Minutes of the General Meeting of maranoa Regional Council held at Roma Administration Centre on 22 August 2012 commencing at 9.00am

ATTENDANCE

Mayor Cr. R S Loughnan chaired the meeting with, Deputy Mayor Cr. S W Wason, Cr. J L Chambers, Cr. R J Denton, Cr. P J Flynn, Cr. W M Newman, Cr. C J O’Neil, Cr. D J Schefe, Acting Chief Executive Officer – Michael Parker, Director Community Services – Tony Klein, Director Corporate Services – Matthew McGoldrick, Director Planning & Environment – Rob Hayward, Director Infrastructure – Barry Omundson, Manager Construction & Maintenance – Peter Weallans, Manager Utilities & Waste – Troy Pettiford, Manager Organisational Development – Ed Sims, Corporate Communications Officer – Jane Frith, and Lauren Owen Minutes Officer in attendance.

GUESTS

Reverend Linda Hamill, Father Scott Gunthorpe and Anne Gibbes from Combined Churches Flood Appeal.

Peter Smith and Franz Van den Brink of Urban Land Development Authority.

WELCOME

The Mayor welcomed all present and declared the meeting open at 9.14am.

APOLOGIES

Resolution No. GM.228.12

Moved Cr Chambers Seconded Cr Wason

That apologies be received and leave of absence granted for Cr Price for this meeting.

CARRIED 8/0

Confirmation of Minutes

Resolution No. GM.229.12

Moved Cr Denton Seconded Cr Newman

That the minutes of the General Meeting (15-08.08.12) held on 8 August 2012 be confirmed with a correction to GM217.12 to state :

‘Cr. Denton and Cr. Schefe to attend the International Economic Development Conference on 17- 20 September 2012”.

CARRIED 8/0

Business Arising FROM MiNUTES

There was no business arising from the minutes.

On the Table

There were no items for discussion on the table.

Presentations/Petitions and Deputations

Mayor, Robert Loughnan will recognise the efforts of Combined Churches Flood appeal via a presentation to attending representatives.

Peter Smith – Director, Residential Development and Franz van den Brink – Senior Development Manager, representing Urban Land Development Authority will provide an update on subsequent stages for the Clearview Rise development in Roma.

Consideration of notices of business

There were no notices of business for consideration.

Consideration of notices of motion

There were no notices of motion for consideration.

Reception of notices of motion for next meeting

No notices of motion were received for the next meeting.

Business

Executive Services

Item Number: 10.1

File Number: D12/24201

Subject Heading: Councillor Representation on Advisory Committees and Community Groups

Location: Not Applicable

Applicant: Not Applicable

Author and Officer’s Title: Kelly Rogers, Coordinator Executive Services

Executive Summary:

Understanding the needs and aspirations of the community enhances decision making processes of Council. As such participation on relevant advisory committees and community group meetings are important forums that support community engagement.

Resolution No. GM.230.12

Moved Cr O'Neil Seconded Cr Denton

That Council endorses Councillor representation as follows:-

Committee or Association	Councillor/s representative
LGAQ Executive Representative	Mayor
Saleyards Advisory Board	Cr. Wason and Cr. Flynn
Local Disaster Management Group	Mayor (Chair) and Cr. Wason as proxy Deputy Chairs – Cr. Wason and Cr. O’Neil
Roma on Bungil Art Gallery Committee	Cr. Newman
All Community Groups e.g. Roma Commerce	All Councillors by group invitation
Maranoa Health Enhancement Program Reference Group	Cr. Denton
Work Advisory Committee	Cr. O’Neil
Airport Advisory Committee	Cr. O’Neil, Cr. Denton and Cr. Schefe
Airport Security Committee	Cr. Denton
Queensland Murray Darling Committee	Cr. Chambers
Great Inland Way Board	Cr. Price
Regional Arts Development Committee	Cr. Newman and Cr. Chambers
Roma Rural Student Hostel Inc.	Cr. Wason and Cr. Flynn
Coal Seam Gas Engagement Group Meetings	Cr. Newman
Sport and Recreation Master Planning Committee
Bassett Park	Cr. Wason, Cr. Chambers, Cr. Flynn and Cr. O’Neil
Bungil Street Sports Grounds	Cr. O’Neil, Cr. Denton, Cr. Wason, Cr. Flynn and Cr Schefe
Wallumbilla Show Grounds	Cr. Price and Cr. O’Neil
Rural Financial Counselling Service QLD	Cr. Denton
Maranoa Regional Council Audit Committee	Mayor and Cr. Chambers
Wild Dog Advisory Committee	Cr. Chambers
TAG Meetings	Cr. Price
Regional Pest Management Group	Cr. Chambers
Maranoa Skills Advisory Committee	Cr. Flynn
Surat Basin Corporation	Cr. Denton
Regional Planning Committee	Mayor
Toowoomba & Golden West Tourism Association	Cr. Denton and Cr. Price
PCYC Roma	Cr. Flynn

CARRIED 8/0

Delegated Officer

Coordinator Executive Services

Community Services

Item Number: 11.1	File Number: D12/23921
Subject Heading: Information and Endorsement of MItchell WORK Camp Progress Report 2011-2012
Author and Officer’s Title: Jane Fenton, Community Development Coordinator - Mitchell
*Executive Summary:* Progress Report for Mitchell WORK Camp be received and noted for the assistance provided to the communities of Mitchell, Amby, Mungallala and Dunkeld during the period of July 2011 – July 2012.
Resolution No. GM.231.12 Moved Cr Newman Seconded Cr Chambers That Council receive and note the officers report as presented. CARRIED 8/0

Delegated Officer	Community Development Coordinator - Mitchell

Corporate Services

Item Number: 12.1	File Number: D12/17989
Subject Heading: Renewal of Surat Aquarium Agreement Location: Cobb and Co Changing Station, Burrowes Street, Surat Applicant: Surat Fishing and Restocking Club
Author and Officer’s Title: Tanya Mansfield, Manager Risk and Facilities
*Executive Summary:* The Cobb and Co Changing Station in Surat has among other attractions, a 25,000 litre freshwater aquarium containing fish species native to the local waterways. The Surat Fishing and Restocking Club has been engaged over the past eight (8) years to attend to the maintenance and operation of the aquarium for a monthly fee. There was an historic agreement with Warroo Shire Council and the group is now seeking to enter a new agreement with Maranoa Regional Council.
Discussion: Cr .O’Neil enquired on the reason for the increase in maintenance costs. Director Corporate Services advised that this is to cover the costs of the Surat Fishing and Restocking Club.
Resolution No. GM.232.12 Moved Cr Chambers Seconded Cr Schefe That Council enter into an agreement with the Surat Fishing and Restocking Club for a period of three years for maintenance of the aquarium in the Surat Cobb and Co Changing Station at the amount of $150 per week. CARRIED 8/0

Delegated Officer	Manager Risk and Facilities

Item Number: 12.2	File Number: D12/22148
Subject Heading: Tenure Booringa Heritage Museum Location: Part of Lot 1 on M15129 Reserve 85 Applicant: Booringa Heritage Group Inc
Author and Officer’s Title: Tanya Mansfield, Manager Risk and Facilities
*Executive Summary:* The Booringa Heritage Group Inc. has written to Council seeking security of tenure over part of Lot 1 on M15129. This land houses the Booringa Heritage Museum which has been constructed in the former Booringa Shire Council Works Depot. Currently the group has a five year tenancy agreement expiring in August 2015 but would like a longer term arrangement.
Discussion: Council discussed the length of the tenure and size of the land. Director Corporate Services advised that Councillor’s comments would be taken into consideration during negotiations with Booringa Heritage Group. Cr. Chambers requested to be involved in the negotiation process as the portfolio chair for Social Services and Environment.
Resolution No. GM.233.12 Moved Cr Chambers Seconded Cr Wason Council enter into negotiations with the Booringa Heritage Group with the view to entering into a lease over part of the Reserve for Local Government Purposes known as Lot 1 on Crown Plan M15129, on which the Booringa Heritage Museum is located. CARRIED 8/0

Delegated Officer	Manager Risk and Facilities

Item Number: 12.3	File Number: D12/23893
Subject Heading: Application for Permit to Occupy over Part of Lot 124 on EG247, Reserve for Camping and Water Location: Over Lot 124 on EG247, Reserve for Camping and Water
Author and Officer’s Title: Tanya Mansfield, Manager Risk and Facilities
*Executive Summary:* The Department of Natural Resources and Mines seeks Council’s views on an Application for a Permit to Occupy over Part of Lot 124 on EG247, Reserve for Camping and Water. The proposed use of the land is grazing.
Resolution No. GM.234.12 Moved Cr Denton Seconded Cr Newman That Council advise the Department of Natural Resources and Mines that Council has no objection to the granting of an permit to occupy over part of Lot 124 on EG247, Reserve for Camping and Water on the following conditions: 1. The leased area is to have a stock proof fence to eliminate domestic grazing stock from entering nearby road reserve/s. 2. The leased area is to be used for grazing purposes only, and in such a manner so as the land is not degraded as far as reasonably practical from this specified use. 3. The lessee has a duty of care, to take all reasonable and practicable measures to sustainably manage the permit area. 4. Any weeds identified in the Land (Pest and Stock Route) Management Act are to be controlled in such a manner that will not allow the spread of seed onto adjoining land or land further down any water course and or creek. 5. Should any weeds identified in the Land (Pest and Stock Route) Management Act be identified within the confines of the special lease land, the lessee is to notify the Department of Environment and Resource Management and the Local Government of the weed as soon as practicably possible. 6. Authorised Council officers must be allowed entry to carry out inspections in relation to weeds. 7. The landholder is to be responsible for any litigation that may result from the “Trustee Lease or Trustee Permit” use. CARRIED 8/0

Delegated Officer	Manager Risk and Facilities

Item Number: 12.4	File Number: D12/23902
Subject Heading: Application for conversion to freehold of Term Lease 0/212711 Location: Over Lots 2001-2010, 2101-2110 on H1493, Lot 2111 on H1498 and Lot 2112 on H14910
Author and Officer’s Title: Tanya Mansfield, Manager Risk and Facilities
*Executive Summary:* The Department of Natural Resources and Mines seeks Council’s views on an Application for Conversion to Freehold of Term Lease 0/212711 of Lots 2001-2010, 2101-2110 on H1493, Lot 2111 on H1498 and Lot 2112 on H14910. The proposed use of the land is grazing.
Resolution No. GM.235.12 Moved Cr Newman Seconded Cr O'Neil That Council advise the Department of Natural Resources and Mines that Council has no objection to the application for conversion to freehold of Term Lease 0/212711 of Lots 2001-2010, 2101-2110 on H1493, Lot 2111 on H1498 and Lot 2112 on H14910 and furthermore that Council is not aware of any local non-indigenous cultural heritage values that the Department should consider when assessing the application. CARRIED 8/0

Delegated Officer	Manager Risk and Facilities

Item Number: 12.5	File Number: D12/23904
Subject Heading: Application for conversion to freehold of Term Lease 0/210022 Location: Lot 24 on WV1122
Author and Officer’s Title: Tanya Mansfield, Manager Risk and Facilities
*Executive Summary:* The Department of Natural Resources and Mines seeks Council’s views on an Application for Conversion to Freehold of Term Lease 0/210022 being Lot 24 on WV1122.
Resolution No. GM.236.12 Moved Cr Flynn Seconded Cr Schefe That Council advise the Department of Natural Resources and Mines that Council has no objection to the application for conversion to freehold of Term Lease 0/210022 over Lot 24 on WV1122 and furthermore that Council is not aware of any local non-indigenous cultural heritage values that the Department should consider when assessing the application. CARRIED 8/0

Delegated Officer	Manager Risk and Facilities

Item Number: 12.6	File Number: D12/23906
Subject Heading: 2011/2012 Operational Plan Quarterly Review
Author and Officer’s Title: Tanya Mansfield, Manager Risk and Facilities
*Executive Summary:* The 2011/12 Operational Plan sets out the most significant projects and initiatives that Council decided to pursue this financial year towards achieving the long term objectives in the Corporate Plan 2009-2013. Regular monitoring of progress against this Operational Plan is an important element of Council’s governance process and is also a requirement of the Local Government Act 2009. The attached report on progress to 30^th June 2012 is presented for Council’s consideration. An update on activities identified in the Operational Plan has been undertaken and explanations provided.
Discussion: Cr. Denton commented on the need for Council to address its internal audit committee. The Mayor agreed that nominations for the audit committee and Roma Saleyards board should be refreshed and that the audit committee should meet prior to the 2012-13 budget meeting.
Resolution No. GM.237.12 Moved Cr Chambers Seconded Cr Denton That the final quarterly report on the activities to achieve the goals and strategies outlined in the 2011/12 Operational Plan be received. CARRIED 8/0

Delegated Officer	Manager Risk and Facilities

Item Number: 12.7	File Number: D12/23915
Subject Heading: Interest in Purchasing Land Wallumbilla Location: Lot 703 on W4091, 6 May Street Wallumbilla
Author and Officer’s Title: Tanya Mansfield, Manager Risk and Facilities
*Executive Summary:* Council has received contact from two parties interested in purchasing Lot 703 on W4091 located at 6 May Street Wallumbilla. Council’s direction is sought as to the disposal of this land. If sold the land would be subject to normal building and planning requirements.
Resolution No. GM.238.12 Moved Cr Denton Seconded Cr Wason That Council offer for sale by tender Lot 703 on W4091 located at 6 May Street, Wallumbilla. CARRIED 8/0

Delegated Officer	Manager Risk and Facilities

Item Number: 12.8	File Number: D12/23929
Subject Heading: Trustee Lease Injune Fire and Rescue Station Location: Part of Lot 10 on Crown Plan I7181, Corner of Annandale and Ronald Streets, Injune Applicant: Department of Community Safety
Author and Officer’s Title: Tanya Mansfield, Manager Risk and Facilities
*Executive Summary:* The State of Queensland (represented by the Department of Community Safety) is interested in securing a trustee lease arrangement for the Injune Fire and Rescue Station which is located on part of Lot 10 on Crown Plan I7181 located on the corner of Annandale and Ronald Streets Injune. As this land is a reserve with Council as the trustee, to formalise this arrangement it will be necessary to negotiate a trustee lease with the Department of Community Safety.
Discussion: Cr. Denton enquired on the party responsible for mowing the leased area. Director Corporate Services advised that this would be addressed during the negotiation process.
Resolution No. GM.239.12 Moved Cr Chambers Seconded Cr Newman That Council enter into negotiations with the Department of Community Safety with the view to entering into a trustee lease over the Reserve for Local Government and Water Purposes known as Lot 10 on Crown Plan I718l, on which the Injune Fire and Rescue Station is located. CARRIED 8/0

Delegated Officer	Manager Risk and Facilities

Infrastructure

Item Number: 13.1	File Number: D12/17672
Subject Heading: Injune Race Track (Possum Park) Water Fees and Charges Location: Injune Applicant: Keith Chandler on behalf of Injune Racecourse Tenants
Author and Officer’s Title: Paraic Butler, Graduate Engineer
*Executive Summary:* Keith Chandler, President of the Injune Race Club, has requested a reduction in water access charges and a review of the clubs recent excess water consumption charge.
Discussion: Council at length discussed possible causes off the excessive water usage and current arrangements for the provision of water at similar facilities throughout the region. The matter was laid on the table for further consideration at a later point during the meeting.

Planning & Environment

Item Number: 15.1	File Number: D12/24060
Subject Heading: Removal, Relocation or Demolition of Buildings
Author and Officer’s Title: Graham Tiffany, Manager Land Development
*Executive Summary:* In view of the increase in enquiries in relation to proposals for existing dwellings to be moved into various locations within the Maranoa Regional Council area, and in view of a recent proposal which, has led to my advice to the applicant that if they proceed with their application, it is likely that the application would be refused due to the condition of the proposed dwelling, it is thought necessary that Council have a clear and concise policy listing the requirements for the Removal or Relocation of Buildings and also to add the requirement for the demolition of buildings, which can be available to prospective applicants.
Resolution No. GM.240.12 Moved Cr Newman Seconded Cr Wason That the policy for the Removal, Relocation, or Demolition of Buildings be adopted. CARRIED 8/0

Delegated Officer	Manager Land Development

Status Reports

Community Service

Item Number: 17.1	File Number: D12/22744
Subject Heading: Community Services Report
Author and Officer’s Title: Larissa Pears, Community Services Administration Assistant
Month & Year of Report: August 2012 Name of Department: Community Services Department
*Executive Summary:* This quarterly status report is presented to Council to provide a statistical summary of the organisation’s performance in delivering Community Development and Social Development services.
Resolution No. GM.241.12 Moved Cr O'Neil Seconded Cr Flynn That Council receive and note the Officer’s report as presented. CARRIED 8/0

Delegated Officer	Community Services Administration Assistant

Item Number: L.1	File Number: D12/24160
Subject Heading: Formalisation of Write-Off Action - Flood Damaged Council Vehicles
Author and Officer’s Title: Alan Marchant, Finance Manager
*Executive Summary:* This report recommends to Council the formal write-off of the carrying value of those Council vehicles that were damaged during the flood event at Mitchell in February, 2012.
Resolution No. GM.242.12 Moved Cr Denton Seconded Cr O'Neil That Council approve the write-off of the financial values (gross, accumulated depreciation and net value) of the four specified vehicles that were damaged during the Mitchell flood event and assessed by Council’s insurers as being financially irreparable. CARRIED 8/0

Delegated Officer	Finance Manager

Item Number: L.2	File Number: D12/24249
Subject Heading: Draft Media Policy Location: Not Applicable Applicant: Not Applicable
Author and Officer’s Title: Jane Frith, Corporate Communications Officer
*Executive Summary:* The adoption of a media policy establishes clear guidelines for spokesperson/s when interacting with the media. The aim of the policy is to maximise the benefits of Council’s engagement with the media and to reduce the risk of adverse publicity.
Resolution No. GM.243.12 Moved Cr O'Neil Seconded Cr Newman That Council adopts the draft media policy as presented. CARRIED 8/0

Delegated Officer	Corporate Communications Officer

Cr. Wason left the chambers at 9.59am taking no further part in the debate or discussion.

Cr. Wason entered the chambers at 10.01am.

PRESENTATION

The Mayor accompanied by Cr Chambers, thanked representatives from Roma Combined Churches Flood Appeal for their hard work in assisting flood affected residents and invited them to join Council for morning tea.

Subject Heading: suspension of standing orders

Council adjourned the meeting for morning tea at 10.10am

Subject Heading: resumption of standing orders

Council returned from morning tea at 11.01am

PRESENTATION

Peter Smith and Franz Van den Brink from ULDA presented an update on subsequent stages for the Clearview Rise development in Roma.

Subject Heading: suspension of standing orders

Council adjourned the meeting for lunch at 12.31pm

Subject Heading: resumption of standing orders

Council returned from lunch at 1.47pm

CONFIDENTIAL ITEMS

In accord with the provisions of section 72 of the Local Government (Operations) Regulation 2010, Council resolved to close the meeting to discuss items it has deemed to be of a confidential nature and specifically pertaining to the following sections:-

(e) contracts proposed to be made by it;

(h) other business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage;

Resolution No. GM.244.12

Moved Cr Wason Seconded Cr Newman

That Council close the meeting to the public at 1.47pm.

CARRIED 8/0

Cr. Flynn declared an interest in an item for discussion and left the chambers at 1.49pm taking no further part in the debate or discussion.

Cr. Flynn entered the chambers at 2:20pm, at he termination of discussions.

Resolution No. GM.245.12

Moved Cr Newman Seconded Cr O'Neil

That Council open the meeting to the public at 3.13pm.

CARRIED 8/0

Subject Heading: suspension of standing orders

Council adjourned the meeting for afternoon tea at 3.13pm

Subject Heading: resumption of standing orders

Council returned from afternoon tea at 3.34pm

Item Number: 13.1	File Number: D12/17672
Subject Heading: Injune Race Track (Possum Park) Water Fees and Charges Location: Injune Applicant: Keith Chandler on behalf of Injune Racecourse Tenants
Author and Officer’s Title: Paraic Butler, Graduate Engineer
*Executive Summary:* Keith Chandler, President of the Injune Race Club, has requested a reduction in water access charges and a review of the clubs recent excess water consumption charge.
Resolution No. GM.246.12 Moved Cr Chambers Seconded Cr Wason That based on an annual water consumption of 1200kl, Council reimburse Injune Race Club for the water consumption charge above 1200kl on this occasion. CARRIED 8/0

Delegated Officer	Graduate Engineer

Item Number: 22.1	File Number: D12/23675
Subject Heading: Regional Arts Development Fund Applications from Round 1, 2012/13 Financial Year
Author and Officer’s Title: Susan Sands, Grants Coordinator
*Executive Summary:* The Maranoa Regional Council Regional Arts Development Fund (RADF) Committee has assessed funding applications for arts and cultural projects and activities submitted under the 2012/13 financial year funding Round 1, ending 20 July 2012.
Resolution No. GM.247.12 Moved Cr Newman Seconded Cr Chambers That Council endorse the Regional Arts Development Fund (RADF) Committee’s grant assessment recommendations. CARRIED 8/0

Delegated Officer	Grants Coordinator

Item Number: L.3	File Number: D12/24349
Subject Heading: Tender APLNG-WP1-Civil works to upgrade Yuleba-Taroom Road/Warrego HWY intersection and widen 4.6 kilometREs of YUleba-Taroom Road
Author and Officer’s Title: Peter Weallans, Manager Construction & Maintenance
*Executive Summary:* Maranoa Regional Council called for quotations from suitably experienced civil contractors to upgrade the intersection of Yuleba-Taroom Road and Warrego Highway and widen 4.6 kilometres of Yuleba-Taroom Road. Responses closed on 3 August 2012 and have been assessed and ranked.
Resolution No. GM.248.12 Moved Cr Wason Seconded Cr O'Neil That, subject to concurrent acceptance by Origin Energy, and conditionally on the provision by Origin Energy of a signed letter of intent to fund all costs and valuation for the project plus a 20% fee, Council award tender number APLNG-WP1 to Probuild Civil (Qld) Pty Ltd at an estimated value of $3,974,932.00 (excluding GST) and that Council endorses Origin Energy LOI “Early Road works: Culvert”, Value $464,702.00 plus 20% fee That Council’s Director Infrastructure be delegated the authority to negotiate a formal agreement between APLNG, GLNG and Council to provide Project Management Services for energy sector construction and maintenance works on Council’s road network on an annual basis along similar lines to Council undertaking TDMR works. That the Director Infrastructure be delegated the authority to negotiate collectively with APLNG and GLNG for advance funding to Council to appoint engineering staff. In the formal agreement, irrespective of the amount of GLNG and APLNG works to be undertaken, APLNG and GLNG will guarantee funding to pay the salary packages for the nominate staff for a period of three years. CARRIED 8/0

Delegated Officer	Manager Construction & Maintenance

Cr. Flynn left the chambers at 3.40pm taking no further part in the debate or discussion.

Item Number: L.4	File Number: D12/24625
Subject Heading: Tenders for Roma Airport Services
Author and Officer’s Title: Barry Omundson, Director Infrastructure
*Executive Summary:* Tenders for the below contracts have closed and evaluation has been completed. 12/35 Roma Airport Management 12/36 Lease of Kiosk 12/37 Security Screening 12/38 Terminal Cleaning
Resolution No. GM.249.12 Moved Cr O'Neil Seconded Cr Denton That Council, in regards to Tender 12/37 (Package C), enter into the appropriate arrangements with Toll Remote logistics for the provision of Security Screening Services for the period 1 October 2012 to 30th September 2015 for a price of $ 1,389,972 plus GST, per annum. CARRIED 7/0

Delegated Officer	Director Infrastructure

Cr. Flynn entered the chambers at 3.43pm

Item Number: L.5	File Number: D12/25096
Subject Heading: De-amalgamation Submission
Author and Officer’s Title: Tony Klein, Director Community Services
*Executive Summary:* Correspondence has been received (20 August 2012) from the Queensland Boundaries Commissioner encouraging Council to make a submission to the Minister for Local Government in relation to proposals he may receive from proponents in the Maranoa wishing to de-amalgamate from Maranoa Regional Council. Submissions close 29 August 2012.
Discussion: Cr. Flynn advised that he felt Council should be clear on the fact that they do not support requests for de-amalgamation of the Maranoa Regional Council area.
Resolution No. GM.250.12 Moved Cr Newman Seconded Cr Schefe That Council: Advise the Minister for Local Government that Council supports the existing boundaries of the Maranoa Regional Council and; Develop a submission to the Minister for Local Government to support Council’s position on the matter and; Continue to assist proponents of de-amalgamation proposals through the provision of all reasonable information requests CARRIED 7/1
Cr. Flynn requested that his vote against the motion be recorded.

Delegated Officer	Director Community Services

Resolution No. GM.251.12

Moved Cr Chambers Seconded Cr Schefe

That Ms Julie Reitano commence in the role of Chief Executive Officer of Maranoa Regional Council as of 23 August 2012.

CARRIED 8/0

Delegated Officer

Chief Executive Officer

CLOSURE

There being no further business, the Mayor thanked Council for their attendance and declared the meeting closed at 3.49pm.

These Minutes are to be confirmed at the next General Meeting of Council to be held on 12 September 2012, at Roma Administration Centre.

...............………................. ..................................

Mayor Date

Attachment 1

MRC De-amalgamation Submission

1. The Maranoa Region

1.1 Background

Maranoa Regional Council (MRC) was formed in March 2008 following the amalgamation of the Shires of Bendemere, Booringa, Bungil and Warroo and Roma Town Council.

Figure 1.1. Maranoa Regional Council Area

Source: AECgroup

Following amalgamation the region has seen significant economic and social development and has also experienced three major flooding events. Despite these challenges, Council has made significant investments throughout the region in much needed infrastructure renewal and replacement. Council’s genuinely regional approach to service planning and delivery is best evidenced by the recent adoption of the Maranoa Community Plan 2020 – Pathways to Our Future.

The Maranoa Regional Council’s work is guided by its vision for the region and its mission statement.

Our Vision

Our Vision is to be a progressive and resourceful region which embraces supports and fosters cohesion in our diverse communities whilst maintaining a relaxed and safe rural lifestyle for our residents.

Our Mission

Our Mission is to provide responsible regional leadership whilst partnering with our communities and stakeholders in a decentralised environment that encourages sustainability and equity and enriches the opportunities and lifestyles of our residents.

The MRC area has a permanent resident population of approximately 13,422 (ABS 2012) but at any given time several hundred transient workers are also likely to be in the region. While Roma functions as the major service centre and business hub, the surrounding towns of Injune, Mitchell, Surat, Wallumbilla and Yuleba provide unique character and lifestyle options for residents and visitors.

1.2 Opportunities

The MRC area is home to some of Queensland’s best agricultural production areas and supplies approximately 13% of Queensland’s beef production and 11% of the State’s grain (Maranoa Regional Council 2012). The growth of the coal-seam-gas (CSG) industry is continuing to change the local economic landscape and is expected to be the primary driver of future economic growth. One of Council’s key roles is to manage the impacts of the CSG industry expansion so that benefits are retained within the region while potential downside risks are appropriately and effectively managed and mitigated.

1.3 Purpose of the Report

The last five years have been a turbulent time of major change for local government in Queensland including:

· 2007 – Forced Local Government amalgamations first announced by the Beattie Government;

· March 2008 - Local Government elections saw the number of Queensland Councils reduced from 157 to 73;

· 2012 - The LNP government went to the State Election promising to consider applications from former councils that wanted to revert to their old boundaries;

· 29 June 2012, the Queensland Boundaries Commissioner announced the assessment process for the viability of de-amalgamation; and

· 20 August 2012, correspondence was received by MRC from the Queensland Boundaries Commissioner encouraging Council to make a submission to the Minister for Local Government in relation to proposals he may receive from proponents in the Maranoa wishing to de-amalgamate from Maranoa Regional Council.

This report makes the case for the retention of the current MRC boundaries. Following a period of rapid change, during which the region has also faced three major flooding events, the release of the Maranoa Community Plan 2020 – Pathways to Our Future is an opportunity for the whole region to come together and work towards a common goal. The Maranoa Community Plan 2020 – Pathways to Our Future demonstrates how a strategic regional approach can be successful while recognising the unique characteristics and specific needs of the communities which make up the region.

2. The Need for Reform

In 2007 the Queensland Local Government Reform Commission recognised a need to address a series of critical structural issues facing local governments. This chapter introduces the key drivers which underpinned the need for reform in the MRC area.

2.1 Queensland Treasury Corporation Reviews

In late 2006 and early 2007 the Queensland Treasury Corporation (QTC) undertook Financial Sustainability Reviews of each of the former local governments in the MRC area. These assessments were critical in the decision making of the Local Government Reform Commission. The following table introduces the assessment (on a scale of Very strong – Distressed) and outlook (on a scale of Positive - Developing) given to each of the former local governments and highlights some of the key observations made. Definitions of the assessments and outlooks are available at Appendix A.

Table 2.1. Summary of QTC Financial Sustainability Reviews

Strengths	Downside Risks
Bendemere Shire Council (Moderate Neutral)
· Strong financial position evidenced by operating surpluses, strong liquidity and no debt	· Low level of own source revenues · Not recovering costs of services · Demographics and income levels restrict flexibility · Heavily dependent on beef and grain industries
Booringa (Very Weak Developing)
· Subsidies, donations and contributions forecast to increase and were Council’s major revenue source	· Ongoing net operating deficits · Without significant structural reform: o Limited capacity to meet short term commitments o No capacity to meet medium term commitments · Rates, fees & charges to increase 8.3% per annum · Ageing population requiring additional services
Bungil (Moderate Developing)
· Moderate and manageable debt burden · Improving financial performance · Potential for greater contract works	· Economy highly dependent on agriculture · Income levels below State and national averages · Maintenance backlogs between $4 to $5 million
Roma (Very Weak Negative)
· Relatively young population and low unemployment · Average income levels ($38,134) close to State average ($40,037). · Own source revenue primary source of revenue allowing greater revenue flexibility	· Significant assets in need of urgent upgrades · As a regional service centre, Council provides a number of services that benefit the wider regional community (non-Roma residents)
Warroo (Moderate Neutral)
· Achieved balanced/surplus operating result · Utility charges cover the cost of service provision · No borrowings and above average liquidity	· General rates per property are the seventh highest in the State · Low population growth, ageing demographics and lower taxable income per capita restrict fiscal flexibility · Own source revenues represent less than 24% of operating revenues.

Source: QTC 2007

Although each former council faced its own challenges, the underlying structural issues are common to each assessment:

· Demographics – most former council areas (in particular Bendemere and Booringa) were characterised by a relatively elderly and ageing population profile with forecast low population growth and in some cases population decline;

· Economics – many of the former councils were highly dependent on the beef and grains sectors of the economy and local median incomes were significantly lower than the state wide averages (all former council expect Roma Town); and

· Finances – several of the former councils were raising relatively low proportions of their total revenues from their own sources and were reliant on sales, grants and subsidies (all former council expect Roma Town). There was very limited capacity to increase rates, fees and charges due to generally low incomes and limited population growth, which meant revenues were unlikely to increase significantly as a result of new rate payers moving to the region.

The QTC’s review of the financial sustainability of the former councils found that, although affecting each LGA differently, these three drivers combined to threaten long-term sustainability. The following table summarises key characteristics of the five former local government areas at the time of the amalgamation.

Table 2.2. Characteristics of Former Local Government Areas

Measure	Period	Bendemere	Booringa	Bungil	Roma	Warroo
Area (Square kilometres)	N/a	3,298	27,827	13,338	78	13,659
Population	2008	1,006	1,798	2,319	7,042	1,064
Population Change	2003-2008	0.3%	-3.4%	13.0%	4.3%	-1.5%
Population Change	2008-2013	6.1%	-3.5%	7.2%	4.4%	0.6%
Average Age	2006	41	40	38	32	38
% Population Aged 65 and Over	2011	19.6%	15.7%	11.5%	10.8%	10.8%
Ratepayers (Residential)	June 2007	267	521	196	2,305	206
Ratepayers (Commercial/Industrial)	June 2007	38	54	69	334	0
Ratepayers (Rural)	June 2007	421	423	1,014	271	345
Total Ratepayers	June 2007	726	998	1,279	2,910	551
Average General Rates per Ratepayer^(a) ($2007)	June 2007	$774	$1,793	$1,862	$1,137	$2,657
Average Residential Rates & Charges ($2007)	June 2007	$480	$919	$669	$1,505	$1,253
Council Workforce (Employees)	2008	64	97	77	116	64
Council Employees per Ratepayer	2007/08	11.3	10.3	16.6	25.1	8.6
% GRP from Agriculture	2007/08	23.5%	25.3%	12.8%	1.5%	16.4%
Median Individual Income ($2006/weekly)	2006	$377	$380	$546	$545	$413
QTC Rating	2007	Moderate	Very Weak	Moderate	Very Weak	Moderate
QTC Financial Sustainability Review Outlook^(b)	2007	Neutral	Developing	Developing	Negative	Neutral

Note: (a) Includes all ratepayer types (residential, rural, commercial/industrial and other), (b) QTC definition of ‘Developing’ - Situation exists that could have a direct impact (positive or negative) on the financial sustainability of a local government but impact is uncertain (See Appendix A).

Sources: Australian Bureau of Statistics, Department of Local Government and Planning, Queensland Treasury Corporation and AECgroup

The data reinforces the findings of the QTC review including:

· Two former council areas (Booringa and Warroo) with negative population growth between 2003 and 2008 (Queensland average over the same period 12.1%);

· Forecast continued population decline in Booringa and small increase in Warroo despite expansion of CSG in other former council areas leading to forecast significant population increases;

· Former council areas of Bendemere (19.6%) and Booringa (15.7%) both had a significantly higher proportion of the population aged 65 years and older compared to the State average (13.1%);

· High dependency on the agricultural sector and low income levels relative to state averages limiting ability to pay;

· Some former councils (in particular Booringa, Bungil and Warroo) were charging ratepayers significantly more through their rates; and

· Low rate base with as few as 8.6 residential and rural general ratepayers per council employee in former Warroo council area.

In QTC’s opinion, over the medium to long-term it was almost certain councils would be forced to reduce expenditure on necessary infrastructure and service delivery in order to achieve a balanced operating position. Councils were constrained by low or negative population growth, the ageing of the existing population and the limiting effect of this demographic profile on each former council’s ability to raise sufficient revenue to continue to provide appropriate services into the future. In short, QTC appeared to have significant doubts about the medium to long-term survival of these councils and their ability to provide services at the levels expected by all Queenslanders. The local government reform process sought to address these fundamental structural issues.

3. Demographic Profile

The negative impact of the demographic profiles of the former council areas on financial sustainability were one of QTC’s main concerns. The following sections describe the demographic profile of the MRC area and compare this with that of the former council areas.

3.1 Population Growth

Population projections for the MRC area indicate sustained population growth, centred on the development of the CSG sector. The following figure shows the historic and forecast population for the MRC and the population contribution from each of the former local governments. A population breakdown by each former council area is available at Appendix B.

Figure 3.1. Maranoa Regional Council Population Forecast by Former Council Area

Source: ABS 2012

It is estimated by 2031 the resident population of the MRC area will be approximately 17,393, an increase of 4,783 from 2001, equivalent to an average annual growth rate of 1.1%. The opportunity to access economies of scale, efficiency savings in service delivery and to achieve a critical mass of residents to service is far greater than under any of the former local government areas, three of which (Bendemere, Booringa and Warroo) would still be servicing populations of less than 2,000 residents by 2031.

The distribution of the forecast population growth is uneven across the MRC region. The following table shows the five year population change forecasts for each of the former council area and for the MRC area as a whole between 2006 and 2031.

Table 3.1. Five Year Percentage Population Change 2006-2031

Area	2006-2011	2011-2016	2016-2021	2021-2026	2026-2031
Bendemere	0.1%	6.6%	7.1%	6.6%	6.3%
Booringa	-4.0%	0.3%	0.2%	0.4%	0.5%
Bungil	13.7%	4.0%	4.5%	4.6%	4.8%
Roma	2.9%	8.5%	12.3%	7.1%	7.1%
Warroo	-2.7%	2.3%	6.5%	7.3%	7.9%
Maranoa Regional Council	3.0%	6.0%	8.6%	5.9%	6.0%
Queensland	9.4%	10.4%	9.7%	9.0%	8.2%

Source: ABS 2012

At a regional level, MRC is forecast to enjoy strong and prolonged population growth but this is in contrast to the forecast for some of the former local government areas (in particular Booringa). If these councils were still operating alone the low rates of population growth would almost certainly exacerbate the demographic risk factors identified by QTC in 2007.

3.2 Population Structure

Another of QTC’s major concerns was the ability of the former councils to raise funds for essential new infrastructure in particular when a large proportion of each council’s rates base was aged 65 years and older. The following table illustrates the level of the population aged 65 and over in each of the former local government areas, in the MRC and in Queensland and how this is expected to develop over the period to 2031.

Table 3.2. Percentage of the Resident Population Aged 65 Years and Older

Area	2011	2016	2021	2026	2031
Bendemere	19.6%	19.5%	17.6%	18.5%	18.5%
Booringa	15.7%	16.8%	17.6%	18.0%	18.1%
Bungil	11.5%	11.4%	10.9%	11.9%	12.5%
Roma	10.8%	11.0%	11.5%	12.2%	12.9%
Warroo	10.8%	10.7%	10.9%	10.3%	8.8%
Maranoa Regional Council	12.3%	12.5%	12.5%	13.1%	13.5%
Queensland	13.1%	15.0%	16.5%	18.1%	19.6%

Source: ABS 2012

The broader MRC area is forecast to have a lower proportion of its population aged 65 years and older than the State average between 2011 and 2031. This means it is expected to have greater ability to control its revenue streams through rates, fees and charges than local governments with higher levels of older residents. Many people in these age ranges have fixed incomes and are unlikely to be unable to sustain above inflation increases in rates, fees and charges leaving a very small rate base from which to recover the costs of new investment. Further, an ageing population is also likely to place additional service and infrastructure demands on local government. Any move to de-amalgamate (for Bendemere or Booringa in particular) would have significant impacts on their age structure and ability to control their revenue streams.

3.3 Population Size and Efficicency Gains

The following figure illustrates one of the implications of servicing a larger population by showing the relationship between the population a local government services and the number of council employees. The figure shows the relationship for the former local governments as at 2007, MRC in 2009 and for other selected Queensland local governments with similar population base.

Figure 3.2. Comparison of Staff to Population Ratio for Selected LGAs

Source: Department of Local Government and Planning

In general, councils servicing larger populations are able to do so with fewer staff per resident and therefore at a lower costs to residents. While the staffing requirement varies between councils, reflecting the characteristics of each LGA, it is apparent as the size of the population a council services increases, the relative size of the workforce decreases, thus demonstrating economies of scale and an ability to provide enhanced services.

3.4 Recommendations

It is recommended the Maranoa Regional Council retain its existing boundaries in order to:

· Maintain the improved demographic structure of the Council as measured through population growth and an improved age structure which provides a far more sustainable and less risk exposed rates base for Council; and

· Secure the long-term savings and efficiency gains associated with larger organisations which ultimately translate into improved services and infrastructure and lower costs to the community throughout the region.

4. Financial Sustainability

A financially sustainable local government is able to provide an appropriate level of services and to make necessary investments to maintain and develop infrastructure to meet community needs. Uncertainty about the long-term financial sustainability of the former local governments was one of QTC’s primary drivers for reform. The following chapter identifies some of the changes since the creation of the MRC which have sought to address this issue.

4.1 Rates Base

A key risk for the former local governments was their relatively small rates base, which meant the costs of investment in new services or infrastructure had to be recovered from a small number of rate payers. The reliance of some former LGAs on the agricultural sector meant a downturn in key markets had the potential to significantly dimish councils’ revenues with very limited capacity to raise funds elsewhere. The following table compares the former councils’ rates bases with that of the MRC.

Table 4.1. Rates Base of Former Councils (June 2007) and Maranoa Regional Council (June 2011)

Measure	Bendemere	Booringa	Bungil	Roma	Warroo	MRC
Ratepayers (Residential)	267	521	196	2,305	206	4,019
Ratepayers (Commercial/Industrial)	38	54	69	334	0	532
Ratepayers (Rural)	421	423	1,014	271	345	1,707
Total Ratepayers	726	998	1,279	2,910	551	6,315^(a)

Notes: (a) Includes 57 ‘Other’ rate payers

Source: Department of Local Government and Planning

MRC now has a significantly larger and broader rates base from which to secure it revenues. This not only allows it to consider undertaking regionally significant investments, which would have been outside the scope of the former councils, but also mitigates the risks associated with relying on a few groups of rate payers who might simultaneously suffer economic hardship.

4.2 Capital Investment

As a larger organisation with a significantly increased rates base, Council has been able to undertake, or is committed to undertaking, a broad range of capital investments with the aim of improving service delivery across the region. Concern over some former local governments’ ability to make and then fund these investments was another driver of local government reform. The following figure summarises Council’s planned capital program and the level of expenditure per capita.

Figure 4.1. Maranoa Regional Council Capital Program and Expenditure per Capita

Source: Maranoa Regional Council

The former local governments, faced with ageing populations and limited or negative population growth, would eventually have had to decide between either borrowing to pay for capital investments or having to accept a reduced level of service. Borrowing to finance assets which do not have any revenue raising capacity such as roads introduces a series of generational equity issues while few communities are willing to accept any deterioration in service levels. Restructuring local government has significantly changed the demographic structure of the MRC and its rates base meaning it is better position to finance the required investments and can adopt a regional focus.

4.2.1 Distribution of Investments

The following figure illustrates the geographic distribution of capital investments since 2008.

Figure 4.2. MRC Capital Investments by Area

Source: Maranoa Regional Council 2012

The figure shows the majority of capital expenditure has taken place and is planned for the former Roma Town Council area. While much of this investment is in infrastructure which is used by residents from all over the region it also hides the relationship between capital expenditure and the size of the resident population. The following figure shows the average level of capital expenditure between 2009/10 and 2012/13 on a per capita basis.

Figure 4.3. Average Capital Expenditure per Capita 2009/10 - 2012/13

Source: Maranoa Regional Council 2012

The figure clearly demonstrates MRC’s commitment to investment throughout the region. Over the four years studied per capital investment in the former Warroo Shire was 48.6% higher than average capital investment per capita in the former Roma Town Council area and 172.8% higher than in the former Bungil Shire. These figures will fluctuate over time but are indicative of the benefits of a strategic regional approach, which allows Council to target the available resources to areas of greatest need.

Many of these much needed investments could not have been made under the former local governments. Further, several of these investments are in regional assets, the benefits of which flow throughout the region for example the upgrade of Roma Airport will have benefits to residents and businesses throughout the broader region.MRC has been able to secure funding of $2.5 million from Santos and $1 million from Origin to support the Airport upgrade project. The ability to attract corporate support for this type of investment has meant funding is now available or projects across the region much earlier than would otherwise have been the case.

Pre-amalgamation, all monies saved by accessing corporate support would have been retained and used within Roma Town. However, under MRC these funds are available for the projects with the greatest community benefit throughout the region. The regional approach also mitigates the risk of residents of the former Roma Town Council area being asked to fund the airport upgrade which is then used by residents of the former surrounding shires without making any contribution to the costs.

4.3 Costs of De-amalgamation

4.3.1 The De-amalgamation Transaction Cost

In 2009 QTC undertook a review of the cost of the local government amalgamations. A total of 24 local governments submitted claims of up to $21.5 million, including MRC which submitted an original claim of $2.7 million. While de-amalgamation would involve some different activities the level of service disruption the draw on staff time is likely to be similar and the figures are indicative of the magnitude of costs involved in any major restructuring exercise.

Table 4.2. Estimated Indicative Cost of De-amalgamation

Cost Item	Rationale	Estimated Cost
The de-amalgamation poll	Poll of the effected community	$100,000
Additional staff/contract resources	1 x FTE @ $80,000 plus expenses	$100,000
Additional cost of staff up to de-amalgamation who were employed prior to de-amalgamation and who are required by either the remaining local government or the de-amalgamating local government to maintain services post-amalgamation	5% of available employee time 2010/11 Employee Expenses $22.8 million	$1,100,000
Capital costs for establishing systems for the de-amalgamating local government	Largest single cost item in QTC’s analysis, accounting for 43.8% of assessed claims	$250,000
The cost of moving staff, where necessary, from existing premises to new premises if resulting from the de-amalgamation for both the de-amalgamating local government and the remaining local government	Maranoa Regional Council has implemented a dispersed service delivery model and this would require services undertaken at a given location to be brought back in house There would be no guarantee the de-amalgamating Council could retain staff based in their offices/depots	$150,000
The costs of establishing any additional offices and depots if these costs are incurred by the local government up to the date of de-amalgamation	N/a	N/a
The cost of negotiating any service level agreements with the de-amalgamating local government if the costs relate to services provided by the remaining local government upon de-amalgamation.	Costs include staff time to negotiate as well as legal advice where necessary and ongoing contract management	$50,000
Any other transition costs associated with the de-amalgamation incurred by the existing local government	10% Contingency	$175,000
Total		$1,925,000

Source: AECgroup

While the amalgamation process incurred significant costs it involved the consolidation of assets rather than their distribution. Dividing assets and liabilities between parties is likely to be far more time consuming (and more costly than amalgamation).

Other risks associated with any de-amalgamation include the likelihood some staff would chose to remain within the new larger organisation which offers increased opportunities for specialisation, greater flexibility of working practices and locations, the opportunity to work on larger projects and increased promotion opportunities. Some staff from former councils may choose to either remain with the new Council or to accept a redundancy payment.

4.3.2 Paying for De-amalgation

The direct costs of de-amalgamation would fall upon the body seeking to de-amalgamate. These could be financed in a variety of ways but would ultimately need to be paid for by the ratepayers of the de-amalgamating area. The scale of the impact on the ratepayers of the de-amalgamating council would be determined by which of the former local governments was involved but most of the largest costs of the de-amalgamation process would be incurred irrespective of the Council’s size.

The following table sets out the average amount each ratepayer (all rate categories) would have to pay in order to recover the cost of the de-amalgamation process. The figures show the contribution required of each ratepayer for the cost to be recovered over either a one year or five year period and exclude financing costs. For comparison, in 2010/11 the average charge per ratepayer in the Maranoa Regional Council area was $1,781 per ratepayer.

Table 4.3. Impact of De-amalgamation Costs on All Rate Payers

Area	Former LGA	Ratepayers^(a)	Total to be Recovered	Repaid Over 1 Year	Repaid Over 5 Years
Yuleba/Wallumbilla/Jackson	Bendemere	740	$1.925 million	$2,601	$520
Mitchell	Booringa	965	$1.925 million	$1,995	$399
Injune	Bungil	1,388	$1.925 million	$1,387	$277
Roma	Roma	3,031	$1.925 million	$635	$127
Surat	Warroo	555	$1.925 million	$3,468	$694

Notes: (a) Assumes number of rates payers has increased in line with population since 2007

Source: AECgroup

The data illustrates the magnitude of the costs involved in de-amalgamation and the impact on ratepayers, especially where these costs have to be recovered from a small rates base. The very large increases in rates, which would required under either repayment scenario, are unrealistic given earlier comments around smaller council’s lack of flexibility in increasing revenues.

4.4 Potential Impact of De-amalgamation on MRC

In the short-term MRC would have to incur significant costs re-organising its corporate structure and office and depot arrangements to reflect the de-amalgamation. These are difficult to assess because they would mainly relate to staff and time costs and can easily become substantial with knock on effects on service delivery. The time incurred by senior staff negotiating any de-amalgamation settlement is likely to be significant and there would be a risk to services during this period. There is also likely to be a major unsettling impact on all staff while the implications of the move are worked through.

Over the longer-term, the loss of even one of the smaller former councils would reduce the effectiveness and sustainability of the MRC. As noted, the local government reform process sought to address fundamental structural issues and losing one or more former local governments would undoubtedly reduce the effectiveness of the reform process and may even trigger some of the same issues which threatened council’s sustainability pre-amalgamation. MRC’s ability to act as one voice in promoting the region and its interests would be diminished as would any return from investment in marketing as the messages would be diluted.

4.5 Recommendations

It is recommended the MRC retain its existing boundaries in order to:

· Address the fundamental financial sustainability issues necessitated through the local government reform process and avoid creating a series of smaller local governments which recreate the conditions which led to the need for reform process in the first place;

· Ensure the Maranoa region is able to make, and benefit from, appropriate investments in services and infrastructure which provide residents with an appropriate level of services across the entire region; and

· Avoid the unnecessary costs and risk to service disruption and long-term sustainability associated with any potential de-amalgamation.

5. Regional Economy

Another of QTC’s concerns was the narrow focus of the economies of several of the former councils which were often heavily dependent on the agricultural sector. While it is recognised all industries pass through various stages in the economic cycle QTC recognised the particular volatility in the agricultural sector and the subsequent exposure of each council’s finances. The following sections review the structure of the regional economy is 2010/11 and compare this to the structure in 2006/07 before the local government reforms.

5.1 Existing Economic Environment

The following figure shows the relative contributions of the largest industry sectors to the Maranoa regional economy in 2010/11. A breakdown by each former council area is available at Appendix C.

Figure 5.1. Relative Contributions to the Maranoa Regional Economy 2010/11

Source: AECgroup

Mining (includes oil and gas extraction) was by far the largest industry sector by contribution, accounting for 76.6% of the regional economy. Agriculture, which traditionally underpinned the region’s economy, was the second largest sector and accounted for 6.2% of economic output. The following figure shows the same figure for the combined economies of the former local governments in 2006/07. A breakdown by each former council area is available at Appendix B.

Figure 5.2. Relative Contributions to the Maranoa Regional Economy 2006/07

Source: AECgroup

Whilst, it appears there was greater diversification within the economy in 2006/07 than in 2010/11, the rapid and large expansion of the CSG industry means it now dominates the regional economy. It is important to note the non-mining sector has also grown over the same period but, the scale of expansion of the CSG sector is such that the contributions made by these industries now accounts for a much smaller proportion of the regional economy.

Whilst the dominance of CSG and related activity may appear to weaken economic diversity, and could be seen as a threat to revenues, it is a very rich industry and has lifted the ability of all sectors to pay. Whilst a large proportion of the economic activity flows out of the region, the presence of the sector and its flow on impacts increases overall economic output throughout the region.

The lack of diversity in the economies of the former local government areas was noted as a risk in the financial sustainability assessments and this remains the case now that CSG rather than agriculture dominates. However, the QTC concerns were based on volatility in the agricultural sector caused by exposure to major price fluctuations and the outlook for beef and grain production at that time. While reliance on CSG may not be ideal, the fundamentals of the industry are much less volatile than for the agricultural sector due to the presence of long term supply and agreed price contracts.

The impact of CSG can been seen throughout the regional economy but there are significant variations in how this has impacted the former council areas with expansion predominantly in the former Bendemere and Bungil Shires and Roma Town areas. Under a regional structure these areas have been able to enjoy the benefits of the expansion of the CSG sector and its impacts on issues like attracting external funding for the upgrade of the Roma Airport and the implications for investment in other areas of the region.

It is also likely the larger Council is better placed to manage the impacts of the CSG industry than several smaller local governments. Maranoa Regional Council has been able to recruit specialist staff to manage social impacts of CSG and on local infrastructure. Larger organisations are able to accommodate greater specialisation amongst staff through economies of scale. Given the high potential up and downside risks associated with CSG extraction this is a major benefit of the larger Council.

5.2 Potential Impacts of De-amalgamation

The scale of the resources sector expansion was not foreseen at the time of the Financial Sustainability Reviews in 2007. However, many of the underlying downside risks which were raised at that time remain pertinent today, in particular in relation to the demographic profiles of some of the former local governments. Structural reform was the only viable means of addressing these issues and it is almost certain de-amalgamating Councils would face many of the same problems were they to de-amalgamate.

5.3 Recommendations

It is recommended the current MRC boundaries are retained in order to:

· Retain Council’s increased capacity to manage and extract maximum community benefit from the expansion of the CSG sector throughout the region, including in those former council areas which have limited exposure to the sector; and

· Ensure a truly regional approach to economic development, which promotes a common message about the region and seeks to retain economic opportunity across all sectors.

6. Regional Approach

The creation of the MRC also created opportunities to develop a truly regional approach to planning, infrastructure and service delivery. Attempts had been made developing a regional perspective previously, recognising the potential of such an approach to deliver improved community outcomes but these attempts had largely failed to get over the inherent self interest of each local government. Now acting as one body, Council is better positioned to act for the Maranoa region as a whole and this is demonstrated through the examples set out in the following chapter.

6.1 Service Delivery

Since the formation of the MRC there have been many changes to Council’s operating structure. While Council could have chosen to provide services from a series of local bases, effectively continuing the pre-amalgamation structure, this would have risked creating internal service boundaries. Instead, Council established a network of specialist service delivery teams throughout the region evidenced by the distribution of staff between key locations.

Table 6.1. Distribution of Council Employees 2008 and 2012

Staff	Bungil*	Mitchell	Roma	Surat	Yuleba	Total
Employees 2008 (pre-amalgamation)	77	97	116	64	64	418
Employees 2012	11	96	191	67	52	414

Note: In March 2008 Bungil staff included staff employed and working at Injune and staff travelling from Roma to work within the boundaries of Bungil Shire Council. Staff employed and travelling from Roma are now counted in the Roma total.

Source: Maranoa Regional Council

This approach offers both operating efficiencies through economies of scale and greater integration across the community while maintaining Council’s presence throughout the region. It also demonstrated Council’s commitment to maintain significant workforces in those communities. The reorganisation of services has also provided greater flexibility for staff as well as increased personal development opportunities. The greater specialisation and economies of scale achieved by the larger Council means MRC is better positioned to manage regional issues such as the impacts of the CSG sector (retaining benefits and managing potential downside risks).

6.2 Promotion of the Maranoa Region

Promoting the one region is almost certain to be more effective than trying to establish recognition and understanding of five smaller regions. The Maranoa Regional Economic Development Strategy provides a planning framework to support the sustainable growth of the regional economy. While recognising the vital contribution of the CSG sector it seeks to ensure agriculture, the traditional driving force of the regional economy, and other well established industries remain competitive while also establishing the region as an easy place to do business.

While previous attempts at regional collaboration had been tried through the Maranoa & District Regional Organisation of Councils (MADROC) and other similar bodies these proved to have limited tangible impact. Maranoa can now present one clear message for economic development, business attraction, tourism with much greater weight than was ever possible previously.

6.3 Maranoa Community Plan 2020

One of the benefits of the creation of the MRC has been the opportunity to bring together a community of interest, which despite some differences is very closely connected. Roma’s role as the regional service centre ensures almost every resident has a connection to the town. The creation of a regional planning framework allows Councils to adopt a more strategic approach to issues such as community planning, identifying long term goals for the region.

The Maranoa Community Plan 2020 – Pathways to our Future has recently been adopted by Council following an extensive consultation process throughout the LGA. The Maranoa Community Plan 2020 – Pathways to our Future is underpinned by six local plans, developed in partnership with the local community and which identifies the needs, long term visions, aspirations and priorities of each community.

The Maranoa Community Plan 2020 – Pathways to our Future forms an over-arching guidance tool for the Local Plans. The six Local Plans were prepared for the towns that make up the region:

· Injune, Bymount and Eumamurrin Plan;

· Mitchell, Amby and Mungallala Plan;

· Roma, Hodgson and Muckadilla Plan;

· Surat, Begonia, Teelba and Wycombe Plan;

· Wallumbilla Plan; and

· Yuleba, Jackson and Noonga Plan.

The Local Plans are shorter term plans, with more specific detail as to how each area will realise the identified goals of the broader Maranoa Community Plan 2020 – Pathways to our Future. The Local Plans reflect the differences between each town while ensuring that all of the efforts are working towards the common goals in the Maranoa Community Plan 2020 – Pathways to our Future. It is highly unlikely this regional approach would have been attempted let alone delivered under the previous local government structure.

6.4 Potential Impacts of De-amalgamation

Any de-amalgamation would break up the regional community of interest. It would also leave the residents of the breakaway area outside of the regional planning process and unable to influence the type of region the community is trying to create or to play their part in delivering it. The break-away council would have to fund a new community planning process, which would need to be much more locally orientated and would be unlikely to align with the broader regional framework.

Another potential issue with de-amalgamation would be the perception of free loading by residents of the breakaway shire. Residents of the amalgamated Councils may start to question the equity of their paying for investment in community infrastructure which is then used by residents of the breakaway councils.

Part of the rationale for the amalgamation was the opportunity to improve engagement with state and federal government departments and this could become an issue again for any breakaway council which may lack the capacity to engage appropriately potentially missing out funding sources.

6.5 Recommendations

It is recommended the current MRC boundaries are retained in order to:

· Build upon the community spirit shown throughout the region in the response to the 2010, 2011 and 2012 floods; and

· Continue to implement the Maranoa Community and six Local Plans as the most effective means of delivering the types of communities residents have identified as the future of the region.

7. Conclusions

The creation of the Maranoa Regional Council has addressed the fundamental demographic issues which threatened to overcome the former councils by creating a council area with a growing and relatively young population. It is recommended the Maranoa Regional Council retain its existing boundaries in order to:

· Maintain the improved demographic structure of the Council as measured through population growth and an improved age structure which provides a far more sustainable and less risk exposed rates base for Council; and

· Secure the long-term savings and efficiency gains associated with larger organisations which ultimately translate into improved services and infrastructure and lower costs to the community throughout the region.

The creation of the Maranoa Regional Council has addressed the fundamental financial sustainability issues which threatened to overcome the former councils by creating a council area with a broader and more diverse rates base which supports appropriate Council investment in infrastructure and services. It is recommended the Maranoa Regional Council retain its existing boundaries in order to:

· Address the fundamental financial sustainability issues which necessitated the local government reform process and avoid creating a series of smaller local governments which recreate the conditions which led to the need for reform process in the first place;

· Ensure the Maranoa region is able to make, and benefit from, appropriate investments in services and infrastructure which provide residents with an appropriate level of services across the entire region; and

· Avoid the unnecessary costs and risk to service disruption and long-term sustainability associated with any potential de-amalgamation.

Since the creation of the Maranoa Regional Council the regional economy has undergone significant changes led by the CSG industry. The reliance on the agriculture sector has been reduced and economic and employment benefits have been distributed throughout the region. It is recommended the Maranoa Regional Council retain its existing boundaries in order to:

· Retain Council’s increased capacity to manage and extract maximum community benefit from the expansion of the CSG sector throughout the region, including in those former council areas which have limited exposure to the sector; and

· Ensure a truly regional approach to economic development, which promotes a common message about the region and seeks to retain economic opportunity across all sectors.

The MRC has been able to achieve community outcomes which could not have been delivered under the previous structure. The creation of the MRC means the entire region is able to share the benefits of economic expansion as evidenced by the regional distribution of significant capital expenditure on community assets. A region-wide community planning structure has been adopted and all efforts to promote the region have shared message and objective. It is recommended the current MRC boundaries are retained in order to:

· Build upon the community spirit shown throughout the region in the response to the 2010, 2011 and 2012 floods; and

· Continue to implement the Maranoa Community and six Local Plans as the most effective means of delivering the types of communities residents have identified as the future of the region.

References

Australian Bureau of Statistics (2012). Regional Population Growth, Australia. Estimated Resident Population, Statistical Local Areas, Queensland, ABS, Canberra

Department of Local Government, Sport and Recreation (2007). Queensland Local Government Comparative Information 2006/07. Brisbane

Department of Local Government and Planning (2011). Queensland Local Government Comparative Information 2009/10. Brisbane

Department of Local Government and Planning (2012). Queensland Local Government Comparative Information 2010/11. Brisbane

Maranoa Regional Council (2012). Maranoa Annual Report 2010/11. Available from www.maranoa.qld.gov.au. Last accessed 26th August 2012.

Maranoa Regional Council (2012). Maranoa Regional Council Rates Information 2011/12. Available from www.maranoa.qld.gov.au. Last accessed 26th August 2012.

Maranoa Regional Council (2012). Maranoa Community Plan 2020. Available from www.maranoa.qld.gov.au. Last accessed 26th August 2012.

Queensland Local Government Reform Commission (2007). Report of the Local Government Reform Commission Volume 1. Brisbane

Queensland Local Government Reform Commission (2007). Report of the Local Government Reform Commission Volume 2. Brisbane

Queensland Government (2012), Projected population (medium series), by statistical local area (SLA), Queensland, 30 June, 2011 to 2031, Office of Economic and Statistical Research, Brisbane

Queensland Government (2012), Projected population (medium series) by statistical local area (SLA) and five-year age group and sex, Queensland, 30 June, 2006 to 2031, Office of Economic and Statistical Research, Brisbane

Queensland Treasury Corporation (2007). Financial Sustainability Review Prepared for Bendemere Shire Council. Brisbane.

Queensland Treasury Corporation (2007). Financial Sustainability Review Prepared for Booringa Shire Council. Brisbane.

Queensland Treasury Corporation (2007). Financial Sustainability Review Prepared for Bungil Shire Council. Brisbane.

Queensland Treasury Corporation (2006). Financial Sustainability Review Prepared for Roma Town Council. Brisbane.

Queensland Treasury Corporation (2007). Financial Sustainability Review Prepared for Warroo Shire Council. Brisbane.

Queensland Treasury Corporation (2009). Review of Local Government Amalgamation Costs Funding Submissions – Final Summary Report. Brisbane.

1.

Attachment 1

MOU - DDSWQML/MRC

1. PREAMBLE:

Australians generally have good health outcomes, with high life expectancy and a health care system that is considered world class. However, there are some aspects of the health care system that are fragmented and, as a result, patients can experience uncoordinated and unintegrated care, including within and across the primary health care sector, acute sector, aged care and specialist care. This fragmentation and poor coordination can lead to some people missing out on services that would deliver improved health outcomes, or result in patients receiving their treatment in inappropriate settings.

Medicare Locals are expected to engage with a wide range of health professionals and organisations; identify community primary health care needs; and work to fill the gaps in primary health care in their area.

The establishment of Medicare Locals is part of the broader Commonwealth plan to ensure a greater focus on primary health care, including:

• Fast-tracking the after hours GP care reform to allow patients to receive face-to-face GP services outside normal operational hours;

• driving telehealth services via Medicare Locals enabling Australians to receive health services at home;

• implementing new program arrangements through a single funding agreement, giving Medicare Locals flexibility to address areas of need in their local communities; and

• providing Medicare Locals with the potential over time to manage more flexible funding to target services to meet gaps in service provision in order to meet their local community’s specific needs.

2. THE AGREEMENT:

2.1 The parties agree to explore an enhanced relationship based on an equal partnership of mutual respect and understanding, in order to improve primary health care delivery in the region, with a view to achieving quality patient outcomes in the most equitable, efficient and cost-effective way.

2.2 The parties agree to establish and support a joint process to achieve mutually agreed guiding principles. The objectives listed at point 3 will be reviewed and evaluated at yearly intervals.

2.3 The relationship is two-way, seeking to make the most effective use of resources available to the Maranoa Regional Council and the Medicare Local. Early consultation and the development of new strategies and mutual involvement in reviewing existing operations will be actively pursued.

2.4 The parties agree to pursue a range of integrated activities where appropriate to improve health outcomes in the community.

2.5 Maranoa Regional Council and the Medicare Local accept shared responsibility for negotiating and developing communication processes that enhance primary health care delivery in the region. These processes may involve communication with other relevant organisations where it is deemed appropriate.

2.6 This Memorandum of Understanding is not legally binding on either or both parties.

3. OBJECTIVES:

3.1 Ensure primary health care services and health infrastructure is delivered with equity;

3.2 Work collectively to systematically address the social determinants that impact on achieving health equality for the community ;

3.3 Build on the evidence base and support what works for each community;

3.4 Support and develop health services in regional, rural and remote areas in order to achieve lasting improvements in community health and wellbeing;

3.5 Achieve improved access to services;

3.6 Respect and promote the rights of all people, by ensuring that primary health care services are available, appropriate, accessible, affordable, and of good quality;

3.7 Measure, monitor and report our joint efforts, in accordance with benchmarks and targets, to ensure that all parties are progressively realising their shared ambitions.

4. ACTIVITIES:

The Maranoa Regional Council and the Medicare Local (DDSWQML) agree to work on the following collaborative activities which will support the achievement of specific Maranoa Community Plan 2020 (MCP) actions:

4.1 Delivery of innovative health education programs which focus on healthy lifestyles and nutrition including programs for children and young people (MCP action 2.1.1).

· DDSWQML will fund a full-time Regional Coordinator position in the Maranoa region to act in a liaison role to facilitate collaboration between the Medicare Local, the Regional Council and local stakeholders to enhance the delivery of appropriate and equitable primary health care services in the Maranoa region.

· DDSWQML will continue to fund positions in the Maranoa region through Medicare Local funded programs eg: Closing the Gap, Healthy Lifestyles, Rural Primary Health Services. Where appropriate, the DDSWQML will support the location of these roles within local organisations including the regional council.

· DDSWQML reserves the right to determine the ongoing viability and sustainability of these funded positions, and the right to withdraw funded roles should funding circumstances change. The DDSWQML will consult with the Maranoa Regional Council should changes to funded roles in the Maranoa region become necessary.

· DDSWQML will support and collaborate with existing health care service networks and interagency meetings, and where identified as appropriate, support the establishment of additional networks.

· DDSWQML will support and fund a collaborative and consultative network, call a “Chapter” of Primary Health Care Stakeholders, with a local chair, to further enhance and improve the level of cooperation and collaboration between health sector stakeholders in the Maranoa region.

4.2 Increase promotion of available health and wellbeing services, emphasising associated benefits (MCP action 2.1.6).

· DDSWQML will collaborate with the Maranoa Regional Council on the planning, promotion and delivery of health and wellbeing promotional events in the Maranoa region.

· DDSWQML will utilise its network capacities and electronic media to advertise and promote Maranoa regional health and wellbeing services and events across the whole DDSWQML region.

4.3 Map and monitor existing health services across the Maranoa and develop a coordinated approach to regional healthcare service delivery to identify service gaps and unnecessary duplication (MCP action 2.1.7)

· DDSWQML has established, through a consultation process with key population health planning stakeholders in the region, a Research, Population Health and Epidemiology Sub-Committee, developed a Population Health Service Planning Framework, and established strategic and data sharing relationships with QHealth (South West Hospital & Health Service) and other key stakeholders in the region to facilitate joint service planning.

· DDSWQML will host, manage and update regularly an online regional population health database to hold regional and community population health data and service directory data, in partnership with the Maranoa Regional Council, General Practice Queensland (the iHealth Care+ Directory) and the National Health Services Directory.

· DDSWQML will complete regular whole-of-region health needs assessments and undertake comprehensive data collections, collations and desk top analyses, compile the information collected and develop health status reports and current health profiles for the whole-of-region, for the Maranoa Regional Council and for selected communities or towns in the Maranoa region.

· DDSWQML will undertake stakeholder and community engagement activities (covering the full IAP2 Public Participation Spectrum) to identify health priorities and seek input from persons representing the broad interests of the Maranoa community, including disadvantaged and marginalised groups.

· DDSWQML will use its Population Health Service Planning Framework to list and prioritise the primary health care needs and identify service gaps, including transport service gaps, for the whole of region, for the Maranoa Regional Council and for selected communities or towns in the Maranoa region, develop action plans and make recommendations for funding for implementation by key service providers and other partners at the regional level.

4.4 Increase the delivery of mental health services and programs within the region (MCP action 2.1.11).

· DDSWQML will provide ongoing mental health services in the Maranoa region in response to identified need and were funding permits.

· DDSWQML will respond to identified emerging needs by advocating fund holders to provide additional services in the Maranoa region.

· DDSWQML will ensure that existing services in the Maranoa region are delivered to their capacity through promotion and advertising within regional communities, in partnership with local and regional initiatives and organisations.

· DDSWQML will utilise the DDSWQML network capacities and electronic media to increase the uptake of mental health services and wellbeing programs in the Maranoa region.

· DDSWQML will partner and collaborate with existing mental health services to support and provide continuity of mental health care throughout the Maranoa region.

· DDSWQML will explore the possibility of and advocate for alternative responses to mental health needs eg. Electronic self-assistance tools for remote communities.

4.5 Development and distribution of a Maranoa Regional Health Services Guide informing residents of what health services can be accessed within the region and those which are not available (MCP action 2.1.13).

· DDSWQML will develop, manage and update regularly an online regional population health database hosted on the Medicare Local website to hold regional and community population health data and service directory data, in partnership with the Maranoa Regional Council, General Practice Queensland (the iHealth Care+ Directory) and the National Health Services Directory.

· DDSWQML will ensure that the directory content is regularly updated (at least twice every 12 months).

· DDSWQML will ensure that the Directory search filters include the ability to search for services in the Maranoa region, making the directory an up-to-date online resource for residents.

4.6 Increase the use of technology and programs for diagnostic, educational and information exchange purposes including client education programs e.g. Tele-health Expo to promote the benefits of the service and increase client awareness (MCP action 2.1.14).

· DDSWQML will educate primary health care professionals in the Maranoa region on alternative methods of service delivery to assist with best practice outcomes eg: online e-referral tools; online self-assistance tools; the Personally Controlled Electronic Health Record (PCEHR); Telehealth; the use of i-health directories; and the use of online training technologies.

· DDSWQML will support the uptake of new diagnostic, educational and information exchange technologies by the primary health care sector, through the work of the Medicare Local’s Telehealth Program Officer.

· DDSWQML will support the Maranoa Regional Council with the planning, promotion and delivery of Council-led community education programs related to improving the uptake of new health technologies.

The Maranoa Regional Council and the Medicare Local will work collaboratively to achieve these activities for the duration of this Memorandum of Understanding and will meet regularly to discuss the implementation of these activities and the achievement of improved health outcomes for Maranoa residents.

SIGNED FOR AND ON BEHALF OF

Maranoa Regional Council

________________________________________

(Signed) Cr. Robert Loughnan, Mayor

SIGNED FOR AND ON BEHALF OF

Darling Downs South West Queensland Medicare Local

________________________________________

(Signed) Dr. Patricia Stuart, Chair

DATE _________________________

Maranoa Regional Council

General Meeting - 12 September 2012

Officer Report

Meeting: General 12 September 2012	Date: 31 August 2012
Item Number: 15.1	File Number: D12/26531

Subject Heading: Urban Land Development Authority (ULDA) - Funded Properties

Classification: Open Access

Name of Applicant:

Location: Roma

Author & Officer’s Title: Edward Sims, Manager Organisational Performance

Executive Summary:

Council’s consideration of a number of affordable housing initiatives is sought including options for Urban Land Development Authority funded properties.

Officer’s Recommendation:

That Council:

1. Advise the Urban Land Development Authority that Council’s preference for transfer of ownership of the Sustainable Resource Communities (SRC) and Competitive Neutrality Fund (CNF) funded properties is to the Horizon Housing Company (HHC) and;

2. Negotiate with the Urban Land Development Authority to transfer ownership to HHC of any other property/properties that can be developed as a result of any GST savings and under-spent contingencies for the SRC and CNF funded properties and;

3. Consider future affordable housing projects with HHC on a case-by-case basis in accordance with Council’s Memorandum of Understanding with HHC and;

4. Investigate options to maximize long-term affordable housing benefits to the region and minimize risk to Council including, but not limited to, Council establishing its own Deductible Gift Recipient (DGR)Status organisation and;

5. Undertake research to ascertain future housing and housing rental demand for the Maranoa region.

Body of Report:

The Urban Development Area (UDA) in Roma which is being developed by the Urban Land Development Authority (ULDA) will contain some twelve dwellings which have been funded by the State Government and the ULDA. These dwellings are destined for transfer to Council ownership or a not-for-profit organisation when completed.

These properties are identified as the Sustainable Resource Communities (SRC) and Competitive Neutrality Fund (CNF) component of the UDA and in accordance with a deed of agreement between the Department of Communities and ULDA to provide affordable housing to low/middle income earners.

If ownership of the funded properties was to be transferred to Council, the only charges associated with the SRC/CNF component that could be attributed to Council is a GST payment on transfer of ownership. Potentially this could expose Council to a liability of approximately $370,000 which is unrecoverable from the Australian Taxation Office. In order to relieve Council of any cost, the ULDA have accounted for the GST payment in their overall budget for the SRC/CNF component, which would be reimbursed to Council on demand.

If ownership of the funded properties was to be transferred to a not-for-profit organisation such as HHC, GST would be exempt from the transaction and could allow for those funds to be used to develop more property/properties.

Summary of cost of SRC and CNF properties as advised by ULDA:

Costs Items (inc GST where applicable.)	SRC	CNF
Construction (builder contracts)	$ 1,883,800	$ 748,000
Land	$ 596,000	$ 222,000
Infrastructure charges (for additional dwellings) 1/2Bd $15,000 p/dw +3Bd $21,000 p/dw	$ 114,000	$ 30,000
Survey/Title associated fees (estimated)	$ 10,000	$ 5,000
Qleave fee (0.525% construction cost - estimated)	$ 10,000	$ 4,000
TOTAL	$ 2,613,800	$ 1,009,000
Budget	$ 2,700,000	$ 1,200,000
Contingency	$ 86,200	$ 191,000

Council undertook a workshop on this matter on 29 August 2012. Three options were considered in dealing with the transfer of ownership of the SRC and CNF properties. The table below summarises these options and their relative advantages and disadvantages:

Option	Advantages	Disadvantages
Receive transfer of dwellings in Council title	* Council owned properties * Self reliant * Able to leverage	* GST liability * Full potential of grant not realised * Fewer affordable properties
Transfer ownership to HHC	* At least one and probably two additional house and land packages * HHC will leverage value of properties to build more * HHC/Maranoa Housing company * Agreement – Lien via mortgage over property * Favoured by Governments and energy companies	* Lien may revert to 2^nd mortgage when leveraged for further investment
Council to establish its own charitable housing company	* Donations are tax deductable * Pool of funds for affordable housing * DGR organisation owns properties * GST exempt * Favoured by Governments and energy companies	* Approximately 12 months to develop * Requires separate governance & management * To attract subsidies, still requires NFP housing partner or go it alone * Council may not qualify as a housing provider in new tiered arrangements

Other discussions at the Council workshop included:

· Looking at other affordable housing proposals from the likes of HHC on a case-by-case basis

· Council establishing its own Deductible Gift Recipient (DGR) Status organisation to minimise risk to Council in the event of HHC being wound-up allowing equity in properties to be transferred to a like entity

· Undertaking research to establish future housing and housing rental demand for the Maranoa region

The recommendations of this report reflect the general consensus of the participating Councillors at the workshop of 29 August 2012.

Consultation (internal/external):

Councillors – workshop 29 August 2012

Robert Hayward, Director Planning & Environment

Tony Klein, Director Community Services

Risk Assessment (Legal, Financial, Political etc.):

Risk to Council - in the event of HHC being wound-up, equity in properties would be transferred to a like entity (possibly a Council established DGR entity) – refer recommendation four of this report.

Policy Implications:

Nil

Legislative Implications:

Recommendations 1 and 2 of this report are in accordance with Section 185(b) of the Local Government (Finance, Plans and Reporting) Regulation 2010:

Exceptions for valuable non-current asset contracts:

A local government may dispose of a valuable non-current asset other than by tender or auction if the valuable non-current asset is disposed of to a community organisation.

Financial Resource Implications:

Recommendation # 5 – estimated at $10,000.

Link to Corporate Plan:

Corporate Plan 2009-2013 — 8.4.8(a) To provide or assist with the attainment of long term and affordable housing for residents of the region.

Supporting Documentation:

Nil

Report authorised by:

Julie Reitano, Chief Executive Officer

Meeting: General 12 September 2012	Date: 30 August 2012
Item Number: 10.1	File Number: D12/26396

Meeting: General 12 September 2012	Date: 30 August 2012
Item Number: 10.2	File Number: D12/26454

Meeting: General 12 September 2012	Date: 17 August 2012
Item Number: 11.1	File Number: D12/24649

Meeting: General 12 September 2012	Date: 22 August 2012
Item Number: 11.2	File Number: D12/25189

Meeting: General 12 September 2012	Date: 25 January 2012
Item Number: 11.2	File Number: D12/2227

Meeting: General 12 September 2012	Date: 10 August 2012
Item Number: 12.1	File Number: D12/23887

Meeting: General 12 September 2012	Date: 24 August 2012
Item Number: 12.2	File Number: D12/25539