CIRCULAR HEAD COUNCIL ANNUAL REPORT 2014 - 2015...Circular Head Council Annual Report 2014/2015 Page...

CIRCULAR HEAD COUNCIL

ANNUAL REPORT

2014 - 2015

Adopted by Council 19 November 2015

“Milk and Electricity” By Nigel McIntosh

Circular Head Council Annual Report 2014/2015


TABLE OF CONTENTS

HISTORY AND PROFILE ......................................................................................................................................................... 5

VISION AND MISSION STATEMENTS .................................................................................................................................. 6

COUNCIL’S VISION FOR OUR COMMUNITY ................................................................................................................................. 6 COUNCIL’S MISSION ................................................................................................................................................................... 6 INVITATION FOR SUBMISSIONS ................................................................................................................................................... 6

HIGHLIGHTS OF THE YEAR ................................................................................................................................................. 7

FORWARD ................................................................................................................................................................................... 9

MAYOR AND COUNCILLORS .............................................................................................................................................. 11

FAST FACTS – CIRCULAR HEAD ........................................................................................................................................ 13

FINANCIAL INDICATORS COMPARISONS ...................................................................................................................... 14

KEY ACTIVITIES STATISTICS ............................................................................................................................................ 15

RESOURCE SHARING ................................................................................................................................................................ 17

CAPITAL WORKS AND SPECIAL PROJECTS SUMMARY ............................................................................................ 19

ADVOCACY AND GOVERNANCE ....................................................................................................................................... 22

ADVOCACY .............................................................................................................................................................................. 22 COUNCIL .................................................................................................................................................................................. 22 COUNCILLORS’ ATTENDANCE AT MEETINGS 2014/2015 .......................................................................................................... 22 MAYOR, DEPUTY MAYOR AND COUNCILLOR ALLOWANCES AND EXPENSES ........................................................................... 22 COMMUNICATION ..................................................................................................................................................................... 23 RISK MANAGEMENT ................................................................................................................................................................. 23 EMERGENCY MANAGEMENT AND COMMUNITY RECOVERY ..................................................................................................... 24 HUMAN RESOURCES ................................................................................................................................................................. 24 ANNUAL REMUNERATION FOR SENIOR STAFF .......................................................................................................................... 26 ENERGY MONITORING.............................................................................................................................................................. 27 CRADLE COAST AUTHORITY REGIONAL REPORT 2014/2015 ................................................................................................... 28 TASWATER REPORT 2014/2015 ............................................................................................................................................... 29

BUSINESS PERFORMANCE .................................................................................................................................................. 32

ADMINISTRATION SERVICES..................................................................................................................................................... 32 PUBLIC INTEREST DISCLOSURE STATEMENT ............................................................................................................................ 32 OMBUDSMAN’S INVESTIGATIONS ............................................................................................................................................. 32 CONTRACTS FOR THE SUPPLY OR PROVISION OF GOODS OR SERVICES .................................................................................... 32

COMMUNITY ........................................................................................................................................................................... 34

COMMUNITY SERVICES ............................................................................................................................................................ 34 SPORT AND RECREATION ......................................................................................................................................................... 41 GRANTS AND BENEFITS ............................................................................................................................................................ 42

DEVELOPMENT....................................................................................................................................................................... 45

DEVELOPMENT SERVICES ......................................................................................................................................................... 45 ANIMAL CONTROL ................................................................................................................................................................... 45 BUILDING CONTROL ................................................................................................................................................................. 45 ADMINISTRATION OF BURIALS AT COUNCIL CEMETERIES ........................................................................................................ 46 LAND USE PLANNING ............................................................................................................................................................... 46 PUBLIC AND ENVIRONMENTAL HEALTH ................................................................................................................................... 46 PUBLIC BUILDING SAFETY ....................................................................................................................................................... 47


ECONOMIC DEVELOPMENT ............................................................................................................................................... 49

ECONOMIC DEVELOPMENT ....................................................................................................................................................... 49

ENGINEERING ......................................................................................................................................................................... 50

ENGINEERING SERVICES ........................................................................................................................................................... 50 WORKS PLUS ............................................................................................................................................................................ 51 DRAINAGE ................................................................................................................................................................................ 51 PARKS AND RESERVES ............................................................................................................................................................. 51 SOLID WASTE MANAGEMENT .................................................................................................................................................. 52 TRANSPORT .............................................................................................................................................................................. 52 WEED STRATEGY ..................................................................................................................................................................... 53

FINANCE.................................................................................................................................................................................... 54

FINANCIAL SERVICES ............................................................................................................................................................... 54 FINANCIAL MANAGEMENT ....................................................................................................................................................... 54 LONG TERM FINANCIAL PLAN .................................................................................................................................................. 54

THE YEAR AHEAD .................................................................................................................................................................. 56

FINANCIAL STATEMENTS AND AUDITOR’S REPORT ................................................................................................. 57

COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2015 .......................................................................... 59 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 ...................................................................................................... 60 STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2015 .................................................................................... 61 STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2015 ................................................................................................ 63

NOTES TO FINANCIAL STATEMENTS .............................................................................................................................. 64

INTRODUCTION ................................................................................................................................................................... 64 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ...................................................................................... 64 2. FUNCTIONS/ACTIVITIES OF THE COUNCIL ......................................................................................................... 81 3. RATES ........................................................................................................................................................................... 84 4. GRANTS ....................................................................................................................................................................... 84 5. USER CHARGES .......................................................................................................................................................... 85 6. OTHER INCOME .......................................................................................................................................................... 85 7. WATER CORPORATION INVESTMENT RETURNS ............................................................................................... 86 8. GAIN/(LOSS) ON DISPOSAL OF ASSETS ................................................................................................................. 86 9. EMPLOYEE COSTS ..................................................................................................................................................... 86 10. MATERIALS AND CONTRACTS ............................................................................................................................... 86 11. DEPRECIATION AND AMORTISATION .................................................................................................................. 87 12. FINANCE COSTS ......................................................................................................................................................... 87 13. OTHER EXPENSES ...................................................................................................................................................... 87 14. CASH AND CASH EQUIVALENTS ............................................................................................................................ 87 15. OTHER FINANCIAL ASSETS ..................................................................................................................................... 88 16. RECEIVABLES ............................................................................................................................................................ 88 17. INVENTORIES ............................................................................................................................................................. 88 18. OTHER CURRENT ASSETS ........................................................................................................................................ 88 19. LAND ............................................................................................................................................................................ 89 20. LAND UNDER ROADS ................................................................................................................................................ 89 21. BUILDINGS .................................................................................................................................................................. 89 22. TRANSPORT INFRASTRUCTURE ............................................................................................................................ 90 23. STORMWATER AND DRAINAGE ............................................................................................................................. 91 24. SOLID WASTE MANAGEMENT ................................................................................................................................ 91 25. PARKS, RESERVES AND RECREATION FACILITIES ............................................................................................ 91 26. PLANT AND EQUIPMENT ......................................................................................................................................... 92 27. FURNITURE ................................................................................................................................................................. 92 28. COMPUTERS................................................................................................................................................................ 92 29. WORKS IN PROGRESS ............................................................................................................................................... 93 30. PAYABLES ................................................................................................................................................................... 93 31. PROVISIONS ................................................................................................................................................................ 93 32. BORROWINGS ............................................................................................................................................................. 93 33. SUPERANNUATION ................................................................................................................................................... 94 34. COMMITMENTS FOR EXPENDITURE ..................................................................................................................... 95 35. SPECIAL COMMITTEES ............................................................................................................................................. 96 36. RELATED PARTY DISCLOSURE .............................................................................................................................. 97 37. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES ............................................................ 98


38. CREDIT STANDBY ARRANGEMENTS .................................................................................................................... 98 39. FINANCIAL INSTRUMENTS ..................................................................................................................................... 99 40. SIGNIFICANT BUSINESS ACTIVITIES .................................................................................................................. 107 41. AUDITOR’S REMUNERATION ............................................................................................................................... 108 42. INVESTMENT IN WATER CORPORATION ........................................................................................................... 108 43. RESERVES ................................................................................................................................................................. 108 44. FAIR VALUE MEASUREMENTS ............................................................................................................................. 109 45. EVENTS OCCURRING AFTER BALANCE DATE .................................................................................................. 113 46. MANAGEMENT INDICATORS ................................................................................................................................ 114


HISTORY AND PROFILE

The Circular Head Council, incorporated in 1908, serves the rural community of Circular Head in far North West Tasmania. At 4,917km2 Circular Head is one of the largest municipal land areas in the State and has one of the longest coastlines. Circular Head gained its name from the unusual land formation commonly known as “the Nut”, at Stanley, the solidified lava lake of a long extinct volcano. This land formation was sighted by Bass & Flinders on their historic circumnavigation of the State in 1798, and named by them the “Circular Head”. The Nut rises 152 metres above sea level and is estimated to be 13 million years old. Key industry sectors include dairy and prime beef production, commercial fishing and aquaculture, forestry and timber production, tourism, manufacturing, vegetable processing and iron ore pelletising. The municipality also has its share of successful niche-market enterprises. Circular Head businesses export to more than 20 countries, predominantly in the Asia-Pacific region. The Nut and the town of Stanley, nestled at its base, are two of the foremost tourist attractions in the North West area. The Nut is depicted on Council’s logo, with the colours of green to represent the lush green forests and highly productive farm areas with blue representing the waterways and the sea.

Circular Head offers both sea-change and tree-change lifestyles. Beautiful scenery and nature-based activities complement the active community. The Circular Head lifestyle provides residents with a diverse range of sporting and cultural activities, good schools, a medical centre staffed by full-time general practitioners and a hospital. Many people choose to live in Circular Head for the lifestyle. New residents quickly find they become part of the close knit community. The population comprises a growing number of residents from overseas, thus helping to enrich the area’s cultures still further.


VISION AND MISSION STATEMENTS

Council’s Vision for Our Community Circular Head will be an iconic community valued for the balance between a progressive economy, unique environment and vibrant lifestyle, providing and caring for all.

Council’s Mission Our Mission is to lead the Circular Head community in enhancing our iconic lifestyle through the provision of quality services with partnership creation and strategic use of resources.

The values or behaviours that Council will embrace to support our Mission and guide us in achieving our Vision are:

Empathy and respect for all our people: by ensuring internal and external stakeholders are regarded for their input.

Cohesion and teamwork: by being committed to an inclusive and productive work environment and adopting a collaborative approach in all things we do.

Accountable and transparent: by being open in all that we do and delivering on outcomes.

Accessible and communicative: by ensuring open, clear and user friendly lines of communication.

Responsive management: by being outcome focused and proactive in the provision of timely and appropriate services.

Managing for value: by innovation and strategic thinking and using all of Council’s resources wisely.

Invitation for Submissions Members of the community are invited to make submissions on the Annual Report for discussion at the Annual General Meeting, which is to occur on Thursday 19 November 2015 at 6:00pm at the Circular Head Council Chambers. Any person wishing to make a submission should deliver it to the General Manager by 5:00pm on Thursday 12 November 2015, for inclusion on the agenda for the meeting.


HIGHLIGHTS OF THE YEAR

Bridge Replacements Council has undertaken replacement of four deteriorating timber bridges over the course of the year at Dallas Road, Coopers Road, Huetts Road and Paceys Road. Also, a deteriorating timber bridge at Faheys Lane was replaced with concrete box culverts. All new bridges and box culverts are concrete structures designed and constructed to support long term economic development and traffic movements within our municipality. Co-Purchase of SES Truck Council welcomed the arrival of a new rescue truck into its’ SES fleet. Flags at Emmett St roundabout Flags were installed at Emmett St roundabout to enhance the streetscape and visual aesthetics as part of the Smithton Landscape Development Strategy. Green Point Beach playground replacement The playground infrastructure and equipment at Green Point Beach (Marrawah) was replaced. The new equipment includes swing unit, slide unit, see saw unit and synthetic grass surfacing. Irishtown Road Infrastructure Development Project This year Irishtown Road between Grooms Cross Road to the entrance into the Irishtown Recreation Ground was reconstructed. This resulted in significant infrastructure development in Irishtown including upgrade of footpaths, kerbs and carriageway.

Photo courtesy Circular Head Chronicle


Launch of Literacy Plan The Learn for Life Community Literacy Plan 2014-2019 was officially launched at the Circular Head Community and Recreation Centre on Friday 12 September 2014 by the State Minister for Education and Training, Jeremy Rockliff MP. The plan aims to make literacy and learning central to the life of the Circular Head community to provide a positive future for the region’s children and economy. Implementation will be driven by an action group made up of interested individuals from a range of backgrounds. Lighting upgrade at the Smithton Recreation Centre New lights (25 metre high) and support structures were installed at the Smithton Recreation Centre to increase ground illuminations and enhance sporting and community opportunities at the recreation centre. Smithton Turf upgrade Refurbishments during this year have included laying of the new ‘Aquaturf Evolution’ turf, and installation of an electronic scoreboard, extended viewing and warm-up area. “Welcome to the Edge of the World” signage Council initiated a photo competition to capture and encourage tourism and to create awareness of the attractions west of Smithton.

Photo courtesy Circular Head Chronicle


FORWARD Infrastructure has been a significant focus for Council in the 2014/2015 financial year and many projects have been completed across Council’s vast road and bridge network. Council has been working with the Swimming Pool Reference Group as part of our focus on community engagement, which will ensure that we are able to proceed with confidence in the future direction of this important community asset. The inaugural community survey was also a step forward with Council engaging with its community. With the Council continuing to partner with all levels of government and the community, we saw the completion of upgrades at Smithton Turf, the installation of upgraded power infrastructure at Harcus River Road, the installation of lights at the Smithton Recreation Ground and the delivery of the new SES Rescue Truck to our local unit. The Smithton Wharf was completed in August, and while a long time coming, the end result was something to be truly proud of. Following the closure of the wharf in 2008, Council strongly pursued external funding for the redevelopment, planning and works associated with upgrading the wharf infrastructure and surrounds. Council obtained a $1 million Grant Deed from the former Department of Infrastructure, Energy and Resources (now State Growth) as a result of this approach, with the title for the wharf transferred from Tasports to Council in 2011. This financial year also saw the installation of a tourism sign at Stanley pointing to the Edge of the World and other sights via Smithton. This work in addition to the installation of flags on the roundabout of Smith and Emmett Streets, in Smithton, is part of a broader plan to develop landscaping infrastructure across the municipal area. Council also witnessed a growth in business confidence with a number of new developments in Circular Head over the past 12 months including a new car and truck wash in Smithton. These developments will be complemented by Council’s study into the importance of the Bass Highway from Smithton to Burnie, which we see as a vital link to be able to continue to export products through the rest of the state, nation and indeed overseas and the Circular Head Progress Group study into the future expansion of the agricultural industry in Circular Head. Council continues to develop and build on regional associations and has further strengthened its resource sharing arrangement with Waratah-Wynyard Council, with a number of changes to roles across both Councils. More on the benefits of the Organisational Review will be included in next year’s Annual Report. Council will also be partnering with King Island, Waratah-Wynyard, West Coast and Burnie City Councils on the creation of the 25 year Sustainable Murchison Plan, The Sustainable Murchison Community Plan, which will not only provide us insight into each of our communities’ needs, but also ensure that we also have a shared evidence-based community vision for the future.


Overall this has been a busy year as always across our Municipality, as we recognise some significant events, including the completion and official opening of the $23m Tarkine Drive Project, the $14m Murray Goulburn, Edith Creek major investment at the facility, and the community coming together for the Anzac Centenary with the unveiling of the Poppy Wall in the RSL, Stanley the blessing of the engraved pavers depicting the names of the fallen, Smithton the Honour Roll placed on Plinths at Anzac Park and the unveiling of the Marrawah Honour Roll.

Daryl Quilliam Tony Smart MAYOR GENERAL MANAGER


MAYOR AND COUNCILLORS Circular Head Council has nine Councillors, elected by the community each for a term of four years. The Local Government Election was held in October 2014. The Mayor and Deputy Mayor are elected by the community.

Mayor Daryl Quilliam JP is married to Bev and works as an agricultural field representative. Daryl has been a member of Council for a total of 29 years and holding the position of Mayor since 2007. Daryl is currently a Council representative on the Cradle Coast Authority Representatives Committee, Hunter Island Advisory Group, Circular Head Emergency Planning Committee, the Tasmania/Australia Day Awards Working Party, the Community Events (Australia Day) Committee, Recreation Advisory Committee and Arthur Pieman Conservation Area Off-Road Vehicle Consultative Committee. Daryl also holds the position of Vice President of Local Government Association of Tasmania, and is a member of the General Management Committee for LGAT, and the Chairperson of Rural Health Tasmania.

Deputy Mayor Jan Bishop is married to Rodney and is involved with their family farm, and the Irishtown Community Centre. Jan was elected to Council in 2011, and elected as Deputy Mayor in 2014. Jan is Council representative on the Circular Head Education and Training Consultative Committee, TasWater Representatives’ Committee, Service Providers Access Network (SPAN), Cradle Coast Authority Representatives’ Committee, the Tasmania/Australia Day Awards Working Party, the Smithton Primary School Committee, and a representative for the Local Government Association of Tasmania. She is also a Soroptimist member.

Councillor Norman Berechree a fourth generation Circular Head resident, is married to Rachael and is employed with Britton Timbers, with one son. Norman was elected to Council in 2014. Norman is Council representative on the Northern Area Management Committee, the Stanley Town Hall Committee, the Smithton High School Council, and the Community Road Safety Partnership (CRSP). He is also a volunteer fire fighter.

Councillor Rodney Hardy is married to Julie and is retired. Rodney was elected to Council in 2009. He is not a Council representative on any committee/body/third party committee.


Councillor Betty Kay is married to Mervyn and is owner/manager of her own real estate business. Betty was elected to Council in 2011. Betty is Council representative on the Tasmania/Australia Day Awards Working Party and the Circular Head Tourism Association.

Councillor John Oldaker is married to Beth and operates a dairy farm at Togari. John was elected to Council in 1999 and held the position of Deputy Mayor for the period 2011 - 2014. John is a Council representative on the Central Outdoor Area Management Committee, the Western Area Management Committee, the Chairperson of the Circular Head Emergency Planning Committee, and the Circular Head Senior Citizens Centre Committee.

Councillor Ashley Popowski is married to Sue and is a retired telecommunications technical officer and Area Manager. Ashley was elected to Council in 2011. Ashley is Council representative on the Resource Shared Audit Panel, Circular Head Heritage Centre Committee, the Circular Head Community and Recreation Centre Management Committee, the Circular Head Recreation Advisory Committee, the Circular Head Landcare Group and the 2017 Australian Masters Games Committee. Ashley is also the Chairperson of the Arthur Pieman Conservation Area Management Committee.

Councillor Nakore Popowski was born and raised in Circular Head, and has been employed at the Circular Head Christian School since 2012. Nakore was elected to Council in 2014. Nakore is Council representative on the Community Road Safety Partnership group (CRSP), Community Events Committee, Health & Welfare Reference Group, and the Circular Head Youth Leaders (CHYL).

Councillor Trevor Spinks is married to Marian and is retired. He was elected as a Councillor in 2007 and held the position of Deputy Mayor for the period 2009 - 2011. Trevor is a current Council representative of the Health and Welfare Reference Group, the Tasmania/Australia Day Awards Working Party, is Chairman of the Circular Head Boat Ramps Advisory Committee and a member of the Emmerton Park Board. Trevor is also an independent representative on the Rural Clinical School Community Advisory Board. He is also a volunteer Ambulance Officer.

Councillor Jeanie Murrell retired at the 2014 election. Councillor David Woodward was unsuccessful at the 2014 election.


FAST FACTS – CIRCULAR HEAD

2014/2015 2013/2014 2012/2013

Population Municipal area 7,977 (2011

Census)

7,977 (2011

Census)

7,977 (2011

Census)

2014/2015 2013/2014 2012/2013

Area (km) Municipal area 4,917 4,917 4,917

Smithton 11.18 11.18 11.18

Stanley 1.87 1.87 1.87

Road length (km) Municipal area 768 768 768

Sealed 294 294 293

Unsealed 474 474 475

Bridges maintained Municipal area 121 121 122

Timber 46 46 49

Other 75 75 73

Footpath length (km) Municipal area 30 30 30

Stormwater maintained (km)

Municipal area 33.03 33.03 33.03

Kerb and channelling (km)

Municipal area 60 60 60

Total properties Municipal area 5,065 5,134 5,041

Rateable properties Municipal area 4,822 4,898 4,901

Valuation Assessed annual value 88,287,620 81,752,306 88,756,032

Capital value 1,878,070,900 1,847,293,400 1,653,413,500


FINANCIAL INDICATORS COMPARISONS

Indicator

2014/2015 2013/2014 2012/2013 2011/2012

Current ratio Current Assets

Current Liabilities 4.24:1 3.77:1 5.47:1 6.26:1

Rate coverage ratio Rates

Total Revenue 47.40% 59.34% 51.17% 48.82%

Outstanding rate debtors

Outstanding

Rates

Total Rates

5.26% 11.17% 10.58% 6.35%

Expenditure per capita Total Expenditure

Population $1,710 $1,905 $1,686 $1,606

Grant coverage ratio Grants

Total Revenue 33.64% 18.43% 23.21% 26.23%

User charges coverage User Charges

Total Revenue 10.70% 13.34% 12.51% 12.64%

2014/2015 2013/2014 2012/2013 2011/2012 2010/2011

Rate revenue 7,212,058 6,967,329 6,780,608 6,554,232 6,254,040

Total revenue 15,215,839 11,740,791 13,251,718 13,423,947 12,730,969

Total operating expenditure

13,860,572 15,738,945 13,667,899 13,275,009 11,751,648

Capital 6,314,219 5,590,323 4,560,384 2,933,767 3,916,729

Proceeds on sale of assets

(530,544) (170,141) (341,455) 11,760 28,394

Depreciation and amortisation

3,937,006 4,239,571 3,188,231 3,129,802 2,534,751

Borrowings 675,897 1,041,075 1,445,474 1,833,974 2,195,197

Debt reduction 365,178 404,399 388,500 361,223 93,981

Debt reduction as a proportion of total operating expenditure

3.0% 2.57% 2.84% 2.72% 0.80%


KEY ACTIVITIES STATISTICS

2014/2015 2013/2014 2012/2013 2011/2012 2010/2011

Tonnes of waste deposited at Port Latta Landfill site 11,187 11,888 12,827 14,003 14,403

Tonnes of waste collected – urban 1,306 1,321 1,319 1,355 1,440

Tonnes of waste collected – rural 967 951 1,026 969 929

Waste coupons redeemed 18,894 14,586 14,198 18,142 19,130

Recycling urban bin collection 25,017 24,588 24,684 24,045 23,529

Road grading – km 159 251 280 296 284

Road patching – tonnes 701 678 883 428 603

Building permits issued 119 79 118 147 165

Planning permits issued 87 76 98 101 105

Plumbing permits issued*** 90

Dogs registered 1000 957 896 859 741

Dogs impounded 69 78 70 80 73

Burials at Council cemeteries 41 39 48 44 50

Special Plumbing permits issued 31 20 35 25 38

Food premises inspections carried out 68 66 50 86 142

Dairies inspected 1 1 10 7 6

Section 337 certificates issued 187 156 194 159 173

Section 132 certificates issued 298 241 318 238 230

Staff training (numbers attending) 357 148 268 380 206

Councillor training (numbers attending) 8 13 5 17 7

Incoming calls via Reception 10,091 12,174 12,801 14,784 13,366

Documents registered in ECM 17,856 17,773 23,434 22,952 25,781

Customer Service System (CSS) events lodged 624 766 754 834 507

Patrons at pool 25,697 **23,061 27,353 *14,321 *16,860

* Does not include Learn to Swim lessons, Circular Head Amateur Swimming Club, Circular Head schools,

Sporting/Community groups or private bookings – groups/individuals ** Pool closed between 16/10/13 – 31/10/14 Heat Exchanger replacement *** 2014/2015 first year reported figures


ORGANISATION AND MANAGEMENT STRUCTURE

Mr Matthew Saward Executive Manager

Development Services

Land Use Planning

Development Control

Public & Environmental

Health

Building Control

Animal Control

Weed Management

Administration of Burials

at Council Cemeteries

Mr Daniel Summers Executive Manager

Engineering Services

Physical Infrastructure

Transport

Drainage

Solid Waste

Management

Parks & Reserves


Asset Management

Contract Management

Ms Rachel Mallinson Executive Manager

Corporate and Community Services

Rates

Accounts

Payable/Receivable

Information Technology

Budget Preparation

Payroll

Council Properties

Administration

Records Management

Customer Services

Community and Youth

Services

Recreation & Leisure

Mr Brian Blake Manager Works Plus

Maintenance &

Construction of –

Drainage

Rural Road

Infrastructure

Urban

Infrastructure

Parks & Reserves

Cemeteries

Recreation

Grounds

Waste Collection

Landfill Operations

CIRCULAR HEAD COMMUNITY

COUNCIL


RESOURCE SHARING

Resource Sharing

The resource sharing arrangements between the Waratah-Wynyard and Circular Head Councils are now entering their seventh year and have continued to provide value to both communities through improvements in the efficiency, effectiveness and scope of the Councils services. There have been a number of significant resource sharing achievements which occurred in 2014/2015 to improve the cost and level of service provided in the following positions - management of the Engineering Services, Technical Officer - project management, Plumbing Compliance Officer, Weeds Officer, Communications Officer, Human Resources Coordinator, Information Technology Officer, Risk Coordinator and Workplace Health and Safety Officer, a joint contract for Animal Management Services and a joint Strategic Asset Management approach. Additionally, the work which continues to be carried out between the two Councils in the area of strategic asset management and long-term financial management will lead the State in terms of its rigor and completeness and will ensure that both Councils will be able to accurately plan to continue delivering high levels of service to the communities into the future. This work continues to take account of the asset management and financial obligations facing both organisations. The current resource sharing arrangements were subject to a review by the General Managers’ of both Councils during the year and a series of recommendations have been made for achieving a ‘best practice’ resource-sharing approach. These recommendations are currently being implemented do not take away from the gains which have already been made by the Councils, rather, they seek to capitalise upon these gains by providing a more robust framework in which to undertake future resource sharing. This will provide the necessary level of analysis, legal protection and measurement to demonstrate the costs and benefits being received by the respective communities. Implementation of these recommendations will continue in 2015/16 to further enhance and strengthen resource sharing between the Councils into the future.


Resource Shared Positions

Staff Waratah-Wynyard

Circular Head

Executive Manager Engineering Services 0.5 0.5 Manager of Engineering & Projects 0.5 0.5 Communications Officer 0.5 0.5 Assets Coordinator 0.5 0.5 Information Technology Officer 0.5 0.5 Human Resources Coordinator 0.5 0.5 Occupational Health & Safety Officer 0.5 0.5 Risk Management Coordinator 0.5 0.5 Technical Officer Engineering & Projects 0.5 0.5 Weeds Officer 0.5 0.5 Technical Officer – Assets 0.8 0.2 Plumbing and Compliance Officer 0.5 0.5 Total 6.3 5.7


CAPITAL WORKS AND SPECIAL PROJECTS SUMMARY

LEGEND: Complete In Progress Not Started Ongoing

Advocacy & Governance % Complete

Economic Development consultancy 50%

Interplan reporting enhancements 25%

Projects from Strategic Plan 50%

Community % Complete

Stanley Film Project 100%

Court Proceedings 100%

Youth Policy update and formulate Youth Plan 15%

SES Trucks 100%

Heywire ABC FRRR 100%

CHETCC - option 2 operational deliver identified activities 100%

Circular Head Education and Training Consultative Committee (CHETCC) contribution 80%

Smithton Recreation Ground - upgrade of lights 100%

Stanley Discovery Museum and Genealogy Centre 100%

Tennis/Netball courts - overlay 100%

Tennis/Netball courts - playing surface renewal 10%

Skate Park shelter 100%

Drinking fountains - walking track 100%

Mower for Stanley Recreation Ground 100%

Engineering % Complete

Tier Hill Scenic Lookout design and geotechnical investigation 90%

RV "Freedom Camping" brochure 100%

Natural gas pipeline to Smithton 75%

Harcus River Road power line project 100%

Harcus River Road - overhead power (grant funded) 95%

Monitor weed program in conjunction with Cradle Coast NRM 100%

Stormwater network audit - CCTV work 100%

Port Latta landfill - augment leachate management system 100%

Port Latta landfill - entrance resealing 100%

Rural roads resealing - Jocks Road 100%

Rural roads resealing - South Road 100%

Rural roads resealing - Trowutta Road 100%

Rural roads resealing - Comeback Road 0%

Rural roads resealing - Woolnorth Road 100%

Rural road pavement - West Montagu Road 100%

Rural road pavement - Woolnorth Road 100%



Rural road pavement - Horton Street, Forest 100%

Rural road pavement - South Road, Beatties Hill 100%

Rural road pavement - Irishtown Road 100%

Rural road pavement - Trowutta Road/Grooms Cross Road junction 50%

Hanson Road - Removal of Macrocarpa Pines 0%

Rural road safety audit items 100%

Bridges - Faheys Lane - Muckeye Creek 100%

Bridges - Huetts Road - Edith Creek 100%

Bridges - Coopers Road - Detention River 100%

Bridges - Paceys Road 100%

Urban reseal - Emmett Street 100%

Urban reseal - Browns Road 100%

Urban reseal - Marine Esplanade 100%

Urban reseal - Robert Street 100%

Urban renewal - Massey Street 100%

Urban renewal - Montagu Road 100%

Church Street - Main Road, Stanley - handrail renewal 100%

Main Road, Stanley - drainage crossovers 80%

Rural roads – resheeting 100%

Urban reseal - John Street segment 3 100%

Urban reseal - Emmett Street to Gibson Street segment 3 100%

Gully Pit upgrade/replacement 100%

Manholes/upgrade replacement 100%

Stormwater pipe renewal - Main Road, Stanley 100%

Stanley turnoff sign - Circular Head attractions sign 100%

Portable traffic signals 100%

West Esplanade - garden refurbishment and seating replacements 100%

West Esplanade - power boxes 100%

King Park - picnic tables 100%

King Park - rubbish bins 100%

Green Point Beach - playground equipment 100%

General parks - bin upgrade program throughout reserves 100%

East Esplanade - park furniture replacement 100%

General parks - parks furniture replacement 100%

Smithton Landscape Development Strategy 100%

Smithton Landscape Development Strategy - implementation part 1 100%

Energy and resource efficiency initiatives 100%

Energy efficient lighting upgrades 100%

Smithton Marina - fencing 45%

Stanley Recreation Ground - tree removal 100%

Aerial image overlay - update data 100%

Tipper truck 100%

Tipper truck 100%

Toyota Hilux Workmate 100%



Ford utility 0%

Ford utility 0%

Holden Commodore 100%

Finance % Complete

Circular Head Tourism Association contribution 100%

Stanley Marina - Expressions of Interest 0%

Circular Head Progress Group contribution 100%

Digital Hub 100%

Digital Local Government NBN Project - online DA/BA 100%

IT service review 10%

Server UPS replacement 100%

Phone system replacement 15%

Microsoft Lync implementation 100%

Desktop computer additional screens 100%

Works Depot microwave link upgrade 100%

Mobile phone handset upgrade 100%

Technology One ECM additional licenses 100%

Upgrade of Navision Finance System 100%

Fleet replacement 100%


ADVOCACY AND GOVERNANCE

Advocacy The Council continues to advocate on behalf of the community on regional, state and national issues. Endeavours to advocate for positive outcomes for the people of the municipality continue to be an integral part of the business of the Council. This is achieved through means including face to face discussions with State and Federal politicians and government agencies, providing input into proposed legislative changes, lobbying and participation as a member of the Local Government Association of Tasmania and a member of the Cradle Coast Authority.

Council The Council comprises the Mayor and 8 Councillors. The role of the Council is focussed on policy formulation, including adopting the Budget, Strategic and Annual Plans and determining approval guidelines. This also involves the monitoring of management systems and conducting community consultation.

Councillors’ Attendance at Meetings 2014/2015

Meetings Special Meetings

Workshops

Mayor Daryl Quilliam 13 0 26 Deputy Mayor Jan Bishop 13 0 27 ** Cr Norman Berechree 9 0 18 Cr Rodney Hardy 8 0 16 Cr Betty Kay 13 0 24 * Cr Jeanie Murrell 3 0 9 Cr John Oldaker 11 0 28 Cr Ashley Popowski 12 0 29 ** Cr Nakore Popowski 9 0 17 Cr Trevor Spinks 11 0 24 * Cr David Woodward 3 0 6

* Term ended 31 October 2014 ** Term commenced 1 November 2014

Meetings, including Annual General Meeting - total held for year = 13 Special Meetings are meetings requested and required to consider specific items. Workshops - total held for year = 29

Mayor, Deputy Mayor and Councillor Allowances and Expenses In accordance with Section 72(1)(cb) of the Local Government Act 1993, the total allowances and expenses paid to the Mayor, Deputy Mayor and Councillors were:


Allowances and Expenses 2014/2015

Mayor $41,063

Deputy Mayor $20,524

Councillors $97,921

Total paid to Mayor, Deputy Mayor & Councillors $159,508

Communication Communications activities in the 2014/2015 financial year had an increased focus on community engagement. This work was complemented by additional training for Council’s Communications Officer with the International Association of Public Participation in Engagement Design and Participation. Additional work was undertaken in conjunction with consultants to further inform the process around the Circular Head War Memorial Pool. The inaugural Community Satisfaction Survey was commenced in October 2014, and while participation was lower than expected, this process provided an insight into future methods to communicate and engage with the wider community outside of the existing Communications and Social Media Strategy. Council continues to use a mix of traditional and advanced communications channels to communicate and engage with the Circular Head community. The decision to include pictures of lost and found dogs for one example has seen a significant increase in successfully reuniting dogs with their owners. This work will be complemented in the next financial year (2015/2016) with the establishment of a Community Advisory Panel.

Risk Management Insurances 2014/2015 saw only a slight increase in insurance premiums and this is mainly due to the increase in values of property, plant and equipment, and additional wages under our Workers Compensation Policy. Council received a surplus rebate of over $3,000 from the Trust Fund, JMAPP, who cover our property and contents insurance. Because of Council’s good record on Workers Compensation claims a Claims Experience Discount of over $12,000 was also received off that premium. Risk Management Audits As external audits of risk management are no longer undertaken by our Public Liability Insurers an internal audit document is being prepared, largely based on the external audit. Risk assessments for public events such as the Australia Day celebrations, Relay for Life, Smithton in Colour etc. continue to be undertaken as and when required. Sporting ground assessments continue to be carried out prior to the commencement of football and cricket rosters and other major events. Business Continuity Planning A draft Business Continuity Plan has been completed by consultants and staff are now working through the preparation of sub-plans for the various business functions of Council. This process has been delayed slightly due to other work commitments, but plans are in place to have this process completed in the 2015/2016 financial year. Council also received a subsidy of $3,500 from the property insurance trust fund to assist with the preparation and testing of the plan.


Workplace Health & Safety 2014/2015 has been a year of significant achievement in Workplace Health and Safety (WHS). The development and implementation of a safety management framework will hold Council in good stead moving forward and ultimately result in a low injury, cost effective, legislative compliant workplace. The main structure of the framework consists of an overall safety management plan, a WHS risk register and a WHS audit tool, which are all specific to Local Government needs. Council now knows exactly where the gaps are in meeting legislative compliance and can prioritise what needs to be done moving forward. Goals and objectives for continuous improvement are created at Safety Committee meetings and monitored to completion. Council did not have any Workers Compensation claims in 2014/2015, which was a great effort.

Emergency Management and Community Recovery Council continues to support the local State Emergency Services Unit based in Smithton. Council is represented at the North West Regional Emergency Management Committee that represents the Cradle Coast region. Council is represented on the Western Area Fire Management Committee. Council’s emergency management planning is in accordance with the Tasmanian Emergency Management Act 2006.

Human Resources The Human Resources (HR) function provides an holistic approach to people management through the development of a positive culture, policy development, workplace relations, attracting, recruiting and retaining high quality staff, enterprise bargaining and performance management. HR supports and promotes continual learning and development opportunities, and a strong and supportive workplace culture embracing equity and diversity as a focus of organisation development. HR manages workforce data and information as well as providing professional HR support for management and staff. Human Resources offer services and advice to maximise the value of Council’s investment in a skilled workforce to the ultimate benefit of the Council and its stakeholders.

Full Time Equivalent (FTE) by Department

Department Number of Staff

FTE Male Female

Business Performance Unit 12 9.86 3 9 Financial Services 6 6 2 4 Community Services 3 3 3 Engineering Services 7 7 7 Development Services 5 5 3 2 Works Plus 25 24.41 22 3 Pool 8 1.91 2 6 Total 66 57.18 39 27


Average Age by Department

Department Age Business Performance Unit 45 Financial Services 43 Community Services 51 Engineering Services 50 Development Services 37 Works Plus 44 Pool 39 Average Age overall 44

Staff Tenure in excess of 10 years


FTE Male Female

Business Performance Unit 3 2.51 1 2 Financial Services 1 1 1 Community Services 1 1 1 Engineering Services 0 0 0 0 Development Services 2 2 1 1 Works Plus 6 5.42 5 1 Pool 2 1.05 2 Total 15 12.98 7 8

Staff Tenure in excess of 20 years


FTE Male Female

Business Performance Unit 2 2 1 1 Financial Services 0 0 0 0 Community Services 0 0 0 0 Engineering Services 0 0 0 0 Development Services 1 1 1 Works Plus 4 4 4 Pool 0 0 0 0 Total 7 7 6 1

Resource Shared/ Positions

Staff Waratah-Wynyard

Circular Head

Male Female

Executive Manager Engineering Services

0.5 0.5 1

Manager Engineering and Projects

0.5 0.5 1

Human Resources Coordinator

0.5 0.5 1

Technical Officer - Engineering and Projects

0.5 0.5 1

Risk Management Coordinator

0.5 0.5 1

Workplace Health and Safety Officer

0.5 0.5 1

Plumbing and Compliance Officer

0.5 0.5 1


IT Coordinator 0.5 0.5 1 Weeds Officer 0.5 0.5 1 Communications Officer 0.5 0.5 1 Assets Co-Ordinator 0.5 0.5 1 Technical Officer 0.8 0.2 1

Total 6.3 5.7 11 1

Resource Sharing We continue to strengthen resource sharing opportunities between Circular Head and Waratah-Wynyard Councils, providing for interchangeable staff and efficiencies within the functional areas of Management, Business Strategy, Information Technology, Human Resources, Communications, Work Health and Safety, Risk Management, Development and Engineering. A Shared Resourcing Agreement with Waratah-Wynyard and Burnie City Councils, which allows the utilisation of additional capacity and capability for the organisation, currently provides for the services of an Environmental Health Officer from Burnie City Council. Training/Development Council continues to provide a range of training and development opportunities to further develop staff and to meet the needs of the organisation. There has been a strategic focus on increasing professional capacity throughout the organisation including Microsoft Office related programs, business writing and effective management of time. We continue to develop leadership and workplace relationship capability and have recently engaged in a program in ethical decision making. There are a number of employees completing tertiary qualifications relative to the work they undertake. A range of statutory training requirements are undertaken each year to ensure our employees are trained, qualified and have safe work practices. We also train employees in Workplace Health & Safety, and other regulatory service requirements. Staff Turnover The turnover rate of Council staff was 17.49% compared to 17.52% in 2013/2014, 17.96% in 2012/2013, 17.44% in 2011/2012, 16% in 2010/2011, 15.49% in 2009/2010, and 11.48% in 2008/2009.

Annual Remuneration for Senior Staff In accordance with Sections 72 (1) (cd), 72 (4) and 72 (5) of the Local Government Act 1993 Council is to include within its Annual Report a statement relating to the total annual remuneration paid to employees of the Council who hold positions designated by it as being senior positions. Total annual remuneration includes the salary paid, contributions to superannuation, value of the use of any motor vehicle and any other allowances or benefits paid.

Annual Remuneration for Senior Staff

Annual Remuneration Range No. of Employees 80,000 – 100,000 4 100,000 – 120,000 1 120,000 – 140,000 3 140,000 – 160,000 Nil


160,000 – 180,000 2

Energy Monitoring Council have formed relationships with key energy stakeholders to monitor and improve the energy usage of our facilities. During the 2014/2015 year our Energy Efficiency Initiatives included:

LED lighting upgrade at the Smithton Sports Centre

Completion of the LED upgrade at the Council Chambers

Stage 1 LED upgrade at the Circular Head Community and Recreation Centre

Audit of all Air Conditioning units installed in Council facilities

Ongoing audit of high energy appliances in Council facilities

Other achievements were:

Renegotiation of energy contracts for:

Council Chambers

Circular Head Community Recreation Centre

Circular Head War Memorial Swimming Pool

Works Plus Depot

Stanley Recreation Ground

Stanley Town Hall

Smithton Sports Centre

State Emergency Services

By implementing the energy saving initiatives and renewed energy contracts Council were able to save and avoid rising costs of approximately $15,000 during the 2014/2015 year.


Cradle Coast Authority Regional Report 2014/2015

The Cradle Coast Authority has had a transformative year with more to be done to ensure it supports the Councils and their communities in the most effective manner. Working closely with and for our shareholder Councils through new models of engagement and in partnership with the community, business and government will be the new way of doing things for the Authority. The organisation is grateful to Luke Sayer who wisely steered the organisation after the departure of Roger Jaensch, the organisation’s inaugural Chief Executive Officer. Roger’s legacy to the region cannot be mistaken and many of his initiatives continue to come to fruition. As the new CEO, I came to the region with new eyes, an open mind and enthusiasm to help support the shareholder councils and their communities. I spent my first few months getting to know the region, its communities, and the current and emerging issues. I met with all Councils, community and business leaders, agency representatives and government members as I sought to understand what makes the region tick. I am excited about what I saw and heard from wherever I went across this wonderful region. There is a passion and sensibility for advancing our region from all sectors of our community. Among the highlights of the 2014/2015 year would be –

Securing the rights to hold the 2017 Australian Masters Games in the North West is anticipated to bring over 5,000 visitors and $12M in direct economic benefit for the region.

Strategic studies and reports designed to facilitate economic development including the Cradle Coast Industrial Lands Study, Cradle Coast Regional Planning Initiative, and the West Coast Place Based Workforce Planning study.

The completion of the $23M Tarkine Tourist Drive creates an improved destination experience for visitors.

Workshops for Council staff promoting the Cradle Coast Healthy Communities Toolkit resources and social determinants of health.

A masterplan for the reimagining of the Cradle Mountain is underway in collaboration with stakeholder to create a destination worthy of its world significance.

Supporting the Councils’ in their engagement with the Tasmanian Government’s Local Government Reforms initiative.

The Authority’s strategic agenda for 2015/2016 was developed in response to a number of gaps and opportunities with three pillars. Firstly, the Authority with the Councils will review how it does business with an emphasis on exploring new ways of engagement and collaboration. Secondly, a regional economic development strategy is being developed that will identify how our economy works and the levers that can be applied to stimulate growth and resilience. This will be prepared in liaison with Councils, business and other levels of government but importantly it will be the region’s shared vision of its future. Finally, the Authority will continue with a number of regionally significant projects such as the redevelopment of Cradle Mountain, shared services and the development of an interconnected pedestrian and bicycle network joining communities.


I thank the Councils, their Aldermen/Councillors and staff for their ongoing contribution and support, the NRM and Tourism Committee members who provide time and energy to supporting the development of the region, and to the Board of Directors who assist the Authority with pursuing its objectives. These are truly exciting times and the Authority is committed to seeing the region prosper and support the Councils, business and the community realise the future that is its to own. Brett Smith Chief Executive Officer

TasWater Report 2014/2015 As the state’s single water utility, TasWater is tasked to provide clean drinking water and to remove and treat waste from homes, businesses and industries, as everyday life moves on. Delivering quality water and sewage services to more than 200,000 properties creates many challenges, balancing the competing and equally important requirements of legislation and our many stakeholders. From day one, TasWater and its predecessor corporations have been working to address water quality improvements. Initially effort was directed to the larger population centres but more recently focus has been on smaller towns. Over the next two years TasWater expects to overcome water quality issues in 18 of the 26 towns presently subject to either Boil Water Alerts or Do Not Consume notices. To varying degrees the vast majority of Tasmanian sewage treatment plants fail to fully comply with their current licence conditions, and even more confronting, to modern day license conditions. By agreement with the various regulators, TasWater has initially addressed water quality issues on the understanding that it would turn its attention to waste water infrastructure at the earliest opportunity. TasWater’s current service plan provides for $167million over the next three years addressing these issues. TasWater’s Pricing and Service Plan has been reviewed by the Economic Regulator and a final determination issued, setting pricing structures and levels for the next three years. Legislation has required the introduction of a two part pricing that can only be achieved through the universal introduction of water meters, and established principles of equitable pricing, same price same service and cost reflective pricing.

Target service tariffs have been established and all pricing will be transitioned to target in the current price period, meaning reduced tariffs to customers in the North West. TasWater continues to develop its’ business practices to improve services and reduce costs so price increases can be kept to a minimum. As part of this drive, a new statewide control centre will be established in Devonport which will see the closure of small regional service centres in Launceston and Hobart, shop fronts at Burnie and Queenstown and TasWater’s operations at Forth. All enquiries from across Tasmania is seen as a boost to the North West economy.


The centre will be utilising the latest in infrastructure monitoring telemetry and is designed to capture information from all our sewage and water treatment plants and other facilities, directing work crews to where they are needed.

While there has been some criticism of the payment of dividends to owner Councils, on the basis that they failed to maintain infrastructure, that is not true of all Councils. Much infrastructure is coming to the end of its useful life and regulators have been aware of the deficiencies in infrastructure performance over a long period of time without resolving the issues. TasWater is legislatively charged with providing sustainable returns to owner Councils, and given the history, various government agencies, regulatory bodies and Governments must accept some of the responsibility for where we find ourselves today. TasWater is seeking a broad consensus with the community, Councils, the State Government and regulators about what needs to be done, priorities, an acceptable timeframe and how it will be funded. Progress on Major Projects in Advocacy & Governance

% Complete

Adoption of new Partnership Agreement with the State Government 85%

Swimming pool consultation 50%

Completion of new 10 year Strategic Plan 30%

Implementation of the 24 OH&S audit Recommendations 100%

To implement Integrated Risk Management Module 75%

Update on emergency management development, practices and community education

100%

Review Circular Head Emergency Management Plan 100%

Workplace Health and Safety Risk 100%

Establishment of Council Audit Panel 90%

Develop and implement HR management processes to ensure the capture of relevant data and statistics for the purposes of tracking and reporting

25%

Establish training register which includes tracking of licensing and renewal requirements, management of training

15%

Staff awareness of policies, GM directives and procedure updates 100%

Develop and maintain Councillor and staff intranet 100%

Deliver and refine the Corporate Communications and Social Media Strategy including marketing, engagement, consultation and other communication activities

100%

Deliver communication plans for specific projects across Council 100%

Delivery and refinement of social media sites 99%

On-site business meetings within community with elected members 100%

Develop and utilise a key stakeholder database 100%

Action all resolutions of Council 2014/2015 100%

Present professional development opportunities based upon identification of Councillor needs

100%

Communicate Council decisions to the public 100%

Workshop Tasks 2014/2015 100%

Undertake staff training needs analysis and develop training plan 75%

Engage in regional and state networking activities 100%


Investigate, develop and implement resource sharing initiatives 100%

LEGEND: Complete In Progress Not Started


BUSINESS PERFORMANCE

Administration Services Provide quality administrative services and support to all Council departments and external stakeholders including, but not limited to, customer service, risk management, human resources, policy and procedures protocols, governance support with Council elections and legislative compliance.

Public Interest Disclosure Statement Under Section 86 of the Public Interest Disclosures Act 2002 Circular Head Council did not receive, nor has it been required to deal with, any Public Interest Disclosures for the 2014/2015 year. A copy of the Circular Head Council Public Interest Disclosure Guidelines is available for viewing at Council Offices during the normal business hours or copies are available to download from Council’s web site www.circularhead.tas.gov.au.

Ombudsman’s Investigations Council received no investigations from the Office of the Ombudsman during the 2014/2015 year.

Contracts for the Supply or Provision of Goods or Services Pursuant to Section 23 (5) of the Local Government (General) Regulations 2005, Council is required to report with the Annual Report contracts for the supply or provision of goods and services exceeding $100,000.

Successful Contractor

Description of Contract

Period of Contract

Value of Tender/ Contract

Roadways Pty Ltd PO Box 283 BURNIE TAS 7320

Provision of Bitumen Surfacing Services 2014/2015 - Contract 1584

19/09/2014 – 30/04/2016

$396,438.00

BridgePro Engineering PO Box 3253 ULVERSTONE TAS 7315

Bridge Replacement – Coopers Road, Detention River and Huetts Road, Edith Creek

19/12/2014 – 17/12/2016

$413,800.00

BridgePro Engineering PO Box 3253 ULVERSTONE TAS 7315

Bridge Replacement – Dallas Road, Montumana

21/05/2015 – 31/05/2015

$112,200.00

Team Sports PO Box 445 SEVEN HILLS NSW 2147

Installation of Aquaturf Evolution synthetic hockey field

14/10/2014 – 27/01/2015

$427,515.00

http://www.circularhead.tas.gov.au/


Progress on Major Projects in Business Performance

% Complete

Business Continuity Plan revision 100%

Investigate the introduction of an internal Audit Committee to test Councils' works procedures

100%



COMMUNITY

Community Services Council’s balance your life…program is the overarching health and well-being banner that underpins the role of the Community Services Department. The Department strives to deliver a varied range of opportunities in health and well-being, education, sport and recreation and artistic and cultural pursuits. It recognises the importance of a balanced approach to service delivery, and aims to build on the strong foundations already established, ensuring the continued development and promotion of the community and its identity. Council will continue to develop positive relationships and partnerships within the community to contribute to the wider ‘health’ of the residents on all levels – physical, emotional, cultural and economic. Activities included:

Service Providers Access Network

National Youth Week

Youth Advisory Group (Circular Head Youth Leaders)

Youth Leadership Programs with Smithton High School and Circular Head Christian School

North West Action for Youth

Youth Network of Tasmania

Community Road Safety Partnership Program

North West Social Recovery Committee

Circular Head Municipal Emergency Management Committee

Christmas Parades

Christmas in the Park (Christmas Carols)

Lighting of the Christmas Tree Event

Clean Up Australia Day

Australia Day Celebrations

Circular Head Education and Training Consultative Committee

Circular Head Community and Recreation Centre

Circular Head Arts

Circular Head Agricultural Society (Circular Head Show)

Circular Head Little Athletics Association

International Women’s Day

Seniors Week

Science Gig

Circular Head Garden Club

Circular Head Liquor Accord

UTAS Rural Clinical School

Learn for Life Literacy Action Group

Circular Head Business Group

Maternity Liaison Group

Red Cross


Circular Head Community Road Safety Partnerships Program (CHCRSP) The Circular Head Community Road Safety Partnerships (CHCRSP) Committee continues to be proactive in providing education and promotional strategies to address road safety issues within Circular Head.

The “Look out for your Mates” campaign has shown that the community is more aware of road safety issues, and there has been a reduction in the severity of road crashes within the municipality. The “Look out for your Mates” challenge will continue to be the main focus of the CHCRSP Committee. All initiatives come under this banner. The “Look Out Think Ahead” Rural Roads campaign highlights the dangers that may be encountered whilst driving on rural roads in the municipality and encouraging

the drive to the conditions message. Promotional material was produced and signage was installed on the Bass Highway to raise awareness for drivers entering the Circular Head municipality. A Young Drivers Awareness program was held on 19 April 2015. The session included interactive discussions on driver awareness, driving to the conditions and real life situations. A practical session at the Smithton Airport provided young participants with an opportunity to learn practical techniques in braking in emergencies and understanding the effects of speed. The course provided young drivers with invaluable skills that are not generally taught prior to obtaining their licence. Circular Head Liquor Accord The Circular Head Liquor Accord (CHLA) continues to work collaboratively to minimise harm associated with alcohol sale and consumption, improving safety and amenity, reducing alcohol related violence and anti-social behaviour. The CHLA sponsored Responsible Serving of Alcohol training for grade 10/11/12 students at the Smithton High and Circular Head Christian Schools. The CHLA maintains a close working relationship with the Circular Head Community Road Safety Partnership Program supporting the Designated Driver Program and the “Look out for your Mates” campaign by promoting responsible alcohol consumption. Breathalyser Units continue to be utilised in licensed venues to assist patrons with addressing drink driving issues.


Mayors Education Fund The Mayor’s Education Fund was established in 2002 to assist Circular Head students to go on to further study by helping offset some of their costs and to help promote the importance of further education. The recipient of the 2015 Mayor’s Education Fund Bursary was awarded to Danielle Quilliam at the Onwards and Upwards event held in Smithton on Monday 9 February 2015 at the Circular Head Community and Recreation Centre.

Danielle is undertaking a Bachelor of Contemporary Arts degree at the Launceston campus of the University of Tasmania.

Danielle has grown up in Circular Head and has been a familiar face at many concerts with her performances and hopes to bring back many of the skills gained in her studies to benefit her community. Australia Day Awards and Celebrations The ‘Twilight on the Duck’ Australia Day event was launched at a cocktail party on Friday 23 January 2015 at Tall Timbers Brittons Function Room. Sponsors and invited guests were entertained by local musicians and a special appearance by Frangipani Annie and the amazing ‘Reading Bug Egg’. Local identity Mary Kay entertained the audience with her amazing life story. Mary was the recipient of the Tasmanian Local Hero Award as part of the Australia Day National Awards. Mary represented Tasmania at the Award Ceremony in Canberra on 26 January 2015. On Sunday 26 January 2015 the Australia Day celebrations at West Esplanade attracted another large crowd. Patrons enjoyed fine food and wine, live music, family entertainment and a spectacular fireworks display. Regular activities such as the Duck Pedal cycling challenge and the Duck Dash foot race again proved popular, as did the annual Duck Race. Australia Day Awards 2015 were presented and the recipients were:

Citizen of the Year – Sue Smedley

Young Citizen of the Year – Jesse Jackson and Callum Poke

Community Event of the Year – Circular Head Garden Spectacular Circular Head Education and Training Consultative Committee (CHETCC) The Reading Bug Egg was a HIPPY Smithton initiative, jointly funded by the Circular Head Council through the Circular Head Education and Training Consultative Committee (CHETCC) as part of the greater Learn for Life Community Literacy Plan. The Egg was ‘discovered’ in November by a Circular Head Council worker and determined by a local vet to be a rare Reading Bug Egg, which needed to be read to in order to hatch.


The Egg continued its journey, visiting Circular Head schools, childcare centres, and a number of service providers and community organisations. It also attended public events such as the local Christmas Parade, Circular Head Show and the annual Twilight on the Duck festival. The Egg attended a Council Meeting and was read to by a number of elected members.

The community exposure has raised awareness of the importance of reading, particularly in families with young children. The project has been very successful in engaging the whole community in the promotion and encouragement of reading and learning. The Reading Bug Egg project is a great example of partnership working between government and non-government organisations.

Seniors Week Circular Head celebrated Seniors Week in 2014 with a number of free activities catering to a variety of interests. The annual Seniors’ Week Afternoon Tea was held at the Circular Head Community and Recreation Centre, Smithton on Wednesday 15 October 2015. The event was hosted jointly by the Circular Head Council and the Soroptimist International of Circular Head. The afternoon tea presents a great opportunity for Mayor Quilliam to express on behalf of the Circular Head community recognition of the contribution that our seniors make to the community. The annual Tech Buddies program was also held during Seniors Week. This program was held in partnership with the Smithton LINC, Smithton High School and the Circular Head Christian School. A short film depicting students interviewing seniors in various Circular Head locations significant to them, was shot on Monday 13 October 2015 and shown to a large and appreciative audience at the Smithton Library on Thursday 16 October 2015. International Women’s Day Soroptimist International of Circular Head in conjunction with Council hosted International Women’s Day at the Circular Head Community & Recreation Centre on Friday 20 March 2015. At the event the Soroptimist International of Circular Head presented awards to recognise the unsung heroines of our community.

The recipients were:

Patricia Brown

Judith Edwards

Jacqueline Emmett

Jantze Fahey

Sonia Ollington

Esther Quilliam

Gayle Quilliam

Margaret Radford

Bev Reeve


Shirley Stokes

Lynn Webb

Kimbra Wells

Raquel Yallup Rural Clinical School Year Two Medical Students visit

During 20-24 April 2015 Circular Head hosted eight year

two medical students from the UTAS Rural Clinical

School's Cradle Coast campus. The visit is part of the

School's annual Rural Week program, which exposes

students to rural lifestyles and the challenges faced by rural

communities, particularly with regard to health care.

A program was arranged for the week to enable students to map local networks of health care, meet with local doctors and health professionals and get a feel for the rural lifestyle.

The students left with a very positive attitude about the “can-do” approach in rural towns and were very impressed with local health professionals and rural medicine in general. The aim of the program is to encourage medical students to come back for placements and consider future practice in rural Tasmania.

The students were accommodated by the Smithton Rotary Club, and presented their experiences to Councillors and interested community members at the end of the week. All involved provided positive feedback on the program. National Volunteers Week On Thursday 14 May 2015 a volunteer appreciation evening was held at the Circular Head Community & Recreation Centre with over 60 people attending. Councillors and Circular Head Youth Leaders members volunteered to act as waiters for the evening. The event was organised to thank the many wonderful volunteers that contribute to the Circular Head community. Christmas Parades 2014 The Smithton Christmas Parade was organised by the Rotary Club of Smithton which saw a large array of floats that made for a great spectacle. The ever popular Stanley Christmas Parade was organised by the Stanley Christmas Parade Committee and both are a highlight in the Christmas calendar. The Christmas in the Park carols were held at ANZAC Park with a large crowd enjoying the event.


YOUTH Seven up Youth Centre A continued collaboration between Rural Health Tasmania (RHT), Circular Head Council, Circular Head Aboriginal Corporation (CHAC) and Smithton Christian Fellowship (SCF) has enabled Seven Up Youth Centre to operate. Staff from Rural Health, Council and CHAC operated the centre from 3 pm to 5 pm each Tuesday afternoon during terms 3 and 4 in 2014 and terms 1 and 2 in 2015. In 2015 the Seven Up was fortunate to receive a $20,000 grant from the Patricia Duke Foundation. This allowed the centre to employ a part-time co-ordinator and open three nights a week; Tuesday, Wednesday and Thursday. New equipment was also purchased in the form of a boxing bag/speed ball stand and a basketball shooting game. The centre continues to run interactive activities incorporating cooking, art, and exercise sessions each week and provides a safe and welcoming environment for students.

Other organisations that have provided enormous support to the centre are:

Soroptimist International of Circular Head

Time Out on Emmett

Treasure Chest

Commonwealth Bank National Youth Week 2015 – It starts with me Youth Fest 2015 Youth Fest 2015 was held on Friday 1 May 2015, 12 pm to 3 pm at the Smithton High School. It was decided to celebrate Youth Week later than the proposed dates due to term holidays and the school was unavailable. The combined committee felt that holding the event within school hours would assist us to reach a larger audience. Unfortunately this meant we were unable to apply for a Department of Premier and Cabinet Community Development Division grant this year. It was an energy packed event allowing participants to immerse themselves in a diverse range of entertainment, competitions and activities. The event also provided opportunities for service providers to attend and present relevant social and health information. The event drew heavily on the skills and ideas of young people who were involved in many aspects of the planning and operational duties of the event. Student Leaders from both High Schools were responsible for organising activities. This was a joint initiative with Circular Head Council, Circular Head Aboriginal Corporation and Rural Health Tasmania.


Circular Head Youth Leaders (CHYL) The Circular Head Youth Leaders is a Youth Advisory Group to Council. Their role is to improve the health and wellbeing of young people by supporting and engaging youth, while allowing their voices to be heard. CHYL meets regularly to advise Council on youth issues and concerns and develop activities and projects for young people in Circular Head.

Some of the activities CHYL have organised or participated in include:

Christmas Parade float/characters

Australia Day Celebrations

Pool Party

Bus trip to cinema

Anzac Day

Sponsored Anzac Day plaque

Winter Woollies Campaign

CHYL Retreat

1in4 Mental Health Campaign

Personal leadership training

Lighting of the Christmas Tree festival

Art about Town Exhibition Art about Town was a huge success with a high number of entries. The artwork was on display around the Smithton CBD for three weeks during October 2014. An Art about Town Op-Shop Cocktail Party was held at Time Out on Emmett to announce the winners and present prizes: Art About Town winner ($200): Zalia Gorringe for her drawing, Aunt and Child. Encouragement award ($50): Hayley Fisher for her sculpture, Abstract. In Focus winner ($200): Levi Quilliam for his photograph, Stars in the Night Sky. Encouragement award ($50): Tianna Marshall for her photograph, Purplicious. Public vote winner ($100): Jorja Horton for her photograph, Sail Away. Y Plan – Youth Forum In 2015 Council employed consultant Michael ‘Mo’ O’Meara to assist in updating Council’s Youth Policy. On 15 June Mo facilitated a youth forum which was attended by over 100 students from Smithton High School, Circular Head Christian School and Marist Regional College. Topics discussed at the forum included; what do you like about Circular Head? What would you change and what would you create?


Ideas were raised, discussed and recorded. Students were then asked to rate items in order of importance to them and finally asked to join smaller focus groups to further explore the topics discussed. Mo has since provided a report and recommendations on the continuing engagement of youth and the development of a Youth Policy and Strategy. Mo will return to Circular Head in November 2015 to facilitate further mini focus group forums with students and deliver a full report to Councillors. Other Youth Activities Other youth activities organised and/or supported by Council include:

Bus trip to Airtime 360

Bus trip to Burnie Cinemas

Free pool entry days – school holidays

Learn to surf sessions

Sport and Recreation This area promotes physical activity, maintenance of recreation facilities, support for sporting and recreation clubs/groups, and is responsible for assisting the Area Management Committees of Council. The Area Management Committees of Council are responsible for the management of the facilities, with funding derived from Council’s operational budget, grants and income from users. Northern Area Management Committee – Stanley Recreation Ground Central Outdoor Area Management Committee – Smithton Recreation Ground precinct Southern Area Management Committee – Trowutta Recreation Ground Western Area Management Committee – Redpa Recreation Ground and Marrawah Memorial Hall Circular Head Recreation Advisory Committee The Circular Head Recreation Advisory Committee (CHRAC) was established in 2010 to assist Council to efficiently and effectively oversee the affairs of the Council’s designated recreational and sporting facilities, and provide advice to the Council on all matters recreational concerning the Circular Head area. CHRAC have been actively assisting Council to implement recommendations from the Circular Head Council Recreation Plan and the Circular Head Recreation Review which includes reviewing the operational procedures for CHRAC and the Area Management Committees (AMCs).


Circular Head War Memorial Swimming Pool The opportunity to learn to swim and enjoy an aquatic facility is recognised as an important recreational activity. Council operates and maintains the district's indoor heated swimming pool. Pool safety is paramount, requiring employment of qualified lifeguards to supervise all pool users. Annual training for lifeguards is undertaken. Circular Head Council operates the pool 12 months of the year with reduced hours from May to August to promote the importance of physical activity for the community. During this time many sporting and community groups have taken advantage of the extended hours. Learn to swim classes, private swimming lessons and pool parties have been held throughout the school holidays and Aqua Fit classes continue to be popular.

Grants and Benefits In accordance with Section 77 of the Local Government Act 1993, the following grants and benefits have been made by Council during the year. All of these grants were made available by Council to community organisations to help fund their operations and special projects during the year. Council determines its allocations during its budget deliberations and calls for applications in March and October each year. Allocations made to individual groups in previous years have been detailed in the appropriate year’s Annual Report.

Total Allocation 2014/2015 272,087.38

2013/2014 221,663

2012/2013 223,533

2011/2012 232,634

2010/2011 193,226

Community Grants Round One

$ Community Grants

Round One $

Outside the Square Solutions 2,800.00 Mawbanna Community Hall 2,301.82

Rocky Cape Lions Club 1,200.00 Circular Head Garden Club Inc. 5,000.00 Smithton Basketball Club 3,200.00 Smithton RSL Sub Branch 5,000.00 Irishtown Community Centre 4,500.00 Marrawah 50 & Over Cricket Club 3,411.00 Circular Head Arts 1,404.00

Community Grants

Round Two $

Community Grants Round Two

$

Rotary Club of Smithton 4,000.00 CH RSL Stanley Sub Committee 2,000.00

Circular Head Children Services 4,500.00 Smithton Primary School 1,088.00

Circular Head Little Athletics 5,000.00 Rocky Cape Public Hall 2,000.00

Wyndarra Centre Inc. 1,500.00 Circular Head Landcare Group 1 026.00


Benefits $ Benefits $

Volunteering TAS membership 320.00 Volunteers event 471.82

Circus passes 300.00 Mail out for Defib magnets 576.25

National Tree Day 160.00 Relay for Life event 134.82

Legacy Week 186.36 Wyndarra Christmas hampers 750.00

Wedge Street Car Boot sale 355.45 Soroptimist awards 759.29

Tasmanian Symphony Orchestra 400.00 CH Community & Recreation Centre 85.00

Long Distance Charity walk 90.91

Other Contributions $ Other Contributions $

Circular Head Tourism Association 155,727.27 Circular Head Progress Group 25,000.00

Circular Head Education and Training Consultative Committee

36,839.39

Council provided inkind support to community organisations, projects and events through the provision of equipment, use of Council facilities, printing and administrative support. Inkind support was provided to the following community organisations:

Circular Head Arts Rural Health Tasmania Soroptimist International of Circular Head Smithton Lions Club Circular Head Agricultural Society Seven up Youth Centre Smithton LINC Wyndarra Centre Inc. Stanley Town Hall State Emergency Service Circular Head Business Group Circular Head Education and Training

Consultative Committee Circular Head Football Association Circular Head Indoor Bias Bowls Association Circular Head Heritage Centre Circular Head Child Care Centre Circular Head Garden Club Circular Head Aboriginal Corporation Circular Head Progress Group Circular Head Relay for Life Committee Circular Head Youth Network Circular Head Youth Leaders Emmerton Park Inc. Circular Head Community Bank Steering

Committee Arthur Pieman Conservation Area Management Committee

Seventh Day Adventist Church

Volunteering TAS Red Cross Circular Head Little Athletics Parks and Wildlife Service Cape Innovations Secrets of Prophecy Child Protection Services


Progress on Major Projects in Community

% Complete

Participation and coordination of the Service Providers Access Network (SPAN)

100%

Community Grants Round 1 100%

Community Grants Round 2 100%

Coordination of the "Balance Your Life" health and wellbeing program 100%

Continued support for youth programs and activities 100%

Coordination of Circular Head Youth Leaders 100%

Participation and coordination of Youth Week 100%

Participation and coordination of Seven Up Youth Centre in conjunction with other service providers

100%

Partnership with the Circular Head Liquor Accord 100%

Participation in the Circular Head Community Road Safety Partnerships program

100%

Mayors Education Fund 100%

Participation in the Circular Head Education Training Consultative Committee (CHETCC)

100%

Liaison with local organisations to support community events and special interest groups

100%

Participation in Australia Day activities 100%

Coordination of the Christmas Parade 100%

Identify sources of funding available for recreation and special interest groups and disseminate

100%

Participation in the Circular Head Recreation Advisory Committee 100%



DEVELOPMENT

Development Services Development Services is responsible for professional and technical management, and support for various organisational functions, including:

Land Use Planning

Building Control

Public and Environmental Health

Animal Control

Administration of Burials at Council Cemeteries

Animal Control Council provides an ongoing animal control service with the main focus being on dog control. Council also responds to instances where other animals are unattended on roads. There was an increase in the numbers of dogs registered from the previous financial year. This is a result of a concerted effort to follow up on unregistered dogs. During the reporting period Council reviewed its arrangement sharing an animal control contractor with the Waratah-Wynyard Council. As a result of this review recruitment was undertaken during the year and Council recruited a part time Animal Control Officer with Council as a means of providing better value service at both Councils. Council undertook a public engagement exercise to both review the Dog Management Policy and identify sites in Circular Head that could be utilised for off lead dog exercise. As a result of this four sites were declared as off lead dog exercise areas. For more details see www.circularhead.tas.gov.au/dogexercise . During 2014/2015 Council’s Facebook page was used with greater effect to re-unite stray dogs with their owners.

Building Control Council undertakes a number of functions under the Building Act 2000 operating parallel with industry to ensure that the built environment is both safe and effective for purpose. Council acts in capacity as a Permit Authority administering the system for approval of building works. Council has not provided building surveying certification services since 2005. Works requiring a permit are required by state law to be prepared by an accredited designer, certified by a Building Surveyor before lodgement with the Council Permit Authority. Council’s role as a Permit Authority is largely an administrative and record keeping function. During the reporting

Lee Park (Fossey St): Off lead dog exercise

http://www.circularhead.tas.gov.au/secondSiteArea/dogexercise


period Council participated in a State Government review of this system. Changes have been flagged for implementation in the coming year which would streamline this permit process. During the reporting period 119 Building Permits were issued, which was up on 2013/2014 but still low in terms of long term trends. The second role of Council is upholding the requirements of the state Building Act 2000 for building and plumbing standards. Council shares a Plumbing Compliance Officer with Waratah-Wynyard Council to undertake the auditing of the minimum 20% of plumbing work. This is concentrated on higher risk systems (for example on-site wastewater management systems). Advice on state requirements forms part of Council’s role. Development Services staff were invited to participate in a local ‘tradies’ forum in August 2014 where information was able to be exchanged.

Administration of Burials at Council Cemeteries Council maintains five cemetery sites. Cemetery records and plot allocation is administered through the Development Services department. Maintenance of the facilities is undertaken by Council’s Works Plus unit. The new section of the Circular Head Lawn Cemetery was commissioned in 2014/2015.

Land Use Planning The Land Use Planning and Development Control function of Council fits within the Resource Management and Planning System in Tasmania. Council is focussed on sustainable development principles and the maintenance and enhancement of land use planning and control. The role of planning is both strategic and regulatory, and aims to promote effective land use whilst upholding development standards that promote effective land use and the avoidance of conflicting uses and impacts on amenity. The 2014/2015 period was the first full year operating under the Circular Head Interim Planning Scheme 2013. During the year there was a significant amount of work undertaken as part of the Tasmanian Planning Commission’s review of the Cradle Coast Region’s interim planning schemes. The outcomes of this work are likely to converge during 2015/2016 with the work of the Tasmanian Planning Reform Taskforce. The investment of Council into the standardisation of planning schemes since 2007 has been significant to date without a tangible way of measuring the impact.

Public and Environmental Health Council’s Public and Environmental Health unit plays a key role in the provision of a range of public and environmental health services to the community. Circular Head Council has an arrangement with Burnie City Council for the provision of Environmental Health Services. This is part of the shared services arrangement between Burnie City, Waratah-Wynyard and Circular Head Councils.


The Public Health Act 1997 outlines requirements relating to public health, including provisions for disease control, regulation of at risk premises, powers over unhealthy premises and monitoring of both drinking and recreational water quality. The Act is supported by a variety of guidelines and referenced standards that Council must enforce. Recreational Water Quality monitoring of beaches continued to focus on Tatlows and Godfreys Beaches in Stanley, together with Detention River and Crayfish Creek. The results at Stanley consistently meet guideline values over the long term. The microbiological water quality at Detention River and Crayfish Creek continue to be changeable depending upon climatic conditions, resulting in the continued presence of warning signage first erected during 2005/2006. During the reporting period the 2014 extended immunisation program was completed with students in grade 7 & 9. This brought forward immunisations so that from 2015 onwards all immunisations are given in grade 7. Under the Food Act 2003 Council is responsible to protect public health by registering and assessing food businesses and responding to complaints of defective food. Providing information on food safety standards is also an important aspect of food safety, with an online training tool being provided on Council’s website. Environmental Health covers a range of environmental management issues from responding to pollution incidents to assessing the environmental impact of development proposals. Inspection of Dairy Effluent systems are now undertaken by the Tasmanian Dairy Industry Authority (TDIA) as part of licence and compliance checks. Any pollution incidents that are reported or are referred by the TDIA are followed up by Council under the state Environmental Management and Pollution Control Act 1994. A review of dairy effluent systems for new or replacement dairies is undertaken prior to approvals. The dairy industry has invested in training for dairy effluent system design personnel which is resulting in systems that are able to be managed better and reduce potential for pollution incidents.

Public Building Safety Council owned public buildings are subject to an ongoing maintenance program incorporating the essential safety and health features of the building as well as the overall building itself. Non Council owned public buildings have been registered as Places of Public Assembly. Through this registration process, a point of educating building owners of their obligations for essential annual maintenance requirements under the Building Act 2000 is achieved. 2014/2015 was the final year where such premises will require license as a Place of Assembly following amendments to the Public Health Act 1997.


Progress on Major Projects in Development

% Complete

Participation in Regional Planning Review process 100%

Report to Council on Land Use Planning enquiries and issues 100%

Maintenance of the assessment program for environmentally relevant activities (including Level 1)

100%

Monitoring of recreational water quality 100%

Investigate memorial and flower placements in relation to personal safety at cemeteries

100%

Review of legislative changes in Building, Planning, Environmental Health and Animal Control promoting Council's interests and the distribution of information to the community

100%

Maintenance of the annual assessment program for premises covered by the Public Health and Food Acts

100%

School immunisation program for grade 7 and grade 10 students in accordance with current immunisation schedule

100%

Monitor public building safety 100%

Education and training of staff in legislative change and legal precedence 100%


Audit of plumbing work in compliance of Building Act 100%

Actively monitor animal control contract, including reporting and statistics 100%

Report to Council on compliance and nuisance enquiries and issues 100%

Review provision of Development Services and Engineering Services information to customers including Councils website to ensure it meets current requirements

100%



ECONOMIC DEVELOPMENT

Economic Development

Circular Head is well placed to take advantage of significant economic development opportunities. Circular Head has excellent prospects for developing and value adding of the rich resources in the area. The Council continues to develop a working relationship with existing and potential industry to grow the local economy. Council financially supports the Circular Head Tourism Association, Circular Head Progress Group and the Cradle Coast Authority and partners with these groups to deliver economic development benefits to not only Circular Head but the broader region. The Council has actively participated in the following:

Supporting a report into the economic importance of the Bass Highway into Circular Head, and advocacy for increased funding to see the road continue to support the wealth generation originating from Circular Head,

Assisted the Circular Head Progress Group in having a report into Agricultural Land Use and Dairy Conversion Initiatives. This report will form the basis to involve other levels of government in the proposed expansion of agricultural land in Circular Head,

Completion of electricity transmission along Harcus River Road to allow for further expansion of the dairy industry,

Further sale and release of Council’s commercial subdivision in Nelson Street, Smithton. Notable projects which were undertaken in Circular Head for the 2014/2015 year include:

Completion of the Tarkine Drive Loop Road,

Construction of Ta Ann Tasmania Ply Wood Mill.

Progress on Major Projects in Economic Development

% Complete

Economic importance of the Bass Highway, Smithton to Burnie 100%

Initiative to grow dairy industry in Circular Head 100%


Electricity transmission works on Harcus River Road


ENGINEERING


Engineering Services is responsible for professional and technical management and support for various organisational functions, including:

Strategic Asset Management

Customer service

Project management

Management of Civil Design consultants

Development application assessment in terms of community infrastructure impacts and requirements

Asset management

Physical infrastructure renewal and replacement

Contract management

Solid waste management

Civil works designs are completed each year for various capital projects from our Strategic Asset Management Plan and operational issues using a combination of internal Engineering Services staff and external consultants. The Engineering Services team receives customer enquiries on a range of issues, such as the condition of a road or connection to Council’s stormwater network. These enquiries come from a range

of different stakeholders, from internal staff and ratepayers to Councillors and other government departments. One of the most important functions provided by the Engineering Services team is that of sustainable asset management. In broad terms asset management objectives aim to ensure the most appropriate whole-of-life strategies are incorporated when selecting, constructing, maintaining or replacing assets. This ensures that appropriate infrastructure and service levels can be provided whilst minimising the long-term cost to the community. Developing robust asset management systems and procedures allows better informed decision making and protects the long-term needs of ratepayers and the community in general. Asset management plans are progressively being developed across all classes of Council’s infrastructure assets and these initial plans will form the baseline for future versions and improvements/enhancements.


Works Plus

Operating as a separate Business Unit, Works Plus is Council's dedicated and skilled works team, responsible for construction and maintenance of all Council’s built infrastructure. Performing many activities relating to the maintenance of Council's physical assets, Works Plus also perform routine inspections on a regular basis and any defects are programmed for repair. Additionally, customer requests related to built infrastructure lodged with Council by phone, email or over the customer services counter are logged and tracked for completion status.

During this financial year Works Plus has undertaken significant infrastructure projects (including Paceys Road bridge and Irishtown Road upgrade) which are in line with Council’s commitment to undertake capacity building and provision of increased employment opportunities within our municipality.

For Works Plus’ construction and maintenance activities, unit prices are determined by benchmarking or other competitive processes. Works Plus also has the capability to offer a private works service for civil construction activities such as subdivision works and driveways.

Drainage

Drainage activities undertaken by Council are split between the urban catchments of Smithton and Stanley. The urban drainage systems aims to provide for the integrated management, collection and control of stormwater runoff within the urban drainage districts of Smithton and Stanley. Drainage of urban stormwater is typically by underground piped systems which collect runoff from kerb and channel, properties, public reserves and roadways. There are also open drainage systems that involve natural flow paths and minor creek systems through the urban areas. Development of Urban Stormwater Management Plans to protect and plan for the needs of the community in the medium and long term is also being undertaken. Rivers within the Circular Head municipality are dealt with by the State Government, under the Department of Primary Industries, Parks, Water and Environment.

Parks and Reserves

This activity provides for the management, maintenance and enhancement of a wide range of parks, gardens, cemeteries and reserves

Playground equipment upgrade woks


within the municipality. The amenities provided and maintained by Council include a camping ground at Montagu, parks and gardens in Stanley and Smithton, walkways in Stanley and Smithton, as well as recreational facilities at Dip Falls, Marrawah and Brickmakers Beach. Council also maintains five cemetery sites in the Municipality. Cemetery records and plot allocation is administered through the Development Services Department. Maintenance of the facilities is coordinated by the Department Manager and is contracted out to Works Plus, Council’s civil construction arm.

Solid Waste Management Kerbside garbage (wheelie bin) collection services are provided to residential properties in the urban centres in Stanley and Smithton on a weekly basis, whilst fortnightly collections are provided to the wider rural areas. Kerbside recycling collection is provided to the urban centres of Smithton and Stanley fortnightly. The White Hills Transfer Station on Bass Highway, Smithton is open 7 days a week 10am to 4pm all year around (although closed on Christmas Day, Boxing Day, New Year’s Day, Good Friday & Anzac Day) and has provision for depositing recyclables at no out of pocket cost to the customer. The community may also dispose of general waste and domestic recyclables at the White Hills Waste Transfer Station. All waste is then transported to the Port Latta Landfill site, which also receives waste from other statewide sources. The Port Latta Landfill site is one of Council’s major facilities, operating under strict environmental controls administered by the Environmental Protection Authority.

Transport

The Circular Head municipality is serviced by approximately 768 km of road network, made up of 294 km of sealed roads and 474 km of unsealed gravel roads. In addition, 121 bridges and culverts serve the community, of which 46 are of timber construction. There are approximately 30 km of footpaths, 60 km of kerb and channel, and numerous associated items such as guardrail, guideposts, signs, culverts, roundabouts, street seating and traffic islands which Council provides and maintains as part of the transport network.


Given the high level of primary and secondary production in this municipality across a wide range of industries, an efficient transport network plays a crucial role. Council's road network carries a relatively high proportion of heavy vehicles (average 17%). This places increased demands on road and maintenance programs. Annual bitumen resealing programs for the sealed roads and gravel resheeting

programs for the unsealed gravel roads are conducted to ensure longevity and trafficability of the road surface. Periodic reconstruction of roads occurs when they have reached the end of their life and require renewal. Annual maintenance and reconstruction works are undertaken on a contractual basis by Council's in house business unit Works Plus, supplemented as required by private contractors.

Weed Strategy Weed activities over the year had a continued focus on education and weed surveillance activities, in addition to development and implementation of appropriate control and containment strategies for the region. Consultation with like-minded stakeholders (other Councils, State Government and the private sector) has gained momentum and through this process we can glean that while the size and types of weed infestations may differ (although many are similar) generally all weed managers face the same logistical issues. The priority weed species being targeted within Circular Heads’ weed strategy continue to include Ragwort, Gorse, Pampas Grass and Californian Thistle however there is a need for lateral vision and discussion to ensure that any new incursions do not establish. Council’s Weed Control Officer has continued to address day to day weed management issues within Council controlled land, while engaging and working with both private and Government stakeholders to achieve improved weed management outcomes in their areas of jurisdiction. Progress on Major Projects in Engineering

% Complete

White Hills Transfer Station maintained and operated to contract conditions 100%

Port Latta maintained and operated to contract and licence/EPN requirements 100%

Monitor Works Plus operations 100%

Strategic Plan development for Port Latta Landfill Site 100%


Initiate procurement solutions to both Councils which demonstrate effectiveness or efficiency gains

100%



FINANCE

Financial Services Financial Services includes the provision of accounting and financial management services to the organisation, collection of rates and other revenue, payment of accounts, compliance with applicable Australian Accounting Standards, payroll, information technology and property management.

Financial Management The Statement of Financial Performance recorded a surplus of $26,415,674 compared to a deficit of $3,154,023 last year. The reason for the large surplus is due to Council recognising earthworks for the first time of $24.2 million. Also, the State Grants Commission paid the first instalment of approximately $1.5 million in Financial Assistance Grants in advance, leaving a more reflective underlying surplus of $668,000. There were variations in each category of the income statement with the largest being an increase in grant revenue of $1.5 million due to Financial Assistance Grants being paid in advance, and reduction in transport infrastructure depreciation of $330,000 due to a revaluation of the seal component of road assets. Cash and cash reserves remained at a positive level. Cash moved from $7 million in 2013/2014 to $9.3 million in 2014/2015. Existing borrowings decreased by $365,000 over the period.

Council’s share in the Water Corporation is 1.58% (as per the draft Treasurer’s Report). Council recorded a net increase on its investment in TasWater of $195,000 for the year. Council’s current investment equates to approximately $24.5 million in the regional body.

Long Term Financial Plan The Council prepared its first 10 year Long Term Financial Plan in 2015. The purpose of the plan is to prepare a forecast of Council’s resourcing requirements for serving the community for a 10 year period to demonstrate its capacity to deliver its Strategic Plan. The Long Term Financial Plan integrated with the Strategic Asset Management Plan is the key tool necessary for demonstrating financial sustainability. The plan is a first cut, and has a section for continuous improvement. Overall the Council is in a sound financial position. It has excellent liquidity and cash flow, with a healthy level of cash reserves and low debt. Council have a number of financial challenges over the life of the plan.


The Income Statement has projected 8 years of operating deficits, and 2 years of operating surpluses. In overall terms, Council are meeting most of their ratio targets apart from the Operating Surplus ratio. In terms of the improvement program, some of the areas that Council will be concentrating on in the next 12 months include:

Sealed road pavement depreciation useful lives

Stormwater depreciation and useful lives

Completion of Information Technology services review, and

Continued lobbying for the reintroduction of the Financial Assistance Grants indexation. Progress on Major Projects in Finance

% Complete


Manage 2013/2014 carried forward figures 100%

Barcoding for Council customer service areas 100%

Preparation of 2013/2014 financial statements by 14 August 2014 100%

Preparation of 2015/2016 budget by 30 June 2015 100%

Progress on implementation of electronic Development Application lodgement and tracking system

100%



THE YEAR AHEAD

General rate revenue increase of 2.80%

$60,000 - development of open space and recreation plan

$22,500 - energy efficient upgrades to Council operated buildings

$50,000 - Smithton Landscape Development Strategy

$900,000 - rural road re-sheeting

$180,000 - renewal of road pavement Mella Road

$280,000 - renewal of road pavement Trowutta Road/Grooms Cross Road junction West

$7,000 - bus shelter Forest

$541,000 - bridge renewals

$190,000 - Sampson Avenue infrastructure renewal

$300,000 - Rocklyn Road upgrade

$126,500 - renew footpath, Forest

$32,000 - Stanley Town Centre Master Plan

$10,000 - Website upgrade

Introduction of urban stormwater rate


FINANCIAL STATEMENTS AND AUDITOR’S REPORT


Comprehensive Income Statement for the Year Ended 30 June 2015

Actual Budget Actual

2015 2015 2014

Note $ $ $

Recurrent Income

Rates 3 7,212,058 7,152,459 6,967,329

Interest 232,034 350,000 323,376

Grants 4 4,578,486 2,914,459 1,526,119

User charges 5 1,627,376 1,564,324 1,566,208

Investment Revenue from Water Corporation 7 474,000 474,000 700,276

Other income 6 1,091,884 361,804 657,483

Total Income 15,215,838 12,817,046 11,740,791

Capital Income

Recognition of assets 24,247,083 - -

Gain on investment - - 50,777

Grants 4 813,324 508,808 793,354

Total Income 40,276,245 13,325,854 12,584,922

Expenses

Loss on disposal of assets 8 530,544 (150,000) 170,141

Employee costs 9 4,419,761 4,760,478 4,599,042

Materials and contracts 10 2,646,680 2,300,476 2,648,726

Depreciation and amortisation 11 3,937,006 4,461,018 4,239,571

Finance costs 12 59,218 59,217 87,454

Other expenses 13 2,267,363 2,170,986 3,994,011

Total expenses 13,860,572 13,602,175 15,738,945

Surplus (deficit) 26,415,673 (276,321) (3,154,023)

Other comprehensive income

Items that will not be reclassified to surplus or deficit

Recognition of assets

Asset Revaluations 43 (3,908,451) - 9,021,388

(3,908,451) - 9,021,388

Items that may be reclassified subsequently to surplus or deficit

Financial Assets available for sale reserve

- Fair value adjustment on available for sale assets 42 194,846 - 1,754,651

Comprehensive Result 22,702,068 (276,321) 7,622,016


Statement of Financial Position as at 30 June 2015

Actual Actual

2015 2014

Note $ $

Current Assets

Cash and cash equivalents 14 9,307,424 7,048,613

Receivables 16 490,004 1,001,217

Inventories 17 129,899 143,333

Other current assets 18 83,916 65,839

Total Current Assets 10,011,243 8,259,002

Land 19 8,850,111 8,787,113

Land under roads 20 1,422 1,422

Buildings 21 9,860,844 10,009,415

Transport infrastructure 22 120,785,472 97,679,871

Stormwater and drainage 23 7,682,754 10,482,512

Solid waste management 24 1,835,202 597,467

Parks, reserves and recreation facilities 25 3,747,023 3,439,305

Plant and equipment 26 2,235,299 1,747,023

Furniture 27 24,620 25,138

Computers 28 409,471 514,064

Works in progress 29 102,000 1,666,627

Investment Water Corporation 42 24,464,025 24,269,179

Total Non Current Assets 179,998,243 159,219,136

TOTAL ASSETS 190,009,486 167,478,138

Current Liabilities

Payables 30 1,096,811 958,011

Provisions 31 939,240 867,701

Borrowings 32 327,454 365,178

Total Current Liabilities 2,363,505 2,190,890

Non Current Liabilities

Provisions 31 171,151 187,032

Borrowings 32 348,443 675,897

Total Non Current Liabilities 519,594 862,929

TOTAL LIABILITIES 2,883,099 3,053,819

NET ASSETS 187,126,387 164,424,319

Equity

Accumulated surplus 119,364,206 92,948,533

Reserves 43 67,762,181 71,475,786

TOTAL EQUITY 187,126,387 164,424,319


Statement of Changes in Equity For year ended 30 June 2015

Total Accumulated Surplus Asset Revaluation

Reserve Fair Value Reserve Other Reserves

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

$ $ $ $ $ $ $ $

Balance at beginning of the financial year

164,424,319 156,802,303 92,948,533 96,102,556 69,181,076 60,159,688 2,181,554 426,903 113,156 113,156

Surplus before comprehensive income

26,415,673 (3,154,023) 26,415,673 (3,154,023)

Financial assets available for sale reserve

─ Fair Value initial adjustment on Final Treasurer's Allocation Order

─ Fair Value adjustment on Available for Sale Assets

194,846 1,754,651 194,846 1,754,651

Transfers to (from) accumulated surplus

Net asset revaluation increment/(decrement)

(3,908,451) 9,021,388 (3,908,451) 9,021,388

Net asset revaluation increment/(decrement)

Balance at end of the year 187,126,387 164,424,319 119,364,206 92,948,533 65,272,625 69,181,076 2,376,400 2,181,554 113,156 113,156


Page 63

Statement of Cash Flows For year ended 30 June 2015 2015 2014

Note $ $

Cash flows from operating activities

Cash Used

Employee costs (4,425,359) (4,332,241)

Materials and contracts (3,573,486) (4,048,612)

Interest paid (59,792) (88,897)

Other supplier payments (2,271,182) (3,999,868)

(10,329,819) (12,469,618)

Cash Received

Rate revenue 7,346,343 7,208,315

Other revenue and user charges 3,334,539 2,523,814

Grants 4,578,486 1,526,119

GST recovered from tax authority 888,259 888,260

Interest received 232,034 323,375

Water Corporation Investment Returns 474,000 700,276

16,853,661 13,170,159

Net Cash provided by operating activities 37 6,523,842 700,541

Cash flows from investing activities

Gain on investment

Payments for property, plant and equipment (5,126,837) (5,590,323)

(5,126,837) (5,590,323)

Cash Received

Proceeds from sale of property, plant and equipment 413,659 172,910

Capital grants 813,324 793,354

Proceeds from investment maturity - 843,324

1,226,983 1,809,588

Net cash provided by (used in) investing activities (3,899,854) (3,780,735)

Cash flows from financing activities

Cash Used

Repayment of borrowings (365,177) (404,400)

(365,177) (404,400)

Net cash provided by (used in) financing activities (365,177) (404,400)

Net Increase (decrease) in cash and cash equivalents 2,258,811 (3,484,594)

Cash and cash equivalents at beginning of the financial year 7,048,613 10,533,207

Cash and cash equivalents at end of the financial year 14 9,307,424 7,048,613


Page 64

NOTES TO FINANCIAL STATEMENTS

INTRODUCTION (a) The Circular Head Council (Council) was established on 27 August 1907 and is a

body corporate with perpetual succession and a common seal.

The Council’s Administration Centre is located at 33 Goldie St, Smithton.

The purpose of the Council is to:

provide for the peace, order and good government in the municipality;

to promote the social, economic and environmental viability and

sustainability of the municipal area;

to ensure that resources are used efficiently and effectively and services

are provided in accordance with the Best Value Principles to best meet

the needs of the local community;

to improve the overall quality of life of people in the local community;

to ensure that services and facilities provided by the Council are

accessible and equitable;

to ensure the equitable imposition of rates and charges; and

to ensure transparency and accountability in Council decision making.

This financial report is a general purpose financial report that consists of the

Statements of Comprehensive Income, Financial Position, Changes in Equity, Cash

Flows, and notes accompanying these financial statements. The general purpose

financial report complies with Australian Accounting Standards, other authoritative

pronouncements of the Australian Accounting Standards Board (AASB), and the

Local Government Act 1993 (LGA1993) (as amended).

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(A) BASIS OF ACCOUNTING

This financial report has been prepared on the accrual and going concern basis. This

financial report has been prepared under the historical cost convention, except where

specifically stated.

Unless otherwise stated, all accounting policies are consistent with those applied in

the prior year. Where appropriate, comparative figures have been amended to accord

with current presentation, and disclosure has been made of any material changes to

comparatives.

All entities controlled by Council that have material assets or liabilities, such as

Special Committees of Management, and material subsidiaries or joint ventures, have

been included in this financial report. All transactions between these entities and

Council have been eliminated in full. Details of entities not included in this financial

report based on their materiality are detailed in note 35.


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Judgements and Assumptions

In the application of Australian Accounting Standards, Council is required to make

judgements, estimates and assumptions about carrying values of assets and liabilities

that are not readily apparent from other sources. The estimates and associated

assumptions are based on historical experience and various other factors that are

believed to be reasonable under the circumstances, the results of which form the basis

of making the judgements. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimate is

revised if the revision affects only that period or in the period of the revision and

future periods if the revision affects both current and future periods.

All entities controlled by Council that have material assets or liabilities, such as

Special Committees of Council, have been included in this financial report. All

transactions between these entities and Council have been eliminated in full.

Council has made no assumptions concerning the future that may cause a material

adjustment to the carrying amounts of assets and liabilities within the next reporting

period. Judgements made by Council that have significant effects on the financial

report are disclosed in the relevant notes as follows:

Employee entitlements

Assumptions are utilised in the determination of Council’s employee entitlement

provisions. These assumptions are discussed in note 1(e).

Defined benefit superannuation fund obligations

Actuarial assumptions are utilised in the determination of Council’s defined benefit

superannuation fund obligations. These assumptions are discussed in note 33.

Fair value of property, plant & equipment

Assumptions and judgements are utilised in determining the fair value of Council’s

property, plant and equipment including useful lives and depreciation rates. These

assumptions are discussed in note 1(d).

Council has undertaken a review of the useful lives of both stormwater and transport

infrastructure assets in the current reporting period.

Investment in water corporation

Assumptions utilised in the determination of Council’s valuation of its investment in

TasWater are discussed in note 1(g) and in note 42.

(B) ADOPTION OF NEW AND AMENDED ACCOUNTING STANDARDS

(i) AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements,

AASB 12 Disclosure of Interests in Other Entities, revised AASB 127 Separate

Financial Statements, AASB 128 Investments in Associates and Joint Ventures and

the relevant amending standards, AASB 2013-8 Amendments to Australian


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Accounting Standards- Australian Implementation Guidance for Not-for-Profit

Entities - Control Structured Entities, AASB 2011-7 Amendments to Australian

Accounting Standards arising from the Consolidation and Joint Arrangements

Standards, AASB 1012-10 Amendments to Australian Accounting Standards -

Transition Guidance and other amendments (effective from 1 January 2014).

AASB 10 replaces all of the guidance on control and consolidation in AASB 127

Consolidated and Separate Financial Statements, and Interpretation 12 Consolidation

– Special Purpose Entities. The core principle that a consolidated entity presents a

parent and its subsidiaries as if they are a single economic entity remains unchanged,

as do the mechanics of consolidation. However, the standard introduces a single

definition of control that applies to all entities. It focuses on the need to have both

power and rights or exposure to variable returns. Power is the current ability to direct

the activities that significantly influence returns. Returns must vary and can be

positive, negative or both. Control exists when the investor can use its power to affect

the amount of its returns. There is also new guidance on participating and protective

rights and on agent/principal relationships. Council has undertaken an assessment and

no material changes to the composition of Council's accounts are anticipated from the

application of the new standard.

(ii) AASB 11 introduces a principles based approach to accounting for joint

arrangements. The focus is no longer on the legal structure of joint arrangements, but

rather on how rights and obligations are shared by the parties to the joint arrangement.

Based on the assessment of rights and obligations, a joint arrangement will be

classified as either a joint operation or a joint venture. Joint ventures are accounted for

using the equity method, and the choice to proportionately consolidate will no longer

be permitted. Parties to a joint operation will account their share of revenues,

expenses, assets and liabilities in much the same way as under the previous standard.

AASB 11 also provides guidance for parties that participate in joint arrangements but

do not share joint control.

Council's investment in the joint venture partnership will be classified as a joint

venture under the new rules. As Council already applies the equity method in

accounting for this investment, AASB 11 will not have any impact on the amounts

recognised in its financial statements.

AASB 12 sets out the required disclosures for entities reporting under the two new

standards, AASB 10 and AASB 11, and replaces the disclosure requirements currently

found in AASB 127 and AASB 128. Application of this standard by Council will not

affect any of the amounts recognised in the financial statements, but will impact the

type of information disclosed in relation to Council's investments.

Amendments to AASB 128 provide clarification that an entity continues to apply the

equity method and does not re-measure its retained interest as part of ownership

changes where a joint venture becomes an associate, and vice versa. The amendments

also introduce a “partial disposal” concept. Council is still assessing the impact of

these amendments.

AASB 2013-8 Amendments to Australian Accounting Standards- Australian

Implementation Guidance for Not-for-Profit Entities - Control Structured Entities


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adds guidance to AASB 10 regarding criteria for determining whether one entity

controls another entity from the perspective of not-for-profit entities.

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

Consolidation and Joint Arrangements Standards gives effect to many consequential

changes to a number of standards arising from the issuance of the new consolidation

and joint arrangements standard.

AASB 1012-10 Amendments to Australian Accounting Standards - Transition

Guidance and other amendments provides guidance on amendments to AASB 10,

AASB 11, and AASB 12 to simplify transition and provide relief from the disclosures

in respect of unconsolidated structure entities on transition to the suite of

consolidation standards. Also, provides guidance on the additional amendments to

AASB 10 and related standards to revise their application paragraphs, so that they

apply mandatorily to not-for-profit entities.

(iii) AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting

Financial Assets and Financial Liabilities [AASB 132] (effective 1 January 2014)

This standard adds application guidance to AASB 132 to address inconsistencies

identified in applying some of the offsetting criteria of AASB 132, including

clarifying the meaning of “currently has a legally enforceable right of set-off” and that

some gross settlement systems may be considered equivalent to net settlement.

The adoption of this standard will not change the reported financial position and

performance of Council.

(iv) AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for

Non-Financial Assets (effective from 1 January 2014)

This standard amends the disclosure requirements of AASB 136. The amendments

include the requirement to disclose additional information about the fair value

measurement when the recoverable amount of impaired assets is based on fair value

less costs of disposal. The adoption of this standard will not impact Council's

accounting policies but may result in changes to information disclosed in the financial

statements.

(v) AASB 2013-9 Amendments to Australian Accounting Standards - Conceptual

Framework, Materiality and Financial Instruments(Part A - Conceptual Framework

effective from 20 December 2013; Part B - Materiality effective from 1 January 2014;

Part C - Financial Instruments effective from 1 January 2015)

Part A of this standard updates references to the Framework for the Preparation and

Presentation of Financial Statements in other standards as a consequence of the issue

of AASB CF 2013-1 in December 2013.

Part B of this standard deletes references to AASB 1031 Materiality in various other

standards. Once all references to AASB 1031 have been deleted from all Australian

Accounting Standards, AASB 1031 will be withdrawn.

Part C of this standard amends AASB 9 Financial Instruments to add Chapter 6 Hedge

Accounting and makes consequential amendments to AASB 9 and numerous other


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standards. Part C also amends the effective date of AASB 9 to annual reporting

periods beginning on or after 1 January 2017, instead of 1 January 2015.

The adoption of this standard will not impact Council's accounting policies.

Part C of this standard amends AASB 9 Financial Instruments to add Chapter 6 Hedge

Accounting and makes consequential amendments to AASB 9 and numerous other

standards. Part C also amends the effective date of AASB 9 to annual reporting

periods beginning on or after 1 January 2017, instead of 1 January 2015.


(vi) Interpretation 21 Levies

This Interpretation provides clarity that a liability to pay government imposed levies,

other than income taxes, is deferred until thresholds are exceeded.


(vii) AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value

Disclosures of Not-For-Profit Public Sector Entities (effective from 1 July 2016 and

may be early adopted).

This standard amends AASB 13 Fair Value Measurement to provide relief to not-for-

profit public sector entities from certain disclosures about the fair value measurement

of property, plant and equipment held for their current service potential rather than to

generate net cash inflows.

The adoption of this standard will effect disclosure requirements for Councils assets

that are measured at fair value and categorised within Level 3 of Councils fair value

hierarchy.

(C) PENDING ACCOUNTING STANDARDS Certain new accounting standards and interpretations have been published that are not

mandatory for 30 June 2015 reporting periods. Council's assessment of the impact of

these new standards and interpretations is set out below:

(i) AASB 9 Financial Instruments and the relevant amending standards (effective

from 1 January 2018)

AASB 9 is one of a series of amendments that are expected to replace AASB 139

Financial Instruments: Recognition and Measurement. The main impact of the

standard is to change the requirements for the classification, measurement and

disclosures associated with financial assets. Under the new requirements the four

categories of financial assets in AASB 139 will be replaced with two measurement

categories: fair value and amortised cost.

Amortised cost is to be used for assets with contractual terms giving rise to principal

and interest payments.


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Fair value is to be used for all other financial assets. Gains or losses on financial

assets at fair value are to be recognised in profit and loss unless the asset is part of a

hedging relationship or an irrevocable election has been made to present in other

comprehensive income changes in the fair value of an equity instrument not held for

trading.

When adopted, the standard will affect, in particular, Council’s accounting for its

available-for-sale financial assets. Currently, Council recognises changes in the fair

value of its available-for-sale assets through other comprehensive income. Under

AASB 9 fair value gains and losses on available-for-sale assets will have to be

recognised directly in profit or loss.

However, investments in equity instruments can be designated as ‘fair value through

other comprehensive income’ assets. This designation is irrevocable. Council is likely

to designate its investment in TasWater as ‘fair value through other comprehensive

income’ and therefore the adoption of this standard will not impact the way

movements in the fair value are accounted for.

There will be no impact on Council’s accounting for financial liabilities, as the new

requirements only affect the accounting for financial liabilities that are designated at

fair value through profit or loss and Council does not have any such liabilities. The

derecognition rules have been transferred from AASB 139 Financial Instruments:

Recognition and Measurement and have not been changed.

(ii) AASB 2014-3 Amendments to Australian Accounting Standards - Accounting for

Acquisitions of Interests in Joint Operations (effective from 1 January 2016)

Under AASB 2014-3 business combination accounting is required to be applied to

acquisitions of interests in a joint operation that meets the definition of a 'business'

under AASB 3 Business Combinations.

(iii) AASB 2014-4 Amendments to Australian Accounting Standards - Clarification of

Acceptable Methods of Depreciation and Amortisation (effective from 1 January

2016)

This amendment introduces a rebuttable presumption that the use of revenue-based

amortisation methods for intangible assets is inappropriate. In addition to this, there is

limited opportunity for presumption to be overcome and clarifies that revenue-based

depreciation for property, plant and equipment cannot be used.

(iv) AASB 2015-2 Amendments to Australian Accounting Standards - Disclosure

Initiative: Amendments to AASB 101 (effective from 1 January 2016)

The amendments to AASB 101 do not require any significant change to current

practice, but should facilitate improved reporting, including emphasis on only

including material disclosures, clarity on the aggregation and disaggregation of line

items, the presentation of subtotals, the ordering of notes and the identification of

significant accounting policies.

(v) AASB 2015-6 Amendments to Australian Accounting Standards - Extending

Related Party Disclosures to Not-for-Profit Public Sector Entities(effective from 1

January 2016)


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The amendments extend the scope to AASB 124 Related Party Disclosures to include

not-for-profit public sector entities.

(vi) AASB 15 Revenue from Contracts with Customers, and AASB 2014-5

Amendments to Australian Accounting Standards arising from AASB 15(effective

from 1 January 2017)

Under the new standard, a single model that applies to contracts with customers and

two approaches to recognising revenue, at a point in time or over time is proposed.

The model features a contract-based five-step analysis of transactions to determine

whether, how much and when revenue is recognised.

The new standard will apply to contracts of not-for-profit entities that are exchange

contracts. AASB 1004 Contributions will continue to apply to non-exchange

transactions until the Income from Transactions of Not-for-Profit Entities project is

completed.

(C) LOCAL GOVERNMENT REPORTING ENTITY All funds through which Council as a general purpose reporting entity controls

resources to carry out its functions have been included in the financial statements of

the Council.

In the process of reporting for the Council as a single unit, all transactions and

balances between Council and Special Committees (e.g. loans and transfers) have

been eliminated. The recording of transactions and balances for internal borrowing

has also been eliminated. The financial reports of the Council incorporate only those

items over which the Council has control.

Trust Funds

The Council receives monies as an agent for the State Government. As Council

performs only a custodial role in respect of these monies, and because the monies

cannot be used for Council purposes, they are excluded from the financial statements.

Amounts received as tender deposit and retention amounts controlled by Council are

included in the amount disclosed as “payables” within Current Liabilities.

(D) ASSETS

i) Acquisition of Assets The cost method of accounting is used for the initial recording of all

acquisitions of assets.

The cost of acquisition includes the fair value of assets transferred in exchange

and liabilities undertaken. Cost is determined as the fair value of the asset

given as consideration plus costs incidental to the acquisition (e.g. architects

fees, engineering design fees, administration charges and all other costs

incurred) in getting the asset ready for use.


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Non-monetary assets received in the form of grants, donations or at nominal

consideration are recognised as assets and revenues at their fair value at the

date of receipt. (Fair value meaning: the amount for which an asset could be

exchanged, between a knowledgeable, willing buyer and a knowledgeable,

willing seller in an arms-length transaction).

Non-Current Assets Constructed by Council

The cost of non-current assets constructed by the Council includes the cost of

all materials used in the construction, direct labour on the project and an

appropriate proportion of variable and fixed overheads. The cost of materials

includes consulting and engineering fees.

Asset values are net of the Goods and Services Tax component.

ii) Classification and Valuation of Non-Current Assets Land, land under roads, buildings, transport infrastructure and stormwater and

drainage are measured at Fair Value. All other asset values are measured at

cost.

Where assets are recorded at valuation, the valuation has been performed by

Council officers with the exception of land, land under roads and buildings

which have been valued by the Tasmanian Valuer-General.

Infrastructure assets at valuation are at written down replacement cost.

Replacement cost is the current cost of a new asset that could provide the same

service as an existing asset. Accumulated depreciation or amortisation

recognises the amount of the replacement cost that is pro-rata to the proportion

of the asset’s useful life that has expired.

iii) Revaluation Policy Where assets are revalued, the revaluation increments are credited directly to

the asset revaluation reserve. Net revaluation decrements will be debited to

any previous revaluation increments for that class of assets, with any

deficiency being recognised as an expense. Assets are revalued with such

frequency as to ensure the carrying value does not differ materially from fair

value at reporting date.

The Council has adopted the following valuation bases for its non-current

assets:

Land Fair Value

Land under roads Fair Value

Buildings Fair Value

Transport Infrastructure Fair Value

Stormwater and Drainage Fair Value

Solid Waste Management Cost

Parks, Reserves and Recreation Facilities Cost

Plant and Equipment Cost

Furniture and Computers Cost

iv) Depreciation of Non-Current Assets


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All non-current assets, which have a limited useful life, are systematically

depreciated over the useful life in a manner that reflects the consumption of

the service potential of those assets. Land and land under roads are generally

not depreciable assets. Non-current assets are those which provide a benefit to

Council extending beyond twelve (12) months. Depreciation is recognised as

per the schedule below. Rates of depreciation reflect the consumption of the

service potential of these assets and are reviewed annually.

The current schedule of rates for depreciation is:

Classification Useful Life

Buildings 30 - 100 years

Plant and Equipment 3 - 17 years

Transport Infrastructure 8 - 150 years

Stormwater and Drainage 50 - 100 years

Parks, Reserves and Recreational Facilities 10 - 80 years

Furniture and Computers 3 - 25 years

Solid Waste Management 25 - 60 years

Land, heritage, artworks and road earthworks are not depreciated on the basis

that they are assessed as not having a limited useful life.

Fleet, being motor vehicles and light commercials, are included in the Plant

and Equipment asset category.

Council utilises residual values from some items of plant and equipment and

all fleet vehicles. An average of 25% of the purchase price is used as the

residual.

v) Maintenance vs. Capitalisation Officers of the Council determine at the occurrence of an event whether to

capitalise/expense expenditure. The following formula is provided as a guide

“...maintenance, repair costs and minor renewals are charged as expenses as

incurred unless their total value exceeds 10% of the written down current

value and increases the economic life by more than 10%, or the net realisable

value by more than five (5) thousand dollars”.

In addition however, council’s policy as it relates to transport infrastructure is

as follows:

Transport Infrastructure

Reseals Capitalised

Road Shouldering Expensed

Reconstruction/Construction Capitalised

Gravel Re-sheeting Capitalised

Tar Patching Expensed

Road Drainage (Open) Expensed

Road Drainage (Piped) Capitalised

Signage Expensed

Line Marking Expensed

Road Verge Works Expensed

Traffic Management Capitalised

Site Survey Capitalised

Earthworks Capitalised

Clearing of trees Expensed

Disposal of materials Expensed


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Moving of services (ie Water/Phone) Expensed

Fencing Expensed

Landscaping Expensed

vi) Threshold for Recognising a New Asset The following limits apply in recognising the acquisition of new assets. When

group values have been determined the threshold applies to the group not

individual assets within that group.

Land Nil Roads As per

1(d)(v)

Plant/Machinery $1,000 Bridges $5,000

Furniture & Fittings $1,000 Buildings $5,000

Office Equipment $1,000 Recreation Facilities $1,000

Community Amenities $1,000 Parks and Gardens $1,000

Stormwater/Drainage $3,000 Playground Equipment $2,000

Asset thresholds will be reviewed in the subsequent financial year. It is

anticipated any changes will not have a material effect on the financial

statements.

vii) Land Under Roads Council has elected not to recognise land under roads prior to 1 July 2008 as

an asset in accordance with AASB 1051 Land Under Roads. Land under roads

acquired post 1 July 2008 is brought to account at cost and subsequently

revalued on a fair value basis.

viii) Impairment of assets At each reporting date, Council reviews the carrying value of its assets to

determine whether there is any indication that these assets have been impaired.

If such an indication exists, the recoverable amount of the asset, being the

higher of the asset's fair value less costs to sell and value in use, is compared to

the assets carrying value. Any excess of the assets carrying value over its

recoverable amount is expensed to the comprehensive income statement,

unless the asset is carried at the revalued amount in which case, the

impairment loss is recognised directly against the revaluation reserve in

respect of the same class of asset to the extent that the impairment loss does

not exceed the amount in the revaluation surplus for that same class of asset.

For non-cash generating assets of Council such as roads, drains, public

buildings and the like, value in use is represented by the deprival value of the

asset approximated by its written down replacement cost.

(E) EMPLOYEE BENEFITS

i) Short term obligations Liabilities for wages and salaries, including non-monetary benefits, annual

leave, rostered days off and banked hours that are expected to be wholly

settled within 12 months after the end of the period in which the employees

render the related service are recognised in respect of employees' services up

to the end of the reporting period, and are measured at the amounts expected

to be paid when the liabilities are settled including appropriate oncosts


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(superannuation, payroll tax, workers compensation). Council employed a

total of 57.18 full time equivalent staff members at the end of the financial

year (2014 – 57.08).

ii) Other long term employee benefit obligations The liability for long service leave and annual leave which is not expected to

be wholly settled within 12 months after the end of the period in which the

employees render the related service is recognised in the provision for

employee benefits and measured as the present value of expected future

payments to be made in respect of services provided by employees up to the

end of the reporting period. Consideration is given to expected future wage

and salary levels, experience of employee departures and periods of service.

Expected future payments are discounted using market yields at the end of the

reporting period on national government bonds with terms to maturity and

currency that match, as closely as possible, the estimated future cash outflows.

The obligations are presented as current liabilities in the statement of financial

position if the entity does not have an unconditional right to defer settlement

for at least twelve months after the reporting date, regardless of when the

actual settlement is expected to occur.

iii) Retirement benefit obligations All employees of the Council are entitled to benefits on retirement, disability

or death. Council contributes to various defined benefit plans and defined

contribution plans on behalf of its employees.

Defined benefit plans

A liability or asset in respect of defined benefit superannuation plans would

ordinarily be recognised in the statement of financial position, and measured

as the present value of the defined benefit obligation at the reporting date plus

unrecognised actuarial gains (less unrecognised actuarial losses) less the fair

value of the superannuation fund’s assets at that date and any unrecognised

past service cost. The present value of the defined benefit obligation is based

on expected future payments which arise from membership of the fund to the

reporting date, calculated annually by independent actuaries using the

projected unit credit method. Consideration is given to expected future wage

and salary levels, experience of employee departures and periods of service.

However, when this information is not reliably available, Council accounts for

its obligations to defined benefit plans on the same basis as its obligations to

defined contribution plans i.e as an expense when it becomes payable.

Council makes superannuation contributions for a number of its employees to

the Quadrant Defined Benefits Fund, which is a sub fund of the Quadrant

Superannuation Scheme. The Quadrant Defined Benefits Fund has been

classified as a multi-employer sponsored plan. As the Fund’s assets and

liabilities are pooled and are not allocated by employer, the Actuary is unable

to allocate benefit liabilities, assets and costs between employers. As provided

under paragraph 32(b) of AASB 119 Employee Benefits, Council does not use

defined benefit accounting for these contributions.


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Defined contribution plans

Contributions to defined contribution plans are recognised as an expense as

they become payable. Prepaid contributions are recognised as an asset to the

extent that a cash refund or a reduction in the future payments is available.

iv) Sick Leave No accrual is made for sick leave as Council experience indicates that, on

average, sick leave taken in each reporting period is less than the entitlement

accruing in that period, and this experience is expected to recur in future

reporting periods. Council does not make payment for untaken sick leave.

(F) ALLOCATION BETWEEN CURRENT AND NON-CURRENT

In the determination of whether an asset or liability is current or non-current,

consideration is given to the time when each asset or liability is expected to be settled.

The asset or liability is classified as current if it is expected to be settled within the

next 12 months, being Council’s operational cycle. In the case of liabilities where

Council does not have the unconditional right to defer settlement beyond 12 months,

such as long service leave, the liability is classified as current even if not expected to

be settled within the next 12 months.

(G) ACCOUNTING FOR INVESTMENTS

(i) Investments in water corporations Council's investment in TasWater is valued at its fair value at balance date.

Fair value was determined by using Council's ownership interest against the

water corporation's net asset value at balance date. At 30 June 2015, Council

held a 1.58% (2014: 1.58%) ownership interest in TasWater which is based on

schedule 2 of the Corporations Constitution which reflects the council's voting

rights. Any unrealised gains and losses are recognised through the Statement

of Comprehensive Income to a Financial assets available for sale Reserve each

year (refer note 42).

Council has classified this asset as an Available-for-Sale financial asset as

defined in AASB 139 Financial Instruments: Recognition and Measurement

and has followed AASB 132 Financial Instruments: Presentation and AASB 7

Financial Instruments: Disclosures to value and present the asset in the

financial report.

Council has derived returns from the corporation as disclosed at note 7.

(ii) Investments Investments, other than investments in associates and property, are measured

at cost.


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(H) CASH AND CASH EQUIVALENTS

For the purposes of the statement of cash flows, cash and cash equivalents include

cash on hand, deposits at call, and other highly liquid investments with original

maturities of three months or less, net of outstanding bank overdrafts.

(I) FINANCIAL ASSETS

Managed funds are valued at fair value, being market value, at balance date. Any

unrealised gains and losses on holdings at balance date are recognised as either a

revenue or expense.

(J) RATES, GRANTS, DONATIONS AND OTHER CONTRIBUTIONS

Rates, grants and contributions (including developer contributions) are recognised as

revenues when Council obtains control over the assets comprising these receipts.

Control over assets acquired from rates is obtained at the commencement of the rating

year as it is an enforceable debt linked to the rateable property or, where earlier, upon

receipt of the rates. A provision for impairment on rates has not been established as

unpaid rates represents a charge against the rateable property that will be recovered

when the property is next sold.

Revenue is recognised when Council obtains control of the contribution or the right to

receive the contribution, it is probable that the economic benefits comprising the

contribution will flow to Council and the amount of the contribution can be measured

reliably. Control over granted assets is normally obtained upon their receipt (or

acquittal) or upon earlier notification that a grant has been secured, and are valued at

their fair value at the date of transfer.

Where grants or contributions recognised as revenues during the financial year were

obtained on condition that they be expended in a particular manner or used over a

particular period and those conditions were undischarged at balance date, the unused

grant or contribution is disclosed in note 4. The note also discloses the amount of

unused grant or contribution from prior years that was expended on Council’s

operations during the current year.

A liability is recognised in respect of revenue that is reciprocal in nature to the extent

that the requisite service has not been provided at balance date and conditions include

a requirement to refund unused contributions. Revenue is then recognised as the

various performance obligations under an agreement are fulfilled. Council does not

currently have any reciprocal grants.

Un-received contributions over which Council has control are recognised as

receivables.


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(K) INTEREST REVENUE

Interest is recognised progressively as it is earned.

(L) SALE OF PROPERTY, PLANT AND EQUIPMENT

The profit or loss on the sale of an asset is determined when control of the asset has

irrevocably passed to the buyer.

(M) RECONCILIATION OF CASH

For the purpose of the Statement of Cash Flows, Council considers cash to include

cash on hand and in banks (including Special Committee accounts).

Cash at the end of the reporting period as shown in the Statement of Cash Flows is

reconciled to the related items in the Statement of Financial Position.

(N) INVENTORIES

Quantities of inventories on hand at balance date are valued at the lower of cost or net

replacement value.

Where inventories are acquired at no cost, or for nominal consideration, the cost shall

be the current replacement cost as at the acquisition date.

(O) ACCRUALS / PREPAYMENTS

Accruals and prepayments are recognised in accordance with relevant accounting

standards with materiality a major factor in determining their applicability.

(P) LEASES

Operating leases as lessee Leases in which a significant portion of the risks and rewards of ownership are not

transferred to Council as lessee are classified as operating leases. Payments made

under operating leases (net of any incentives received from the lessor) are charged to

the income statement on a straight-line basis over the period of the lease. These are

outlined in note 34.

Council leases several parcels of Crown land under lease agreements with the State

Government. These leases, in general, do not reflect commercial arrangements, are

long-term and have minimal lease payments. Crown land is recognised as an asset in

the Statement of Financial Position and carried at fair value when Council establishes

that (i) it has control over the land and (ii) it will derive economic benefits from it.

Leasehold improvement


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Leasehold improvements are recognised at cost and are amortised over the unexpired

period of the lease or the estimated useful life of the improvement, whichever is the

shorter.

Operating leases as lessor Council is a lessor and enters into agreements with a number of lessees. These include

commercial and non-commercial agreements.

Where leases are non-commercial agreements, these are generally with not for profit,

such as sporting, organisations. In these cases subsidised or peppercorn rents are

charged because Council recognises part of its role is community service and

community support. In these situations, Council records lease revenue on an accruals

basis and records the associated properties as part of land and buildings within

property, plant and equipment. Buildings are recognised at depreciated replacement

cost.

Where leases are commercial agreements, but properties leased are part of properties

predominantly used by Council for its own purposes, Council records lease revenue

on an accruals basis and records the associated properties as part of land and buildings

within property, plant and equipment. Buildings are recognised at depreciated

replacement cost.

Where leases are commercial agreements, and properties leased are predominantly

used for leasing to third parties, Council records lease revenue on an accruals basis

and records the associated properties as investment property in accordance with

AASB 140. These properties are recognised at fair value. These leases may include

incentives which have not been recognised in the statement of financial position, on

the basis the amounts are unlikely to be material and could be reliably measured at

balance date.

(Q) INTEREST BEARING LIABILITIES

The borrowing capacity of Council is limited by the Local Government Act 1993.

Interest bearing liabilities are initially recognised at fair value, net of transaction costs

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

cost. Any difference between the proceeds (net of transaction costs) and the

redemption amount is recognised in the Statement of Comprehensive Income over the

period of the liability using the effective interest method.

(R) TAXATION

Council is exempt from all forms of taxation except Fringe Benefits Tax, Payroll Tax

and the Goods and Services Tax.

Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services

tax (GST), except:

i) where the amount of GST incurred is non recoverable from the taxation

authority, it is recognised as part of the cost of acquisition of an asset or as part of an

item of expense; or


Page 79

ii) for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is

included as part of receivables or payables.

Cash flows are included in the Statement of Cash Flows on a gross basis. The GST

components of cash flows arising from investing and financing activities, which are

recovered from or paid to the ATO, are classified as operating cash flows.

(S) SIGNIFICANT BUSINESS ACTIVITIES

Under section 84(2)(da) of the Local Government Act 1993, Council is required to

report operating, capital and competitive neutrality costs in respect of each significant

business activity undertaken by it.

Council has determined, based upon materiality, that Transport Infrastructure, and

Drainage Disposal as outlined in Note 2(c) are considered Council's significant

business activities. Further details are disclosed in note 40.

(TS) BUDGET INFORMATION

The estimated revenue and expense amounts in the Statement of Comprehensive

Income represent revised budget amounts and are not audited.

(U) ROUNDING

Unless otherwise stated, amounts in the financial report have been rounded to the

nearest dollar.

(V) EVENTS OCCURING AFTER BALANCE DATE

No matters have occurred after balance date which warrant disclosure in this report.

(W) CONTINGENT ASSETS & LIABILITIES

Contingent assets and contingent liabilities are not recognised in the Statement of

Financial Position, but are disclosed by way of a note and, if quantifiable, are

measured at nominal value. Contingent assets and liabilities are presented inclusive of

GST receivable or payable respectively.

Commitments are not recognised in the Statement of Financial Position.

Commitments are disclosed at their nominal value and inclusive of the GST payable.

At balance date Council had no contingent assets or liabilities.


Page 80

(X) BORROWING COSTS

Finance costs are recognised as an expense in the period in which they are incurred,

except where they are capitalised as part of a qualifying asset constructed by Council.

Where specific borrowings are obtained for the purpose of specific asset acquisition,

the weighted average interest rate applicable to borrowings at balance date, excluding

borrowings associated with superannuation, is used to determine the borrowing costs

to be capitalised. No borrowing costs were capitalised during the period.

Borrowing costs include interest on bank overdrafts, interest on borrowings,

unwinding of discounts, and finance lease charges.

(Y) UNSEALED ROAD PAVEMENT DEPRECIATION

Council adopted to depreciate Unsealed Road Pavement and Unsealed Road Surfaces.

Unsealed Gravel Pavement will be depreciated with a useful life of 150 years,

Unsealed Road Surfaces will be capitalised at year end and depreciated with a useful

life of 6 years. Useful life for asset classes has been calculated using current Unsealed

Road Network practises.

A review of sealed road pavement useful lives will be undertaken in the 2015/16

financial year.

(Z) EARTHWORKS RECOGNITION

Council elected to recognise Earthworks as an integral part of the municipal transport

network.

A recognition of $23.5 million in Earthworks replacement costs was identified at 1

July 2014.


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2. FUNCTIONS/ACTIVITIES OF THE COUNCIL

2(a) Expenses, revenue and assets have been attributed to the following functions/activities, descriptions of which are set out in note 2(c)

2014/15 Actual Transport Solid Waste Drainage Parks, Reserves Social & Civic Community Advocacy Other - Not Total

Infrastructure Management & rec Communtiy Governance Development Attributable

facilities

Expenses 4,761,638 1,447,241 418,391 1,274,163 1,300,496 629,546 231,502 293,387 3,504,208 13,860,572

% 34.35% 10.44% 3.02% 9.19% 9.38% 4.54% 1.67% 2.12% 25.28% 100.00%

Revenue Grants $ 3,334,910 - - 305,000 - -

1,751,900 5,391,810

Other $ 214,766 1,698,179 - 148,423 358,527 15,855 4,205 636 32,443,844 34,884,435

Total 3,549,676 1,698,179 - 453,423 358,527 15,855 4,205 636 34,195,744 40,276,245

% 8.81% 4.22% 0.00% 1.13% 0.89% 0.04% 0.01% 0.00% 84.90% 100.00%

Net Result $ (1,211,962) 250,938 (418,391) (820,740) (941,969) (613,691) (227,297) (292,751) 30,691,536 26,415,673

Assets (note 2(b)) $ 120,888,894 2,092,616 7,682,754 13,326,528 816,203 - 771,564 - 44,430,927 190,009,486

2014/15 Budget Expenses $ 4,693,185 1,540,878 377,307 1,229,506 1,647,125 661,646 258,880 243,871 2,949,777 13,602,175

% 34.50% 11.33% 2.77% 9.04% 12.11% 4.86% 1.90% 1.79% 21.69% 100.00%

Revenue Grants $ 2,308,808 - - - - - - - 1,114,459 3,423,267

Other $ 205,414 1,731,346 - 136,210 258,220 - - - 7,571,397 9,902,587

Total 2,514,222 1,731,346 - 136,210 258,220 - - - 8,685,856 13,325,854

% 18.87% 12.99% 0.00% 1.02% 1.94% 0.00% 0.00% 0.00% 65.18% 100.00%

Net Result $ (2,178,963) 190,468 (377,307) (1,093,296) (1,388,905) (661,646) (258,880) (243,871) 5,736,079 (276,321)

2013/14 Actual Expenses 5,906,899 1,096,982 386,080 1,465,934 1,761,255 691,964 269,824 463,414 3,696,593 15,738,945

% 37.53% 6.97% 2.45% 9.31% 11.19% 4.40% 1.71% 2.94% 23.49% 100.00%

Revenue Grants $ 1,387,743 - - 250 - -

931,480 2,319,473

Other $ 239,216 1,663,966 - 138,598 280,146 - - - 7,943,523 10,265,449


Page 82

Total 1,626,959 1,663,966 - 138,848 280,146 - - - 8,875,003 12,584,922

% 12.93% 13.22% 0.00% 1.10% 2.23% 0.00% 0.00% 0.00% 70.52% 100.00%

Net Result $ (4,279,940) 566,984 (386,080) (1,327,086) (1,481,109) (691,964) (269,824) (463,414) 5,178,410 (3,154,023)

Assets (note 2(b)) $ 98,154,095 1,953,892 10,482,512 13,299,018 825,980 - 789,788 - 41,972,853 167,478,138


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(b) Total assets shown in note 2(a) are reconciled with the amounts shown for assets

in the Balance Sheet as follows:

2015 2014

$ $

Current Assets 10,011,243 8,259,002

Non-current Assets 179,998,243 159,219,136

190,009,486 167,478,138

(c) The activities relating the Council’s components reported on in Note 2(a) link

directly to the Strategic and Operational Plans and are as follows:

TRANSPORT INFRASTRUCTURE Construction, maintenance and cleaning of roads, footpaths, drainage works, street

lighting, bridges, parking facilities and traffic signs.

SOLID WASTE MANAGEMENT The provision of services associated with the collection and disposal of garbage to the

residents of the Municipal Area.

DRAINAGE DISPOSAL The provision of stormwater/drainage services to the residents of Smithton and

Stanley.

PARKS, RESERVES AND RECREATION FACILITIES The provision of recreational facilities including sports grounds, parks and reserves

throughout the community.

SOCIAL AND COMMUNITY The delivery of development services to the community including the provision of

health, building, planning, immunisations, swimming pool and animal control.

CIVIC GOVERNANCE The provision of elected representation and the executive support allowing for

positive and clear leadership for the Circular Head community.

COMMUNITY DEVELOPMENT To encourage participation in the events and activities of the Circular Head area, the

Council acts as a facilitator to help local community organisations gain access to other

funding bodies.

ADVOCACY To allow Council the opportunity to continually raise the profile of the Circular Head

Council and the district at State and National levels, including representation in local

government regional, state and federal bodies.

OTHER - NON ATTRIBUTABLE General Services and activities not identifiable with the foregoing functions.


Page 84

3. RATES

2015 2014

$ $

General Rates 6,270,403 6,063,332

Waste Collection Rates 903,892 861,791

Rates Penalties 37,763 42,206

TOTAL 7,212,058 6,967,329

4. GRANTS 2015 2014

$ $

Operating Grants 4,578,486 1,526,119

Capital Grants 813,324 793,354

TOTAL 5,391,810 2,319,473

Grants – recurrent

Commonwealth Financial Assistance Grant 4,469,439 1,400,693

Natural Disaster Resilience Program

-

250

Department of Premier and Cabinet –

Smithton Recreation Ground Lighting Project

33,187

Picking Up the Threads

-

1,818

Department of Premier and Cabinet

Community Development Division

National Youth Week - Regional

Department of Premier and Cabinet

Community Development Division

National Youth Week

Department of Broadband Communication and

Digital Economy – Digital Hubs Program

Funding – 4th Progress Report Claim &

Overlooked Payment Claim

Department of Broadband Communication and

Digital Economy – Digital Local Government

Funding Program

-

-

75,860

5,000

5,000

75,860

37,498

4,578,486 1,526,119

Grants - Capital


Page 85

Commonwealth Road to Recovery Grant 541,511 508,808

Tasmanian Ports Corporation Pty Ltd – Transfer

of Smithton Wharf and Marina

Department of Premier and Cabinet –

Smithton Recreation Ground Lighting Project

Department of Infrastructure & Regional

Development –

Smithton Recreation Area Improvement Project

-

46,813

225,000

180,000

-

-

Department of Infrastructure Energy and

Resources (Roads and Traffic Division)

Smithton Wharf Development

-

104,546

813,324 793,354 Commonwealth Financial Assistance Grants:

The Australian Commonwealth Government provides Financial Assistance

Grant to Council for general purpose use and the provision of local roads. In

accordance with AASB1004 Contributions, Council recognises the grants as revenue

when it receives the funds and obtains control.

In 2014-15 the Commonwealth made early repayment of two instalments for the

following year. This has impacted the Statement of Comprehensive Income with the

early receipt of 2015-16 instalments resulting in an additional increase in surplus of

$1,479,754.

5. USER CHARGES

2015 2014

$ $

Solid Waste Charges – Port Latta 766,485 783,767

Heavy Vehicle Tax 213,996 193,414

Sales – Private Works 61,021 72,506

Sales – Other 29,763 21,137

Property Rental 113,119 114,726

Other User Charges 442,992 380,658

TOTAL 1,627,376 1,566,208

6. OTHER INCOME

2015 2014

$ $

Contributions 61,019 30,135

Road maintenance contribution 770 18,458


Page 86

Other revenue 653,126 155,557

Resource Sharing 370,126 447,437

Subsidies 6,843 5,896

TOTAL 1,091,884 657,483

7. WATER CORPORATION INVESTMENT RETURNS

2015 2014

$ $

Dividend 349,497 487,869

Tax Equivalent 87,506 179,856

Guarantee fee 36,997 32,551

TOTAL 474,000 700,276

8. GAIN/(LOSS) ON DISPOSAL OF ASSETS

2015 2014

$ $

Proceeds from sales 413,659 172,910

Less carrying amounts of assets disposed (944,203) (343,051)

TOTAL (530,544) (170,141)

9. EMPLOYEE COSTS

2015 2014

$ $

Wages, Salaries and Allowances 3,085,167 3,042,483

Superannuation Expenses 388,934 374,778

Leave expenses 635,677 732,563

Payroll Tax 183,873 195,084

Resource Sharing 222,878 278,364

Other Employee Expenses 213,315 186,080

Total Direct Employee Costs 4,729,844 4,809,352

Less Amounts Capitalised (310,083) (210,310)

TOTAL 4,419,761 4,599,042

10. MATERIALS AND CONTRACTS 2015 2014

$ $

Contractors 1,536,600 1,668,171

Fuel 237,391 262,916

Maintenance 266,472 122,317

Materials 32,778 96,272

Software and licences 118,759 108,776

Other materials and contracts 454,680 390,274

TOTAL 2,646,680 2,648,726


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11. DEPRECIATION AND AMORTISATION

2015 2014

$ $

Buildings 279,313 276,981

Transport Infrastructure 2,775,279 3,113,954

Stormwater and Drainage 165,083 222,378

Solid Waste Management 34,891 34,451

Parks, Reserves and Recreational Facilities 150,475 107,222

Plant and Equipment 365,723 386,742

Furniture 4,901 5,631

Computers 161,341 92,212

TOTAL 3,937,006 4,239,571

12. FINANCE COSTS

2015 2014

$ $

Loan Interest 59,218 87,454

13. OTHER EXPENSES

2015 2014

$ $

Advertising 57,580 61,015

Audit Fees 32,460 26,806

Bank fees 19,559 18,609

Communication costs 12,074 11,769

Contributions, donations and grants 252,533 231,295

Consultancy fees 204,253 301,930

Councillors allowance 152,455 147,729

Electricity 249,581 258,109

Property rental 13,143 17,967

Insurance 122,356 119,254

Land Tax 73,943 70,013

Legal Expenses 31,310 33,920

Licences and permits 28,399 22,095

Memberships 112,528 120,995

Postage 9,774 10,862

Rates discounts 173,035 138,226

Water and sewerage rates 57,140 51,230

Sampling 27,492 44,815

Supplementary valuation fees 24,433 15,160

Telephone 51,410 53,750

Harcus River Rd Power project 10,719 1,203,583

Other expenses 551,186 1,034,879

TOTAL 2,267,363 3,994,011

14. CASH AND CASH EQUIVALENTS


Page 88

2015 2014

$ $

Short term deposits 4,885,475 6,201,304

Cash at bank 4,420,299 845,559

Petty Cash 1,650 1,750

TOTAL 9,307,424 7,048,613

15. OTHER FINANCIAL ASSETS

2015 2014

$ $

Collateralised Debt Obligations (CDO’s) - -

Less Allowance for Impairment Loss - -

- -

No movements in other financial assets have been recorded this financial year

however refer to note 45, Events occurring after balance date.

16. RECEIVABLES

2015 2014

$ $

Rate Debtors 379,543 778,174

Sundry Debtors

Less Allowances for Impairment Loss

223,160

(113,378)

600,766

(378,375)

Other receivables 679 652

TOTAL 490,004 1,001,217

(i) Credit Risk

The Council does have a number of large customers with debtor balances at reporting

date.

(ii) Net Fair Value

The Council considers that the carrying amount of receivables carried at amortised

cost approximate their net fair value.

17. INVENTORIES 2015 2014

$ $

Gravel 129,899 143,333

18. OTHER CURRENT ASSETS 2015 2014

$ $

Prepayments 57,332 45,305

Revenue Accrual 7,300 4,391

Other 19,284 16,143


Page 89

TOTAL 83,916 65,839

Net Fair Value The Council considers the carrying amount of the revenue accrual and prepayments

approximates the net fair value.

19. LAND 2015 2014

$ $

Gross Carrying Amount

Opening Balance at Fair Value 8,787,113 9,034,110

Additions 110,791 0

Revaluation Adjustment (7,218) 0

Disposals (40,575) (246,997)

TOTAL 8,850,111 8,787,113

Valuation of land was determined by the Office of the Valuer-General. These assets

were revalued on 1 July 2012.

A review of land values was undertaken from the current Office of Valuer General

adjustment factors, and the movement was not materially different than the carrying

amount therefore a revaluation was not undertaken.

20. LAND UNDER ROADS 2015 2014

$ $


Opening Balance at Fair Value 1,422 1,422

TOTAL 1,422 1,422

A review of land values was undertaken from the current Office of Valuer General

adjustment factors, and the movement was not materially different than the carrying

amount therefore a revaluation was not undertaken.

21. BUILDINGS 2015 2014

$ $



Additions 130,742 13,251


Page 90

Closing Balance 10,417,138 10,286,396

Accumulated Depreciation

Opening Balance 276,981 0

Depreciation for the Year 279,313 276,981

Closing Balance 556,294 276,981

TOTAL 9,860,844 10,009,415

Valuation of buildings was determined by the Office of the Valuer General. These

assets were revalued on 30 June 2013.

A review of land and capital values was undertaken from the current Office of Valuer

General adjustment factors, and the movement was not materially different than the

carrying amount therefore a revaluation was not undertaken.

22. TRANSPORT INFRASTRUCTURE

2015 2014

$ $



Additions 3,104,531 2,877,339

Recognition 24,247,083 0

Revaluation Adjustment (4,142,064) 11,991,891

Disposal (1,308,753) (128,091)

Closing Balance 192,374,162 170,473,365


Opening Balance 72,793,494 66,801,635

Depreciation for the Year 2,775,279 3,113,954

Revaluation Adjustment (2,976,276) 2,970,503

Disposal (1,003,807) (92,598)

Closing Balance 71,588,690 72,793,494

Closing Balance at Fair Value 120,785,472 97,679,871

The transport infrastructure class of asset was revalued on 1 July 2014 by Council’s

Engineer. Transport infrastructure assets have been valued at written down

replacement cost.


Page 91

23. STORMWATER AND DRAINAGE

2015 2014

$ $


Opening Balance at Cost 17,978,678 17,802,428

Revaluation (4,775,275) 0

Disposal (9,267) 0

Additions 105,260 176,250

Closing Balance 13,299,396 17,978,678


Opening Balance 7,496,166 7,273,788

Revaluation (2,039,831) 0

Disposal (4,776) 0


Closing Balance 5,616,642 7,496,166

TOTAL 7,682,754 10,482,512

The stormwater and drainage class of asset was revalued on 1 July 2014 by Council’s

Engineer. Stormwater and drainage assets have been valued at written down

replacement cost.

24. SOLID WASTE MANAGEMENT

2015 2014

$ $



Additions 1,272,626 0



Opening Balance 794,737 760,285



TOTAL 1,835,202 597,467

25. PARKS, RESERVES AND RECREATION FACILITIES

2015 2014

$ $



Additions 470,165 1,521,077





Disposals 11,972 0


TOTAL 3,747,023 3,439,305


Page 92

26. PLANT AND EQUIPMENT

2015 2014

$ $



Additions 1,058,966 319,107

Disposals (552,601) (110,337)




Disposals (347,634) (49,776)



TOTAL 2,235,299 1,747,023

27. FURNITURE 2015 2014

$ $


Opening Balance at Cost 110,472 110,472

Additions 4,383 0






TOTAL 24,620 25,138

28. COMPUTERS 2015 2014

$ $


Opening Balance at Cost 878,176 424,931

Additions 56,748 453,245






TOTAL 409,471 514,064


Page 93

29. WORKS IN PROGRESS 2015 2014

$ $



Additions 102,000 730,859

Transfers (1,666,627) (500,807)

TOTAL 102,000 1,666,627

30. PAYABLES

2015 2014

$ $

Current

Accrued Wages 96,107 97,909

Accrued Interest 1,636 2,211

Trade Creditors 999,068 857,891

TOTAL 1,096,811 958,011

(i) Significant Terms and Conditions Trade creditors are generally settled within specified trading terms or 30 days

whichever is the earlier.

(ii) Net Fair Value The Council considers the carrying amount of trade and other creditors approximate

their fair value.

31. PROVISIONS 2015 2014

$ $

Current Liability

Annual leave 466,357 465,073

Long service leave 403,736 345,655

Rostered days off and banked hours 69,147 56,973

939,240 867,701

Non-Current Liability

Long service leave 171,151 187,032

171,151 187,032

TOTAL 1,110,391 1,054,733

32. BORROWINGS

2015 2014

$ $

Current Liabilities

Loans 327,454 365,178

327,454 365,178


Page 94

Non-Current Liabilities

Loans 348,443 675,897

348,443 675,897

TOTAL 675,897 1,041,075

Net Fair Value The approximate net fair value of Council’s loans was $699,011 (2013/14

$1,057,910) compared to the actual value of $675,897 (2013/14, $1,041,075).

The debenture loans of Council are secured by trust deed. In accordance with section

80 of the Local Government Act 1993 (as amended) the borrowing capacity of

Council is limited to:

Except with the approval of the Minister, a council may not borrow additional

money for any purpose if the annual payments required to service the total

borrowings would exceed 30% of its revenue of the preceding financial year.

Grants made to a council for specific purposes are to be excluded in calculating

30% of revenue of the council.

The current annual capital repayments of loans by Council equate to 3.10% of the

revenue of the preceding financial year. Total instalments including interest equates

to 4.00% of revenue from the previous year (2013/14, 3.71%).

33. SUPERANNUATION Council makes superannuation contributions for a number of its employees to the

Quadrant Defined Benefits Fund, which is a sub fund of the Quadrant Superannuation

Scheme. The Quadrant Defined Benefits Fund has been classified as a multi-employer

sponsored plan. As the Fund’s assets and liabilities are pooled and are not allocated

by employer, the Actuary is unable to allocate benefit liabilities, assets and costs

between employers. As provided under paragraph 34 of AASB 119 Employee

Benefits, Council does not use defined benefit accounting for these contributions.

For the year ended 30 June 2015 the Council contributed 11.0% of employees’ gross

income to the Fund. Assets accumulate in the fund to meet member benefits as they

accrue, and if assets within the fund are insufficient to satisfy benefits payable, the

Council is required to meet its share of the deficiency.

Rice Warner Pty Ltd undertook the last actuarial review of the Fund at 30 June 2014.

The review disclosed that at that time the net market value of assets

available for funding member benefits was $66,310,000, the value of vested benefits

was $57,475,000, the surplus over vested benefits was $8,835,000 and the value of

total accrued benefits was $58,093,000. These amounts relate to all members of the

fund at the date of valuation and no asset or liability is recorded in the Quadrant

Superannuation Scheme’s financial statements for Council employees.

The financial assumptions used to calculate the Accrued Benefits for the Fund were:

Net Investment Return 7.0% p.a.

Salary Inflation 4.0% pa

Price Inflation n/a


Page 95

The actuarial review concluded that:

The value of assets of the Quadrant Defined Benefit Fund was adequate to meet the

liabilities of the Fund in respect of vested benefits as at 30 June 2014.

The value of assets of the Fund was adequate to meet the value of the liabilities of the

Fund in respect of accrued benefits as at 30 June 2014.

Based on the assumptions used, and assuming the Employer contributes at the levels

described below, the value of the assets is expected to continue to be adequate to meet

the value of the liabilities of the Fund in respect of vested benefits at all times during

the period up to 30 June 2017.

The Actuary recommended that in future the Council contribute 11.0% of salaries in

2014/15 and 9.5% of salaries thereafter.

The Actuary will continue to undertake a brief review of the financial position the

Fund at the end of each financial year to confirm that the contribution rates remain

appropriate. The next full triennial actuarial review of the Fund will have an effective

date of 30 June 2017 and is expected to be completed late in 2017. Council also

contributes to other accumulation schemes on behalf of a number of employees;

however the Council has no ongoing responsibility to make good any deficiencies that

may occur in those schemes.

During the year Council made the required superannuation contributions for all

eligible employees to an appropriate complying superannuation fund as required by

the Superannuation Guarantee (Administration) Act 1992.

During the reporting period the amount of contributions paid to defined benefits

schemes was $ 12,825 (2013/14, $ 12,570), and the amount paid to accumulation

schemes was $376,109 (2013/14, $362,208 ).

34. COMMITMENTS FOR EXPENDITURE

(a) Operating Lease Commitments

Commitments under non-cancellable operating leases at the reporting date are payable

as follows:-

2015

Not

later

than 1

year

Later

than 1

year

and not

later

than 2

years

Later

than 2

years

and not

later

than 5

years

Later

than 5

years Total

Photocopying Lease

9,754 9,239 1,728 0 20,721

Total 9,754 9,239 1,728 - 20,721

2014

Photocopying Lease 9,580 8,081 5,655 - 23,316


Page 96

Total 9,580 8,081 5,655 - 23,316

(b) Finance Lease Commitments

Council had no Finance Lease commitments in 2014/15.

(c) Capital Commitments

Council had no Capital Commitments in 2014/15.

(d) Other operating Commitments

2015

Not later

than 1

year

Later than

1 year and

not later

than 2

years

Later than 2

years and not

later than 5 years

Later than

5 years Total

Maintenance 10,105 10,105 10,105 - 30,315

Information Technology Services 8,923 - - - 8,923

Waste Transfer Station Management 113,022 - -

113,022

Cleaning Services 127,126 - - 127,126

Animal Control

9,970 - -

9,970

Total

269,146

10,105 10,105 - 289,356

2014 Maintenance 10,105 10,105 20,210 - 40,420

Information Technology Services 15,554 8,923 - - 24,477

Waste Transfer Station Management 75,348

113,022 - - 188,370

Cleaning Services

107,392 95,146 - - 202,538

Total 208,399 227,196 20,210 - 455,805

35. SPECIAL COMMITTEES

2015 2014

Committee Revenue Expenditure

Funds

held by Revenue Expenditure

Funds

held by

Council Council

$ $ $ $ $ $

Circular Head

Heritage Centre 23,976 20,645 11,373 23,636 19,660 8,042

Marrawah/Redpa

Special 9,328 9,915 11,554 12,788 5,358 12,141


Page 97

Committee

Stanley Town

Hall 22,379 16,392 16,638 20,984 18,806 10,651

Smithton Rec

Ground 9,827 14,589 31,673 10,236 7,565 36,435

Indoor Sports

Centre 18,693 17,099 6,885 20,133 14,343 5,291

Stanley Caravan

Park Committee - - 39,140 - - 39,140

Stanley Rec

Ground 30,080 35,050 (1,470) 27,628 24,877 3,500

Trowutta Rec

Ground 10,324 3,813 11,003 15,210 10,917 4,492

124,607 117,503 126,796 130,615 101,526 119,692

Funds held by the special committees during the year were transferred into Council’s

bank account unless otherwise noted as “Cash held by Committee”. The “Funds held

by Council” remain under the control of special committees subject to Council’s

authorisation.

36. RELATED PARTY DISCLOSURE

(a) Allowances and Reimbursements 2015 2014

$ $

Councillor Allowances and Reimbursements 152,454 147,729

(b) Register of interests Interest of Councillors notified to the General Manager in respect of any body, or

organisation with which the Council has major financial dealings with during the

financial year ending 30 June 2015.

Councillor & Position Interest

Clr Jeanie Murrell Emmerton Park Inc

Rural Health Tasmania

Agricontracting Pty Ltd

MJM Administrative Services

Clr John Oldaker No interest declared

Clr Daryl Quilliam, Mayor

Clr Nakore Popowski

No interest declared


Clr Trevor Spinks

Clr Jan Bishop, Deputy Mayor

Clr Betty Kay





Page 98

Clr Ashley Popowski

Clr David Woodward



Clr Rodney Hardy

Clr Norman Berechree



37. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

2015 2014

$ $

Surplus for the year 26,415,673 (3,154,023)

Depreciation and amortisation expense 3,937,006 4,239,571

Recognition of assets (24,247,083) 0

Net (gain) loss on disposal of plant &

equipment

530,544 170,141

(19,779,533) 4,409,712

Non-operating income

Capital grants (813,324) (793,354)

(813,324) (793,354)

(Increase) Decrease in receivables 511,891 284,163

(Increase) Decrease in other assets (5,324) 61,495

(Increase) Decrease in financial assets - (50,777)

Increase (Decrease) in creditors 138,800 (225,353)

Increase (Decrease) in provisions 55,658 168,678

701,025 238,206

Net cash provided by (used in) Operating

Activities

6,523,842 700,541

38. CREDIT STANDBY ARRANGEMENTS

2015 2014

$ $

Bank overdraft limit 500,000 500,000

(a) Credit standby arrangements

Credit facilities of $500,000 were available. The overdraft remained unused during the

year.


Page 99

39. FINANCIAL INSTRUMENTS

(a) Accounting Policy, terms and conditions

Recognised

financial

instruments Note Accounting policy

Financial assets

Cash and cash

equivalents

14 Cash on hand, at bank and in cash

management accounts are valued at

face value.

Interest is recognised as it accrues.

Investments are held to maximise

interest returns of surplus cash.

Receivables 16 An impairment loss is not recognised

on rates receivable.

A provision for impairment is

recognised on other debtors when

there is objective evidence that an

impairment loss has occurred.

Other Financial

Assets

15

Collectability of overdue accounts is

assessed on an ongoing basis.

An impairment loss is recognised on

other financial assets and is expensed

in the year the impairment occurs.

Financial liabilities

Trade and other

payables

30 Liabilities are recognised for amounts

to be paid in the future for goods and

services provided to Council as at

balance date whether or not invoices

have been received.

General Creditors are unsecured, not subject

to interest charges and are normally settled

within 30 days of invoice receipt.

Interest-bearing

loans and

borrowings

32 Loans are carried at their principal

amounts, which represent the present

value of future cash flows associated

with servicing the debt.

Borrowings are secured by way of mortgages

over the general rates of the Council.

Interest is accrued over the period it

becomes due and recognised as part

of payables.

(b) Interest Rate Risk The exposure to interest rate risk and the effective interest rates of financial assets and

financial liabilities, both recognised and unrecognised, at balance date are as follows:

2015 Floating

interest

rate

Fixed interest maturing in: Non-

interest

bearing

One year or

less

Over 1 to 5

years

More than

5 years Total

Financial assets

Cash and cash

equivalents

4,420,299 4,885,475 - - 1,650 9,307,424


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Trade and other

receivables

- - - - 490,004 490,004

Accrued revenue - - - - 7,300 7,300

Investment in water

corporation

- - - - 24,464,025 24,464,025

Total financial assets 4,420,299 4,885,475 - - 24,962,979 34,268,753


Trade and other

payables

- - - - 1,096,811 1,096,811

Interest-bearing loans

and borrowings

- 327,454 348,443 - - 675,897

Total financial

liabilities

- 327,454 348,443 - 1,096,811 1,772,708

Net financial assets

(liabilities)

4,420,299 4,558,021 (348,443) - 23,866,168 32,496,045

(c) Net Fair Values The aggregate net fair values of financial assets and financial liabilities, both

recognised and unrecognised, at balance date are as follows:

2014

Floating

interest

rate

Fixed interest maturing in: Non-

interest

bearing

One year or

less

Over 1 to 5

years

More than

5 years Total

Financial assets

Cash and cash

equivalents

845,559 6,201,304 - - 1,750 7,048,613

Trade and other

receivables

- - - - 1,001,217 1,001,217

Accrued revenue - - - - 4,391 4,391

Investment in water

corporation

- - - - 24,269,179 24,269,179

Total financial assets 845,559 6,201,304 - - 25,276,537 32,323,400


Trade and other

payables

- - - - 958,011 958,011

Interest-bearing loans

and borrowings

- 365,178 675,897 - - 1,041,075

Total financial

liabilities

- 365,178 675,897 - 958,011 1,999,086

Net financial assets

(liabilities)

845,559

5,836,124 (675,897) - 24,318,526 30,324,314


Page 101

30 June 2015

30 June 2014

Financial Instruments

Carrying

amount Fair Value

Carrying

amount Fair Value

$ $ $ $

Financial assets

Cash and cash equivalents

Cash at bank and on hand 4,420,299 4,420,299 6,201,304 6,201,304

Short Term Deposits 4,887,125 4,887,125 847,309 847,309

Receivables 490,004 490,004 1,001,217 1,001,217

Other financial assets - - - -

Accrued revenue 7,300 7,300 4,391 4,391

Investment in Water Corporation 24,464,025 24,464,025 24,269,179 24,269,179

34,268,753 34,268,753 32,323,400 32,323,400


Payables 1,096,811 1,096,811 958,011 958,011

Financial Liabilities 675,897 675,897 1,041,075 1,041,075

1,772,708 1,772,708 1,999,086 1,999,086

Net financial assets 32,496,045 32,496,045 30,324,314 30,324,314

(d) Credit Risk The maximum exposure to credit risk at balance date in relation to each class of

recognised financial asset is represented by the carrying amount of those assets as

indicated in the Statement of Financial Position.

(e) Risks and Mitigation The risks associated with our main financial instruments and our policies for

minimising these risks are detailed below.

Market Risk Market risk is the risk that the fair value or future cash flows of our financial

instruments will fluctuate because of changes in market prices. Council's exposures to

market risk are primarily through interest rate risk with only insignificant exposure to

other price risks and no exposure to foreign currency risk. Components of market risk

to which we are exposed are discussed below.

Cash and cash equivalents are subject to floating interest rates. Any variations in

future cash flows from interest rate movements are expected to have an immaterial

effect on the Council’s revenue.

Interest Rate Risk


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Interest rate risk refers to the risk that the value of a financial instrument or cash flows

associated with the instrument will fluctuate due to changes in market interest rates.

Interest rate risk arises from interest bearing financial assets and liabilities that we use.

Non derivative interest bearing assets are predominantly short term liquid assets. Our

interest rate liability risk arises primarily from long term loans and borrowings at

fixed rates which expose us to fair value interest rate risk.

The interest rate exposure on our debt portfolio is managed by appropriate budgeting

strategies and obtaining approval for borrowings from the Department of Treasury

and Finance each year.

All of the Council’s interest bearing liabilities are at fixed rates so there is no

exposure to interest rate risk.

Investment of surplus funds is made with approved financial institutions under the

Local Government Act 1993. We manage interest rate risk by adopting an investment

policy that ensures:

Conformity with State and Federal regulations and standards,

Adequate safety,

Appropriate liquidity,

Monitoring of return on investment,

Staggering maturity dates to provide for interest rate variations ,

Benchmarking of returns and comparisons with budget.

Maturity will be staggered to provide for interest rate variations and to minimise

interest rate risk.

Credit Risk Credit risk is the risk that a contracting entity will not complete its obligations under a

financial instrument and cause Council to make a financial loss. Council have

exposure to credit risk on some financial assets included in our Statement of Financial

Position.

The carrying amount of financial assets recorded in the financial statements, net of

any allowances for impairment losses, represents the Council’s maximum exposure to

credit risk without taking account of any collateral or other security. Reference

should be made to Notes 15 and 16 for the carrying amounts of the Council’s financial

assets at reporting date.

Council’s policy in relation to receivables is summarised below.

Debtors of the Council are required to settle their accounts within specified terms

including:

Rate Debtors Rates and charges are required to be paid in full by 30 September, but in order to

receive a discount the rates and charges must be paid in full by 31 August. Ratepayers

may apply to the council to pay rates and charges by instalments, subject to approved


Page 103

terms and conditions. Should amounts remain unpaid outside of approved payment

options the Council will instigate collection proceedings.

Other Debtors (including loans and advances) Debtors are required to settle within one month from the current month. Should

amounts remain unpaid outside of approved payment options the Council will

instigate collection proceedings.

Other Financial Assets The credit risk of financial investments is managed in accordance with Council’s

investment policy. This policy includes the condition that Council is to only enter

into investments that have a Standard and Poors credit rating of AA- or greater.

Credit risk arises from Council's financial assets, which comprise cash and cash

equivalents, and trade and other receivables. Council's exposure to credit risk arises

from potential default of the counterparty, with a maximum exposure equal to the

carrying amount of these instruments. Exposure at balance date is addressed in each

applicable policy note. Council generally trades with recognised, creditworthy third

parties, and as such collateral is generally not requested, nor is it Council's policy to

securitise its trade and other receivables.

In addition, receivable balance is monitored on an ongoing basis with the result that

Council's exposure to bad debts is not significant.

Council may also be subject to credit risk for transactions which are not included in

the Statement of Financial Position, such as when Council provides a guarantee for

another party. Details of contingent liabilities are disclosed in Note 40.

Impairment Losses The following table provides an ageing of the Council’s trade and rate receivables at

the reporting date:

30 June 2015 30 June 2014

Trade receivables Gross Impairment Gross Impairment

$ $ $ $

Not past due 205,472 - 505,068 -

Past due 0-30 days 77 - 1,774 -

Past due 31-60 days 723 - 22,017 -

Past due 61-90 days - - 3,712 -

More than 90 days 16,888 - 68,200 -

Total trade

receivables 223,160 - 600,766 -

Rates receivable 379,543 113,378 778,174 378,375

Other Receivable 679 - 652 -

Total receivables as

per the Statement of

Financial Position

603,382 113,378 1,379,592 378,375


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A provision for impairment loss is recognised when there is objective evidence that an

individual receivable is impaired. No allowance for impairment in respect of trade

receivables has been recognised as at 30 June 2015.

All rates receivable are in excess of 90 days. No allowance for an impairment loss is

recognised against unpaid rates unless it is probable that the unpaid rates cannot be

recovered when the property is next sold.

Where the Council has obtained financial or non-financial assets during the period by

taking possession of collateral it holds as security or calling on other credit

enhancements (eg guarantees) and such assets meet the recognition criteria in other

Australian Accounting Standards, the Council must disclose:

the nature and carrying amount of the assets obtained; and

when the assets are not readily convertible to cash, its policies for disposing of

such assets or for using them in its operations.

Liquidity Risk Liquidity risk is the risk that the Council will not be able to meet its financial

obligations as they fall due. The Council’s approach to managing liquidity is to ensure

that it will always have sufficient liquidity to meet its liabilities when they fall due.

The debenture loans of Council are secured by trust deed and the total loan

borrowings are limited to borrowings approved by Treasury. In accordance with

section 80 of the Local Government Act 1993 (as amended) the borrowing capacity of

the Council is limited as follows:

Except with the approval of the Minister, a council may not borrow additional

money for any purpose if the annual payments required to service the total

borrowings would exceed 30% of its revenue of the preceding financial year; and

Grants made to a council for specific purposes are to be excluded in calculating

30% of the revenue of the council.

Maturity analysis for financial liabilities The following tables detail the undiscounted cash flows payable by the Council by

remaining contractual maturity for its financial liabilities. It should be noted that as

these are undiscounted and include estimated interest payments, totals may not

reconcile to the carrying amounts presented in the Statement of Financial Position:

Less than

1 year 1-5 years

More than

5 years

Total

contractual

cash flows

Carrying

amount

$ $ $ $ $

30 June 2015

Payables 1,096,811 - - 1,096,811 1,096,811

Borrowings 327,454 348,443 - 675,897 675,897

Total 1,424,265 348,443 - 1,772,708 1,772,708


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30 June 2014

Payables 958,011 958,011 958,011

Borrowings 365,178 675,897 1,041,075 1,041,075

Total 1,323,189 675,897 - 1,999,086 1,999,086

The Council has not defaulted on or breached the conditions of any loans payable

recognised at balance date.

(f) Sensitivity Disclosure Analysis The risks associated with our main financial instruments and our policies for

minimising these risks are detailed below.

The following sensitivity analysis is based on the interest rate risk exposures in

existence at the reporting date. The analysis assumes all other variables remain

constant and was performed on the same basis for 2015.

The table below discloses the impact on net operating result and equity for each

category of financial instruments held by Council at year-end, if the above

movements were to occur.

Interest rate risk Surplus or deficit Equity

2015

+1% (100

basis

points)

-0.5% (50

basis points)

+1% (100

basis

points)

-0.5% (50

basis points)

$ $ $ $ $

Financial Assets

Cash and cash

equivalents 9,307,424 93,074 46,537 93,074 46,537

Trade and other

receivables 490,004 - - - -

Financial Liabilities

Interest bearing loans

and borrowings 675,799 (6,758) (3,379) (6,758) (3,379)

Trade and other

payables 1,096,811 - - - -

Interest rate risk Surplus or deficit Equity

2014

+1% (100

basis

points)

-0.5% (50

basis points)

+1% (100

basis

points)

-0.5% (50

basis points)

$ $ $ $ $

Financial Assets


Page 106

Cash and cash

equivalents 7,048,613 70,486 35,243 70,486 35,243

Trade and other

receivables 1,001,217 - - - -

Financial Liabilities

Interest bearing loans

and borrowings 1,041,075 (10,410) (5,205) (10,410) (5,205)

Trade and other

payables 958,011 - - - -

The movements in profit are due to higher/lower interest costs from variable rate debt and

cash balances.

(g) Fair Value Hierarchy The table below analyses financial instruments carried at fair value by valuation

method.

The different levels have been defined as follows:

Level 1 - quoted prices (unadjusted) in active markets for identical assets or

liabilities

Level 2 - inputs other than quoted prices included within level one that are

observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e.

derived from prices)

Level 3 - inputs for the asset or liability that are not based on observable market

data

30 June 2015 Level 1 Level 2 Level 3 Total

Financial assets at fair value

through the comprehensive income

statement - - - -

Available for sale financial assets - - 24,464,025 24,464,025

TOTAL - - 24,464,025 24,464,025

30 June 2014 Level 1 Level 2 Level 3 Total

Financial assets at fair value

through the comprehensive income

statement - - - -

Available for sale financial assets - - 24,269,179 24,269,179

TOTAL - - 24,269,179 24,269,179

There were no transfers between Level 1 and 2 in the period.


Page 107

Reconciliation of Level 3 Fair Value Movements

2015 2014

$ $

Opening Balance 24,269,179 22,214,852

Investment on transfer of net assets - -

Gains (losses) recognised in other comprehensive

income:

-Fair value initial adjustment on available for sale assets - -

-Fair value adjustment on available for sale assets 194,846 1,754,651

Closing Balance 24,464,025 24,269,179

40. SIGNIFICANT BUSINESS ACTIVITIES TRANSPORT STORMWATER &

INFRASTRUCTURE DRAINAGE*

$ $

2015 2014 2015 2014

Revenue

Rates - - - -

User Charges 214,766 193,414 - -

Grants 3,334,910 1,397,743 - -

Other - 45,801 - -

Total Revenue 3,549,676 1,626,958 - -

Expenses

Direct

Labour & Materials 1,228,500 1,195,367 44,665 23,443

Borrowing Costs - - - -

Other 120,244 1,442,665 4,776 2,257

Indirect

Engineering and Administration 308,169 273,845 203,867 138,002

Total Expenses 1,656,913 2,911,877 253,308 163,702

Capital Costs

Depreciation 2,775,279 2,995,022 165,083 222,378

Opportunity Cost of Capital 9,928,494 4,036,116 816,237 473,306

Total Capital Costs 12,703,773 7,031,138 981,320 659,657

Competitive Neutrality Costs - - - -

Fully attributable costs

14,360,686 -

1,234,628 -

Council is currently reviewing its operational environment and any additional

significant business activities identified in this review will be reflected in Council’s

2016 Financial Statements.


Page 108

41. AUDITOR’S REMUNERATION

2015 2014

$ $

Audit fee external audit – Tasmanian Audit

Office

32,460 26,806

TOTAL 32,460 26,806

Includes acquittal and travel disbursement costs.

Base audit fee $25,160 (2013-14 $23,860)

42. INVESTMENT IN WATER CORPORATION

At 30 June 2015, Council held a 1.58% ownership interest in TasWater.

Council does not have significant influence to allow it to use the equity method to

account for this interest.

2015 2014

$ Opening balance 24,269,179 22,514,528 Fair Value adjustment on assets held for resale

194,846 1,754,651

Total investment in water corporation 24,464,025 24,269,179

43. RESERVES

2015 2014

$ $

Asset Revaluation Reserve:

Balance at beginning of financial year 69,181,076 60,159,688

Revaluation adjustment:

Land (7,219) 0

Buildings 0 0

Transport infrastructure (1,165,788) 9,021,388

Stormwater (2,735,444) 0

(3,908,451) 9,021,388

Balance at end of financial year 65,272,625 69,181,076

Closing balance

Land 5,609,446 5,616,664

Buildings 2,065,641 2,065,641

Transport infrastructure 55,011,756 56,177,544

Stormwater 2,585,783 5,321,227

65,272,625 69,181,076


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The asset revaluation reserve was established to capture the movements in asset

valuations upon the periodic revaluation of Council's assets.

2015 2014

$ $

Financial Assets available for Sale Reserve

Balance at the beginning of the financial year 2,181,554 426,903

Fair Value Adjustment 194,846 1,754,651

Balance at the end of the financial year 2,376,400 2,181,554

The available-for-sale financial asset reserve was established to capture the fair value

movements in Council's Water Corporation investment.

Public Open Space Reserve

Balance at beginning of financial year 113,156 113,156

Transfer from retained surplus - -

Expenditure of funds on capital works

eeeeeeeexpended expended in the period

- -

Balance at end of financial year 113,156 113,156

TOTAL 67,762,181 71,475,786

The Public Open Space Contributions Policy states that all moneys taken as

contributions under this policy will be held in a reserve and used for the

provision of new or the improvement of existing public open spaces and

beautification projects.

44. FAIR VALUE MEASUREMENTS

Council measures and recognises the following assets at fair value on a

recurring basis:

Land

Land under roads

Buildings


Stormwater

Council does not measure any liabilities at fair value on a recurring basis.

(a) Fair Value Hierarchy

AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair

value to be assigned to a level in the fair value hierarchy as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities

that the entity can access at the measurement date.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable

for the asset or liability, either directly or indirectly.

Level 3 - Unobservable inputs for the asset or liability.


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The table below shows the assigned level for each asset and liability held at fair value

by the Council. The table presents the Council's assets and liabilities measured and

recognised at fair value at 30 June 2015. Comparative information has not been

provided as allowed by the transitional provisions of AASB 13.

The fair values of the assets are determined using valuation techniques which

maximise the use of observable data, where it is available, and minimise the use of

entity specific estimates. If one or more of the significant inputs is not based on

observable market data, the asset is included in level 3. This is the case for Council

infrastructure assets, which are of a specialist nature for which there is no active

market for similar or identical assets. These assets are valued using a combination of

observable and unobservable inputs.

As at 30 June 2015

Note Level 1 Level 2 Level 3 Total

Recurring fair value

measurements

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

Land 19 - 8,850,111 - 8,850,111

Land under roads 20 - 1,422 - 1,422

Buildings 21 - 9,860,844 - 9,860,844

Transport Infrastructure 22 - - 120,785,472 120,785,472

Stormwater 23 - - 7,682,754 7,682,754

Total - 18,712,377 128,468,226 147,180,603

As at 30 June 2014

Note Level 1 Level 2 Level 3 Total

Recurring fair value

measurements

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

Land 19 - 8,787,113 - 8,787,113

Land under roads 20 - 1,422 - 1,422

Buildings 21 - 10,009,415 - 10,009,415

Transport Infrastructure 22 - - 97,798,803 97,798,803

Stormwater 23 - - 10,482,512 10,482,512

Total - 18,797,950 108,281,315 127,079,265

Transfers between levels of the hierarchy There were no transfers between levels 1 and 2 during the year, nor between levels 2

and 3.

(b) Highest and best use

All assets valued at fair value are being used for their highest and best use.


Page 111

(c) Valuation techniques and significant inputs used to derive fair values

Council has changes its valuation technique for Stormwater. Previously, data has

been sourced from a small sample of Council’s own capital jobs, but the 2014/15

financial year saw Council use benchmark data to complete the revaluation. This was

deemed a more reflective valuation technique as a wide amount of data is available

compared to the small amount of capital jobs Council completes for stormwater each

year.

Investment in water corporation

Refer to Note 42 for details of valuation techniques used to derive fair values.

Land

Land fair values were determined by the State Valuer General effective 30 June 2012.

Sales prices of comparable land sites in close proximity are adjusted for differences in

key attributes such as property size. The most significant input into this valuation

approach is price per square metre.

A review of adjusted values was undertaken from the current Valuation Department

adjustment factors, and the movement was not materially different than the carry

amount therefore a revaluation was not undertaken in the 2014/15 financial year.

Land under roads

Valuation of land Under Roads was determined by using the land valuations supplied

by the Office of the Valuer-General as at 30 June 2013. The most significant input

into this valuation approach is price per square metre, derived by Valuer General from

analysis of market sales of different classes of property and locality.




Buildings

The fair values of buildings were also determined by the State Valuer General

effective 30 June 2013. Where there is a market for Council building assets, fair value

has been derived from the sales prices of comparable properties after adjusting for

differences in key attributes such as property size. The most significant input into this

valuation approach was price per square metre.

In determining the level of accumulated depreciation, an average useful life of 40

years has been applied to the written down value.

While the unit rates based on square metres can be supported by market evidence

(level 2).


Page 112




Transport infrastructure Council categorises its road infrastructure into urban and rural roads and then further

sub-categorises these into sealed and unsealed roads. All roads are managed in

segments. All road segments are then componentised into formation, pavement, sub-

pavement and seal (where applicable). Council assumes that environmental factors

such as soil type, climate and topography are consistent across each segment. Council

also assumes a segment is designed and constructed to the same standard and uses a

consistent amount of labour and materials.

Current replacement cost (CRC) is based on the road area multiplied by a unit price;

the unit price being an estimate of labour and material inputs, services costs, and

overhead allocations. For internal construction estimates, material and services prices

are based on existing supplier contract rates or supplier price lists and labour wage

rates are based on Council's Enterprise Bargaining Agreement (EBA). Where

construction is outsourced, CRC is based on the average of completed similar projects

over the last few years.

A full valuation of bridges assets was undertaken by independent valuers, AusSpan

effective 1 July 2013. Each bridge is assessed individually and componentised into

sub-assets representing the deck and sub-structure. The valuation is based on the

material type used for construction and the deck and sub-structure area.

A revaluation of roads was carried out to address two areas of material inaccuracy

with respect to Councils historic practices in relation to the valuation and depreciation

of its sealed road surface assets.

Council has recognised a change in useful life of asphalt surfaces from 15 years to 25

years to better match reality as recognised in current engineering/industry standards

and has revalued all 2-coat bitumen road surfaces at the single coat ‘chip’ seal

replacement cost (modern equivalent asset), being the planned treatment to replace the

service capacity of the existing asset.

The replacement costs of other road asset subclasses were reviewed by reference to

the movement in the ABS Producer Price Index Number 3101 Roads and bridge

construction Victoria. Movement from 01.07.2013 (last revaluation date) to

01.07.2014 (current revaluation date) was 2.3%. This was not considered material

and so no other changes were made to the unit rates for road assets.

Stormwater

A full audit of drainage infrastructure was undertaken by Peacock. Darcey &

Anderson Pty Ltd (Surveying, Engineering & Planning consultants). Similar to roads,

drainage assets are managed in segments; pits and pipes being the major components.

Consistent with roads, Council assumes that environmental factors such as soil type,

climate and topography are consistent across each segment and that a segment is

designed and constructed to the same standard and uses a consistent amount of labour

and materials.


Page 113

CRC is based on the unit price for the component type. For pipes, the unit price is

multiplied by the asset's length. The unit price for pipes is based on the construction

material as well as the depth the pipe is laid.

A revaluation was undertaken on 1 July 2014. Benchmark data was used for the unit

prices in the revaluation as Council had very few capital projects as evidence for using

its own unit rates.

(d) Changes in recurring level 3 fair value measurements

The changes in level 3 assets with recurring fair value measurements are detailed in

notes 19-23. The investment in Water Corporation, which are classified as level 3 is

separately disclosed in note 42. There have been no transfers between level 1, 2 or 3

measurements during the year.

(e) Valuation processes

Council's current policy for the valuation of property, infrastructure, plant and

equipment and investment in Water Corporation (recurring fair value measurements)

is set out in note 1(d) and 1(g) respectively.

Non-recurring fair value measurements are made at the point of reclassification by a

registered valuer.

(f) Assets and liabilities not measured at fair value but for which fair value is disclosed

Council has assets and liabilities which are not measured at fair value, but for which

fair values are disclosed in other notes (refer note 32)

Council borrowings are measured at amortised cost with interest recognised in profit

or loss when incurred. The fair value of borrowings disclosed in note 32 is provided

by the Commonwealth Bank (level 2).

The carrying amounts of trade receivables and trade payables are assumed to

approximate their fair values due to their short-term nature (Level 2).

45. EVENTS OCCURRING AFTER BALANCE DATE

Council previously owned three securities that incurred significant capital losses,

during the terms that the securities were held.

These securities currently form the basis of a Class Action that Council is a member

party to. Legal action to recover capital losses and related expenses was continuing at

the release date of Financial Statements.


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46. MANAGEMENT INDICATORS

Benchmark 2015 2014 2013 2012

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

(a) Underlying surplus or deficit

Recurrent income* less

13,736 13,131 13,131 NA

recurrent expenditure

13,860 13,668 13,668 NA

Underlying surplus/deficit

(124) (2,524) (537) NA

* Recurrent income excludes income received specifically for new or upgraded assets, physical

resources received free of charge or other income of a capital nature.

Council reported an underlying deficit for years 2013 and 2014. In 2015 it recorded a small

underlying surplus. The 2013/14 deficit was exacerbated by a large operational project for the

installation of underground power in Circular Head. The income for this was recorded in previous

years.

Benchmark 2015 2014 2013 2012

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

(b) Underlying surplus ratio

Underlying surplus/deficit

(124) NA (537) NA

Recurrent income*

13,736 NA 13,131 NA

Underlying surplus ratio % >0

(0.9%) NA (4.1%) NA

This ratio serves as an overall measure of operating effectiveness.

Council has exceeded the benchmark in the current year, but did not in the two years prior.

Benchmark 2015 2014 2013 2012

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

(c) Net financial liabilities

Liquid assets less

9,797 8,050 12,611 NA

Total liabilities

2,883 3,054 3,515 NA

Net financial liabilities

6,914 4,996 9,096 NA

Benchmark 2015 2014 2013 2012

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


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(d) Net financial liabilities ratio

Net financial liabilities

6,914 4,996 9,096 NA

Recurrent income*

13,736 13,096 13,131 NA

Net financial liabilities ratio % 0 - (50%)

50.3% 38.2% 69.3% NA

This ratio indicates the net financial obligations of Council compared to its recurrent income.

Council recorded results above the benchmark in each of the three years.

Benchmark 2015 2014 2013 2012

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

(e) Asset consumption ratio


Depreciated replacement cost

120,785 97,799 88,931

Current replacement cost

192,374 170,473 155,732 NA

Asset consumption ratio % 40-60%

62.8% 57.4% 57.1% NA

Stormwater & Drainage


7,683 10,483 10,529


13,299 17,979 17,802 NA


57.8% 58,3% 59.1% NA

Solid waste management


1,835 597 632


2,664 1,392 1,392 NA


68.9% 42.9% 45.4% NA

Parks, Reserves & Recreation

facilities


3,747 3,439 2,025


5,708 5,538 3,717 NA


65.6% 65.7% 54.5% NA

This ratio indicates the level of service potential available in Council's existing asset base.

All asset classes identified above are either between the target benchmark or slightly over in each

financial year.

Benchmark 2015 2014 2013 2012

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


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(f) Asset renewal funding ratio

** Council currently has a Strategic Asset Management Plan until 2034. However Council’s current

Long Term Financial Plan has only been developed from 2015/16 – 2024/25. Therefore asset renewal

funding ratios are unable to be completed for balance date.

The projections from 2015/16 onwards for each class of asset are a 1:1 ratio.

Benchmark 2015 2014 2013 2012

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

(g) Asset sustainability ratio

Capex on replacement/renewal of

existing assets

5,444 4,367 3,385 NA

Annual depreciation expense*

3,937 4,121 3,188 NA

Asset sustainability ratio % >95%

138.3% 106.0% 106.1% NA

This ratio calculates the extent to which Council is maintaining operating capacity through renewal of

their existing asset base.

Council have exceeded the benchmark in the three years identified.

(g

)

Asset sustainability ratio

Capital

renewal

expenditur

e

Capital

new

/upgrade

expenditur

e

Total

Capital

Expenditur

e

By asset class $'000 $'000 $'000

Buildings 33 98 131

Transport Infrastructure 3,045 60 3,105

Stormwater 104 1 105

Solid Waste 1,273 - 1,273

Parks & Reserves 190 280 470

Plant & equipment 738 321 1,059

Furniture 4 - 4

Computers 57 - 57

Total 5,444 760 6,204

Plant and equipment included the purchase of a new SES truck, and parks and

reserves, and included the commissioning of new lights at the Smithton Recreation

Ground.


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Certification of the Financial Report

for the financial year ended 30/06/2015

The financial report presents fairly the financial position of the Circular Head Council as at

30 June 2015, the results of its operations for the year then ended and the cash flows of the

Council, in accordance with the Local Government Act 1993 (as amended), Australian

Accounting Standards (including interpretations) and other authoritative pronouncements

issued by the Australian Accounting Standards Board.

Dated at Smithton this 30th day of September 2015

Tony Smart

GENERAL MANAGER

CIRCULAR HEAD COUNCIL ANNUAL REPORT 2014 - 2015...Circular Head Council Annual Report 2014/2015 Page...

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