

The team distributed 546 media releases and public notices for the year, and council or council-related topics were mentioned in the media 1,532 times.

Our social media following continued to grow, with a 7% increase on Facebook, 11% on Instagram and 15% on LinkedIn.

On Facebook, council made 4.4 million impressions and the average post reach was 3,860.

Subscribers to council’s weekly e-news also increased by 26% to 2,227, with a 41% average open rate.

Regional entertainment and events

The Central Highlands Regional Entertainment Venues Operational Strategy was adopted in August 2023, resulting in the formation of this specialised team within council.

Consolidating the ‘venues’ and ‘events’ functions under one team has streamlined processes and provided customers with a central point for event-related services and enquiries.

The first year of the Event Assistance Program through SmartyGrants resulted in over 60 events in the region being supported by council through sponsorship, fee waivers or in-kind assistance.

Environmental health

The team was involved in investigating 32 complaints throughout the year associated with mosquito issues. This involved numerous onsite visits and implementing mosquito controls at identified areas of risk throughout the region. We also continued to assist Queensland Health with their Mosquito Surveillance Program which is located in Emerald.

The team was involved in investigating 23 food complaints throughout the financial year to ensure compliance with the National Food Standards Code and Food Act 2006. No enforcement action. Environmental Health Officers inspected the premises and provided advice, feedback and resources to ensure continued compliance with legislation.

Sport and recreation

The Central Highlands Aquatic Centre Strategy was adopted and a new contract for the management of the Emerald Aquatic Centre was awarded to national company Lifeguarding Services Australia.

Funding was received through the Resource Community Infrastructure Fund for sport and recreation facility

projects across the region including the Springsure Aquatic Centre rebuild, Bridgeman Park clubhouse upgrades and completion of the McIndoe Park Master Plan. These projects will be completed in 2025 or 2026, and will result in significant improvements in infrastructure, recreational opportunities, and economic stability.

NAIDOC celebrations in Emerald in 2024.

SES Water Rats 2024

Statistics

„ 2023 Annual Art Awards Emerald: 208 entries from 124 artists

„ 2024 Annual Art Awards Springsure: 131 entries from 71 artists

„ 2024 Youth Art Awards: 131 entries from 105 artists

„ Number of exhibitions: - Emerald: 9

- Springsure: 8

„ Art gallery visitor numbers

- Emerald: 6,372

- Springsure: 3,248

„ 200 seniors attended annual Seniors Month Luncheon in Blackwater

„ 143 youth activities held, with 6,022 attendees

„ 81 youth activities delivered in partnership with over 20 different stakeholders

„ 187 students attended the Annual Mayoral Student Leaders Summits hosted in Blackwater

„ 8 Regional Youth Alliance Network (RYAN) meetings held

„ 510 young people participated in 26 leadership activities

„ Over 1,200 people attended NAIDOC Week events in Duaringa, Emerald, Blackwater and Springsure

„ 81.5% completion of RAP targets for 2023-2024

„ 86,401 people visited a library branch

„ 2,733 library program sessions delivered with 13,555 participants

„ 72,966 views of Emergency Management Dashboard

„ 546 media releases and public notices distributed

Seniors enjoy the annual Seniors Month Luncheon in 2023.

Strategies, plans and policies

„ Central Highlands Aquatic Centre Strategy adopted

„ New Community Engagement System endorsed, including: - Community Engagement Policy

- Community Engagement Statement

- Community Engagement Strategic Action Plan 2024-2028

- Community Engagement Framework

„ Development of Central Highlands 2043 Community Vision

„ Development of Youth Development Strategic Action Plan 2024-2028

„ Annual review of Central Highlands Regional Council Local Disaster Management Plan

Operational

Long-term destination goal 4

DRIVE

OUR COUNCIL AND THE REGION TOWARDS A DIGITAL FUTURE

Information communications technology

The OneCouncil Platform was successfully upgraded to the 2023B release, marking an important step in maintaining and improving the council’s digital infrastructure. Alongside this, the council’s electronic document management system received a significant upgrade, ensuring more efficient document handling and storage. Additionally, the audio-visual hardware in the Emerald council chambers was upgraded, enhancing the quality of presentations and meetings held in this space.

The implementation and launch of the online venue booking system, Bookable, was supported, providing a more streamlined process for community members to reserve venues. In the realm of water management, the smart water meter pilot and customer portal were

Strategies, plans and policies adopted

„ Digital Strategy 2023-2026 adopted

„ Cyber Security Master Plan refreshed

Operational plan performance report

„ Cyber Security Initiatives

„ Infrastructure and Service Improvement in Digital Connectivity

„ Website Initiatives Project Nil

also successfully implemented, offering residents more control and insight into their water usage.

Security enhancements were a priority, with the completion of CCTV system upgrades at 15 council facilities and parks, and a comprehensive cybersecurity vulnerability assessment and penetration test being conducted. Our cybersecurity master plan was refreshed to address emerging threats and ensure robust protection. Further, Starlink satellite connectivity was rolled out to council work camps, improving communication capabilities in remote areas. Lastly, a decommission plan for legacy council systems was developed, paving the way for the transition to more modern solutions.

A smart water meter is installed.

Long-term destination goal 5

DEVELOP A FUTURE-FOCUSED WORKFORCE TO SUPPORT COUNCIL AND OUR REGION

Governance

An interim organisational restructure saw the introduction of a fresh governance team in the middle of the 20232024 financial year and recruitment of 4 team members to fill organisational vacancies. In the governance space, this year has seen:

„ adoption of a new Policy Governance Framework, following a strategic review of policy governance practice which will improve the approach to policy review and development and streamline processes for approval

„ development of a council-first register of policies, procedures and related documents and policy review schedule aligned with the new Policy Governance Framework

„ adoption of a new model of internal audit to ensure that priority areas and recommendations are best targeted to organisational risk

„ commencement of a reset of the organisational risk register and have embedded this function within the business as usual of existing resourcing

„ a strategic review of the Risk Management Steering Group to improve organisational risk oversight

„ support to the Office of the CEO to deliver the new councillor induction program, following the 2024 Local Government elections.

Legal services

In November 2023, the governance and legal services team split which saw the creation of council’s first dedicated legal services team.

The team provides a high level of specialist legal advice and support throughout the whole of council to assist each department achieve its goals.

Since its creation the team has kickstarted council’s Safety First Project. It is the team’s intention to undertake a comprehensive review of council’s Safety Management System, to ensure continued best practice.

Housing and property services

The housing and property services team manage a portfolio of around 80 community houses for some of the region’s most vulnerable residents.

Council delivered over $150,000 worth of upgrades to facilities in this portfolio to ensure these housing assets are suitable for council’s elderly tenants and to increase the liveability of the region. A further 11 properties have been identified for work in the 2024-2025 financial year.

People and culture

Council appointed 193 people into new positions this year, which is a 24% increase from the previous year. We introduced a new onboarding process where newly appointed employees commence together and undertake 2 days of targeted induction training to help set them up for success as they commence or continue their career journey with council.

In 2023-2024, the training and development team facilitated and delivered more than 1,960 in-person training opportunities. The growing suite of eLearns available in council’s learning management system Damstra Learning provides flexible learning opportunities for employees with over 3,621 modules completed in the same period. In-field training ensures employees have the skills and experience required to operate council’s plant and equipment safely. In the past year, operators achieved 116 competencies in a range of plant and equipment as well as 203 verifications of competency (VoCs).

Staff attend training.

In August 2023, council’s Highland Gems (Kayla Bonner, Rachael McFarlane, Conor Quinn-Fitzgerald, Rebekah McDonald, Tash Todd and Brenton Judge) competed in the Australasian Management Challenge (AMC) final in Adelaide. Finalists from across Australia and New Zealand undertook a variety of tasks from role plays and podcasts to presentations and coordinating film festivals. Our Highland Gems performed exceptionally well and were rewarded for their efforts as runners-up!

In 2023, Sharon Atkinson (Certificate III in Work Health and Safety) was named a state finalist at the Queensland Training Awards (QTA). In 2024, council was well represented once more with Callie Eadie (Certificate III in Business) making it to the top 3 in the CQ region for Equity Student of the Year and council won the Large Employer of the Year category. Council planned to attend the state final in Brisbane in September 2024.

Safety

During the year, our organisation achieved significant progress in enhancing workplace safety.

„ 242 incidents were investigated and successfully closed.

„ 105 corrective actions were completed, addressing identified risks.

„ 74 hazards were controlled to a level that is as low as reasonably practicable (ALARP), ensuring a safer working environment.

These efforts reflect our ongoing commitment to maintaining a safe and healthy workplace for all employees.

Statistics

„ 4 Right to Information Act (RTI) and Information Privacy Act (IP) applications were processed

„ 242 safety incidents investigated and successfully closed

Strategies, plans and policies

„ Policy Governance Framework adopted

Operational plan

performance report

The Highland Gems team at the Australasian Management Challenge final in Adelaide in 2023.

Long-term destination goal 6

RESPONSIBLY MANAGE OUR NATURAL ENVIRONMENT

Parks and open spaces management (including cemeteries)

As part of the master plan for the Emerald Regional Botanic Gardens, a new nursery was established to ensure a high standard of appropriate flora. Producing our own specimen plants from seedlings and tube stock will reduce costs and give us specialist species that are not commercially available.

Community were invited to provide input into plans to revitalise Dempsey Park in Blackwater. The aim is to create a space that resonates with resident desires, offering a safe destination that promotes inclusivity. In stage one we will be installing a replacement playground.

New monorail cars were purchased for the Emerald Regional Botanic Gardens.

The waterfall at Mackenzie Park in Duaringa was upgraded with a new pump and pump-out pit. Upgrades to the park have also been undertaken, including the placement of sandstone blocks to protect the roots of native trees from compaction by visiting recreational vehicles.

Due to the columbarium wall at the Emerald Cemetery having no available niches, a new garden space has been designed and created to inter ashes. This was in response to the public wanting a more natural environment to lay their ashes.

Ranger services

The ranger services team attended to more than 100 dog attack allegations this year and rescued over 300 lost dogs.

We held an educational stall at a number of local shows and exhibitions promoting responsible pet ownership, including the Emerald Agricultural Show and NAIDOC celebrations. We also visited numerous schools to spread the word and educate students about taking care of their animals.

Our rangers have been busy upskilling this year. Our trainees completed their Certificate IV in Government Investigations, while other staff attended training on dangerous dog handling and microchip implantation.

New off-leash dog parks in Springsure and Rolleston have been outfitted with dog agility equipment.

We welcomed some new additions to the team, including 2 full-time rangers in Blackwater and a new trainee.

Strategic land use planning

We commenced the Major Planning Scheme Amendment No. 7 – Business Improvement and Innovation which incorporates a broad suite of improvements in innovation for developments in tourism, agriculture, urban amenity and emerging technologies. It also updates outdated references and mapping and reduces red tape for new or expanding businesses.

The draft CHRC Towards Net Zero Greenhouse Gas Action Plan (SP4) and emissions inventory for 2023-2024 was delivered which will assist council to manage its greenhouse gas emissions.

There was unprecedented uptake of the new Economic Stimulus Policy (MI6) including:

„ 14 applications for Stream 1: Façade Improvement (2 withdrawn, 1 declined) with 11 approvals totalling $17,952.65

„ 6 applications for Stream 4: Development Application Fees and Infrastructure Charges with all approved for a total of $695,151.79

The team delivered the draft Industrial, Commercial and Residential Land Demand and Supply Study (MI7). This will be used to inform and guide decisions relating to development applications, strategic planning decisions on rezoning, the Local Government Infrastructure Plan (LGIP), and the master planning of existing and future subdivisions.

We engaged with the Blackwater community in October 2023 regarding the revocation of the Blackwater and Blackwater East Priority Development Areas (MI14) to gauge community sentiment around potential rezonings. We also progressed drafting material for this revocation which will bring these areas back under council’s Planning Scheme, meaning that the community will have more say in how development is guided in the future.

Statistics

„ Economic Stimulus Policy:

- 14 applications received for Stream 1: Façade Improvement with 11 approvals totalling $17,952.65

Animal management

Strategies, plans and policies

„ Major Planning Scheme Amendment No. 7 – Business Improvement and Innovation adopted

Operational plan performance report

- 6 applications for Stream 4: Development Application Fees and Infrastructure Charges with all approved for a total of $695,151.79 NOT PROCEEDING CARRIED OVER/NOT ACHIEVED COMPLETED

„ Desludging Project

„ Trade Waste Policy and Management Plan

„ Revocation of Priority Development Areas

Nil

Ranger services team members with some rescued puppies.

Long-term destination goal 7 PREPARE FOR A LOW-CARBON FUTURE AND ADAPT TO A CHANGING CLIMATE

Advocacy

Central Highlands Regional Council in partnership with Isaac Regional Council and the Local Government Association of Queensland, proposed the creation of a Regional Transformation Authority to support coal mining communities. The proposal, endorsed by local governments and discussed with state leaders, advocates for the development of a regional transformation authority which would deliver:

1. long-term planning for the region in relation to changing supply/demand for coal to national/ global decarbonisation

2. coordination at a state level

3. economic modelling.

Council submitted multiple project proposals under the Regional Economic Futures Fund, including those for metallurgical coal, gas pipeline development, and renewable energy initiatives. At the federal level, council engaged with the Net Zero Transformation Taskforce, advocating for the metallurgical coal sector to be recognised as a critical mineral and the Department of Industry, Science and Resources advocating for gas to support the transition to net zero. Additionally, Council supported mining companies' net-zero initiatives and worked with Queensland Treasury.

Council made significant progress in addressing mobile blackspots and internet improvements. After identifying key areas, council advocated for funding, resulting in several applications to improve connectivity. Despite setbacks, council continues to push for future funding rounds and is collaborating with other councils to develop

a digital connectivity plan for the region.

Council hosted a road trip for stakeholders to assess the Inland Freight Route (IFR) corridor, aiming to develop a 10-year investment strategy. Participants reviewed the current state of the corridor and discussed priorities for future improvements.

Council secured $30 million from the Resources Community Infrastructure Fund, financing several regional projects, including upgrades to sporting fields, entertainment venues, and infrastructure at Emerald Airport and Emerald Regional Botanic Gardens.

Throughout 2023-2024, council advocated for solutions to skills shortages, particularly in water industry operations, and pushed for better childcare accessibility and affordability in rural areas.

Waste management

Compliance with legislation and regulation has been a driving force for the waste team this year. This is reflected in our monthly reporting with far less errors. Prioritising training is a continued focus to improve these statistics.

Fleet

The team delivered scheduled and reactive maintenance work activities for 585 fleet type vehicles and plant assets plus associated attachments.

We secured 53 replacement vehicles through a light vehicle tender and delivered 3 Vermeer Excavator Trailers for the water network team.

A new landfill compactor for Lochlees Landfill was also ordered.

Children take part in the Great Northern Clean Up in 2023.

Waste

management HOUSEHOLDS WITH KERBSIDE WASTE COLLECTION

AND DIVERSION VOLUMES

Note: The increase in waste to landfillfigures from 2019-2020 are due to day cover tonnages received at Lochlees Landfillin particular. Prior to the levy introduction in 2019, day cover received was not required to be reported. The 2021-22 figure has had soilday cover received removed.

WASTE LEVY PAYMENTS TO THE DEPARTMENT OF ENVIRONMENT AND SCIENCE

„ 2,795 work orders completed on council’s fleet (25% scheduled servicing/maintenance and 75% reactive maintenance)

„ 108 fleet assets delivered

CHAPTER 5

Legislative disclosure requirements and financial reporting

Annual Report Compliance Checklist

Local Government Act 2009 (LGA). Local Government Regulation, 2012 (LGR)

A list of all the beneficial enterprises that the local government conducted during the financial year.

A list of all the business activities that the local government conducted during the financial year.

Identify the business activities that are significant business activities.

State whether or not the competitive neutrality principle was applied to the significant business activities, and if the principle was not applied, the reason why it was not applied.

State whether any of the significant business activities were not conducted in the preceding financial year.

The total of all remuneration packages that are payable (in the year to which the annual report relates) to the senior management of the local government.

The number of councillor advisors appointed by a councillor for the year and the total remuneration payable to all councillor advisors appointed by the councillor for the year.

The number of employees in senior management who are being paid each band of remuneration.

The general purpose financial statement for the financial year, audited by the auditor-general.

The current-year financial sustainability statement for the financial year, audited by the auditor-general.

The auditor-general’s audit reports about the general purpose financial statement and the current year financial sustainability statement.

The community financial report for the financial year.

A copy of the resolutions made during the financial year under s250(1) of the LGR (adoption of an expenses reimbursement policy).

A list of any resolutions made during the financial year under s206(2) of the LGR (threshold for non-current physical asset to be treated as an expense).

The total remuneration, including superannuation contributions, paid to each councillor during the financial year.

The expenses incurred by, and the facilities provided to, each councillor during the financial year under the local government’s expenses reimbursement policy.

The number of local government meetings that each councillor attended during the financial year.

The total number of orders made under section 150I(2) of the LGA.

The total number of orders made under section 150IA(2)(b) of the LGA.

s185(b) 75

s186(d)(i) 76

s186(d)(ii) 76

The total number of orders made under section 150AH(1) of the LGA.

The total number of decisions, orders and recommendations made under section 150AR(1) of the LGA.

The name of each councillor for whom a decision, order or recommendation under section 150(I(2), 150AH(1) or 150 AR(1) of the LGA was made.

A description of the unsuitable meeting conduct, inappropriate conduct or misconduct engaged in by each of the councillors.

A summary of the decision, order or recommendation made for each councillor.

Complaints referred to the assessor under section 150P(2)(a) of the LGA by the local government, a councillor of the local government or the chief executive officer of the local government.

Matters, mentioned in section 150P(3) of the LGA, notified to the Crime and Corruption Commission.

Notices given under section 150R(2) of the LGA.

given under section 150S(2)(a) of the LGA.

Occasions information was given under section 150AF(3)(a) of the LGA.

Occasions the local government asked another entity to investigate under chapter 5A part 3, division 5 of the LGA for the local government, the suspected conduct breach of a councillor.

Applications heard by the conduct tribunal under chapter 5A, part 3, division 6 of the Act about whether a councillor engaged in misconduct or a conduct breach.

The total number of referral notices given to the local government under section 150AC(1) of the LGA during the financial year.

The total number of suspected conduct breaches and the total number of suspected conduct breaches for which an investigation was not started or was discontinued under section 150AEA of the LGA.

The number of decisions made by the local government under section 150AG(1) of the LGA during the financial year.

The number of matters not decided by the end of the financial year under section 150AG(1) of the LGA

The average time taken by the local government in making a decision under section 150AG(1) of the LGA.

A statement about the local government’s commitment to dealing fairly with administrative action complaints.

A statement about how the local government has implemented its complaints management process, including an assessment of the local government’s performance in resolving complaints under the process.

s186(1)(h)

s186(1)(j)

s187(1)(b)

The number of administrative action complaints made to the local government. LGR s187(2)(a)(i)

The number of administrative action complaints resolved by the local government under the complaints management process.

s187(2)(a)(ii)

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

The number of administrative action complaints not resolved by the local government under the complaints management process that were made in a previous financial year.

about overseas travel made by a councillor or local government employee including name, position, destination, purpose, and cost.

The chief executive officer’s assessment of the local government’s progress towards implementing its 5-year corporate plan and annual operational plan.

Particulars of other issues relevant to making an informed assessment of the local government’s

and performance in the financial year.

of any action taken for, and expenditure on, a service, facility or activity supplied by another local government under an agreement for conducting a joint government activity for which the local government levied special rates or charges for the financial year.

The number of invitations to change tenders under section 228(8) of the LGR during the financial year.

of investigation notices given in the financial year under S49 of the LGR for competitive neutrality

The local government’s responses in the financial year on the Queensland Competition Authority's recommendations on any competitive neutrality complaints under S52(3) of the LGR.

Local Government act 2009

Identifying beneficial enterprises (s41)

No beneficial enterprises conducted this year.

Identifying significant business activities (s45)

In accordance with section 46 of the Local Government Act 2009 a public benefit assessment was undertaken in 2023-2024 to determine the application of the competitive neutrality principle and the most appropriate business structure for the Waste significant business activity under National Competition Policy reforms. At the general council meeting on 26 June 2024 a resolution was made to apply the full cost pricing model to the waste significant business activity. The waste business was identified as a significant business activity during the previous reporting period.

Council’s water and sewerage services are conducted as significant business activities and full cost pricing is applied to these activities.

For a full list of council’s business activities refer to Note 30 ‘National Competition Policy’ of the financial statements on page 169.

Senior management remuneration (s201)

Refer to page 39.

Councillor advisors (s201(1)(a) and s201(1)(c) of the LGA)

No councillor advisors have been appointed as Central Highlands Regional Council is not an eligible council to appoint councillor advisors under section 197A of the Local Government Act 2009 (Qld).

Local Government REGULATION 2012

General purpose financial statements, current-year financial sustainability statement, long-term financial sustainability statement (s183(a) to s183(c)) and the auditor-general's reports about the general purpose financial statement and the current year financial sustainability statement (s183(d))

Refer to page 106.

Community financial report (s184)

Refer to page 100.

Particular resolutions (s185(a))

There were no resolutions pursuant to section 250(1) of the Local Government Regulation 2012 (Qld) in the 2023-2024 financial year with respect to adoption or amendment of the Expenses Reimbursement and Provision of Facilities Policy.

Particular resolutions (s185(b))

There were no resolutions pursuant to section 206(2) of the Local Government Regulation 2012 (Qld) in the 20232024 financial year with respect to setting an amount for each different type of non-current physical asset below which the value of an asset of the same type must be treated as an expense.

Councillor remuneration, expenses and facilities and meeting attendance (s186(1) (a) to s186(1)(c))

Councillor remuneration (s186(1)(a))

Refer to page 30.

Councillor expenses and facilities (s186(1)(b))

Refer to page 30.

Councillor meeting attendance 2023-2024 (s186)(1)(c))

Refer to page 23.

Councillor

conduct (s186(1)(d) to s186(1)(k))

In accordance with the requirements of section 186(1)(d) to 186(1)(k) of the Local Government Regulation 2012 (Qld), council advises that for the period 1 July 2023 to 30 June 2024 the statistics below were reported.

s186(1)(d) The total number of orders made in the 2023-2024 financial year:

186(1)(d)(i) Orders made under section 150I(2) of the Act

186(1)(d)(ii) Orders made under section 150IA(2)(b) of the Act

186(1)(d)(iii) Orders made under section 150AH(1) of the Act (formerly section 150K(1) of the Local Government Act 2009 (Qld))

186(1)(d)(iv) Decisions, orders and recommendations made under section 150AR(1) of the Act 0

Councillor Conduct Register to November 2023

Councillor Conduct Register to November 2023

s186(1)(e) Each of the following during the 2023-2024 financial year:

186(1)(e)(i) The name of each councillor for whom a decision, order or recommendation mentioned in paragraph (d) was made

186(1)(e)(ii) A description of the unsuitable meeting conduct, conduct breach or misconduct engaged in by each of the councillors

186(1)(e)(iii) A summary of the decision, order or recommendation made for each councillor

Particulars

Councillor Janice Moriarty

It was alleged that a councillor did not meet the required behavioural standards in the code of conduct on 2 occasions involving a council employee.

Council referred the complaint to the Office of the Independent Assessor as required by section 150AF(1) and subsequently investigated the allegations of inappropriate conduct in accordance with council’s investigation policy.

Council resolved as follows:

1. Notes that as required by section 150AF (1) of the Local Government Act 2009 (the Act), council has investigated the following allegations of inappropriate conduct referred to it by the Office of Independent Assessor-

(1) That Cr Moriarty, by her alleged verbal interaction with a council employee on 24 May 2023 at the Blackwater All Abilities Park, engaged in inappropriate conduct as defined in section 150K(1)(a) of the Act in that her conduct breached behavioural standard 2.1 of the Code of Conduct for Councillors in Queensland, namely to Treat fellow Councillors, Council employees and members of the public with courtesy, honesty and respect; and

(2) That Cr Moriarty, by her alleged derogatory statements made about that same employee on 24 May 2023 at the Blackwater Civic Centre, engaged in inappropriate conduct as defined in section 150K(1)(a) of the Act in that her statements breached behavioural standard 2.1 of the Code of Conduct for Councillors in Queensland, namely to Treat fellow Councillors, Council employees and members of the public with courtesy, honesty and respect;

2. Finds that, pursuant to section 150AG(1):

(1) the allegation against Cr Moriarty in respect to the incident at the Blackwater All Abilities Park on 24 May 2023 is not sustained;

(2) the allegation against Cr Moriarty in respect to the incident at the Blackwater Civic Centre on 24 May 2023 is sustained.

3. Pursuant to section 150AG(1)(b and 150AH(1) of the Act), having decided Cr Moriarty engaged in inappropriate conduct, council makes the following orders:

(1) That Cr Moriarty is reprimanded for her inappropriate conduct; and

(2) That if Cr Moriarty engages in the same type of conduct again, it will be treated as misconduct.

Source

Councillor Conduct Register to November 2023

Councillor Conduct Register to November 2023

Councillor Conduct Register to November 2023

s186(1)(f) The number of each of the following during the financial year in accordance with s186(1)(f) of the Local Government Regulation 2012

186(1)(f)(i) Complaints referred to the assessor under section 150P(2)(a) of the Act by local government entities for the local government

186(1)(f)(ii) Matters, mentioned in section 150P(3) of the Act, notified to the Crime and Corruption Commission

186(1)(f)(iii) Notices given under section 150R(2) of the Act

186(1)(f)(iv) Notices given under section 150S(2)(a) of the Act

186(1)(f)(v) Occasions information was given under section 150AF(3)(a) of the Act

186(1)(f)(vi) Occasions the local government asked another entity to investigate, under chapter 5A, part 3, division 5 of the Act for the local government, the suspected conduct breach of a councillor

186(1)(f)(vii) Applications heard by the conduct tribunal under chapter 5A, part 3, division 6 of the Act about whether a councillor engaged in misconduct or a conduct breach

186(1)(g) The total number of referral notices given to the local government under section 150AC(1) of the Act during the financial year in accordance with s186(1)(g) of the Local Government Regulation 2012

186(1)(h) For suspected conduct breaches the subject of a referral notice mentioned in paragraph (g)

The total number of suspected conduct breaches

186(1)(h)(ii) The total number of suspected conduct breaches for which an investigation was not started or was discontinued under section 150AEA of the Act

186(1)(i) The number of decisions made by the local government under section 150AG(1) of the Act during the financial year

186(1)(j) The number of matters not decided by the end of the financial year under section 150AG(1) of the Act

186(1)(k) The average time taken by the local government in making a decision under section 150AG(1) of the Act

– OIA Outcome (July to November 2023)

Administration action complaints (s187)

Council is committed to a complaint management process that ensures the transparent, fair and effective resolution of complaints. Council has adopted a request ethos where customer contact raising an issue that does not include a decision or action will be raised as a request for service. Complaints may be lodged by an affected person either in writing, by phone, in person, letter, fax or email.

Council manages complaints through its general complaints management policy and administrative action complaints procedure. If a complainant is dissatisfied with the outcome of the investigation undertaken by the department, they may lodge a complaint with the Queensland Ombudsman or use other external review processes such as judicial review within the jurisdiction of the Supreme Court were appropriate.

Number of unresolved complaints under the administrative actions complaints process from 2022-2023

Overseas travel (s188)

There was no overseas travel in 2023-2024.

Grants to community organisations (s189(1))

Community Grants Program

The Community Grants Program 2023-2024 had 25 successful applications totalling $261,313.

The Community Grants Program aims to assist local community groups/organisations in making positive contributions to the quality of life in the local government area.

Grants to community organisations (s189(1))

Regional Arts Development Fund grants

The Regional Arts Development Fund (RADF) 2023-2024 had 8 successful applications totalling $86,569. RADF aims to support arts, culture and heritage activities throughout the local government area.

Art Society Inc Various art workshops 2024

to cover hire of stage and sound equipment for an outdoor gala concert, the culmination of wind band and choir workshops with school students and community members

Arts, cultural and heritage activities

Workshops include charcoal and ink painting, learning to hand build in clay with sculptural techniques using botanicals, watercolour painting with light, and pastels, including pastel refresher and pencil techniques to draw and paint animals and landscapes

tour of Anakie township via horse and cart and workshops at the Anakie Railway Station during Gemfest 2024

and recording Australian aviatrix May Bradford’s life and her connection to the Gemfields through recorded oral

Japanese cultural activities during the Sister City anniversary celebration in Blackwater and other arts and cultural activities as considered by the Central Highlands Arts and Cultural Advisory Committee, including activities as part of the Arts around August festival

$19,833

Donations to community organisations

Discretionary

funds (s189(2))

The Mayor and councillors are not allocated any discretionary funds.

Chief Executive Officer’s report and other issues relevant to operations and performance (s190(1)(a))

Chief Executive Officer’s report on page 38.

Annual operations report for each commercial business unit (s190(1)(c))

Council has no commercial business units.

Services, facilities and activities supplied by another local government under an agreement for conducting a joint government activity (s190(1)(d)(i))

There was no joint government activity supplied by another local government for which special rates or charges were levied.

Services, facilities and activities for which special rates were levied (s190(1)(d)(ii))

The following is a list of council special rates for the reporting period:

„ Lilyvale Road Maintenance Special Rate

„ Yan Yan Road Maintenance Special Rate

„ Anncrouye Road Maintenance Special Rate

„ Oaky Creek Mine (Town of Tieri) Special Rate

Further details in relation to these individual special rates can be found in council’s 2023-2024 adopted Revenue Statement.

Invitations to change tenders

(s190(1)(e))

There were no invitations to change tenders during the 2023-2024 financial year under s228(8) of the Local Government Regulation 2012 (Qld).

List

of registers (s190(1)(f))

„ Conflicts of interest

„ Corporate investigations register

„ Financial delegations

„ Administrative delegations

„ Register of gifts and benefits

„ Councillor acceptable requests register

„ Policy register and review schedule

„ Operational risk register

„ Strategic risk register

„ Local law register (section 31 of the LGA and section 14 of the LGR)

„ Register of activities to which the competitive neutrality principle applies (s56 of the LGR)

„ Register of non-current physical assets (s180 of the LGR)

„ Register of interests of councillors , the chief executive officer, senior executive employees and persons related to the above (s289 of the LGR)

„ Register of roads (s74 of the LGA)

„ Register of cost-recovery fees (s98 of the LGR)

„ Register of pre-qualified suppliers (s232 of the LGR)

„ Councillor conduct register (s150DX of the LGA)

„ Register of leases

„ Register of council owned/managed land

„ Town planning – existing uses, subdivision approvals, consent approvals and permitted developments

„ Register of administrative action complaints

„ Right to information register

„ Audit committee actions and rolling reports register

„ Strategic documents register

„ Travel registers for ELT and councillors

„ CHRC resolutions register

„ Register of councillor requests to the CEO and directions from the Mayor to the CEO

„ Register of invitations to change tenders (s190(1)(e) of the LGR)

Concessions for rates and charges

(s190(1)(g))

Council provided the following concession for rates and charges for the 2023-2024 financial year.

Pensioners

A 50% remission is granted to pensioners that are legally liable to pay rates providing that an owner of the premises meets council’s definition of a pensioner and the premises for which they are claiming a rebate is their principal place of residence. This is in addition to the 20% that is given by the Queensland Government. The remission does not apply to special rates, special levies and water consumption.

Entities whose objectives do not include making a profit

Concessions equivalent to either 50% or 100% of general rates may be allowed to certain eligible entities whose objectives do not include making a profit. All rebated rates are initially levied, and a rebate provided automatically when rates are levied so that each organisation can assess the level of council rebate provided. Eligible entities include: community groups, churches, other community organisations and sporting clubs.

Other concessions

Mining claims – upon application council may consider a refund of the net general rate for a mining claim overlapping a residential tenure. Upon application, a refund of 100% of waste management charges for multiple mining claims held in the same ownership or contiguous claims held in the same family unit and permits to occupy attached to a mining claim may be granted.

Quarries – concessions may be available to ratepayers within quarry categories relating to development approval, development contributions and actual vs approved level of production.

Rural ratepayer family succession concession – upon application and meeting the eligibility requirements, rural ratepayers in the differential rating categories of 45 (Rural Land) and 46 (Rural Irrigation) may be granted a concession so that the annualised amount of general rates payable is no more than the amount set as the limitation of increase under section 116 of the Local Government Regulation 2012 for the relevant financial year. The ownership of the land must have been obtained by way of transfer, separation or amalgamation of a rateable assessment, sale from or to, a close family member or legal entity controlled by a close family member. The transfer or change must have occurred during the 2021-22 or 2022-23 financial year.

Deferred payment arrangements

Upon application a ratepayer may enter into an agreement to defer payment of outstanding rates or charges in accordance with the Rates and Charges Collection Policy. Interest will not be applied while payments are made in accordance with the agreed and approved arrangement.

Financial hardship

Upon application requests for other assistance measures will be considered in accordance with the Financial Hardship Policy.

Class concessions

Consideration may be given by council to grant a class concession in the event that all or part of the local government area is declared a natural disaster area by the Queensland Government and/or where an extreme event occurred that affected all or part of the property.

Concealed water leak concession

Upon application and where the eligibility criteria is met as set out in the Concealed Water Leaks Policy, council will grant a rebate for the higher water consumption charges, based on the ratepayers’ average water consumption.

Audit

(s190(1)(h))

External audit

The annual external audit of council’s financial statements was conducted by Bentleys Brisbane (Audit) Pty Ltd on behalf of the Queensland Audit Office in 2023-2024. The external auditors attend audit committee meetings to present findings and recommendations. The external audit management letter and responses are also provided to the audit committee.

Internal audit

The internal audit function contributes to the corporate governance of Central Highlands Regional Council by providing the management and Audit and Risk Committee with independent evaluation of, and suggestions for, improving the design, operation and effectiveness of the following organisational functions:

„ financial and non-financial control environment

„ processes for identifying, monitoring and managing risks

„ governance processes.

An internal audit provides independent, objective assurance and advice, and is designed to add value to and improve council’s operations. Internal audit is an important element in the Central Highlands Regional Council control environment and contributes to more effective risk management.

The internal audit function is delivered in accordance with the Internal Audit Charter, which sets out the mandate, roles and responsibilities of the internal audit function.

The internal audit function was delivered through a hybrid model in the 2023-2024 financial year:

„ From July to September 2023, the internal audit function was outsourced to an external professional service provider, Findex Pty Ltd trading as Crowe Australasia. Council’s contract with Crowe expired in September 2023.

„ From October 2023 to June 2024, council adopted the approach set out within the Internal Audit Plan 2023-2024 which signalled a move from the previous outsourced model of internal audit, to a co-sourced model, with council able to better control internal audit priorities, including through in-house development of internal audit objectives and scopes.

Through the hybrid model and in compliance with the obligations under section 207 of the Local Government Regulation 2012 (Qld), the following internal audits were completed and reported during the financial year:

„ Internal Audit of Past Audits – August 2023

„ Corporate Purchase Cards Issue and Usage – June 2024

At each meeting, the Audit and Risk Committee monitors progress against the internal audit plan, including reviewing the outcomes of completed audits, management’s responses, progress and timeliness in addressing recommendations. The minutes and recommendations are reported to council.

Competitive neutrality investigations notices (190(1)(i)) and responses to competition authority’s recommendations on any competitive neutrality complaints (s190(1)(j))

There were no investigation notices given in the financial year under s49 for competitive neutrality complaints.

Capital and operating grants received

We receive a number of grants each year from the state and federal governments to enable us to deliver many programs, projects and services to the community. In 2023-2024 we received over $26 million in grants.

Operating grants

Project title

General Purpose Financial Assistance

Roadworks Financial Assistance

2024 Trainee and Apprentice Funding

Regional and State Emergency Services

Education and Training

Regional Arts Development Fund

First 5 Forever Subsidy

Service Development Subsidy

Emerald Flood Evacuation Community Engagement

State Public Library Grant

Regional Skills Development Program

Gindie Water Facility

Rangers - Flying Foxes

Get Ready Promotional Material

Rubyvale Flood Mitigation Study

Carnarvon Gorge Flood Study

Carnarvon Gorge Flood Emergency Action Plan

PG Nature Refuge Landhold - NRLG5023 Grant

Economy - Disaster Dashboard 2022

RASI OPEX Funding Round 5

RASI OPEX Funding Round 6

Electrical Audit

Reef Guardian Councils Program

Know your Role CoR Project

Total operating grants

Funding program

Financial Assistance Grant

Financial Assistance Grant

Skilling Queenslanders for Work - First Start Program

Annual State Emergency Service (SES) Grant

Apprenticeships and Traineeships Program

Regional Arts Development Fund

First 5 Forever Annual Subsidy

State Library Grant Service Development Subsidy

Queensland Reconstruction Authority

SLQ Resource funding grant

Regional Skills Development Program

Local Law - 2023-2024 Educational Signage

Get Ready Funding

Queensland Reconstruction Authority

Queensland Reconstruction Authority

Queensland Reconstruction Authority

Landholder Grant Program

Economy - Disaster Dashboard

Regional Airports Screening Infrastructure (RASI) program - Round 5

Regional Airports Screening Infrastructure (RASI) program - Round 6

Local Roads and Community Infrastructure Program (LRCI)

Reef Guardian Councils Program

National Heavy Vehicle Regulator

1,964,560

Capital grants

Project title

Bluff Flood Mitigation Channel

Mt Playfair Road - Stabilisation

Withersfield Road - Stabilisation

Wyntoon Road - Stabilisation

Wyuna Road - Stablisation

SES Vehicle Upgrade

Gregory Cycleway Construction

Mulchays Road Pave and Seal

Wyntoon Road Pave and Seal

Wyntoon Road Pave and Seal

Arcadia Valley Road Pave and Seal

Crossing - Rifle Range Road - design

Pathway - Pilot Farm Road - construct

Pathway - Gordon St Capella - design

Pathway - Blain and Office Blackwater Design

Rifle Range Road Intersection Upgrade Program

Managed CCTV Services

Funding program

Disaster Ready Fund (DRF)

National Disaster Response Force

National Disaster Response Force

National Disaster Response Force

National Disaster Response Force

SES

Gregory Highway Cycleway

Transport Infrastructure Development Scheme

Transport Infrastructure Development Scheme

Transport Infrastructure Development Scheme

Transport Infrastructure Development Scheme

Cycle Network Local Government Grants (2023-2024)

Cycle Network Local Government Grants (2023-2024)

Cycle Network Local Government Grants (2023-2024)

Cycle Network Local Government Grants (2023-2024)

Cycle Network Local Government Grants program

Roads and Community Infrastructure Program (LRCI)

Ghungalu Nunee (Gardens) Stage 1 Local Roads and Community Infrastructure Program (LRCI)

Ghungalu Nunee (Gardens) Stage 2

Springsure Beautification

Springsure Beautification Stage 2

Roy Day Multi-purpose Stage 2

and Community Infrastructure Program (LRCI)

and Community Infrastructure Program (LRCI)

Roads and Community Infrastructure Program (LRCI)

Roads and Community Infrastructure Program (LRCI)

Access Sapphire Hall Amenities Local Roads and Community Infrastructure Program (LRCI)

Comet Hall Electrical

Rolleston Hall Electrical

Roads and Community Infrastructure Program (LRCI)

Roads and Community Infrastructure Program (LRCI)

Rubyvale Hall access amenities Local Roads and Community Infrastructure Program (LRCI)

Willows Hall Refurbishment

Tip Shop external roof

Off-leash agility equipment

Springsure off-leash dog park

Roads and Community Infrastructure Program (LRCI)

Roads and Community Infrastructure Program (LRCI)

Roads and Community Infrastructure Program (LRCI)

Roads and Community Infrastructure Program (LRCI)

Emerald Library Park Electrical Local Roads and Community Infrastructure Program (LRCI)

Agent Access To Public Walkways Local Roads and Community Infrastructure Program (LRCI)

Roof Over Draining Pen at Dip Local Roads and Community Infrastructure Program (LRCI)

Andrews Road - Footpath Local Roads and Community Infrastructure Program (LRCI)

Arcadia Valley Floodway Local Roads and Community Infrastructure Program (LRCI)

Capital grants (continued)

Brief Street Emerald Footpath

Pathway - Park Avenue Emerald

Local Roads and Community Infrastructure Program (LRCI)

Local Roads and Community Infrastructure Program (LRCI)

Blackwater Dempsey Park Local Roads and Community Infrastructure Program (LRCI)

Withersfield Rd - Blackboy Creek Timber Bridge Bridge Renewal Program

Blackwater Rehabilitation Program - Littlefield Street Blackwater Roads To Recovery

Mayfair Estate - Baird Street Emerald Roads To Recovery

Mayfair Estate - Mitchell Street Emerald Roads To Recovery

Mayfair Estate - Mayfair Drive Emerald Roads To Recovery

Wearing surface renewal program Roads To Recovery

23-24 R2R Program Roads To Recovery

Tieri to Capella Pipeline Replacement

BOR6 - Building Our Regions

Emergency Response and Recovery Community Catering Trailer CQ Bushfires Flexible Funding Grants

McIndoe Park Field and Facilities Upgrade

Emerald Airport RFDS Apron Upgrade

Springsure Aquatic Centre Construction

Springsure Aquatic Centre Construction - Stage 2

Bridgeman Park Clubhouse

Emerald Regional Botanic Gardens Redevelopment

Regional Entertainment Venues Upgrades

Total capital grants

Resources Community Infrastructure Fund

Resources Community Infrastructure Fund

Resources Community Infrastructure Fund

Resources Community Infrastructure Fund

Resources Community Infrastructure Fund

Resources Community Infrastructure Fund

Resources Community Infrastructure Fund

Central Highlands Regional Council Audit and Risk Committee Report 2023-24

This annual report by the Chairman of the Central Highlands Regional Council Audit and Risk Committee, records the major decisions and actions taken during 2023-2024 by the Central Highlands Regional Council’s Audit and Risk Committee.

Objectives

The committee is established and governed in accordance with Section 105(2) of the Local Government Act 2009 (Qld), Chapter 5, Part 11, Subdivision 2 of the Local Government Regulation 2012 (Qld) and Central Highlands Regional Council Audit and Risk Committee Charter.

The committee operates within the adopted council authority, objectives, and charter to promote good corporate governance through the provision of independent assurance, oversight, and advice to council on matters relating to financial statements and reporting, risk management, external and internal audit, and legislative and organisational compliance.

The committee has no authority and does not replace the management responsibilities of executive management, but rather acts as a resource of independent advice to council and the Chief Executive Officer (CEO).

During a period of continuous change for Queensland local government, the Audit and Risk Committee has monitored and reviewed the integrity of financial documents, considered reports from the CEO/senior management, the internal audit and risk function, and the effectiveness and objectivity of council’s internal auditors, and reports from the external auditors and Queensland Audit Office. The committee observed that the CEO/ management has adopted a pro-active approach and regularly reported to the committee on the challenging subject of cyber security and the training and workshops developed as an organisational response.

Membership

Section 210 of the Local Government Regulation 2012 (Qld) requires the membership of the committee to consist of at least 3 and no more than 6 members. Section 9(4) of the Audit and Risk Committee Charter provides that the committee be comprised of a minimum of 3 and

a maximum of 4 members determined by council, with 2 members being councillors and the remaining members, including the committee chair, being independent and external to council.

At the commencement of the financial year, membership of the committee comprised 2 external members appointed by council – Mr Graham Webb (Chair) and Mr Peter Sheville, and 2 councillors for the 2020-2024 term of local government – Cr Christine Rolfe and Cr Janice Moriarty. Following the local government elections in March 2024, at the audit committee meeting held on 14 June 2024, the committee welcomed 2 new councillors for the 2024-2028 term of local government – Cr Rachael Cruwys and Cr Gillian Wilkins. A note of appreciation for the contribution of former audit committee members, in addition to the observer Mayor Kerry Hayes, was also carried at this meeting. With her election as Mayor, Cr Moriarty maintained and continued her interest in the role and responsibility of the committee by her attendance as an observer/Ex-Officio since the March 2024 local government elections.

Meetings

The audit committee met its legislative responsibilities to meet at least twice each financial year. Six meetings were held during 2023-2024. Meetings were held on 25 August 2023 (virtually for the purpose of considering the draft unaudited 2022-2023 consolidated financial statements), 1 September 2023 (Emerald), 20 October 2023 (virtually for tabling the audited 2022-2023 consolidated financial statements and audit completion report), 7 December 2023 (Emerald), 22 February 2024 (Emerald) and 14 June 2024 (Emerald).

At each meeting, the committee thoroughly and objectively made recommendations and reported to council on matters the committee considered required action or improvement by council. Actions taken by council, towards continuous improvement and financial compliance, were reported back to the committee at subsequent committee meetings.

Summary of key actions by committee in providing guidance to council on governance/financial and risk management oversight

Council and the committee have adopted a proactive approach, with guidance and recommendations from the Queensland Audit Office (QAO’s John Crook, John Hanwright, Jacques Coetzee and Alan Flynn); External Auditors (BDO’s Jason Powell and Cameron Henry; Bentleys’ Ashley Carle and Alexander Trim); Internal Auditor (Crowe Australasia’s Donna Sinanian and Cynthia Iafano and O’Connor Marsden & Associates’ Wayne Gorrie and James Turner) and council’s Executive Leadership Team and management with the support of other managers/administration in preparation, education, internal controls, and continuous oversight. Thank you all for your individual and collective contributions to the success of the committee.

Beyond the summaries in the preceding paragraphs, and although not limited to all subjects covered, compliance with the Charter and Legislation, the committee met its obligations during 2023-2024 by considering and/or reviewing the following:

1. Unaudited financial statement and the financial sustainability statements for the financial year 20222023

2. Queensland Audit Office Reports including Local Government 2022, Local Government 2023 and Improving Asset Management in Local Government

3. Monthly financial reports

4. Internal Audit Reports and Internal Audit Progress Reporting

5. Internal controls, risk and compliance including risk management updates on strategic and operational (high and extreme) risks, 2023-2024 Operational Plan Strategic Project Updates and Business Continuity Framework Update

6. Audited 2022-2023 Consolidated Financial Statements

7. Queensland Audit Office 2023 Audit Completion Report to the CEO (received 19 October 2023)

8. Draft Annual Report 2022-2023

9. Queensland Audit Office Final Management Letter (dated 30 November 2023) to the Mayor of Central Highlands Regional Council informing the completion of the 2023 financial audit for Central Highlands Regional Council. An unmodified audit opinion was issued on council’s financial statements.

10. External Audit Reports and 2024 External Audit Plan, focusing on the key areas of valuation/depreciation of infrastructure assets, appropriateness of procurement

policies and practices and completeness of provision of landfill restoration

11. Draft Internal Audit Plan for 2023-2024

12. Audit and Risk Committee Charter

13. Queensland Audit Office Briefings for audit committee chairs in December 2023 and May 2024.

Appreciation

The agendas for audit committee meetings for the 6 meetings were usually large in volume and content. They included well-developed CEO/senior management reports and very professional reports and guidance from the Queensland Audit Office, internal auditors, and external auditors. Although covered in the body of this report, the successful outcome of meetings can also be measured by the commitment (against a backdrop of many other competing priorities) of audit committee members and permanent invitees.

The 2023-2024 financial year saw a significant change in the composition of the committee following the March 2024 local government elections. Both Independent Chair Mr Graham Webb, PSM and Independent Committee Member Mr Peter Sheville retained their positions for the full reporting period.

Councillor representatives Cr Christine Rolfe and Cr Janice Moriarty were replaced after the elections by new councillor representatives Cr Rachael Cruwys and Cr Gillian Wilkins. The Mayor, Cr Janice Moriarty, attends meetings as a Permanent Invitee and Ex-Officio Member.

September 2023 saw the conclusion of the 8-year contract with Crowe Australasia/Findex (Aust) Pty Ltd and Donna Sinanian and Cynthia Iafano as Internal Auditors. As council has moved towards a co-sourced model of internal audit, council will be able to take advantage of a wider and competitive pool of internal auditors with a breadth of experience specific to internal audit scopes moving forward without the need for appointment of a single internal auditor. Likewise, the contract for External Auditors, BDO’s Jason Powell and Cameron Henry, concluded during the year, and they were replaced by Bentleys Brisbane (Audit) Pty Ltd’s Ashley Carle and Alex Trim. The Queensland Audit Office continued to be represented on the committee by Jacques Coetzee and Alan Flynn.

The other quiet achievers, who contributed to a successful year for the committee, in assisting me

and ensuring that committee agendas/minutes and correspondence were prepared and distributed in a timely manner and whose contributions are appreciated are council officers – Former CEO Sharon Houlihan who concluded her service on 15 December 2023; Acting CEOs Ross Higgins and Ross Musgrove; General Manager Commercial and Corporate Services Carolyn Knudsen; Manager Governance Millicent Bradley Woods; Governance Audit and Risk Officer Elizabeth Rankin; Chief Financial Officer Arun Dias; Manager Finance Helen Kirby; other senior council executives as required; Trish Wheeler, Maddi Stanton and Marnie Wills. Thank you all.

Success is measured in many ways. By any objective assessment, the Central Highlands Regional Council Audit Committee has enjoyed a successful year as reported in this annual report and progressively during 2023-2024 in meeting reports to council.

Graham Webb PSM

CHAIRMAN, CENTRAL HIGHLANDS REGIONAL COUNCIL AUDIT AND RISK COMMITTEE 19 AUGUST 2024

Community financial report (s184)

The community financial report provides details of the 2023-2024 financial statements in a plain readable way that is easy for the community to understand. The full financial statements are provided at the end of the annual report.

The financial statements are audited by the Queensland Audit Office. For 2023-2024, the auditor has issued an audit opinion stating that the financial statement report complies with local government legislation, the Australian accounting standards and that they give a true and fair view of council’s financial performance and position.

Simplified statement of comprehensive income

The statement of comprehensive income is one of the key statements forming part of the financial report. It is often referred to as the profit and loss statement.

It details what council has earned (revenue) and what costs (expenses) council incurred in operating and maintaining assets to deliver services to the community during the financial year.

Council made an operating surplus of $4.9 million in 2023-2024 and our long-term forecasting and planning indicates that an operating surplus will be maintained over the medium term.

How we raised our revenue

Council raises about 81% of revenue from its own sources that it controls - rates, sales and fees and charges. This indicates that council has control over its financial sustainability and is not reliant on government grants or other external sources.

Revenue category as % of total revenue

How we spent our revenue

The largest cost item for council is materials and services (42%) for the maintenance of key community assets and expenditure related to contract work carried out for the Department of Transport and Main Roads (TMR). The next largest cost items are payments to staff (26%) and funds set aside as depreciation to renew community assets (23%).

Expenditure category as % of total revenue

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Simplified statement of financial position

The statement of financial position is another major statement in the financial report and is often referred to as the balance sheet. It shows what we own (assets) and what we owe (liabilities), with the difference being the net worth of council (community equity).

Council’s community net worth at the end of the financial year is $1.8 billion enabling council to continue to provide essential services to the community.

Council’s major asset is community infrastructure of $1.8 billion. The sealed and unsealed road network accounts for 58% of infrastructure assets. The water and sewerage networks make up the next largest asset groupings at a combined 20%. Council has had significant capital works programs over the last few years, and this is reflected in the $68 million of assets under construction (work in progress). These costs will be allocated to the relevant asset group once the projects are completed.

Council’s community infrastructure assets have increased by $63 million during the year. This reflects the net impact of several factors such as the capital works program, depreciation, disposals, write offs and revaluation adjustments. The valuation process accounted for $53 million of the increase in the value of community infrastructure assets this financial year. Council undertook a comprehensive revaluation of the airport and roads, bridges and drainage network asset classes this year, with all other major classes subject to a desktop (indexation) revaluation.

Council’s financial sustainability indicators

Financial sustainability indicators provide an insight into the ability of council to maintain its community assets and to provide services to the community in the short to medium term.

Council measures its financial health using financial indicators or ratios which assess our performance against local government sector benchmarks to ensure we remain financially sustainable in the long-term.

Indicator Definition

the extent to which operating revenue exceeds operating expenditure in order to provide surplus funds for investment in community infrastructure and for the repayment of borrowings.

Measure of council’s ability to cover its core operational expenses and generate a cash surplus excluding depreciation, amortisation and finance costs.

Unrestricted cash expense cover ratio

Indicates the unconstrained liquidity available to meet ongoing and emergent financial demands.

whether council is spending enough each year to keep community infrastructure assets in good condition.

Approximates the extent to which council’s infrastructure assets have been consumed compared to what it it would cost to build a new asset with the same benefit to the community.

Leverage ratio Measures the relative size of council’s debt to its operating performance and it is an indicator council’s ability to repay its existing debt.

council’s financial flexibility, ability to influence operating income, and the capacity to respond to unexpected financial shocks.

Is a key driver of council’s operating income, service needs, and infrastructure requirements into the future.

than 0%

Central Highlands Regional Council

GENERAL

PURPOSE FINANCIAL

for the year ended 30 June 2024

STATEMENTS

A regional council committed to sustainability leading and servicing our communities.

General Purpose Financial Statements for the year ended 30 June 2024

Details

Information about these financial statements

Council functions - component descriptions

Council functions - analysis of results by function

Revenue

Interest and other income

Other capital income

Employee benefits

Materials and services

Finance costs

Capital

Cash,

Receivables

Central Highlands Regional Council

Statement

of Comprehensive

for the year ended 30 June 2024

Income

Income Revenue

Recurrent revenue

Rates, levies and charges

Fees and charges

Sales revenue

Grants, subsidies, contributions and donations

Total recurrent revenue

Capital revenue

Grants, subsidies, contributions and donations

Total capital revenue

Other income

Rental income

Interest received

Other income

Other Capital income

Total other income

Total income

Expenses

Recurrent expenses

Employee benefits Materials and services

Depreciation and amortisation:

Property, plant and equipment - Right of use assets

recurrent expenses Other expenses

expenses Total other expenses Total expenses Net result

will not be reclassified to net

Total comprehensive income for the year

Central Highlands Regional Council

Statement of Financial Position

as at 30 June 2024

ASSETS

Current

Cash

Financial

Total

1,772,117 706,433 3,058 127,384 1,057,669 650,983 1,708,652 959

1,708,652 87,054

Central Highlands Regional Council

Statement of Changes in Equity for the year ended 30 June 2024

Consolidated 2024

Balance as at 1 July 2023

Net result

Other comprehensive income for the year

- Increase/(decrease) in asset revaluation surplus

- Change in value of future rehabilitation costs

Other comprehensive income

Total comprehensive income for the year

Balance as at 30 June 2024

Consolidated 2023

Balance as at 1 July 2022

Correction of prior period errors

Restated balance at 1 July 2022

Net result

Total comprehensive income for the year

movements Balance as at 30 June 2023

1,710,749 8,405 1,059,766

8,405

Central Highlands Regional Council

Statement of Changes in Equity for the year ended 30 June 2024

Council 2024

Balance as at 1 July 2023

Net result

Other comprehensive income for the year

- Increase/(decrease) in asset revaluation surplus

- Change in value of future rehabilitation costs

Other comprehensive income

Total comprehensive income for the year

Balance as at 30 June 2024

Council

2023

Balance as at 1 July 2022

Correction of prior period errors

Restated balance at 1 July 2022

Net result Other

Total comprehensive income for the year

Balance as at 30 June 2023

567,319 1,047,052 1,611,333 1,984 1,772,117

Central Highlands Regional Council

Statement of Cash Flows for the year ended 30 June 2024

Cash flows from operating activities

Receipts from customers Payments to suppliers and employees

Receipts: Interest received Rental income

Non capital grants and contributions

Other Payments: Borrowing costs

Net cash inflow from operating activities

Cash Flows from investing activities Receipts:

Proceeds from sale of property, plant and equipment

Grants, subsidies, contributions and donations

Net transfer (to)/from cash investments Payments: Payments for financial assets Payments for property, plant and equipment

Net cash outflow from investing activities

Cash flows from financing activities Receipts: Proceeds from borrowings Payments: Repayment of borrowings Repayments made on leases (principal only)

Net cash inflow/(outflow) from financing activities

Net increase/(decrease) in cash and cash equivalents for the year

Cash and cash equivalents - end of financial year

(130,701)

3,660

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 1. Information about these financial statements

(1.a) Basis of preparation

Council is constituted under the Queensland Local Government Act 2009 and is domiciled in Australia.

These general purpose financial statements are for the period 1 July 2023 to 30 June 2024 and have been prepared in compliance with the requirements of the Local Government Act 2009 and the Local Government Regulation 2012.

Central Highlands Regional Council (council) is a not-for-profit entity for financial reporting purposes and these financial statements comply with Australian Accounting Standards and Interpretations as applicable to not-for-profit entities.

These financial statements have been prepared under the historical cost convention except for the revaluation of certain classes of property, plant and equipment.

(1.b) Basis of Consolidation

Council and its controlled entity forms the consolidated entity. The financial statements of controlled entities are included in the consolidated financial statements where material by size or nature, from the date when control commences until date when control ceases.

In the process of reporting the council as a consolidated entity, all transactions with its controlled entity have been eliminated. In addition, the accounting policies of the controlled entity have been adjusted, on consolidation where necessary, to ensure that the financial report of the consolidated entity is prepared using accounting policies that are consistent with those of the council.

The following entity has been consolidated:

Central Highlands Development Corporation Limited:

The Central Highlands Development Corporation Limited (CHDC) was formed in 1997 with the primary objective to facilitate projects and initiatives across the region. The company has a Chief Executive Officer and seven other directors consisting of four councillors (one acting as an alternate director), and two independent community members.

(1.c) New and revised Accounting Standards adopted during the year

Council adopted all standards which became mandatorily effective for annual reporting periods beginning on 1 July 2023, none of the standards had an impact on the reported position, performance and cash flows.

The adoption of the revisions to AASB 101 Presentation of Financial Statements resulted in disclosure of material accounting policy information only rather than significant accounting policies. This means that accounting policy information is disclosed only if it relates to material transactions, other events or conditions and:

a) Council has changed accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements.

b) Council chose (or was mandated to use) the accounting policy from one or more options permitted by Australian Accounting Standards.

c) The accounting policy was developed in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors in the absence of an Australian Accounting Standard that specifically applies.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 1. Information about these financial statements (continued)

d) The accounting policy relate to an area for which a Council is required to make significant judgements or assumptions in applying an accounting policy, and the Council discloses those judgements or assumptions in the financial statements.

e) The accounting required for them is complex and users of the entity’s financial statements would otherwise not understand those material transactions, other events or conditions.

(1.d) Standards issued by the AASB not yet effective

The AASB has issued Australian Accounting Standards and Interpretations which are not effective at 30 June 2024, these standards have not been adopted by Council and will be included in the financial statements on their effective date. Where the standard is expected to have a significant impact for Council then further information has been provided in this note.

The following list identifies all the new and amended Australian Accounting Standards, and Interpretation, that were issued but not yet effective at the time of compiling these statements that could be applicable to Councils.

Effective for NFP annual reporting periods beginning on or after 1 January 2024

• AASB 2020-1 Amendments to Australian Accounting Standards - Classification of Liabilities as Current or Non-Current and associated standards (amended by AASB 2021-6 and AASB 2022-6 Amendments to Australian Accounting Standards - Non-current Liabilities with Covenants)

• AASB 2022-5 Amendments to Australian Accounting Standards - Lease Liability in a Sale and Leaseback

• AASB 2022-10 Amendments to Australian Accounting Standards - Fair Value Measurement of NonFinancial Assets of Not-for-Profit Public Sector Entities.

Council has assessed all the standards / interpretations which are not yet effective and have determined that there is no expected material impact on the reported financial position or performance.

(1 e) Estimates and Judgements

Where necessary, judgements, estimates and assumptions have been used in preparing these financial statements. Those that have a significant effect, or risk of causing adjustment to council's assets or liabilities relate to:

• Valuation, impairment and depreciation of Property, Plant & Equipment - Note 14

• Impairment of property, plant and equipment

• Provisions - Note 19

• Contingent liabilities - Note 23

• Financial instruments and financial liabilities - Note 29

• Revenue recognition - Note 3

(1.f) Rounding and Comparatives

The financial statements are in Australian dollars and have been rounded to the nearest $1,000 or, where that amount is $500 or less, to zero, unless otherwise stated.

Comparative information is generally restated for reclassifications, errors and changes in accounting policies unless permitted otherwise by transition rules in a new Accounting Standard / Comparative information is prepared on the same basis as prior year

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 1. Information about these financial statements (continued)

(1.g) Volunteer Services

Council receives volunteer services to assist with the library, gallery and information centre operations. Council has not recognised these services in the Statement of Comprehensive Income as they would not be purchased if not donated and they cannot be reliably measured.

(1.h) Taxation

Council is exempt from income tax, however, is subject to fringe benefits tax (FBT), goods and services tax (GST) and payroll tax on certain activities. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is shown as an asset or liability respectively.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 2(a). Council functions - component descriptions

On 11 October 2023 Council adopted a new organisational structure which resulted in the key functions of human resources, safety, legal and property forming a new department named People, Safety and Legal. Previously these key functions were part of the Commercial and Corporate Services Department.

The activities relating to the council's components reported on in Note 2(b) are as follows : Office of the Chief Executive Officer (CEO)

Provides organisational leadership and executive oversight The objective of this function is to be open, accountable and deliver community driven outcomes.

Office of the Chief Financial Officer (CFO)

Provides professional financial and other information services across all of council. The objective of this function is to provide accurate and timely information to support sound decision making and meet statutory requirements.

Corporate Revenue and Expenses

This function is responsible for the recognition and oversight of income and expenditure not allocated to any other specific function, such as general rates and corporate revenue and expenditure.

Communities Waste Management

The primary goal of this function is to ensure that the council region is a vibrant, well planned and connected community. This function includes: corporate communications, libraries, parks and recreation facilities, planning and development, flood mitigation, disaster management and health and environment. The oversight of the waste management business activity is also provided by this function.

This business activity is responsible for the provision of facilities in the region relating to waste collection. recycling, refuse and landfills. The main objective of this activity is to protect and support the community and natural environment by continually pursuing waste reduction, recovery and recycling initiatives.

Commercial and Corporate Services

This function provides the executive oversight of council's Airport and saleyard business activities and is responsible for activities relating to customer service, information and communication technology, and governance. One of the main objectives of this function is to ensure council's customer service charter is followed and quality customer service is provided to the community.

Saleyards

The Saleyards business activity is responsible for the provision and maintenance of saleyard facilities in the council region. The primary objective is to support local producers by providing efficient facilities to enable them to sell their livestock.

Airport

This business activity is responsible for the operation and maintenance of council's airport facilities across the council region. The main objective of this activity is to ensure the community is serviced with commercial air travel facilities and to enhance the accessibility and development potential of the region.

People, Safety and Legal

This function provides workplace health and safety and legal and property services across all council, the main objective of this function to support safety, productivity, learning and wellness outcomes for our people.

Infrastructure and Utilities

This function is responsible for the maintenance and construction of a high quality and effective road network for the region. The project management and contract delivery, fleet, workshops and depots operations, and the oversight of the water and sewerage businesses activities are also included in this function.

Sewerage

This business activity is responsible for the provision of sewerage facilities in the council region relating to connection, collection, disposal and treatment services. The main objective of this business activity is to support a healthy and safe community through sustainable sewerage services.

Water

This business activity is responsible for the provision of water supply facilities in the region including quality measurement, connection and treatment services. The main objective of this business activity is to support a healthy and safe community through sustainable water supply services.

Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 2(b). Council functionsanalysis of results by function

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 3. Revenue

(a). Rates, levies and charges

Revenue for rates, levies and charges are recognised upon issue of the levies within the respective rating period to which they relate. Prepaid rates are recognised as a financial liability until commencement of the relevant rating period.

General rates

Special rates

Water

Water consumption

Sewerage

Waste management

Total rates and utility charge revenue

Less: discounts

Less: pensioner remissions

TOTAL RATES, LEVIES AND CHARGES *

* Internal rates and charges paid on council owned properties have been eliminated

(b). Fees and charges

Revenue arising from fees and charges are recognised at the point in time when the performance obligation is completed and the customer receives the benefit of the goods / services being provided.

The performance obligation relates to the specific services which are provided to the customers and generally the payment terms are within 30 days of the provision of the service or in some cases, the customer is required to pay on arrival. There is no material obligation for Council in relation to refunds or returns.

Licences granted by Council are all either short-term or low value and all revenue from licences is recognised at the time that the licence is granted rather than the term of the licence.

Revenue from infringements is recognised on issue of infringment notice after applying the expected credit loss model relating to impairment of receivables for initial recognition of statutory receivables.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 3. Revenue (continued)

(c). Sales revenue

Council generates sales revenues from contracts for road and earthworks (sale of contract and recoverable works) and from the airport and saleyards businesses (sale of goods and major services).

Revenue from the sale of goods and major services is recognised at the point in time that the customer obtains control of the goods which is usually at delivery. Revenue from major services is recognised when the service is rendered.

Contract revenue is recognised by reference to the stage of completion of the contract activity based on costs incurred at the reporting date. Where consideration is received in advance it is included as a contract liability and is recognised as revenue in the period when the work is performed. The contract work carried out is not subject to retentions and there were no contracts in progress at the balance date.

Revenue from contracts and recoverable works relates predominately to Department of Transport and Main Roads contracts and generally comprises a recoupment of material costs together with an hourly charge for use of equipment and employees.

Rendering of services

Department of Transport and Main Roads contracts

Total sale of services

Sale of goods

Airport charges

Saleyard services

Total sale of goods

Central Highlands Regional Council

to the Financial Statements for the year ended 30 June 2024

Note 3. Revenue (continued)

(d) Grants, subsidies, contributions and donations

Grant income under AASB 15 Revenue from Contracts with Customers

Where grant income arises from an agreement which is enforceable and contains sufficiently specific performance obligations then the revenue is recognised when control of each performance obligations is satisfied. The performance obligations vary in each agreement. Payment terms vary depending on the terms of the grant, cash is received upfront for some grants and on the achievement of certain payment milestones for others.

Each performance obligation is considered to ensure that the revenue recognition reflects the transfer of control and within grant agreements there may be some performance obligations where control transfers at a point in time and others which have continuous transfer of control over the life of the contract.

Where control is transferred over time, revenue is recognised using either costs or time incurred.

Grant income under AASB 1058 Income for Not-for-profit Entities

Assets arising from grants in the scope of AASB 1058 are recognised at the asset's fair value when the asset is received. Council considers whether there are any related liability or equity items associated with the asset which are recognised in accordance with the relevant accounting standard. Once the assets and liabilities have been recognised then income is recognised for any remaining asset value at the time the asset is received.

Capital grants

Where council receives funding under an enforceable contract to acquire or construct a specified item of property, plant and equipment which will be under completion, revenue is recognised as and when the obligation to construct or purchase is completed in accordance with AASB 1058.

For construction projects, this is generally as the construction progresses in accordance with costs incurred.

Donations and contributions

Where assets are donated or purchased for significantly below fair value, the revenue is recognised when the asset is acquired and controlled by council. Donations and contributions are generally recognised on receipt of the asset since there are no enforceable performance obligations.

Physical assets contributed to council by developers in the form of road works, stormwater, water and wastewater infrastructure and parks equipment are recognised as revenue when the development becomes "on maintenance" (i.e. when 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.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 3. Revenue (continued)

(d) Grants, subsidies, contributions and donations (continued)

(i) Operating

General purpose grants

State government subsidies and grants

Commonwealth government subsidies and grants

Other grants, contributions and donations

TOTAL RECURRENT GRANTS, SUBSIDIES, CONTRIBUTIONS AND DONATIONS

(ii) Capital

Capital revenue includes grants and subsidies received which are tied to specific projects for the replacement or upgrade of existing non-current assets and/or investment in new assets. It also includes non-cash contributions which are usually infrastructure assets received from developers.

and grants

Commonwealth government subsidies and grants Donations from third parties at fair value Contributions - infrastructure charges Other non-government contributions

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 3. Revenue (continued)

(d) Grants, subsidies, contributions and donations (continued)

(iii) Timing of revenue recognition for grants, subsidies, contributions and donations

Consolidated Council

and

Note 4. Interest and other income

(a). Interest received

Interest received from term deposits

Interest received from financial institutions

Interest from overdue rates and utility charges

TOTAL INTEREST RECEIVED

(b). Other income

Proceeds of sale of land held for inventory Other income

Proceeds of the sale of land held as inventory are recognised once the sale contract has settled. The cost of the land sold is disclosed in Note 7 Materials and services and the value of the remaining stock in hand in Note 12 inventories. For 2024, the net profit on sale was $10,907 (2023: $118,095).

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 5. Other capital income

(a) Gain / loss on disposal of non-current assets

Gain/(loss) on disposal of non-current assets

(b) Quarries (gravel pits) provisions for rehabilitation of land not controlled by Council

Net change in discount rate, restoration dates and future cost

(c) Other

Gain from assets not previously recognised TOTAL

INCOME

Note 6. Employee benefits Wages and

Less: capitalised employee expenses TOTAL EMPLOYEE BENEFITS Councillor remuneration represents

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 6. Employee benefits (continued)

Additional information:

Total Council employees at the reporting date:

Elected members

Administration staff

Depot and outdoors staff

Total full time equivalent employees (excluding elected members)

Note 7. Materials and services

Administration and general expenses

of annual financial statements by the AuditorGeneral of Queensland

Bulk water supply

Electricity and gas supplies

External service providers - consultants and contractors

External service providers - trade services

External plant hire costs

Fleet operating expenses

Grants, sponsorships and donations

Insurance costs

Legal expenses

Rents and royalties

Repairs, maintenance and other expenses

Telecommunication expenses

Cost of Goods Sold – Land held as inventory TOTAL MATERIALS AND SERVICES

Total audit fees quoted by the Queensland Audit Office relating to the Council's 2023-24 financial statements are $185,000 (2023: $174,500).

The cost of goods sold - Land held as inventory, represents the cost of the land sold during the year. The proceeds of sales is recognised as sales revenue once the contract has settled. The value of the

on hand is disclosed in Note 12 Inventories.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 8. Finance costs

Bank charges

Impairment of receivables and bad debts written off Interest on leases

Unwinding of discount on provisions: - Rehabilitation of quarry sites

TOTAL FINANCE COSTS

Note 9. Capital expenses

(a) Provision for rehabilitation of Quarries (gravel pits) on land not

(b) Loss on write off of capital assets

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note

10. Cash, cash equivalents and financial assets

Deposits held with the Queensland Treasury Corporation (QTC) are held at call and are capital guaranteed as part of an asset management portfolio that invests with a range of high credit rated counterparties. Council may be exposed to credit risk through these investments.

Cash and cash equivalents

Cash at bank and on hand Deposits at call

BALANCE PER STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS

Financial assets - current

Term deposits

TOTAL CURRENT FINANCIAL ASSETS

Term deposit investment is a fixed term investment realisable within twelve months. This is held at fixed rates with the Capricornian bank, which is rated A1- based on Standard & Poors agency ratings. Likelihood of a credit failure is assessed as remote.

Maturity of this investment is 365 days and the deposit bears an interest rate of 4.0%.

Restricted and internally allocated cash and cash equivalents

Cash and cash equivalents

Term deposit investments

Less: externally imposed restrictions on cash

Unrestricted cash

Cash assets are subject to a number of external restrictions that limit amounts available for discretionary or future use. External restrictions relating to cash and cash equivalents and term deposit investments include: (39,206)

Notes to the Financial Statements for the year ended 30 June 2024

Note 10. Cash, cash equivalents and financial assets (continued)

(i) Externally imposed expenditure restrictions at the reporting date relate to the following cash assets:

Unspent grants, subsidies, and contributions

Prepaid rates and charges from ratepayers

Developer infrastructure charges

Mine funded works

Total externally imposed restrictions on cash assets

Council also maintains internal allocations of cash that are not restricted and are for discretionary use.

Council holds most cash in at call capital guaranteed cash fund accounts with the Queensland Treasury Corporation (QTC). Some cash is also held with Council's transactional banker, Westpac, in normal business accounts.

Trust funds

In accordance with the Local Government Act 2009 and Local Government Regulation 2012 , a separate trust bank account and separate accounting records are maintained for funds held on behalf of outside parties. Funds held in the trust account on behalf of outside parties may 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 paid into the trust account by council.

Council performs only a custodian role in respect of monies held in the trust account. As the monies cannot be used for council purposes they are not considered revenue and are not brought to account in the financial statements, as council has no control over the assets.

Trust funds held for outside parties

Monies collected or held on behalf of other entities

Security deposits

Central Highlands Regional Council

Notes

to the Financial Statements for the year ended 30 June 2024

Note 11. Receivables

Settlement of receivables is required within 30 days from the invoice date and no interest is charged on the outstanding amount. Interest is charged on outstanding rates and utility charges at a rate of 8.00% per annum in 2024. (2023 - 8.00%).

There is a concentration of credit risk for rates debtors due to the geographical concentration of mining and agriculture in the region.

Debts are regularly assessed for collectability and allowance is made, where appropriate, for impairment. All known bad debts were written off at 30 June 2024. If an amount is recovered in a subsequent period it is recognised in the statement of comprehensive income. Note 29 provides a detailed discussion on credit risk. Council applies normal credit protection procedures prior to providing goods or services to minimise credit risk.

Current

Rateable revenue and utility charges

Other debtors

Total

less: Provision for impairment

Less: loss allowance

Accounting policies - grouping

When council has no reasonable expectation of recovering an amount owed by a debtor and has ceased enforcement activity, the debt is written-off directly by reducing the receivable against the loss allowance. If the amount of the debt written off exceeds the loss allowance, the excess is recognised as an impairment loss.

As shown in the table below, council has identified two distinct groupings of receivables, statutory charges and other debtors and relevant judgements in relation to expected credit loss has been made for each group.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 11. Receivables (continued)

Statutory charges includes rates and charges receivables. Council has the power under the provisions of the Local Government Act 2009 to sell the property to recover any defaulted rates receivables, which protects council against credit risk in the case of defaults. Therefore the expected credit loss is considered immaterial. Impairment of rates and charges will only occur if arrears are deemed to be greater than the proceeds council would receive from the sale of the respective property.

Other debtors includes grants payable by State and Commonwealth governments and their agencies. A credit enhancement exists as these payments are effectively government guaranteed and both the State and Commonwealth governments have high credit ratings, accordingly council determines the level of credit risk exposure to be immaterial. Council does not calculate expected credit loss for grants.

Movement in accumulated impairment losses is as follows:

Opening balance at 1 July Add

Additional impairments recognised Less

Impairment debts written off during the year

Balance at the end of the year

Disclosure - credit risk exposure and impairment of receivables

The maximum exposure to credit risk at balance date for receivables is the gross carrying amount of those assets. No collateral is held as security.

Council uses a provision matrix to measure the expected credit losses on statutory charges and other debtors. Loss rates are calculated separately for groupings with similar loss patterns. The calculations reflect historical observed default rates calculated using credit losses experienced on past transactions from the last 6 years for each group. Loss rates are based on actual credit loss experience over the past 6 years, current conditions and the Council's view of economic conditions over the expected lives of the receivables. Council has determined there are five material groupings for measuring expected credit losses based on a combination of their statutory status, Council's policies and procedures, sale of services and goods, and risk default profiles of these revenue streams.

In Council's statements after reviewing macro economic conditions, Council reached the conclusion that forwards looking conditions indicated no foreseeable expected deviations from historically calculated ratios, thus no forward looking adjustments were made.

Expected credit loss assessment

Council uses an allowance matrix to measure the expected credit losses of trade receivables from individual customers. The calculations reflect historical observed default rates calculated using credit losses experienced on past transactions. Loss rates are based on actual credit loss experience, current conditions and council's view of economic conditions over the expected lives of the receivables.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 11. Receivables (continued)

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 12. Inventories

Inventories for internal use are valued at cost and adjusted when applicable for any loss of service potential.

Land purchased by council for development and sale is valued at the lower of cost and net realisable value. Proceeds from the sale of this land is recognised as sales revenue on the signing of a valid unconditional contract of sale.

Current inventories

(a) Inventories held for sale Infrastructure quarry material stock

Saleyards

(b) Inventories held for internal use

Stores and materials

(c)

TOTAL CURRENT INVENTORIES

Note 13. Other assets

Central Highlands Regional Council Notes to the Financial Statements for the year ended 30 June 2024 Note 14. Property, plant and equipment

During the financial year council determined that assets associated with the business activities of Saleyards and Resource Recovery should be represented as separate asset classes and assets have been transferred from the existing asset classes of Site Improvements and Buildings to the new asset classes. This approach is consistent with the structure of council's adopted asset management plans.

Central Highlands Regional Council Notes to the Financial Statements for the year ended 30 June 2024 Note 14. Property, plant and equipment

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024 Note 14. Property, plant and equipment

During the financial year council determined that assets associated with the business activities of Saleyards and

to the new asset classes. This approach is consistent with the structure of council's adopted asset management plans.

Central Highlands Regional Council Notes to the Financial Statements for the year ended 30 June 2024 Note 14. Property, plant and equipment

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 14. Property, plant and equipment (continued)

(a) Recognition

Items treated as an expense in the year of acquisition are:

- Property, plant and equipment with a total value less than $5,000.

- Information and computer technologies (ICT) plant and equipment assets with a total value of less than $1,000.

- Infrastructure and building assets with a total value of less than $10,000.

Where an item of capital expenditure relates to a network asset and has a future economic benefit, then it will be recognised as an asset regardless of the threshold. Network assets are defined as assets as they are interconnected and rely on each other to provide a service. All other items of property, plant and equipment are capitalised where their cost exceeds the respective threshold and they provide a future economic benefit.

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. This land is not recognised in these financial statements.

(b) Measurement

Each class of property, plant and equipment is stated at cost or fair value less, where applicable, any accumulated depreciation and accumulated impairment loss.

Acquisitions of assets are initially recorded at cost, which is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including freight, 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 is the price that would be received to sell the asset in an orderly transaction between market participants at the measurement date.

Direct labour and materials and an appropriate proportion of overheads incurred in the acquisition or construction of assets are treated as capital expenditure. Assets under construction are not depreciated until they are completed and commissioned, at which time they are reclassified from work in progress to the appropriate property, plant and equipment class.

(c) Depreciation

Land and road formation is not depreciated as it has an unlimited useful life. Other classes of assets are depreciated on a straight-line basis so as to write-off the net cost 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 these assets.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 14. Property, plant and equipment (continued)

(c) Depreciation (continued)

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.

(d) Impairment

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, 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.

(e) Valuation

Council's valuation policies and procedures are determined after assessment and consideration of information provided by personnel within council with appropriate skills and experience specific to a particular asset. They are reviewed annually taking into consideration an analysis of movements in fair value and other relevant information. Non-recurring fair value measurements are made at the point of reclassification by a registered valuer.

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 to determine the fair value for each class of property, plant and equipment assets at least once every 3 to 5 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.

Central Highlands Regional Council Notes

to the Financial Statements for the year ended 30 June 2024

Note 14. Property, plant and equipment (continued)

(e) Valuation

(continued)

In the intervening years, council uses internal engineers to assess the condition and cost assumptions associated with all property, plant and equipment assets, the results of which are considered in combination with the table of indices sourced from an independent professionally qualified valuation firm. Together these are used to form the basis of a management valuation for infrastructure asset classes in each of the intervening years.

In the intervening years, management may also engage an independent professionally qualified valuation firm, to perform a "desktop" valuation. A desktop valuation involves management providing updated information to the valuer regarding additions, deletions and changes in assumptions such as useful life and condition rating. The valuer then determines suitable indices which are applied to each of the asset classes.

On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life. Separately identified components of assets are measured on the same basis as the assets to which they relate.

In accordance with AASB 13 fair value measurements are categorised on the following basis:

- Fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1) - Fair value based on inputs that are directly or indirectly observable for the asset or liability (level 2)

- Fair value based on unobservable inputs for the asset and liability (level 3)

The table on the following page categorises fair value measurements as either level 2 or level 3 in accordance with AASB 13. Council does not have any assets measured at fair value which meet the criteria for categorisation as level 1.

The fair values of the assets are determined using valuation techniques which maximise the use of observable data, where it is available, and minimise the use of entity specific estimates. If all significant inputs required to fair value an asset are observable, the asset is included in level 2. If one or more of the significant inputs is not based on observable market data, the asset is included in level 3. This is the case for council infrastructure assets, which are of a specialist nature for which there is no active market for similar or identical assets. These assets are valued using a combination of observable and unobservable inputs.

Council's policy is to recognise transfers in and out of the fair value hierarchy levels as at the end of the reporting period. There were no transfers between levels during the year.

Central Highlands Regional Council

Index applied (change in index recognised this year) Other interim revaluation adjustment

Notes to the Financial Statements for the year ended 30 June 2024

Note 14. Property, plant and equipment (continued)

(e) Valuation (continued) The table below presents council's property, plant and equipment measured and recognised at fair value at 30 June 2024.

Indexation Valuer engaged Key assumption and estimates (related data sources)

Shepherds have provided a report where they have advised that a review of the Valuer-General Property Market Movement report since 2020/21 was undertaken. The movement in land since the last ValuerGenerals Land Valuations was 13% between 2020/21 and 2023/24. The cumulative calculation taking into account the previously Council applied 2021/222% indexation and 2022/232.7% indexation resulted in a 2023/24 indexation percentage of 7.87%. Council agree with the use of this percentage and has applied the percentage to align all applicable assets in this class to their fair value. 7.87% n/a

Shepherd Services Pty Ltd (Shepherds)

30-Jun-24

Engaged

4.10% n/a

Shepherds have provided a report where they have utilised Producer Price Indexes (PPI) from the Australian Bureau of Statistics for nonresidential building construction, road and bridge construction and other heavy and civil engineering construction and applied an estimated cumulative index. Council agree with these indices being representative of the assets in this class and have applied 4.1% to all applicable assets in this class to align them to fair value.

Shepherd Services Pty Ltd (Shepherds)

30-Jun-24

replacement cost New assets associated with the business activities of Saleyards and Resource Recovery were identified during the financial year and represented as separate asset classes.

Valuation techniques used to derive fair values

Assets in this class formed part of Buildings, Land, Road and Bridge Network and Site Improvements asset classes up to the 30 June 2024. Depreciation, indexation percentages or revalued unit rates and useful lives were applied prior to transferring to an independent financial asset class due to their significance as a Council business activity. n/a n/a Asset class and fair value

comprehensive valuation date

30-Jun-20 Assetic Pty Ltd

30-Jun-22 JLL Public Sector Valuations Pty Ltd (JLL)

30-Jun-24

Financial Class as at 30 June 2024 No prior comprehensive valuation

Land and improvements (level 2)

Site improvements (level 3)

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 14. Property, plant and equipment (continued)

(e) Valuation (continued) The table below presents council's property, plant and equipment measured and recognised at fair value at 30 June 2024. Valuation techniques used to derive fair values

Assets in this class formed part of Buildings and Site Improvements asset classes up to the 30 June 2024. Depreciation and indexation percentages of the prior financial asset class were applied prior to transferring to an independent financial asset class due to their significance as a Council business activity. n/a n/a

6.33% n/a

Shepherds have provided a report where they have utilised Producer Price Indexes (PPI) from the Australian Bureau of Statistics for nonresidential building construction as well as the house construction Queensland resulting in an estimated cumulative index to be applied. Council agree with these indices being representative of the assets in this class and have applied 6.33% to all applicable assets in this class, to align them to fair value.

Shepherd Services Pty Ltd (Shepherds)

30-Jun-24

30-Jun-24

Shepherd Services Pty Ltd (Shepherds)

30-Jun-24

Pty Ltd (JLL)

Buildings (level 2)

Buildings (level 3) 30-Jun-22

(e) Valuation (continued) The table below presents council's property, plant and equipment measured and recognised at fair value at 30 June 2024.

n/a n/a

Shepherds completed a comprehensive revaluation of the entire road and bridge network, noting that 100% inspection of all sealed and unsealed road assets was undertaken with appropriate componentisation, condition score and unit rate being applied. The remaining assets were visually inspected as follows: bridges58%, culverts6%, pathways65% and stormwater pits5% across all localities within the Central Highland Regional Council boundaries with appropriate componentisation, unit rate and asset condition applied. Where a visual inspection of an asset was not undertaken an appropriate unit rate was applied based on the sampled assets. Shepherds utilised the Central Highlands Regional Council recent tender prices, capitalisation data, overhead costs, other Queensland Council unit rate information including neighbouring Councils, industry prices and first principles calculations to develop the revaluation outcomes. Council met with Shepherds and conducted workshops to understand the proposed unit replacement rates and estimated useful lives. Further review by Council officers occurred following receipt of the revaluation outcomes, to ensure the applied unit rates and useful lives represented in these financial statements resulted in assets recorded at their fair value.

Asset Services (IAS)

3.57% n/a

Shepherds have provided a report where they have utilised Producer Price Indexes (PPI) from the Australian Bureau of Statistics for nonresidential building construction and the other heavy and civil engineering construction indexes resulting in an estimated cumulative index to be applied. Council agree with these indices being representative of the assets in this class, and have applied 3.57% to all applicable assets in this class, to align them to fair value.

30-Jun-24 Shepherd Services Pty Ltd (Shepherds)

30-Jun-22

(level 3)

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024 Note 14. Property, plant and equipment (continued)

(e) Valuation (continued) The table below presents council's property, plant and equipment measured and recognised at fair value at 30 June 2024.

Shepherds have provided a report where they have utilised Producer Price Indexes (PPI) from the Australian Bureau of Statistics for nonresidential building construction and the other heavy and civil engineering construction indexes resulting in an estimated cumulative index to be applied. Council agree with these indices being representative of the assets in this class, and have applied 3.54% to all applicable assets in this class, to align them to fair value.

A comprehensive revaluation of the airport asset class was undertaken by Shepherds. A 100% of all sealed and unsealed road assets airside and runways, as well as sampling of other airport assets across all localities with airport assets within the Central Highland Regional Council boundaries occurred. Where a visual inspection of an asset was not undertaken, an appropriate unit rate was applied based on sampled assets. Shepherds utilised Central Highlands Regional Council recent tender prices, capitalisation data, overhead costs and other Queensland Council unit rates information including neighbouring Councils, industry prices and first principle calculations to develop revaluation outcomes. Council met with Shepherds and conducted workshops to understand the proposed unit replacement rates and estimated useful lives. Further review by Council officers occurred following receipt of the revaluation outcomes, to ensure the applied unit rates and useful lives represented in these financial statements resulted in assets recorded at their fair value. n/a n/a

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 15. Contract balances

(a) Contract assets

Current Contract assets

TOTAL CURRENT CONTRACT ASSETS

(b) Contract liabilities

Current

Funds received upfront to construct Council controlled assets

TOTAL CURRENT CONTRACT LIABILITIES

Revenue recognised that was included in the contract liability balance at the beginning of the year

Funds to construct Council controlled assets

Total revenue recognised

Satisfaction of contract liabilities

The contract liabilites in relation to capital grants relate to funding received prior to the work being performed since revenue is recognised as Council constructs the assets. Council expects to recognise the contract liability as income within the next 1-5 years.

Note 16. Leases

Council as a lessee

Council has a number of leases in place over buildings and land.

Plant and equipment:

Council has a lease with Water Rentals Pty Ltd, to access and use the UF 2000A – Ultrafiltration Plant at Capella Water Treatment Plant, Queensland. The lease is for 2 years commencing 8th of February 2024 to 7th February 2026. There is no renewal option on the lease, however a renewal option may be considered should both parties render it necessary in the future.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 16. Leases (continued)

Buildings:

Council has a lease with the Department of Agriculture and Fisheries (DAF), to access and use their Emerald training facility as an Emergency Management control centre. The lease is for two years commencing from 1 January 2024 to 31 December 2025. There is a renewal option from 1 January 2026 to 31 December 2027 subject to mutual agreement and the signing of a formal Deed of Variantion by both parties.

Council has a lease agreement with Fulton Hogan Industries Pty Ltd, to access land and buildings for the purpose of a works depot. The lease is for a period of three years commencing from 1 May 2023 to 30 April 2026, with an option to extend (1 years x 2).

Land:

Council has a lease agreement with the Emerald Jockey Club Inc, to access and sublet a multi-purpose sporting venue at the Emerald Racecourse. The lease is for a period of five years commencing from 1 July 2020 to 31 December 2025, with an option to extend (5 years x 2).

Council has a lease with the Australian Agricultural College Corporation, to access and use land as a driver training facility. The lease is for twenty five years commencing from 1 July 2022 to 30 June 2035 with an option to extend (25 years x 1).

Council controlled entity as a lessee

Central Highlands Development Corporation Limited (CHDC), is a controlled entity of council and has a lease agreement on a building located in Egerton Street Emerald which it uses as an office. Where CHDC assesses that an agreement contains a lease, a right of use asset and lease liability is recognised on inception of the lease. CHDC does not have separate lease and non-lease components for any class of assets and has accounted for lease payments as a single component.

The term of the lease that CHDC has on the office building is for more than ten years.

Recognition and measurement

The right-of-use asset is measured using the cost model where cost on initial recognition comprises: the lease liability, initial direct costs, prepaid lease payments, estimated cost of removal and restoration, less any lease incentives received and is depreciated over the lease term on a straight-line basis and assessed for impairment in accordance with the impairment of asset accounting policy.

The lease liability is initially recognised at the present value of the remaining lease payments at the commencement of the lease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined, council’s incremental borrowing rate for a similar term with similar security is used.

Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate method. The lease liability is re-measured whenever there is a lease modification, or change in estimate of the lease term or index upon which the lease payments are based.

Where the lease liability is re-measured, the right-of-use asset is adjusted to reflect the re-measurement.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 16. Leases (continued)

Exceptions to lease accounting

Council and CHDC have applied the exceptions to lease accounting for both short-term leases (i.e. leases with a term of less than or equal to 12 months) and leases of low-value assets. Payments associated with these leases are recognised as an expense on a straight-line basis over the lease term and are expensed to the profit and loss as incurred.

Leases at significantly below market value/Concessionary leases

Council and CHDC have elected to measure the right of use asset arising from any concessionary leases at cost which is based on the associated lease liability at initial recognition.

Right of use assets

Consolidated

Opening balance

Additions to right-of-use assets

Adjustments to right-of-use assets due to lease variations

Depreciation charge

Balance at 30 June 2024

Opening balance

Additions to right-of-use assets

Depreciation charge

Balance at 30 June 2023

Council

Opening balance

Additions to right-of-use assets

Adjustments to right-of-use assets due to lease variations

Depreciation charge

Balance at 30 June 2024

Opening balance

Additions to right-of-use assets

Depreciation charge

Balance at 30 June 2023

Central Highlands Regional Council

Notes

to the Financial Statements for the year ended 30 June 2024

Note 16. Leases (continued)

Lease liabilities

Classified as:

Current lease liability

Non-current lease liability

Total lease liabilities

The table below shows the maturity analysis of the lease liabilities based on contractual cashflows and therefore the amounts will not be the same as the recognised lease liability in the statement of financial position. Consolidated

For building leases, extension options which can be exercised at council's discretion are included. At each reporting date council assesses whether it is reasonably certain that the extension options will be exercised based on current operations and strategy.

Amounts included in the statement of

The following amounts have been recognised in the statement of comprehensive income for leases where council is the lessee.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 16. Leases (continued)

Amounts included in the statement of comprehensive income related to leases

Expenses

Depreciation of right-of-use assets

Interest expense on lease liabilites

Net expense relating to leases

Council as a lessor

Operating leases

Where Council retains the risks and rewards relating to a lease, the lease is classified as an operating leases.

Assets classified as investment property

Rent from investment and other property is recognised as income on a periodic straight line basis over the lease term

lease income (rental income)

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 17. Payables

Creditors are recognised when goods and services are received, at the amount owed. Amounts owing are unsecured and are generally settled on 30 day terms.

Current Creditors and accruals

Accrued wages and salaries

Prepaid rates and charges

Other entitlements

Accrued lease interest

TOTAL CURRENT PAYABLES

Non-current

Other entitlements

PAYABLES

The following sets out the liquidity risk in relation to the above creditors and accruals and represents the remaining contractual cash flows at the end of the reporting period. Liquidity risk is the risk that council will encounter difficulty in meeting the objectives associated with its financial liabilities.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 18. Borrowings

The QTC loan market value at the reporting date was $66,096,465 and represents the value of the debt if repaid at that date. No assets have been pledged as security by the council for any liabilities, however, all loans are guaranteed by the Queensland Government.

The expected final repayment dates vary from 15 December 2028 to 15 June 2043 and interest rates range from 1.61% to 6.62%. Principal and interest repayments are made quarterly in arrears.

Current

Loans - Queensland Treasury Corporation

TOTAL CURRENT BORROWINGS

Non-current

Loans - Queensland Treasury Corporation

TOTAL NON-CURRENT BORROWINGS

Reconciliation of loan movements for the year

Loans - Queensland Treasury Corporation

Opening balance at beginning of financial year

Loans raised

Principal repayments

Book value at end of financial year

Central Highlands Regional Council

to the Financial Statements for the year ended 30 June 2024

Note 19. Provisions

(a) 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.

Where employees have met the prerequisite length of service and council does not have an unconditional right to defer the liability beyond 12 months, long service leave is classified as a current liability. Otherwise it is classified as non-current.

The estimates are adjusted for the probability of the employee remaining in council's employment or other associated employment which would result in 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 provision is discounted using the Commonwealth Bond yield rates published by the Reserve Bank of Australia.

(b) Sick leave

A liability for sick leave is recognised in accordance with the council's Enterprise Bargaining Certified Agreement 2021-2024 (Certified Agreement). The liability is measured as the present value of the estimated future cash outflows in respect of leave accrued by employees during the prerequisite length of service, up to the reporting date.

Sick leave will only be payable on termination of an employees' employment or death, where the prerequisite length of service has been met.

The value of the liability is calculated using current pay rates and projected future increases in those rates and includes related employee on-costs. This estimate is then adjusted for the rates stipulated in the Certified Agreement, which are based on years of service at the council and the pre-amalgamated former shires. This estimate is adjusted for the probability of employees remaining in council's employment which would result in council being required to meet the liability.

Where employees have met the prerequisite length of service, sick leave will be classified as a current liability. Otherwise the liability will be classified as non-current.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 19. Provisions (continued)

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.

Further adjustments are then made to allow for the proportion of the benefit earned to date, and the result is then discounted to present value.

(c) Provision for annual leave

A provision for annual leave is recognised and amounts are expected to be settled within 12 months are calculated on current wage and salary levels and include related employee on-costs.

All annual leave is classified as a current liability as employees are presently entitled to receive the accrued balance on termination.

(d) ESP approvals

Approvals under the Economic Stimulus Policy (ESP) provide a rebate on application fees and infrastructure charges. These rebates are to be reimbursed once the applicant meets all conditions of the associated development approval. A provision is made for the total cost of approved incentives to reserve the approved funds before the incentive is paid.

(e) Property restoration

A provision is made for the cost of restoration in respect of refuse sites and quarries where it is probable council will be liable, or required, to incur such a cost on the cessation of use of these facilities.

(i) Refuse sites

The provision is measured at the expected cost of the work required, discounted to current day values using the interest rates attaching to Commonwealth Government guaranteed securities with a maturity date corresponding to the anticipated date of the restoration.

The provisions recognised for restoration are reviewed at least annually and updated based on the facts and circumstances available at the time.

The refuse sites are situated on council controlled land. The provision represents the present value of the anticipated future costs associated with the closure of these sites, decontamination and monitoring of historical residues and leaching on these sites.

The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates, available technologies and engineering cost estimates. These uncertainties may result in future actual expenditure differing from amounts currently provided. Because of the long-term nature of the liability, the most significant uncertainty in estimating the provision is the costs that will be incurred.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 19. Provisions (continued)

(ii) Quarry sites (gravel pits)

This provision relates to gravel pits that council has custodianship of. Although council doesn't have control of the land it has a legal obligation to undertake the restoration work of these pits. The provision represents the present value of the anticipated future costs associated with the closure of the pits, reclamation and rehabilitation of the site.

The provision recognised for the gravel pit rehabilitation is reviewed at least annually and updated based on the facts and circumstances available at the time.

Current Annual leave

Long service leave

Sick leave

ESP Approvals

Quarry rehabilitation

Refuse sites

TOTAL CURRENT PROVISIONS

Non-current

Long service leave

Quarry rehabilitation

Refuse restoration

Make good at end of lease

TOTAL NON-CURRENT PROVISIONS

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 19. Provisions (continued)

Details of movements in provisions:

Quarry rehabilitation

Balance at beginning of financial year

Increase in provision due to unwinding of discount

Increase/(decrease) in provision due to change in discount rate

Increase/(decrease) due to change in future costs

Balance at end of financial year

Refuse sites

Balance at beginning of financial year

Additional provision Amounts used

Increase in provision due to unwinding of discount

Increase/(decrease) in provision due to change in discount rate

Decrease due to change in future costs Balance at end of financial year

Quarry rehabilitation

This is the present value of the estimated cost of restoring the quarry site, under the State Government environmental regulation, to a useable state at the end of its useful life which is expected to be 2050.

Refuse restoration

This is the present value of the estimated future cost of restoring the refuse sites, under the State Government environmental regulations, at the end of their lives.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 20. Other liabilities

Other liabilities represents the advance waste levy payments received by council from the Department of Environment, Science and Innovation. The payments are for the financial years out to 2026-27.

Current Waste levy refund received in advance

TOTAL CURRENT OTHER LIABILITIES

Non-current Waste levy refund received in advance

TOTAL NON-CURRENT OTHER LIABILITIES

Non-current liabilities represents the payments for 2025-26 and 2026-27 of $1,035,017 and $1,077,261. respectively.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 21. Asset revaluation surplus

The asset revaluation surplus comprises adjustments relating to changes in the 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.

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.

(i) Movements in the asset revaluation surplus were as follows:

Balance at beginning of financial year

Correction of prior period errors

Minor correction to opening balances

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

Land Site improvements

Change in value of future rehabilitation costs:

Land and improvements (site improvements)

Movements total

Balance at end of financial year

(ii) Asset revaluation surplus analysis: Land

The closing balance of the asset revaluation surplus is comprised of the following asset categories:

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 22. Commitments for expenditure

(a) Contractual commitments

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

Aquatic Centre management agreements

Showgrounds caretaker agreements

Information Communication Technology agreements

Other contracts

Waste and recycling contracts over 10 years

(b) Capital commitments (exclusive of GST)

Commitment for the construction of the following assets contracted for at the reporting date but not recognised as liabilities:

Plant and equipment

Office furniture and fittings

Buildings and Site improvements

Infrastructure (Road network, Water and Sewerage)

Total commitments

These expenditures are payable as follows: Within the next year

Later than one year and not later than 5 years

Later than 5 years

Total Payable

Notes to the Financial Statements for the year ended 30 June 2024

Note 23. Contingent liabilities

Consolidated Council

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

Local Government Mutual

The Council is a member of the local government mutual liability self-insurance pool, LGM Queensland. In the event of the pool being wound up or it is unable to meet its debts as they fall due, the trust deed and rules provide that any accumulated deficit will be met by the individual pool members in the same proportion as their contribution is to the total pool contributions in respect to any year that a deficit arises.

The latest audited financial statements are as at 30 June 2023 reported an accumulated surplus and it is not not anticipated any liability will arise.

Local Government Workcare

The Council is a member of the Queensland local government worker's compensation self-insurance scheme, Local Government Workcare. Under this scheme the Council has provided an indemnity towards a bank guarantee to cover bad debts which may remain should the self insurance licence be cancelled and there was insufficient funds available to cover outstanding liabilities. 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 $1,873,025 (2023: $1,602,872).

Legal Matters

Council is subject to claims that arise as a result of the operations of Council. Council has not provided for any amounts to date in relation to these claims on the basis that it has been assessed as immaterial or that it cannot be reliably estimated at reporting date. Information in respect of individual claims have not been disclosed in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets on the basis that Council considers such disclosures would seriously prejudice the outcome of the claims.

Note 24. Superannuation - regional defined benefit fund

Council contributes to the Brighter Super Regional Defined Benefits Fund (the scheme), at the rate of 12% for each permanent employee who is a defined benefit member.

This rate is set in accordance with the Brighter Super trust deed and may be varied on the advice of an actuary.

The Regional Defined Benefits Fund is a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation and is also governed by the Local Government Act 2009 . The scheme is managed by the LGIAsuper trustee as trustee for LGIAsuper trading as Brighter Super.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 24. Superannuation - regional defined benefit fund (continued)

The scheme is a pooled defined benefit plan and it is not in accordance with the deed to allocate obligations, plan assets and costs at the council level.

Any amount by which the scheme is over or under funded may affect future contribution rate obligations, but has not been recognised as an asset or liability of the council.

Council may be liable to the scheme for a portion of another local governments’ obligations should that local government be unable to meet them, However the risk of this occurring is extremely low and in accordance with the Brighter Super trust deed changes to council's obligations will only be made on the advice of an actuary.

The last completed actuarial assessment of the scheme as required under Superannuation Prudential Standard 160 was undertaken as at 1 July 2021. The actuary indicated that “At the valuation date of 1 July 2021, the net assets of the scheme exceeded the vested benefits and the scheme was in a satisfactory financial position as at the valuation date." The measure of vested benefits represents the value of benefit entitlements should all participating employees voluntarily exit the scheme.

Council is not aware of anything that has happened since that time that indicates the assets of the scheme are not sufficient to meet the vested benefits, as at the reporting date.

No changes have been made to the prescribed employer contributions which remain at 12% of employee salary or wages and there are no known requirements to change the rate of contributions.

The next triennial actuarial review is not due until 1 July 2024.

The most significant risks that may result in Brighter Super increasing the contribution rate on the advice of the actuary are:

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

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

Superannuation contributions made to the Regional Defined Benefits Fund

Other superannuation contributions paid for elected members

Total superannuation contributions paid by Council for employees

6

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 25. Reconciliation of net result for the year to net cash inflow (outflow) from operating activities

Net result

Non-cash items

Depreciation and amortisation

Other capital movements

Interest paid on leases

Investing and development activities

Net (profit)/loss on disposal of assets

Capital grants and contributions

Other

Increase/(decrease)

Increase/(decrease)

Increase/(decrease)

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 26. Reconciliation of liabilities arising from finance activities Consolidated

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 27. Correction of error

Contributed assets refer to public infrastructure and facilities that are constructed as part of a development approval and transferred to Council to own and maintain and include roads and footpaths, sewerage, and water assets.

Assets contributed by developers are recognised in the asset and financial reporting systems when Council assumes responsibility for the asset which is the commencement of the 'on-maintenance' period.

As part of Council’s current Asset Management improvement process to better align financial reporting and asset management practices, a review of assets under management has identified a number of developer contributed assets not previously recognised correctly within the asset and financial reporting systems.

The identified assets include roads, sewerage and water infrastructure related to developments for workers accommodation facilites, commercial and industrial facilities and housing estates.

These assets have been brought to account in the current reporting period and reported as a prior period error in line with the requirements of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. The errors identified above have been corrected by restating the balances at the beginning of the earliest period presented (1 July 2022) and taking the adjustment through to accumulated surplus at that date.

Comparatives have been changed to reflect the correction of errors. The impact on each line item is shown in the tables below.

Changes to the opening Statement of Financial Position at 1 July 2022

Consolidated

Property, plant, and equipment TOTAL ASSETS

TOTAL LIABILITES

Asset revaluation surplus

Retained surplus

Total community equity

1,604,717 3,038 1,360,755 1,741,630 1,738,592 3,038 120,046 - 120,046 569,819 1,239 571,058 1,048,727 1,799 1,050,526 1,618,546 3,038 1,621,584

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 27. Correction of error (continued)

Council Only

Original balance as Restated presented at balance at 1 July 2022 1 July 2022

$'000 $'000 $'000 Impact Increase/ (Decrease)

Changes to the opening Statement of Financial Position at 1 July 2022 (continued)

Statement of financial position

Property, plant, and equipment

TOTAL ASSETS

TOTAL LIABILITES

Asset revaluation surplus

Retained surplus

Total community equity

Adjustments to the comparative figures for the year ended 30 June 2023

Original balance as Restated presented at balance at 30 June 2023 30 June 2023 Impact Increase/ (Decrease)

Consolidated Statement of financial position Property, plant, and equipment Total non-current assets

TOTAL ASSETS

TOTAL LIABILITES

Asset revaluation surplus

Retained surplus

Total community equity

$'000 $'000 $'000

3,619 1,691,696 1,688,077 3,619 1,691,696 1,835,296 3,619 1,838,915 128,166 - 128,166

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 27. Correction of error (continued)

Council Only

Adjustments to the comparative figures for the year ended 30 June 2023 (continued)

Statement of financial position

Property, plant, and equipment

TOTAL ASSETS

TOTAL LIABILITES

Asset revaluation surplus

Retained surplus

Total community equity

Consolidated

Statement of comprehensive income

Grants, subsidies, contributions and donations

Total income

Depreciation and amortisation: Property, Plant and equipment

Total Expenses

Net result

at 30 June 2023

Increase/ (Decrease) 1,688,037 3,619 1,691,656 1,832,417 3,619 1,836,036 127,384 - 127,384 649,307 1,676 650,983 1,055,726 1,943 1,057,669 1,705,033 3,619 1,708,652

balance as Restated presented at balance at 30 June 2023

(Decrease) 8,721

30 June 2023

8,911 186,658

186,848 41,516 46 41,562 176,037 46 176,083 10,621 144 10,765

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 27. Correction of error (continued)

Council only

Adjustments to the comparative figures for the year ended 30 June 2023 (continued)

Statement of comprehensive income

Grants, subsidies, contributions and donations

Total income

Depreciation and amortisation: Property, Plant and equipment

Total Expenses

Net result

June 2023

Notes to the Financial Statements for the year ended 30 June 2024

Note 28. Events after the reporting period

Events that occur after the reporting date of 30 June 2024, up to and including the date when the financials statements are "authorised for issue" have been taken into account in preparing these statements.

Council has adopted the date of receipt of the Auditor's Report as the appropriate "authorised for issue" date relating to these General Purpose Financial Statements.

Accordingly, the "authorised for issue" is the date the Auditor's Report is signed.

Events that occur after the reporting date represent one of two types:

(i) Events that have provided evidence of conditions that existed at the reporting date

These financial statements (and the figures therein) incorporate all "adjusting events" that provided evidence of conditions that existed at 30 June 2024.

Council did not identify any material or significant "adjusting events".

(ii) Events that have provided evidence of conditions that arose after the reporting date

These financial statements (and figures therein) do not incorporate any "non adjusting events" that have occurred after 30 June 2024 and which are only indicative of conditions that arose after 30 June 2024.

Council is did not identify any material or significant "non adjusting events".

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 29. Financial instruments and financial risk management

(a) Financial assets and financial liabilities

Council has exposure to the following risks arising from financial instruments; (i) interest rate risk, (ii) credit risk, and (iii) liquidity risk.

This note provides information (both qualitative and quantitative) to assist statement users evaluate the significance of financial instruments on the Council's financial position and financial performance, including the nature and extent of risks and how the Council manages these exposures.

Financial risk management

Council is responsible for the establishment and oversight of the risk management framework, together with developing and monitoring risk management policies.

Council's Audit Committee oversees how management monitors compliance with council's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by council. The Audit Committee is assisted in its oversight role by internal audit who undertake regular reviews of risk management controls and procedures.

Council's risk management policies are established to identify and analyse the risks faced, to set appropriate limits and controls and to monitor these risks and adherence against limits. Council aims to manage volatility to minimise potential adverse effects on the financial performance of council.

Council does not enter into derivatives.

Credit risk

Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its contractual obligations. These obligations arise principally from the council's investments and receivables from customers.

Exposure to credit risk is managed through regular analysis of credit counterparty ability to meet payment obligations. The carrying amount of financial assets represents the maximum credit exposure.

Investments in financial instruments are required to be made with QTC or similar state/commonwealth bodies or financial institutions in Australia, in line with the requirements of the Statutory Bodies Financial Arrangements Act 1982

No collateral is held as security relating to the financial assets held by council.

The following table represents the maximum exposure to credit risk based on the carrying amounts of financial assets at the end of the reporting period:

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 29. Financial instruments and financial risk management (continued)

Financial assets

Cash and cash equivalents

Receivables - rates and water

Receivables - other

Term deposit investments

Equity investment

Other credit exposure

Guarantee

Total financial assets

Detailed information on credit risk in relation to the above financial assets can be found at the note specified above.

Liquidity risk

Liquidity risk is the risk that the council will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

Council is exposed to liquidity risk through its normal course of business and through its borrowings with QTC and other financial institutions. The liquidity risk in relation to payables at note 17 and for borrowings at note 18.

Council manages its exposure to liquidity risk by maintaining sufficient cash deposits and undrawn facilities, both short and long term, to cater for unexpected volatility in cash flows.

These facilities and detailed information in relation to liquidity risk are disclosed in note 10 (Cash and cash equivalents). Council does not have any overdraft facilities at the reporting date. 136,299

Market risk

Market risk is the risk that changes in market prices, such as interest rates, will affect the council's income or the value of its holdings of financial instruments.

Council has access to a mix of variable and fixed rate funding options through QTC so that interest rate risk can be minimised. These facilities are disclosed in note 18.

Sensitivity

Sensitivity to interest rate movements is shown for variable financial assets and liabilities based on the carrying amount at reporting date.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 29. Financial instruments and financial risk management (continued)

Net carrying Effect on equity

The following interest rate sensitivity analysis depicts what effect a reasonably possible change in interest rates (assumed to be 1%) would have on the profit and equity, based on the carrying values at the end of the reporting period. The calculation assumes that the change in interest rates would be held constant over the period.

Consolidated

QTC cash funds - at variable Other investments

QTC loans - at fixed Net

QTC cash funds - at variable Other investments

QTC loans - at fixed Net

Council

QTC cash funds - at variable

QTC loans - at

(1,083) (1,103) (1,073)

In relation to the QTC fixed rate loans, these are financial instruments at fixed interest rates which are carried at amortised cost and are not subject to interest rate sensitivity.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 29. Financial instruments and financial risk management (continued)

(b) Fair value

The fair value of trade and other receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment.

The fair value of borrowings with QTC is based on the market value of debt outstanding. The market value of a debt obligation is the discounted value of future cash flows based on prevailing market rates and represents the amount required to be repaid if this was to occur at balance date. The market value of debt is provided by QTC and is discussed below and disclosed in note 18.

QTC applies a book rate approach in the management of debt and interest rate risk, to limit the impact of market value movements to clients' cost of funding. The book value represents the carrying value based on amortised cost using the effective interest method.

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 30. National competition policy

Business activities to which the code of competitive conduct is applied

Council applies the code of competitve conduct to the following activities:

Aerodrome

Sewerage

Water Waste Saleyards

This requires identifying the cost of community service obligations (CSO) and eliminating the advantages and disadvantages of public ownership within the particular activity. Full cost pricing has been adopted for water and sewerage as they are significant business activities.

The CSO value is determined by council, and represents an activities cost which would not be incurred if the primary objective of the activities was to make a profit. 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 council.

The following activity statements are for activities subject to the competitive code of conduct:

Community service obligations

Less: expenditure

Surplus/(deficit)

Description of CSO's provided to business activities:

Activities

Airport

Provision of community airstrip facilities to the general public in outlying smaller communities.

Notes to the Financial Statements for the year ended 30 June 2024

Note 31. Transactions with related parties

(a) Subsidiaries (ie. entities and operations controlled by Council)

Council has one controlled entity which is detailed in note (1.b). The results of this entity is included with council to form the consolidated entity.

The following transactions occurred between council and its controlled entity:

Central Highlands Development Corporation Limited (CHDC)

Total

All funding support given to the controlled entity was agreed to by council for the 2023-2024 financial year.

There were no wages or allowances paid to councillors or council staff who sit on the board of these companies.

(b) Other related parties

Other related parties include the close family members of KMP, any entities controlled, or jointly controlled, by KMP or their close family members. Close family members include a spouse, child and dependent of a KMP or their spouse. 1,875 2,117

Details of transactions between council and other related parties are disclosed below:

Central Highlands Regional Council

Notes to the Financial Statements for the year ended 30 June 2024

Note 31. Transactions with related parties (continued)

(b) Other related parties (continued)

Employee expenses for close family members of key management personnel

Fees and charges charged to entities controlled by key management personnel.

Grants provided to entities controlled by key management personnel

Purchase of materials and services from entities controlled by key management personnel

Total

(i) All close family members of KMP were employed through an arm’s length process. They are paid in accordance with the award for the job they perform. Council employs 465 staff of which 2 are close family members of the KMP.

(ii) The fees and charges charged to entities controlled by KMP were on an arms length basis in accordance with the fees and charges adopted by council.

(iii) The grants provided to entities controlled by KMP were on an arms length basis in accordance with the formal assessment procedures adopted by council.

(iv) Materials and services purchased from entities controlled by KMP were at arms length and in the normal course of council's operations.

(c) Key management personnel

Transactions with key management personel KMP include the Mayor, Councillors, Chief Executive Officer and the executive leadership team.

Transactions with KMP, in the form of compensation paid for 2023-24, comprises:

Short-term employee benefits

Post-employment benefits

Termination benefits

Total

Detailed remuneration disclosures for KMP are provided in council's annual report. 31(b)(iv)

Central Highlands Regional Council

Current Year Financial Sustainability Statement for the year ended 30 June 2024

Measures of financial sustainability

Council's performance at 30 June 2024 against key financial ratios and targets.

Liquidity

1. Unrestricted cash expense coverage ratio x 12

Total cash and equivalents add current investments add available ongoing QTC working capital limit less externally restricted cash

Total operating expenditure less depreciation and amortisation less finance costs

The unrestricted cash expense cover ratio is an indicator of the unconstrained liquidity available to a council to meet ongoing and emergent financial demands, which is a key component to solvency. It represents the number of months a council can continue operating based on current monthly expenses.

Operating Performance

2. Operating surplus ratio

Operating result

Total operating revenue

The operating surplus ratio is an indicator of the extent to which operating revenues generated cover operational expenses. Any operating surplus would be available for capital funding or other purposes.

3. Operating cash ratio

Operating result add depreciation and amortisation add finance costs

Total operating revenue

The operating cash ratio is a measure of council's ability to cover its core operational expenses and generate a cash surplus excluding depreciation, amortisation, and finance costs.

Central Highlands Regional Council

Current

Year Financial Sustainability Statement for the year ended 30 June 2024

Asset management

4. Asset sustainability ratio

Capital expenditure on replacement of infrastructure assets (renewals)

Depreciation expenditure on infrastructure assets

The asset sustainability ratio approximates the extent to which the infrastructure assets managed by a council are being replaced as they reach the end of their useful lives.

5. Asset consumption ratio

Written down replacement cost of depreciable infrastructure assets

Current replacement cost of depreciable infrastructure assets

The asset consumption ratio approximates the extent to which council's infrastructure assets have been consumed compared to what it would cost to build a new asset with the same benefit to the community.

Debt servicing capacity

6. Leverage ratio

Book value of debt

Total operating revenue less total operating expenditure add depreciation and amortisation Target Consolidated Council

The leverage ratio is an indicator of a council's ability to repay its existing debt. It measures the relative size of the council's debt to its operating performance.

Note 1 - basis of preparation

The current year financial sustainability statement is a special purpose statement prepared in accordance with the requirements of the Local Government Regulation 2012 and the Financial Management (Sustainability) Guideline 2024 The amounts used to calculate the six reported measures are prepared on an accrual basis and are drawn from the Council's audited general purpose financial statements for the year ended 30 June 2024.

Central Highlands Regional Council

Current Year Financial Sustainability Statement for the year ended 30 June 2024

Contextual ratios (unaudited)

Financial Capacity

1. Council controlled revenue

Net rates, levies and charges add fees and charges

Total operating revenue

Council controlled revenue is an indicator of a council's financial flexibility, ability to influence its operating income, and capacity to respond to unexpected financial shocks.

2. Population growth

Prior year estimated population

Previous year estimated population

Population growth is a key driver of a council's operating income, service neds, and infrastructure requirements into the future.

Note 1 - basis of preparation

The current year financial sustainability statement - contextual ratios is a special purpose statement prepared in accordance with the requirements of the Local Government Regulation 2012 and the Financial Management (Sustainability) Guideline 2024. The amounts used to calculate the two reported measures are prepared on an accrual basis and are drawn from the Council's audited general purpose financial statements for the year ended 30 June 2024.

Central Highlands Regional Council

Unaudited Long-Term Financial Sustainability Statement prepared as at 30 June 2024

Measures of financial sustainability Council's performance at 30 June 2024 against key financial ratios and targets.

Liquidity 1. Unrestricted cash expense coverage ratio x 12

and

The unrestricted cash expense cover ratio is an indicator of the unconstrained liquidity available to a council to meet ongoing and emergent financial demands, which is a key component to solvency. It represents the number of months a council can continue operating based on current monthly expenses. Operating Performance 2. Operating surplus ratio Operating result Total operating revenue The operating surplus ratio is an indicator of the extent to which operating revenues generated cover operational expenses. Any operating surplus would be available for capital funding or other purposes.

Central Highlands Regional Council

Unaudited Long-Term Financial Sustainability Statement prepared as at 30 June 2024

Operating Performance (continued)

3. Operating cash ratio

Operating result add depreciation and amortisation add finance costs Total operating revenue The operating cash ratio is a measure of council's ability to cover its core operational expenses and generate a cash surplus excluding depreciation, amortisation, and finance costs.

A positive operating cash ratio indicates that council is generating good surplus cash from its core operations, which suggests that council has the ability to use these funds to assist in funding its capital expenditure requirements.

Asset Management

4. Asset sustainability ratio Capital expenditure on replacement of infrastructure assets (renewals)

Depreciation expenditure on infrastructure assets The asset sustainability ratio approximates the extent to which the infrastructure assets managed by a council are being replaced as they reach the end of their useful lives.

Capital expenditure can broadly be classified as new (building something entirely new) or renewal (replacing an old asset with a new one). This ratio measures how much capital expenditure goes toward replacing existing assets each year when divided by depreciation expense. As the ten year forecast indicates, Council's ratio is exceeding the target of 80% with the exception being for the period between 2025-26 and 2027-28. When calculated on a longer 10-year average basis, this measure is 91.8% and highlights that infrastructure assets are being replaced in an appropriate timeframe.

Unaudited Long-Term Financial Sustainability Statement prepared as at 30 June 2024

Asset Management (continued)

5. Asset consumption ratio

Written down replacement cost of depreciable infrastructure assets

Current replacement cost of depreciable infrastructure assets

The asset consumption ratio approximates the extent to which council's infrastructure assets have been consumed compared to what it would cost to build a new asset with the same benefit to the community.

Throughout the ten year forecast period Council's ratio remains greater than the target range of 60%. This means that Council is replacing its assets at the earliest possible time whilst ensuring assets are not being run down to an unacceptable level of service.

Debt servicing capacity

6. Leverage ratio

Book value of debt

Total operating revenue less total operating expenditure add depreciation and amortisation

The leverage ratio is an indicator of a council's ability to repay its existing debt. It measures the relative size of the council's debt to its operating performance.

As indicated by the ratio council sits comfortably below the upper band limit of 3 times throughout the forecast period. Low ratios indicate the Council is performing well operationally, can repay its existing debt and has the capacity to borrow additional funds without placing undue financial pressure on the organisation.

Unaudited Long-Term Financial Sustainability Statement prepared as at 30 June 2024

Forecast

Financial Capacity

7. Council controlled revenue Net rates, levies and charges add fees and charges

Total operating revenue Council controlled revenue is an indicator of a council's financial flexibility, ability to influence its operating income, and capacity to respond to unexpected financial shocks.

The higher the percentage the better, as this indicates council has the financial flexibility to significantly influence its operating income, and the capacity to respond to unexpected financial shocks. It also indicates a strong rate base that can drive operating revenue and place council in a position to rely less on external sources of financial support, for example federal or state government assistance.

8. Population growth Prior year estimated population

This ratio is provided by the Department of Housing, Local Government , Planning and Public Works using the compound annual growth rate which offers a systematic approach to estimating the average population growth rate over a multi-year period. As the ratio indicates the Central Highlands Region can expect to see low population growth over the forecast period.1

Previous year estimated population Population growth is a key driver of a council's operating income, service neds, and infrastructure requirements into the future.

Central Highlands Regional Council

Unaudited Long-Term Financial Sustainability

prepared as at 30 June 2024

Forecast

Central Highlands Regional Council Financial Management Strategy Council measures revenue and expenditure trends over time as a guide to future requirements and to make decisions about the efficient allocation of resources to ensure the most effective provision of services. Council ensures that its financial management strategy is prudent and that its long-term financial forecast shows a sound financial position whilst also being able to meet the community’s current and future needs.

Council aims to operate within a set of conservative guide-posts to ensure we are financially sustainable in the short, medium and long term. As part of our financial strategy, we have adopted six key financial performance indicators to guide our financial health. In addition to the financial indicators, we have the above two sustainability indicators that have been set by the Department of State Development and Infrastructure to help monitor the long-term sustainability of all councils across Queensland. Throughout the financial year, these indicators are calculated and reported on monthly at Council meetings, as part of a full suite of financial reports. Should there be any deviation outside these parameters, the executive management and Council will be fully informed and may take corrective action as required.

Notes (1) Includes only recurrent revenue and recurrent expenditure disclosed in the statement of comprehensive income. Excludes capital revenue grants, contributions, donations and subsidies received for capital acquisitions, capital Income items such as profit from the sale of: property, plant and equipment, financial assets, real estate and investment properties (refer to Note 5 for exclusions), and any capital expenditure such as write-off of assets, movements in provisions for restoration and rehabilitation and revaluation decrements that hit the statement of comprehensive income.

(2) Includes only recurrent revenue disclosed in the income statement. Excludes capital revenue grants, contributions donations and subsidies received for capital acquisitions. Also excludes any capital income items such as profit from the sale of: property, plant and equipment, financial assets, real estate and investment properties (refer to Note 5 for exclusions).

(3) Asset renewals are defined as the expenditure to renew or replace existing assets to return the service potential or the life of the asset up to that which it had originally.

These ratios are the relevant measures of financial sustainability required to be reported under section 178(1) of the Local Government Regulation 2012.

Definitions are sourced from the Financial Management (Sustainability) Guideline 2024.

For more information about this annual report telephone Central Highlands Regional Council on 1300 242 686

Email: enquiries@chrc.qld.gov.au

Visit: www.chrc.qld.gov.au

Design: Justin Huehn, Juno Creative, www.junocreative.net.au

Cover image: Marjorie Nelson, "Highway Scene", CHRC Art Collection

All other images supplied by Central Highlands Regional Council or Central Highlands Development Corporation unless stated otherwise. © Central Highlands Regional Council PO Box 21 Emerald Q 4720