Lachlan Shire Council Annual Report 2018 2019 · Summary of legal proceedings ... Partnerships,...

Annual Report 2018/19 1

Lachlan

Shire

Council

Annual

Report

2018 – 2019


Table of Contents Our Vision and Values ............................................................................................................................. 4

Acknowledgement of Country ................................................................................................................ 4

Mayors Message ..................................................................................................................................... 5

Your councillors ....................................................................................................................................... 7

Executive Leadership Team .................................................................................................................... 9

Organisational Structure ....................................................................................................................... 11

About our Shire ..................................................................................................................................... 12

Integrated Planning and Reporting Framework ................................................................................... 13

Disability Inclusion Action Plan ............................................................................................................. 14

Delivery Program and Operational Plan ............................................................................................... 17

Community Services .............................................................................................................................. 17

Tourism & Economic Development ...................................................................................................... 23

Transport ............................................................................................................................................... 36

Governance & Financial Control ........................................................................................................... 42

People & Environment .......................................................................................................................... 50

Recreation ............................................................................................................................................. 56

Service Infrastructure ........................................................................................................................... 66

Appendices ............................................................................................................................................ 70

Special Rate Variation ........................................................................................................................... 71

Payments of Councillors and Overseas Visits by Councillors & Council Staff ....................................... 73

Contracts awarded ................................................................................................................................ 74

Rates and Charges written off .............................................................................................................. 75

Summary of legal proceedings .............................................................................................................. 75

Private Works ........................................................................................................................................ 75

External Bodies ..................................................................................................................................... 75

Partnerships, Co-operatives or Joint Ventures ..................................................................................... 76

Environmental Planning and Assessment Act 1979 .............................................................................. 76

Senior staff employed ........................................................................................................................... 76

Stormwater management services ....................................................................................................... 76

Government Information (Public Access) Act 2009 .............................................................................. 77

Public Interest Disclosures .................................................................................................................... 77

Financial Assistance Provided ............................................................................................................... 78

Companion Animals Management ....................................................................................................... 79

Off Leash Areas ..................................................................................................................................... 80


Swimming Pools .................................................................................................................................... 80

Equal employment opportunities ......................................................................................................... 81


Our Vision and Values Lachlan Shire Council’s vision for the future is to be a progressive, vibrant and prosperous community where families come to stay and enjoy a relaxed and healthy way of life.

The elected members, management and staff of Lachlan Shire Council demonstrate the following values in their interaction with one another and the community:

Responsive

Cooperative

Effective

Proud

Respectful

Acknowledgement of Country We acknowledge the Wiradjuri people as the Traditional Custodians of the land on which we work and live, and recognise their continuing connection to land, water and community.

We pay respect to Elders past, present and emerging.

Photography: Otis Williams, Deadly Photography


Mayors Message The ongoing drought has created many challenges for our community

over the last 12 months placing everyone in our community under

considerable stress. I encourage everyone to look out for one another

as the drought continues and has an ever increasing impact on our

community. A friendly chat or simply asking someone if they are okay

can have a profound impact on the mental wellbeing of our friends and

family.

The Lachlan Shire team has continued to make considerable progress

towards implementing Council’s adopted Improvement Plan across all

areas of operations.

Council continues to face numerous challenges and obstacles to deliver

the services expected by the community however we are committed to finding practical and

innovative solutions to meet these expectations.

We will continue to advocate for our shire and to seek state and federal grant funding to

improve services and infrastructure. We have been successful in number of funding

applications, which has delivered better outcomes to our community while minimising costs to

our ratepayers.

Community Infrastructure Projects delivered

A number of the community outcomes were delivered during the 2018/2019 financial year

include: Completion of the Lake Cargelligo Skate Park incorporating shade structures, picnic

shelter and irrigation system;

Upgrade of Tullibigeal, Albert and Burcher toilet facilities;

Completion of the Condobolin Library upgrade works;

Completion of the Lake Cargelligo Walkway stage 2;

Redevelopment of Tottenham Memorial Park which included new play equipment;

shade structure, footpath, access and amenities improvements as well as landscape

plantings;

Repainting of Burcher Hall;

Redevelopment of the Lake Cargelligo Recreation Ground including the installation of

a new automated irrigation system, renewed sports lighting, picket and perimeter

fencing;

Upgrade of the Tottenham Swimming Pool Amenities including a new building to house

the pool kiosk, dedicated first aid room; office, showers and toilets as well as

installation of LED lighting;

Renewal of water infrastructure including main line pipes in Tottenham; valves and

hydrants in Condobolin;

Renewal of the Water Treatment Plants in Tottenham and Lake Cargelligo; and

Remediation of the Condobolin and Lake Cargelligo waste facilities.


Economic Development and Tourism

Sixty-one approved Development Applications for over $7 million in development

works;

Grants successes include:

o $40,000 for an Aboriginal Heritage study;

o $6,000 to continue Heritage Advisor;

o $5,500 for the small grants program; and

o $3,000 for the Lake Cargelligo War Memorial restoration study.

Grant application lodged for the construction of a new Visitor Information Centre and

improved roadworks.

We have continued to progress the:

Urban Settlement Strategy;

Lachlan River (Condobolin) Floodplain Risk Management Study and Plan; and

Destination Management Plan.

Council will continue to manage community assets in a financially responsible manner and

provide new infrastructure and services to improve the quality of life for its residents as

opportunities arise. A focus on economic development and tourism next financial year will

help to attract new residents and economic growth to the Shire. As the number of these

initiatives develop and continual progress is being made, both internally as we work together

as a team at Lachlan Shire Council to progress the shire and collaboratively with our

neighbouring Councils, to build a stronger future for the central west.

On behalf of my fellow Councillors I commend this Annual Report to you and look forward to

your suggestions and comments on how we can further improve our Shire. In conclusion I

sincerely thank all of the volunteers and council staff, your dedication and hard work is

greatly appreciated. I look forward to the year ahead and I encourage you all to join us on

the journey to shape the future of the Lachlan Shire.

Councillor John Medcalf OAM

Mayor


Your councillors

Councillor John Medcalf OAM Mayor A Ward 02 6892 4447 PO Box 216 Condobolin NSW 2877

Councillor Brian Nelson A Ward 02 6892 7262 PO Box 216 Condobolin NSW 2877

Councillor Melissa Blewitt B Ward 02 6895 2833 PO Box 216 Condobolin NSW 2877

Councillor Melissa Rees B Ward 02 6895 2336 PO Box 216 Condobolin NSW 2877

Councillor Dave Carter C Ward 02 6895 2483 PO Box 216 Condobolin NSW 2877

Councillor Peter Harris C Ward 02 6895 2091 PO Box 216 Condobolin NSW 2877


Councillor Elaine Bendall D Ward 0428 729 271 PO Box 216 Condobolin NSW 2877

Councillor Dennis Brady D Ward 0428 285 820 PO Box 216 Condobolin NSW 2877

Councillor Mark Hall E Ward 0412 706 802 PO Box 216 Condobolin NSW 2877

Councillor Paul Phillips Deputy Mayor E Ward 02 6898 1164 PO Box 216 Condobolin NSW 2877

Councillor Max Frankel Deceased November 2018

Councillor John Ridley Retired January 2019


Executive Leadership Team Greg Tory

General Manager

The General Manager is responsible for the efficient and

effective operation of Council's organisation and for ensuring

the implementation, without undue delay, of the decisions of

Council.

The General Managers key accountabilities are:

Human Resources;

To manage the council on a day-to-day basis and to direct

staff;

To exercise the functions of the council delegated by the

council to the general manager; and To appoint staff in accordance with an organisational

structure and resources approved by the council.

Tekohi Rivera

Infrastructure Services

The Director of Infrastructure Services is responsible for: Water Services; Recreation; Roads; Emergency Services; Aerodromes

Karen Pegler

Corporate and Community Services

The Director of Corporate and Community Service is

responsible for:

Corporate Governance

Finance

Integrated Planning and Reporting

Stores/Inventory

Customer Service Centres

Information Services

Libraries

Community Services

Asset Management


Jon Shillito

Environment, Tourism and Economic Development

The Director of Environment, Tourism and Economic

Development is responsible for:

• Planning Strategies

• Development Assessments

• Sustainability

• Local Laws & Regulations

• Natural Resource and Heritage Management • Facilities Management • Plant • Flood Plain Risk Management • Economic Development & Tourism

• Social Inclusion

• Health and Wellbeing

• Communication and Community Engagement


Organisational Structure

Greg Tory

General Manager

Tekohi Rivera

Director Infastructure services

Water services

Recreation

Roads

Emergency Services

Areodromes

Jon Shillito

Director Environment, Toursim and Economic

Development

Planning Strategies

Development Assessments

Sustainability

Local Laws & Regulations

Natural Resource and Herritage Management

Facilities Management

Plant

Flood Plain Risk Management

Economic Development & Tourism

Social Inclusion

Health and Wellbeing

Communitcation and Community Engagement

Karen Pegler

Director

Corporate and Community Services

Corporate Governance

Finance

Integrated Planning and Reporting

Stores/Inventory

Customer Service Centres

Information Services

Libraries

Community Services

Customer Service

Asset Management

Human Resourses Executive Assistant


About our Shire

The Lachlan Shire is a progressive, vibrant and prosperous community in the heart of the

Central West region of New South Wales. Located 200 kilometres west of Orange and 220

kilometres south west of Dubbo, the Shire covers 14,973 square kilometres.

There are over 6,000 people that live within the Shire across three towns: Condobolin, Lake

Cargelligo and Tottenham; and five villages: Tullibigeal, Burcher, Fifield, Derriwong and

Albert.

The Shire is home to many traditional farming cultures and is one of the largest grain

producing areas in NSW. It is a rich agricultural area and in addition to grain is a significant

producer of sheep, wool, beef and cotton.

There are 632 businesses operating within the shire with the highest number of these being

in the Agriculture and Manufacturing sectors. Lachlan Shire produces approximately 17% of

NSW wheat and oat crops; and 14% of the state’s broad acre crops such as oilseeds.

A successful light-manufacturing sector has been operating in both Condobolin and Lake

Cargelligo with Council supporting further growth though the development of industrial

estates.

Tourism is an emerging industry with the natural beauty of the Lachlan River, the

picturesque Lake Cargelligo and Gum Bend Lake, and abundance of bird life. Lachlan Shire

has some of the best free camping spots in Australia and is established on the tourism trails.


Integrated Planning and Reporting Framework

As required under the NSW Local Government Act 1993, Lachlan Shire Council has adopted

the Integrated Planning and Reporting Framework. The documents under this Framework

namely the Community Strategic Plan, Delivery Program, Resourcing Strategy and

Operational Plan have been revised and updated during the current term of Council.

The Community Strategic Plan is structured around seven themes, with strategic outcomes

being identified for each. Council’s Community Strategic Plan is the document that guides

Council’s business and features the priorities identified by our communities. It also provides

council with a clear direction as to how these priorities will be achieved.

The Delivery Program follows the same structure, detailing the activities that Council will

undertake to achieve these priorities with the resources identified in the Resourcing

Strategy.

The Annual Report updates our community on Council’s progress towards achieving these

priorities as well as the strategies and actions that were developed to achieve the outcomes

identified in the Community Strategic Plan.

These projects are listed in Councils Four-year Delivery Program and the annual Operational

Plan.


Disability Inclusion Action Plan

The NSW Disability Inclusion Act 2014 required Councils to develop a Disability Inclusion

Action Plan by 1 July 2017.

Lachlan Shire Council has chosen to incorporate its Disability Inclusion Action Plan (DIAP)

within its four year Delivery Program to allow for a seamless integration of DIAP items into

core business. The purpose of the DIAP is to provide people with a disability greater access

to Council services, information and facilities.

Ref No Delivery Program Action

Operational Plan Action Years

1.6.1 Support programs to attract and retain medical and allied health professionals.

Support the creation of a Central West Joint Organisation to lobby for improved health services.

1 – 4

1.6.2 Central Location for all Aged Services.

Apply for funding to establish a Multi Service Outlet for the provision of Aged Services in Lake Cargelligo. Investigate the viability of moving the Lake Cargelligo HACC service to a central location in the centre of town.

2

1.6.3 Advocate for visiting specialist health services in the shire.

Advocate for the provision of dialysis in Condobolin and Lake Cargelligo.

1 – 4

1.6.4 The Wellbeing of Carers

Apply for funding to offer respite care in Condobolin and Lake Cargelligo.

1 – 4

1.6.5 Optimise the efficiency of the HACC funding.

Review the allocation of spending on services between each town.

1 – 4

1.7.1 Advocate for the provision of aged care services across the Shire.

Engage with relevant Federal and State agencies, RSL LifeCare, Lake Cargelligo All Care, Tottenham Welfare Council and NGOs to support aged services. Investigate the viability of providing aged care services to smaller villages.

1 – 4

2 - 3

1.7.2 Recreational and learning facilities for people with disabilities.

Construction of a sensory playground at Bill Hurley Park Condobolin.

1




1.7.4 Community Transport Available when needed.

Advocate for the re-introduction of a taxi Service in Condobolin. Advocate for the introduction of a weekly connecting bus service to Dubbo in Tottenham. Provide community car for Tottenham. Advocate with Transport NSW for a circuit bus around Condobolin.

1 – 4

1 1 – 4

2

1.7.5 Advocate for the provision of Dialysis Services in the Shire.

Formally request the Department of Health to provide Dialysis Services in both Condobolin and Lake Cargelligo hospitals.

1 - 4

3.2.1 Implement the Pedestrian Access Management Plan.

Upgrade and expand the footpath along Bathurst St, Condobolin. Improve access for pedestrians and mobility aid users in areas lacking footpaths. Staged implementation of the Active Travel Plan. Pathway to Recreational Reserve Building, outdoor gymnasium equipment and cemetery in Tottenham. Walking track to Dead Man’s Point and footpaths to hospital and schools in Lake Cargelligo. Replace footpaths in all towns as required. Install Pedestrian crossing at the intersection of Foster and Canada Streets, Lake Cargelligo. Install pedestrian lay-backs around the schools in Condobolin and Lake Cargelligo. Construct a walking track around Tottenham racecourse, cemetery and back to town.

3

1-4

2-3 3

3

1 – 4 3

2 – 3

3

3.2.2

Reassess the location of disabled parking spots.

Complete a map of disabled parking spots after consultation with the disabled community. Investigate and rectify the camber on disabled parking spots.

1 & 2

3 & 4




5.2.1 Control weeds and feral pests.

Spraying program for footpaths 1 – 4

6.5.1 Improvements at Condobolin Cemetery

Expand footpath network to the Condobolin Cemetery.

3 & 4


Delivery Program and Operational Plan Council’s four year Delivery Program, annual Operational Plan and annual Budget form an important part of its planning process to ensure

Council continues to deliver the services that meet the needs of its communities.

In accordance with the Integrated Planning and Reporting Guidelines and the Local Government Act 1993, Council is pleased to provide a

report to its community on its achievements towards implementing its Delivery Program.

Community Services Outcome 1.1: Connecting with our Aboriginal Communities

CSP No

Delivery Program Action (2017/2021)

Operational Plan Action

Performance Measure

Responsible Officer

Status as at 30 June 2019

1.6.1

Support programs to attract and retain medical and allied health professionals.

Facilitate annual bush bursary program. Support the creation of a Central West JO to lobby for improved health services.

Ensure ongoing program support

DCCS / GM

Bush Bursary Student completed placement in December 2018. Central NSW Joint Organisation was proclaimed on 11 May 2018. Mayor and GM have met with representatives from Ochre Health, RaRMS and WNSWLHD to discuss ongoing medical services.


1.6.2 Central location for all Aged Services

Apply for funding to establish a Multi service Outlet for the provision of all Aged services in Lake Cargelligo. Investigate the viability of moving the Lake Cargelligo HACC service to a central location in the centre of town. Investigate the viability of providing aged care services to smaller villages.

Application completed Cost /benefit analysis completed Services in smaller locations across the Shire.

DCCS (DIAP)

Opportunities for funding not yet identified. Not commenced Not commenced

1.6.3 Advocate for visiting specialist health services to the shire.

Advocate for the provision of visiting specialists to the shire.

Dialysis offered in both towns.

DCCS (DIAP)

Preliminary research completed on the need for a Dialysis service. Some contacts established and issue discussed. Mayor and GM have met with representatives from Ochre Health, RaRMS and WNSWLHD to discuss ongoing medical services.

1.6.4 Improved Mental Health Services

Advocate for a permanent and full time mental health worker in the shire.

Permanent mental health position in Condobolin or Lake Cargelligo.

DCCS (DIAP)

Council has supported the implementation of a Suicide prevention officer funded by Western Primary Health Network.

1.6.5 The Wellbeing of Carers

Apply for funding to offer respite care in Condobolin and Lake Cargelligo.

Respite care offered in Condobolin and Lake Cargelligo.

DCCS (DIAP)

Not yet commenced

1.6.6 Optimise the efficiency of the HACC funding.

Review the allocation of spending on services between each town.

Review completed and resources re-allocated accordingly

DCCS (DIAP)

Not yet commenced scheduled for 2019/20.


Outcome 1.7: Improved Social Outcomes for those with disabilities

CSP No



Performance Measure

Responsible Officer


1.7.1 Advocate for the provision of aged care services across the Shire.

Engage with relevant Federal/ State agencies, RSL Life-Care, Lake Cargelligo All Care, Tottenham Welfare Council and NGOs to support aged services.

Maintenance of existing facilities and maximise opportunities for external funding.

DETED/ DCCS (DIAP)

Implementing improvements from successful audit. Funding secured for the next two years. Existing facilities being maintained.

1.7.2 Recreational and learning facilities for people with disabilities.

Construction of a sensory playground at Bill Hurley Park Condobolin.

Construction of sensory playground by 31 December 2018.

DIS Sensory Playground installed in Condobolin.

1.7.3 Disability access in all Council buildings.

Installation of hearing loops in major Council public buildings. Audit of disabled access to council buildings Installation of disabled toilets in Council buildings

50% of major buildings installed with hearing loops. Audit completed 50% of major buildings have disabled access.

DIS (DIAP)

Hearing Loops have been installed in the Condobolin Council Chamber. Disability access audit to Council buildings complete. 10 year maintenance and upgrade schedule under development. Subject to funding availability and when refurbishments occur

1.7.4 Community Transport Available when needed

Advocate for the re-introduction of a taxi

Subsidies investigated. Taxi service re-introduced.

DIS (DIAP)

Taxi service opened in May 2018 in Condobolin. Community transport


Service in Condobolin Monitor usage of bus service to Dubbo in Tottenham. Provide community car for Tottenham. Advocate with Transport NSW for a circuit bus around Condobolin

Bus service proven successful Statistic kept and reported. Car service introduced

service provided in Condobolin, Tottenham and Lake Cargelligo. Ongoing. Bus service used regularly. Car is being used regularly. No formal advocating done. Taxi service now in place.

1.7.5 Advocate for the provision of Dialysis Services in the Shire.

Formally request the Department of Health to provide Dialysis Services in Condobolin and Lake Cargelligo hospitals.

Dialysis service in Condobolin & Lake Cargelligo

DCCS (DIAP)

Contact numbers have been established. No formal advocating done.


Outcome 1.8 Wellbeing of Youth

CSP No



Performance Measure

Responsible Officer


1.8.1

Development of a Youth Strategy

Support Life Without Barriers, WPRD and WCC in the production of a youth strategy.

Support and input given to the youth Strategy. Actions implemented.

DCCS Preliminary discussions held on development of revised Youth Strategy. Consultation with youth and youth services providers undertaken. Draft youth strategy nearing completion. To be completed in 2019.

1.8.2

Increase awareness about youth programs offered

Advertise programs through social media and on council’s website.

20% increase in participation in the programs

DCCS School holiday programs and relevant programs for youth advertised regularly.

1.8.3

Support youth development programs within the shire.

Support WPRD to provide youth program. Improve the standard of youth centres in Condobolin, Lake Cargelligo and Tottenham. Support Micro Music Festival Work with the police to get funding to Establish a PCYC. Support CDAT Committee initiatives

Funding of WPRD Funding of improvements to the youth centres in the three towns. Participation of local amateur talent Commitment from Police gained. Funding attained. All meetings attended.

DCCS WPRD Funded. Updated Youth Strategy being developed. Funding sources not yet identified. Not yet commenced Police informally advised that population does not meet current minimum for establishment of a PCYC Ongoing


Tourism & Economic Development Outcome 2.1: A vibrant tourism industry

CSP No



Performance Measure

Responsible Officer


2.1.1 Promote Lachlan Shire as tourist destinations.

Work with Central NSW tourism to encourage visitors to the Central region of NSW to come west and visit our towns. Promote specific towns in Lachlan Shire as a tourist stop points. Investigate new branding options. Update Lachlan Shire brochures. Advertise locations within the shire as attractive camping spots.

Visitor Numbers increase by 15%. Bed stays increased. Increased visitor numbers by 10% according to accommodation providers Investigation completed with new branding New brochures available Increased camping numbers by 20% per year

DETED Draft Destination Management Plan developed. Currently being further refined. Ongoing liaison with Destination NSW and Central West Tourism Ongoing liaison with Destination NSW and Central West Tourism. Work currently underway. Work currently underway. Lake Cargelligo (Frogs Hollow and Dead Man’s Point) and Condobolin (Gum Bend Lake) are being promoted to the Freedom Camper market in several key publications.

2.1.2 Increase things to see and do for visitors to the shire

Build a truck stop and tourist precinct.

Precinct completed. Visitor numbers who come to the precinct.

TO/DIS/DETED

Utes in the Paddock relocated. Application for further funding has been submitted to build the Visitor Information Centre


Investigate the viability painting of the Silos with rural characters on the Eastern entrance to Condobolin and in Lake Cargelligo. Promote Farm Tours Create a list of Birds

Investigation completed Visitor numbers who come to town to view the silos. Successful tours List completed

DETED TO TO

Silos at the entrances in Condobolin and Lake Cargelligo cannot be used for Art purposes as they are still active work sites. - Not yet commenced New bird website up and running.

2.1.3 Provide a visitor Information Centre

Investigate the options for a Visitor Information Centre in Condobolin both long and short term.

Development of a business plan for a VIC. Operation of a designated VIC in Condobolin.

TO DETED

Ongoing – Dependent on funding submission.

2.1.4 Participate in regional Promotion

Remain members of Central NSW Tourism and join the Newell highway Tourism committee.

Increased number of nights stayed in Lake Cargelligo and Condobolin

TO DETED

Ongoing.

2.1.5 Promote the Wiradjuri Centre as a location for Tourists to visit.

Install directional signage to the Wiradjuri Cultural Centre. Investigate a Bush Tucker/ Bush medicine shop

Signage installed. Investigation complete

DIS DETED

Not yet commenced. Not yet commenced. Will be included as an attraction in the Council’s Destination Management Plan.


Promote the WCC as a tourist destination.

Increased visitor numbers to the WCC.

2.1.6 Improve the marketing of existing events.

Creation of a calendar of events. Events promoted on Facebook Creation of a text notification database which is used to promote events. Create a Phone App for What’s on in Town.

Calendar of events created. Number of events listed on Council’s face-book page. Database created and used for notification. App created

DETED Event calendar has been created Facebook is regularly used to promote local events. Not commenced. Communication and Community Engagement Officer position being recruited. Scheduled for 2019/20.

2.1.7 Increase visitors to the shire

Provide town parking for motor homes and caravans. Market premium free camping locations within the shire. Develop a Destination Marketing Plan

Value of receipts at Gum Bend Lake. Accommodation operator survey. Plan Completed

TO DETED

Not yet commenced. Some parking available. Further options to be investigated. Council featured in the latest Caravanning Australia Magazine and the Free Camp Guide which is compiled every two years. Currently underway.

2.1.8 Development of a new event

Investigate the viability of different types of events.

Report on viability of new events completed.

ELT Council provides financial and in kind support to a number of events in the Shire. Condo 750, Condo Cookup, Novemberfest, Skyfest

2.1.9 Improve Caravan Park facilities in Lake

Investigate the viability of leasing the caravan parks out to private operators with

Report completed Decision made

DETED

Lake Cargelligo facility upgrade needs identified. Current Contract for Condobolin


Cargelligo, Burcher and Condobolin

conditions attached for capital improvements. Upgrade Shower & Toilet facilities at Burcher

Toilets installed

DIS

Caravan Park is in place until August 2020. Operation of Lake Cargelligo Caravan Park taken over by Condobolin contractor. Long term options for both caravan parks will be investigated. Toilet and shower facilities at Burcher are now completed.

2.1.10 Develop Forbes to Condo Sculpture Trail

Work with Forbes Shire Council to develop a sculpture trail from Forbes to Condobolin on Lachlan Valley Way

Funding Secured Sculptures Erected

DETED Ongoing - Dependent on funding. Letter of support for grant application provided. Detailed grant application submitted by Forbes Art Society. Wiradjuri Warrior sculpture under manufacture.

2.1.11 Support the Lake foreshore Development

Support the development of a licensed community club and function centre near the existing boat club and recreation ground.

Support given where possible. Application submitted.

DIS Foreshore sheltered bench constructed, irrigation upgrades budgeted FY1920. Future improvements suggested by community groups will be considered.

2.1.12 Support potential environmental and eco-tourism projects

Work with Department of Prime Minister and Cabinet to attain funding for the rehabilitation of Robinson Crusoe Island.

Application submitted. DIS Not commenced.


Outcome 2.2: A diverse range of employment opportunities

CSP No



Performance Measure

Responsible Officer


2.2.1 Encourage residents to shop local

Promote Why Leave Town Program Development of a Shop Local Retail Guide Hold the Christmas Fiesta in 2017

No of retail outlets accepting Why Leave Town Cards Guide Produced by Nov 2017. Shop local dockets exceed $220,000.

DETED Promoted through the Condobolin Chamber of commerce. Council made financial contribution to Why Leave Town promotion. Council continue to support Christmas Event.

2.2.2 A strong Retail sector

Conduct a Retail operator and Shopper survey Development of Customer database Assist and Facilitate an effective chamber of commerce in Condobolin and Lake Cargelligo. Facilitate the running of Retail Re-vamp workshops. Investigate the viability of a community Co-op.

Survey completed and conclusions drawn from it. No of people on the database and times used. Membership of the chamber of commerce increase from 14 to 25. Participation of ten retail businesses in the workshops Reduction in the number of vacant shops

DETED Survey has been completed. Results used for Mid Lachlan Alliance project. Not yet commenced. Scheduled for 2019/2020. Assistance provided to Chamber where needed. Council Staff attend meetings. Not yet commenced. Not commenced yet. Scheduled for 2019/2020 subject to funding and owner’s consent. Why Leave Town program being run by Condobolin Chamber of Commerce.


Facilitate the filling up of shops in the main Street. Support the Why Leave Town Program Pursue a tenant for the former Target building Investigate business open hours on Public holidays and weekends Develop ‘Look Local’ Campaign

Empty Shops filled in main street with retail or human interest items. Increase in annual value of cards loaded from $11,000 to $13,000 in year 1 increasing by $2000 per annum thereafter. Tenant secured and operating a retail business. Business hours open at business times on weekends to capture weekend visitors Residents considering local business before leaving town

COMPLETE Chamber of Commerce have approached businesses re weekend openings. Limited STATUS at this point. Suggested in Chamber meetings. To be further discussed. Not commenced yet.


Outcome 2.3: Encourage Business Activity

CSP No



Performance Measure

Responsible Officer


2.3.1 Recognise Business excellence

Investigate the reintroduction of Lachlan Business Awards

Award ceremony conducted

DETED Investigation complete – insufficient interest to implement.

2.3.2 Implement the Actions in the Economic Development strategy

Engage consultant to commence actions in Economic Development Strategy

Strategy completed DETED Consultant engaged to discuss how Council can help businesses, Brethren and Wiradjuri Corp Several actions from the Economic Development Strategy have been included in Council’s Delivery Program.

2.3.3 Access to premium Industrial Land

Investigate the viability of converting the saleyards to an industrial sub-division. Sell existing Industrial Lots

Investigation completed. All industrial lots sold.

DETED Not yet commenced. Resistance from Agriculture sector and agents to removal of saleyards All blocks sold in Condobolin. 3 lots remain unsold in Lake Cargelligo.

2.3.4 Encourage value added agricultural industries

Investigate the viability of a Cotton Gin in the Shire.

Investigation completed.

DETED Discussions held with some property owners however not financially viable at this time.

2.3.5 Attract new Industries/ Businesses to the Shire

Investigate the viability of a solar farm in the shire Follow up on the possibility of starting a feedlot in the shire. Liaise with Graincorp to investigate the possibility of upgrading the Grain receiving terminals at Lake Cargelligo and Condobolin.

Viability investigated Proponent contacted. Graincorp updating their terminals

GM/DETED Discussions with two proponents in Lake Cargelligo. Proponent presented proposal to Council in February 2019. Council decided not to pursue proposal. Lamb feedlot established at Kiacatoo. Graincorp Regeneration Project in planning stage. Council supported request for closure of rail crossing at Silo Road. Joint application to


NSW Fixing Country Roads for upgrades to intersections along Henry Parkes Way (at Silo Road & Kiacatoo Road)

2.3.6 Improve Marketing of businesses in the shire

Finance an annual training session on marketing.

DETED . Working with Lower Lachlan and Growing Lachlan on a Business Forum project planned for November 2019.

Access to residential Land

Sell existing Randall St blocks Sell existing residential blocks in Lake Cargelligo Investigate the viability of a new residential sub-division for older people near the lake in Lake Cargelligo.

All blocks sold and being used One block sold per year. All blocks sold Investigation completed.

GM/DETED All lots sold Scott Street Subdivision planning & design completed. Interest in the Scott St sub-division. Construction deferred pending mining construction. One lot sold. Limited inquiry on residential lots. Land subject of Native Title claim and not available for subdivision until claim resolved.

2.3.7 Support Mining operations in the Shire

Encourage and support the proposal of Platina Resources at Owendale and support CleanTeQ at Fifield

Report on support required completed. Support given.

ELT Regular meetings and advice provided to Platina Resources and CleanTeQ to support mining proposals and development.


Outcome 2.4: Access to Reliable Current Technologies

CSP No



Performance Measure

Responsible Officer


2.4.1 Council to keep up to date with technological improvements and achievements

Digital radio coverage

Digital radio coverage available across the Shire

DETED

Scope of works and specification being developed for radio network upgrade. Upgrade of radio network not cost effective. Cell-Fi boosters being installed in plant to improve mobile phone reception. Submissions have been made for additional mobile phone towers.

2.4.2 Advocate for complete mobile phone coverage throughout the Shire.

Liaise with service providers and Federal Government for increased mobile coverage throughout the Shire. Advocate for NBN

Increased mobile coverage in Shire. NBN Operating prior to December 2017.

GM DIS COUNCIL DCCS

Announcement of Yellow Mountain tower to be constructed. Submission made to federal government for additional mobile phone towers. NBN installed and operating. Letter sent to local federal MPs and NBN Co regarding connectivity in industrial areas.


Outcome 2.5: Improve the appearance of each town

CSP No



Performance Measure

Responsible Officer


2.5.1 Improve the appearance of the CBD’s

Develop a streetscape plan for the main streets in Condobolin and Lake Cargelligo. Implement Plans for Condobolin and Lake Cargelligo Complete a Management Plan for each of the villages Encourage businesses to paint shop awnings

Plans Developed Community Agreement 80% Resident Satisfaction with end result Plans completed for each village. Business paint shop awnings

DIS DETED/DIS

Foster Street detailed design completed. Relocation of underground services budgeted in FY1920. Additional funding for roadworks in FY2021 being investigated. Condobolin not yet done. William, Busby, Lachlan Streets detailed design completed. Partial funding $280k funded in FY1920. Denison Street concept design completed. No funding in FY1920. Additional funding for both projects’ construction being investigated for FY2021. Village enhancement plans done. Follow up consultation with community not yet done. Council has painted three buildings in the main street Condobolin, as part of lease of former Target Building. Local business owners are being encouraged to seek funding under Local Heritage Fund to undertake maintenance works such as painting shop awnings.


2.5.2 Improve the appearance of town entries.

Improve Parks at Condobolin Town Entrance Improve Lake Cargelligo town entrance New signage for all town entrances Appropriate Trees at the entrance of each town.

Parks appearance improved Town Entrances appearance improved New signage at town entrances Trees planted at town entrances

DIS Lions Park upgrade is complete. Tottenham Memorial Park Masterplan and upgrade works complete. planning and development under way. Installation to be completed in August. Tottenham Memorial Park Masterplan complete and works to commence in September. Entrance signs installed on all four entrances to Lake Cargelligo. 36 trees planted along Canada Street entrance in Lake Cargelligo. 12 trees planted along Federation Street, Albert. Replanted the garden bed at the town entrance sign on Melrose Road, Condobolin. 16 trees planted on entrances to Tullibigeal.

2.5.3 Improve the appearance of Council Buildings

Facelift of Condobolin Water Treatment Plant

Treatment Plant painted

DIS Works packaged with upgrade to plant. Scope of works and approx. costing being developed.

2.5.4

Improved signage in all towns

Directional signage to Burcher from West Wyalong Install historical Signage throughout the Shire

Signs placed at West Wyalong Historical signage erected throughout Shire

DIS DETED

Completed Condobolin and Tullibigeal completed – signs already at Lake and Tottenham.


Outcome 2.6: Attract new residents to the Shire

CSP No



Performance Measure

Responsible Officer


2.6.1 Promote the benefits of a rural lifestyle

Build houses at Condobolin & Lake Cargelligo (Spec homes) Investigate Changing Council’s LEP to allow for more Rural living lots. Complete preparations for the Scott Street sub-division. Promote affordable housing in the Shire to external markets.

Houses built LEP completed with provision for Rural Living blocks First stage of sub-division completed Increased resident numbers

DETED DETED DETED DCCS

Residential property purchased in Condobolin. New dwelling in Lake Cargelligo completed. Draft Urban Land Use Strategy completed and advice from DoP has been obtained. Council is currently working with Department of Planning, Industry and Environment to finalise the urban settlement strategy. Once finalised a planning proposal will be prepared. The urban settlement strategy is expected to be complete in the late 2019. Council will need to undertake a further study to determine the need and impacts associated with creating more rural living lots. Design completed. Development approval obtained. Construction plans and detailed estimate is being prepared by consultant engineers. Not yet commenced as Council is awaiting for suitable market conditions.


Transport Outcome 3.1: Efficient transport networks that meet community and business needs

CSP No



Performance Measure

Responsible Officer


3.1.1 Implement road maintenance, renewals and improvements in accordance with Transport Asset Management Plan.

Complete annual maintenance, renewals and improvements program. Reinstate flood damaged roads Implement road sealing program Prepare and implement truck rest areas near each village.

Reseal program completed. Grant funded programs completed, e.g. Roads to Recovery, Block, REPAIR, NDRRA. Complete works identified in AMP. Rest areas completed.

DIS DIS MR MR

$143k sealed rural road maintenance and $1.6m unsealed rural road maintenance in various locations complete. $3.6m sealed and unsealed rural roads upgraded in various locations. $2.5m regional road flood damage repairs completed. $3.0m regional road upgrades and $950k regional road maintenance completed in various locations. $243k reseal of urban streets, $593k of regional roads and sealing of new construction complete. $850k reseal and sealing of new construction complete.

3.1.2 Operate and maintain airports at Condobolin, Tottenham and Lake Cargelligo to

Complete Condobolin Airport Master Plan Reseal Condobolin Aerodrome Reseal Tottenham Aerodrome

Compliance with statutory requirements. Resheet Lake Airport runway Management Plan completed

DIS

Masterplan done. Not yet done. Not yet done.


meet statutory standards.

Resheet Lake Cargelligo Complete the Condobolin Airport Management Plan. Implement the Actions in the Condobolin Management Plan

and adopted by Council. Management Plan action items implemented. Actions in plan implemented.

Gravel resheet done. Management plan done. Not yet adopted by Council. Not yet done, owing to lack of funding.

3.1.3 Progressively widen existing narrow seals in accordance with Transport Asset Management Plan.

Complete reconstruction and widening of segments as a progressive program.

Completion of projects identified in the AMP.

DIS

5km of Yelkin Road reconstruction and seal completed in September 2018. Shoulder widening and sealing works completed on The Gipps Way at “Euglo”, Lake Cargelligo Road at Sansons Lane and immediately east of Lake Cargelligo, Kiacatoo Road, and Wyalong Road. Rodeo Drive, Wamboyne, Road, Moiravale Road and North River Road reconstructed and widened, with new culverts and safety barriers. NSW Fixing Country Roads grant application for The Gipps Way, Curlew Rd, Tullibigeal Rd and Maitland St upgrades were successful and secured $5.97m from Restart NSW. Drought Relief Heavy Vehicle Access Funding application for Fifield Road and The Bogan Way was successful and $300k of shoulder widening was completed.


3.1.4 Implement Rural Addressing

Map every rural entrance Notify all rural property holders of their address Install Signage

Rural Addressing completed.

DCCS GISO

Rural addressing completed.

3.1.5 Truck By-pass for Condobolin, Lake Cargelligo & Tottenham

Advocate to the Department RMS, for a truck by-pass of Condobolin and Tottenham and develop a truck bypass for Lake Cargelligo

Submission to Department of RMS completed.

DIS Staged concept design for Lake Cargelligo done. Stage 1 bypass completed. Stage 1B and 2 detailed design underway. Funding being investigated for FY1920. Detailed design for Condobolin bypass via Denison & Lachlan Streets done. Part funding budgeted FY1920. Additional funding for FY2021 being investigated. Tottenham bypass signage installed. Options assessment for Tottenham rail bridge completed. Funding for design and construction being investigated.

3.1.6 Road Safety Program

Participate in the Local Government Road Safety Program in partnership with Parkes and Forbes Shires.

Completion of three year Road Safety Program.

DIS FY1819 funding agreement with RMS executed.

3.1.7 Traffic calming and road safety in Lake Cargelligo, Tottenham and Condobolin

Intersection upgrades of William & Lachlan Streets, Lachlan Valley Way & Diggers Avenue Condobolin and intersection of Foster & Canada Streets, Rodeo Drive & Canada Streets, Rodeo Drive & Grace Streets, Narrandera Street & Rankin Springs Road Lake Cargelligo

Designs and costings completed. Grant programs identified grant applications submitted. Construction works underway. Main street masterplans are completed.

DIS Designs completed for all intersections. Upgrades partly completed for Rodeo Drive (with Grace St & Canada St). Condobolin not yet done. Detailed design completed for William, Busby & Lachlan Streets. Concept design completed for Denison Street. Lake Cargelligo detailed design done and $300k budgeted for underground services in FY1920. Tottenham signage. Village enhancement plans done with many


Main street improvements in Condobolin, Lake Cargelligo and Tottenham

Improvements completed

minor community infrastructure projects done (with $1m Drought Communities Funding).

Outcome 3.2: Improved pedestrian and cycle paths

CSP No



Performance Measure

Responsible Officer


3.2.1 Implement the Disability Inclusion Access Plan

Improve access for pedestrians and mobility aid users in areas lacking footpaths. Staged implementation of the Active Travel Plan (ATP) for Tottenham, Lake Cargelligo and Condobolin. Upgrade the footpath and include a cycleway along Bathurst St with Condobolin main street improvements. Deliver footpath and kerb and gutter replacement program Install pedestrian crossing at the intersection of Foster and Canada Streets, Lake Cargelligo.

50% of Active Travel Plan completed Footpath and kerb & gutter replacement program underway. Pedestrian crossing completed with Lake Cargelligo main street improvements. Works underway.

DIS (DIAP)

Installation of disabled parking and pedestrian ramp in Lachlan Street Condobolin. Footpath program amended. Additional Footpath and laybacks completed at Utes in the Paddock and William Street Condobolin but not Bathurst St. Additional footpath and layback completed in Canada, Uabba, Yelkin, Prior, Foster and Lake Streets Lake Cargelligo. Additional footpath completed in Umang and Merilba Street and pram ramps in Bulbodney, Moodana, Mogille and Meryula Streets.


Install pedestrian lay-backs in key areas around the schools in Condobolin and Lake Cargelligo. Construct shared paths around recreational facilities at sites identified in the Active Travel Plan, including, Tottenham racecourse and cemetery, Gum Bend Lake, Lake Walkway Stage II. Install drinking stations along shared paths

Designs and costings completed. Grant programs identified grant applications submitted. Construction works underway. Installations begun.

Canada Street crossing complete. Foster Street not done yet. Lake Cargelligo school done. Condobolin schools not done. Funding being investigated for FY2021. Gum Bend Lake walkway – Stronger Country Communities Round 3 application submitted for funding. 1580m constructed - Lake Cargelligo Foreshore walkway stage 2. Not yet done.

3.2.2 Develop disabled parking zones in all main towns.

Complete a map of disabled parking spots after consultation with the disabled community. Upgrade existing and install new disabled parking spaces. Disabled access ramp to Australian Standard AS2890

Map completed and parking spots re-located accordingly. Disabled car spaces and ramps constructed.

DIS (DIAP)

Completed at Condobolin library, Condobolin Memorial Park. Disabled parking included in design for Foster St, pending funding FY2021.


Outcome 3.3: Upgrade Street Lighting

CSP No



Performance Measure

Responsible Officer

General Ledger

3.3.1 Conduct an audit of Street Lighting Requirements and develop street lighting works program.

Complete Audit and deliver works program including adjoining roads and caravan parks. Install street lights at the side of the Lake Cargelligo caravan park.

Audit done. Delivery program underway. Installation of new lighting.

DIS Not yet done. Not yet done


Governance & Financial Control

Outcome 4.1: Involved and Active Community Groups

CSP No



Performance Measure

Responsible Officer


4.1.1 Support and develop the capacity of Council’s S355 committees and other committees that manage Council facilities, events and initiatives.

Ongoing liaison with committees. Provide point of contact and selected information and training opportunities. Correspondence regarding terms of reference and Financial Reporting.

S355 committees active and delivering on terms of reference. Compliance with the requirements of Sect 355 of the Local Govt Act and Council attendance at Sect 355 committee meetings.

DCCS

Committees have been contacted and given the Terms of Reference. Committee meetings have been attended upon request. The Community Services Admin Officer has been established as the point of contact for the committees.

4.1.2 Re-vamp Australia Day celebrations so that there is one main event in the shire

Creation of an Australia Day Shire Wide Committee Run Australia Day as a Shire Wide event.

Committee created and working Attendance of 100 people at the Australia Day celebrations.

GM Committee created. Achieved


4.1.3 Encourage community events

Develop a community Event approval process for community event holders. Notify event holders of their responsibilities for lodging documentation four months prior to the up-coming event.

Create an easier event application process with fast approval. Regular event holders notified.

DCCS New approval process has been developed. An Event has been held to assist event planners to ensure an efficient process.

Outcome 4.2: Strong effective and Responsive Council

CSP No



Performance Measure

Responsible Officer


4.2.1 Council is financially sustainable and provides services at a level expected by the community.

Complete quarterly reporting against budget Complete Statutory accounts Operate an effective Audit Committee Continue to implement FFTF reforms

Quarterly budget review to Council within 2 months after the end of the quarter. Statutory Accounts completed by 31 October Implement recommendations from the Audit committee Council meets the FFTF targets each year.

DCCS DCCS DCCS DCCS

Reports to Council occurring in accordance with Local Government (General) Regulation timelines Extension of time to 30 November 2017 approved by OLG – accounts lodged on 30 November Audit & Risk Committee meet quarterly and recommendations implemented – actions arising from Internal Audits temporarily delayed pending appointment of Assets Accountant Asset renewals ratio benchmark not achieved in 2016-2017 and not expected in 2017-2018 due to effects


Review investment policy Tender Council’s Banking Service

Average return on Investment of 20 basis points above the Bank Bill Swap Rate. Saving total of $20,000.

DCCS DCCS

of flooding in 2016 – ratio expected to be on target from 2018-2019 Achieved 2016-2017 Expressions of Interest received – to be reviewed in February 2018.

4.2.2 Council’s decision making is equitable and ethical.

Training for Councillors Ensure that policies are reviewed regularly.

Councillor training plan developed & training undertaken. Council’s decision making and operational activities meet regulation compliance and community expectation. 95% of policies reviewed by due date.

GM DCCS HR Manager

LGNSW events and training opportunities distributed. Code of Conduct, Meeting Code of Practice delivered. Finance for Councillors training offered and several Councillors trained. Policies are progressively being reviewed.

4.2.3 Strengthen regional cooperation to the benefit of local residents

Council demonstrates strong leadership developing initiatives with Central West Joint Organisation, MLA and other strategic alliances such as Penrith City Council.

Reported to Council on activities held.

GM DCCS

Opportunities to work with other strategic alliances are acted on as these become available. Discussion with PCC GM regarding resource sharing, co-operative employment models and workforce capacity.

4.2.4 Customer Request

CRM’s reviewed and reported to council regularly

95% CRM’s tasked are

GM DCCS

CRM training undertaken


system in place and operational

Community/Customer Satisfaction Survey undertaken to measure Council responsiveness and services.

completed in an established timeframe Average STATUS of satisfactory or better.

DCCS

CRM system upgraded and Re-implemented Community Survey planned 3rd and 4th quarter of FY2019/20

4.2.5 Council’s exposure to risk is minimised.

Review Council’s Enterprise Risk Management Plan and implement actions. Provide a safe workplace to all employees Hold Health and Safety committee meetings Investigate the tendering of Insurance. Workplace safety awareness training Active management of staff who suffer Workplace incidents. Review Council’s Salary Structure

75% of actions implemented. Less than 600 hrs lost by Year 3. Meetings held quarterly with 80% attendance. 15% reduction in insurance cost from 16/17 level. Training provided to at risk staff. Return to work plans in place for all staff on Work-cover. New Salary Structure implemented

GM, DETED DIS, DCCS HR Manager HR Manager HR Manager HR Manager HR Manager HR Manager

Development of enterprise risk management plan delayed following resignation of DCSG. Work to re-commence with the appointment of the DCCS. Lost time injuries less than 600hrs in 2018/19. Health and Safety Committee held. Complete WHS Induction training held on a regular basis Return to work plans completed for staff on workers compensation Completed – further development proposed following development of new Enterprise Agreement.


4.2.6 Effective and efficient management of fixed assets

Implementation of the Asset Management System in Authority.

Improved ROI List of Surplus Assets developed.

DCCS All assets now incorporated in Civica Authority data base. Asset lists are progressively being reviewed and updated.

4.2.7 Operational Buildings which enable Council to efficiently perform its functions.

Replace roof and Air conditioning at the Council Chambers Construct new DETE at Condobolin in the Industrial subdivision. Relocate Lake Cargelligo DETED

Replacement complete. Completed Condobolin DETED. Relocation Complete of Lake Cargelligo DETED.

DETED DETED DETED

Partial roof and air condition replacement. Design works are continuing and work is expected to commence in the coming months. A consultant has been appointed for the design of the project and drawings are currently being prepared. Tenders will be called for to carry out the work by April 2019. Work expected to be completed by February 2020. The works on the Condobolin Depot will be carried out over three financial years and is expected to be complete by late 2021.

4.2.8 Ensure that Council has a skilled and competent workforce necessary to achieve its strategic outcomes.

Provide professional development, and required training to staff

80% of Training delivered as identified in staff training plans.

HR Manager HR Manager

The following courses have been undertaken: Cert III in Water Industry Operations, Cert III in Civil Constructions, Chainsaw training, Capability Framework training, Centroc WHS Induction training for contractors and staff, Corporate Inductions, Rates training, First Aid training Traffic Control training, Consultative Committee training and a Business Continuity Plan workshop.


Develop succession plans for crucial positions identified in the workforce Management plan. Promote Council as an employer of choice. Conduct bi-annual employee opinion survey which measures employee engagement. Conduct exit interviews on all exiting staff. Ensure that staff have access to inDETEDendent consultants to discuss personal issues.

100% of succession plans developed for critical positions. Review employee benefits brochure and included in recruitment packs and on Council’s website. 80% undertaking of survey Staff satisfaction levels increase by 10% from 2017. 90% permanent staff completion. Appointment of an employee assistance provider

HR Manager MPOD MPOD

Workforce Plan to be reviewed again in 2019/20 Benefit brochure included in recruitment packs Staff Survey to be conducted in October 2019 Exit Interviews conducted for exiting staff Access available


Outcome 4.3: Enhance communication with Residents

CSP No



Performance Measure

Responsible Officer


4.3.1 Enhanced Communication with the Community

Re-vamp Council’s Website Increase posts to Council’s face-book page. Construct community contact database Run a monthly column in the local newspapers.

10% increase in hits to Council’s web-page. 20% more friends to face-book page. Implementation of Instagram platform. Database completed and communication of key events issued via text and e-mail. Newspaper column active.

DCCS Postponed until the evaluation of IT issues for the Mid Lachlan Alliance Fitness Grant has been completed. Under development Fortnightly column in local newspapers done.

Outcome 4.4: Strategic Management of Villages and Crown Reserves

CSP No



Performance Measure

Responsible Officer


4.4.1 Develop Village Management Plans

Develop Specific Management Plans for Tottenham, Fifield, Burcher and Derriwong.

Village Plans Completed.

DETED Village management plans done. Improvement actions being incorporated into LTFP prior to further community consultation. Some of the identified works were completed using the funds


associated with the Drought Communities Grant Programme

4.4.2 Develop plans of Management for all Crown Reserves.

Develop a Management Plan for the SRA Grounds. Develop a generic master plans for all crown reserves and then customise for each specific reserve

Management Plan completed. Masterplan completed.

DIS DIS

Plan of Management process is underway for all Crown reserves. Plans of Management have been developed to Draft status, for :- Condobolin SRA and campgrounds, Gum Bend Lake, Tottenham Recreation Ground and Racetrack, Tullibigeal Recreation Ground and Racetrack, Plans of Management are still under development for:- Lake Cargelligo Recreation and show grounds; and Generic Plan of management the all other Crown Reserves


People & Environment Outcome 5.1: Modern waste management system

CSP No



Performance Measure

Responsible Officer


5.1.1 Review and implement Council’s waste management strategy.

Implement Shire wide Waste Management Strategy.

Strategy implemented

DETED Implementation underway. Fifield, Derriwong and Albert tips closed and remediated. Waste Management Strategy prepared for Condobolin and Lake Cargelligo Waste Facilities. Actions being implemented. Rehabilitation works for Albert and Fifield completed. New landfilling sequence implemented and removal of legacy stockpiled waste at Condobolin Waste Facility. Lake Cargelligo enhancements completed, new waste cell installed, removal of hazardous waste stockpiles, improved operational layout and reduction in litter blown pollution. Review of strategy to be undertaken and performance measures.


5.1.2 Provide solid waste collection and disposal services.

Maintain effective collection and disposal services More street bins for villages Ensure that streets in the towns are free from rubbish

Number of complaints minimised and responded to. Favourable community satisfaction survey. Favourable community satisfaction survey.

DETED

Appointed new collection contractor. No complaints received Completed Ongoing Complaints about bin bank set up requesting skip bins for bulky items. Skip bins provided. Council staff will monitor the budget and if sufficient funds are available a bulky waste collection will be arranged for the main villages

5.1.3 Implement and maintain recycling services.

Implement Kerbside recycling

Kerbside recycling, drop off bays at Waste Facilities where appropriate. Waste Action Plan adopted. Review kerbside collection programs as necessary.

DETED Appointed new collection contractor. No complaints have been received. Completed Complaints about bin bank set up requesting skip bins for bulky items. Skip bins provided. Ongoing monitoring of skip system, one complaint received during Christmas period about facility not meeting excess waste


demand during this period. Extra bins to be rolled out to accommodate waste demand over Christmas/new year period. Appointment of new Site Management contract for all Condobolin, Lake Cargelligo, Tottenham, Tullibigeal and Burcher Facilities. Ongoing

5.1.4 Develop and implement a trade waste policy.

Implement Policy through a joint project with Central West Joint Organisation/Utilities Alliance.

Policy in place. DETED/DIS Currently being compiled, expected completion February 2020.

5.1.5 Investigation into the viability of Tullibigeal and Burcher Waste Management Facilities.

Profit and loss summary for overall waste management

Investigation complete and recommendations made.

DETED Completed Open unmanned – monitoring of tyres and asbestos to be continued Minimal disposal of asbestos and tyres, these waste removed from site immediately if disposed. Operational cost has significantly reduced and meeting environmental performance standards with regular maintenance.


Outcome 5.2: Care for our community land

CSP No



Performance Measure

Responsible Officer


5.2.1 Control weeds and feral pests.

Conduct weed and feral pest inspections inspection program and control operations. Undertake pest and weed control program on Council managed reserved Spraying program for footpaths

Inspection program implemented. Weed control activities completed as programmed. Feral pest control program completed, % reserves sprayed, pest numbers caught controlled. Paths free from weeds (DIAP)

DETED/Weeds Officer (DIAP)

Ongoing All targets met or exceeded Ongoing Program conducted in accordance with the level of staffing and funding available. Positive feedback received from the general public. Ongoing, some complaints received regarding timeliness of spraying. Additional resources required if an increased level of service is to be provided.

5.2.2 Work with the Local Land Services to implement natural resource management initiatives.

Progress Lake Cargelligo Wetland Projects. Investigate options for funding a development officer to work with National Parks and Wildlife service.

Wetland constructed. Funding investigated and, if available, Development Officer employed.

DETED Ongoing discussions with DPI and LLS

5.2.3 Develop initiatives to reduce Council’s carbon footprint.

Develop initiatives to reduce Council’s carbon footprint

Initiatives implemented e.g.

DETED/DIS Ongoing within budget. Support for Southern Lights project through CNSWJO


LED street lighting, recycled plastic bins.

5.2.4 Address weed and salt issues at Gum bend lake.

Put in place a salt bush planting program to alleviate salinity issues which have arisen due to the installation of the lake. Put in place a weed control program at Gum Bend lake

No of salt push plants planted 20% reduction in salinity levels present in the soil surrounding Gum Bend Lake 20% reduction in noxious weeds at Gum Bend Lake.

DIS/Weeds Officer

Herbicide program under way for aquatic weeds. 400 salt tolerant species seedlings planted. Salt tolerant species seeds have been planted across salt affected area. Slightly better result than last year but not what we had hoped for with the Ribbon weed.

Outcome 5.3: Ensure that animals are properly controlled

CSP No



Performance Measure

Responsible Officer


5.3.1 Provide animal management services and encourage responsible ownership.

Hold discounted micro chipping and de-sexing programs each year.

20% increase in animal registrations.

RO Services provided and considered successful Ongoing in conjunction with vets and RSPCA.

Outcome 5.4 Community Safety

CSP No



Performance Measure

Responsible Officer


5.4.1

Management of Swimming Pools

100% compliance with swimming pool regulations

DIS Comprehensive review underway. Improvements identified and part funded in FY1920.


5.4.3

Management of Drug & Alcohol Issues

Support CDAT initiatives DCCS Not progressed as yet

5.4.4

Mitigation of Crime Installation of CCTV in Foster Street, Lake Cargelligo. Complete a Crime Prevention Plan.

Approval of funding Plan completed.

DCCS Grant applied for but unsuccessful. Will look for other grant opportunities. Not yet started

Outcome 5.5: Celebrating and Preserving our Heritage

CSP No



Performance Measure

Responsible Officer


5.5.1

Promote and Celebrate Heritage and Achievements

Complete Heritage walks in Condobolin and Lake Cargelligo.

Walks completed. DETED/DIS Stronger Country Communities Grant application in place for Heritage signs in Lake Cargelligo. Heritage signs in Condobolin and Tullibigeal completed.

5.5.2

Protect and Manage our Heritage

Update Council’s LEP with significant local buildings. Adopt a Heritage Management Plan

Council’s LEP updated. Heritage plan adopted and implemented.

DETED Council was unsuccessful in a grant application to review the European heritage study and update schedule 5 of the Council’s LEP. The findings of the Aboriginal Heritage Study will be incorporated into Schedule 5 of the LEP as appropriate. Council officers will continue to seek funding to update the heritage study/Council’s LEP listings. Completed

5.5.3

Support our Natural and built heritage

Identify significant buildings and apply for grants under

Successful grant applications

DETED Council is currently seeking funding through other funding streams being


the Heritage Near Me Program.

offered by NSW Government to support our natural and built heritage. Council was successful in obtaining a grant to undertake an Aboriginal Heritage Study and this process will commence shortly.

Recreation Outcome 6.1: Increased recreational use of lakes and rivers

CSP No



Performance Measure

Responsible Officer


6.1.1 Complete the Lake Cargelligo and Gum Bend Lake shared paths to improve access.

Reseal shared path to Gum Bend Lake walkway. Extend Gum-Bend Lake walkway around the lake. Level camping area and improve stormwater drainage at Gum Bend Lake Construct bushwalks at Mt Tilga, Wagoon and Tallinga. Signage for walkway Mt Tilga and directional signage

Gum Bend Lake walk way reseal completed. Lake Cargelligo Walkway Stage II completed. Survey, investigation, design and costing done and grant program identified for funding. Signage erected.

DIS Complete Submission made to Stronger Country Communities Round 3 for stage 1 and 2 of the walkway around Gum Bend Lake. Camping area drainage has been improved. Feature survey done, design not yet done. Multiple grant applications submitted. Funding unsuccessful. Stage II Lake Cargelligo Walkway 1580m of Construction complete. 800m remaining to arrive at Deadman’s point


Finalise Lake Cargelligo foreshore Walkway Stage II design and construct Improve access tracks and signage to bird hides. Implement Gum Bend Lake Committee 6 Year Improvement Plan including additional BBQ’s at Gum Bend Lake and Lake Walkway

Walkway complete. New signs erected and create a safe path for users. Implement improvement plan.

reserve. Only 50% of funding required for Stage 3 has been secured. Walking track to bird hides has been cleared. Works being done progressively. Sheltered BBQ completed. Donations box and additional signage completed near boat ramp.

6.1.2 Secure a reliable water supply for Gum Bend Lake.

Lobby directly and participate in regional group meetings and provide information and submissions as applicable e.g. involvement and advocacy in development of next water sharing plan. Investigate ground water options

Lobbying has been undertaken. Participate in meetings, information is provided and submissions are made as determined.

DIS Ground water options were not investigated further as they were deemed not viable. Opportunity to purchase a high security licence through the Drought Communities program was rejected by the Grant body. Establishment of a reserve fund for the future purchase of a High Security Water licence.

6.1.3 Develop feasibility study for water themed parks across the shire

Apply for grants for waterparks at Memorial Park, Condobolin and Liberty Park, Lake Cargelligo. Deliver feasibility study Design water themed parks

Groundwater hydrogeological report completed. Design and estimates done for water themed parks Grant application submitted.

DIS Proposal put to GM, Directors and Strategic Planning Meeting. Preference was to spend money improving parks and play equipment. Not required Not required


Outcome 6.2 Upgrade Community Buildings

CSP No



Performance Measure

Responsible Officer


6.2.1

Upgrade Lachlan Shire Libraries

Increase the floor area of Condobolin Library to meet NSW State Library guidelines and install disabled toilets Investigate the options and viability of moving Tottenham library. Review opening hours of Lake Cargelligo Library and Customer Service Centre.

Plans Drawn up for Condobolin Library. Investigation re the viability completed. Review Completed. Expand opening hours for Council’s office in Lake Cargelligo.

DCCS DCCS

Complete Library Strategic Plan to be developed. Library Strategic Plan to be developed.

6.2.2

Upgrade & Maintain Community Halls and facilities.

Upgrade Burcher with option to relocate museum within hall. Install toilets and showers at Kiacatoo hall.

Museum re-located. Evaluation completed. Toilets installed.

DETED/MBS The Museum Committee have decided to move the museum to the hall and set up displays on tables. Other options were researched but suitable funding could not be arranged.


Upgraded and Cleaner Public toilets. Increased maintenance at Memorial Hall, Lake Cargelligo Install curtains and hanging wire at Memorial Hall Lake Cargelligo. Parking on Western Side of Tullibigeal Hall Public toilets in Lake Cargelligo CBD Public toilet in park next door to Lake Depot

User satisfaction increased from a 3.5 index to a 3.7 index, according to the Micromex community survey. Usage increased by 10%. Curtains installed. Car-park constructed. Evaluation completed. Toilets installed. Evaluation completed. Toilets installed.

Toilets installed New toilets at Burcher completed. Frogs Hollow toilet installed. Building re-roofed and new curtains have been purchased. Investigating replacement of kitchen bench. Not yet commenced Gravel car park constructed. Not commenced Not commenced –funds not available


6.2.3

Provide Swimming Pools in each main town

Effectively operate and maintain pools at each main town Deliver improvement works to meet current Department of Health requirements including filter separation

Effective pool management contracts in place. Customer satisfaction rating to increase from 4.3 to 4.4. Improvement works done

DIS Leak sealing and liner works completed, saving council around 18ML of water per year. Tottenham Amenities Construction is complete. Filter separation works design underway. Works are planned for 2020 winter season.

Outcome 6.3: New and Visually appealing streetscapes

CSP No



Performance Measure

Responsible Officer


6.3.1 Programed a themed street tree replacement program.

Develop a plan of existing street trees and species list and implement a themed street tree replacement program.

Program developed MREC Planning underway. Canada, Grace, Lorne Sts Lake Cargelligo. Molong, Orange, Turner St Condobolin. Federation St Albert, Miamley, Bulbodney Sts, Tottenham and Wattle St, Tullibigeal.

6.3.2 Upgrade Foster Street Lake Cargelligo & Bathurst/William St Condobolin.

Design and implement streetscape upgrades.

Masterplan developed. Strategic upgrades implemented over 4 years

DIS/MREC

Foster St, Lake Cargelligo detailed design and cost estimate. William, Lachlan, Denison Street, William, Busby & Lachlan Sts, Condobolin detailed design and cost estimate done. Bathurst Street, Condobolin not yet done.


6.3.3 Street tree Plan for all towns

Plant street trees according to streetscape plan. Tree maintenance and watering of all street trees.

MREC Planning underway. . Plantings begun in Condobolin, Lake Cargelligo, Tottenham, Albert and Tullibigeal.

Outcome 6.4: Improved Parks & Gardens

CSP No



Performance Measure

Responsible Officer


6.4.1 Improved Infrastructure in Parks

Five year strategic plan developed for Parks and Reserves Works program developed including roll out of soft-fall at existing and new play equipment and repairs to entry way/gates at memorial Parks Re-new existing soft-fall in playgrounds Install automated underground irrigation to all parks

Strategic plan endorsed by council Works program underway. Soft-fall renewed to required Depths. Irrigation installed to all parks

DIS Review underway. New equipment completed at Memorial Park, Condobolin, Apex Park Lake Cargelligo and Memorial Park, Tottenham, Lions Park Condobolin and Burcher Memorial Park. Soft fall renewed. Ongoing maintenance continues. Automated irrigation is complete at Pat Timmins Oval, Lake Recreation Grounds, and Maurice O’Connor Park, Lake Cargelligo Skate Park, Lions Park Condobolin and Lake Cargelligo Cemetery. Irrigation design is complete for Tullibigeal Race track and Sports ground, SRA show ring and Lake Recreation Ground stage 2.


6.4.2 Upgrade and Maintain recreational and sporting facilities

Five year strategic plan for parks and reserves Management plans for sporting facilities Replace Pat Timmins Oval change-rooms & upgrade SRA Grounds Rugby League Oval Level car parking and extended areas of SRA grounds Improvements to Lake Cargelligo sporting facilities. Install watering systems at Lake Cargelligo oval Replace Amenities at Tullibigeal Racetrack Install Cricket nets at Lake Cargelligo Rec Reserve

Strategic plan endorsed by council Management plans completed and capital improvement underway.

DIS Review underway Review underway. Tendering underway. Pat Timmins Oval improvements are completed. Complete complete Lighting upgrade complete. Picket Fence complete. Perimeter fence complete. Entry, exit and parking areas completed. Irrigation upgrade stage 1 completed. Construction complete. Preferred site confirmed. Quotations received and additional funding is required.


Outcome 6.5: The provision of neat, accessible and respectful cemeteries

CSP No



Performance Measure

Responsible Officer


6.5.1 Improvements at Cemeteries

Upgrade toilet at Condobolin Cemetery Expand footpath network to the Condobolin Cemetery. Install seats at Condobolin cemetery.

Upgrade toilet Footpath to the cemetery completed. Seats installed

DIS (DIAP)

Cemetery Committee removed this from improvement list in the Plan of Management improvements including drainage, paths and kerb & gutter completed. Stage 1 and 2 complete. Lake Cargelligo cemetery irrigation upgrade complete. Water supply and irrigation lines in Tullibigeal cemetery have been replaced.

Outcome 6.6: Community Gardens in the towns

CSP No



Performance Measure

Responsible Officer


6.6.1 Develop community Gardens in Lake Cargelligo and Condobolin.

Acquire Sites for community gardens Construct community garden Establish S355 committees

Investigate location for gardens and engage community interest for committee to manage gardens.

DIS Not yet done. Not yet done. Not yet done.


Service Infrastructure Outcome 7.1: Water, sewer and energy utilities meet best practice standards with up to date technology

CSP No



Performance Measure

Responsible Officer


7.1.1 Complete effluent reuse systems in the shire

Implement agreed option in accordance with grant conditions

Grant monies acquitted

MU Scope of works has been revised after receipt of concept design, and costing. Additional $1.1m funding required before proceeding.

7.1.2 Implement the asset maintenance and renewal program for water and sewerage services.

Complete annual maintenance and renewals program. Review Asset Management Plan and link with Long Term Financial Plan.

Kilometres of pipes renewed/ replaced. Number of sites receiving renewal or upgrading.

MU

Maintenance and renewals program to be developed Draft Asset management plans completed and under review.

7.1.3 Upgraded power Supplies

Upgrade power at Tullibigeal Caravan Park and Recreation reserve.

Power upgraded DETED Power upgraded at caravan park. Upgrade for Recreation Reserve was included in the SCCF grant application.

7.1.4 Plan and undertake a water mains renewal program

Implement a renewal program each year. Review Asset Management Plan and link with Long Term Financial Plan

Nominated renewal program completed.

MU Water main performance data being collected for assessment to inform for development of water mains renewal/replacement program. 2.25km of water main at Tottenham has been constructed.

7.1.5 Encourage the generation of alternate energy in the Shire.

Support & facilitate installation of renewable energy & energy projects within the shire.

Projects supported.

DCCS/GM

Participation in OEH Sustainable Councils and Communities Program. Considering PPA proposal through JO.


7.1.6 Council to improve energy efficiency of facilities and plant.

Progressive investigations & implementation of more energy efficient facilities & plant. Implement replacement of street lighting with energy efficient LED

Funded projects completed. Reduction in electricity costs associated with the provision of water and sewer services.

DIS DETED

Variable speed drives installed progressively. Solar power arrays being scoped for large capex projects. Participating in JO Southern Lights LED project. No street lighting LED done yet. Feasibility study complete for solar PV at Council Chambers carpark and Condobolin Swimming Pool. Council officers are investigating a number of options for Council buildings to incorporate solar power into the future.

Outcome 7.2: Water Security for all towns and villages

CSP No



Performance Measure

Responsible Officer


7.2.1 Progress the Bore Fields 2 Project

Implement project in stages Stages are progressing satisfactorily & funding applied for.

MU

Three production bores have been constructed. They are not operational. Power supply being costed. WTP upgrade options report done. Funding for scoping study for WTP received. Draft report completed. Consultation with Department of Industries ongoing. Funding for pipeline from bores to Condobolin subject of future grant application.


7.2.2 Complete Tottenham water security project

Implement agreed option in accordance with grant conditions

Grant monies acquitted

MU Collaboration agreed with Parkes Shire Council. Department of Industries completed. Scope being developed. Design not yet done.

7.2.3

Upgrade Standpipes

Redesign and install standpipe at Tottenham. New Standpipe installed.

MU . Upgrades to non-potable standpipes have been funded through the Drought Communities Programme. Works have moved to FY19/20.

7.2.4 Water Availability at Tullibigeal

Up-grade water storage infrastructure to ensure water security for Tullibigeal.

Sufficient water availability for Tullibigeal.

MU Tullibigeal bore tested for pipeline to irrigate recreational areas. Pipeline concept design complete Construction funding in FY1920.

Outcome 7.3: Adequate town drainage

CSP No Delivery Program Action (2017/2021)


Performance Measure

Responsible Officer


7.3.1 Ensure that towns have adequate drainage

Design Drainage system for Tullibigeal. Implement Drainage system and Kerb & guttering in Tullibigeal.

Design & Survey completed.

MU Two options investigated, unaffordable. Kerb & gutter with urban street sealing completed in Wooyeo St. Cargelligo St design completed, construction funding FY2021.


Appendices

The Local Government Act 1993 requires certain information to be included in Council’s

Annual Report. The Office of Local Government clarifies the specific requirements and the

following appendices meet these criteria.

The Annual Report in the year of the ordinary election must include a report (State of

the Environment Report) as to the state of the environment in the local government

area in relation to the objectives for the environment established by the Community

Strategic Plan; and

The report must contain the Council’s audited financial statements and notes and any

information required by the Local Government (General) Regulation or Guidelines.

Requirements under the Local Government (General) Regulation 2005 clause 217 include:

Details of overseas visits by Councillors and Council staff;

Details of Mayoral and Councillor fees and expenses;

Contracts awarded by the Council;

Amounts incurred in relation to legal proceedings;

Private works and financial assistance;

Details of external bodies, companies and partnerships;

Details of the General Manager’s total remuneration;

Details of the total expenditure on Senior Staff remuneration;

Information on storm water levies and charges;

Information on companion animals management; and

A statement of the activities undertaken by the Council to implement its equal

employment opportunity management plan.


Special Rate Variation

Under the Local Government Act 1993, councils may apply to IPART for a special rate

variation that allows them to increase their general rates income by more than the notified

annual rate peg. These increases may be either for a single year or for successive years up

to a maximum of seven years.

Lachlan Shire Council applied for a multi-year special variation and IPART determined that

council could increase its general rates income between 2016-17 and 2019-20 by the annual

percentages shown below.

Percentage increase approved

2016-17 6.80%

2017-18 7.40%

2018-19 7.40%

2019-20 7.40%

These increases will be permanently incorporated into the council’s revenue base.

IPART’s approval of Lachlan Shire Council’s application for a special variation over the

period from 2016-17 to 2019-20 was subject to two conditions:

1) The council uses the additional income from the special variation for the purposes of

improving financial sustainability and reducing infrastructure backlogs as outlined in the

council’s application;

2) The council reports in its annual report for each year from 2016-17 to 2025-26 on:

a) The actual revenues, expenses and operating balance against the projected

revenues, expenses and operating balance;

b) Any significant variations from its proposed expenditure as forecast in the current

Long Term Financial Plan and any corrective action taken or to be taken to

address any such variation;

c) Expenditure consistent with the council’s application and the reasons for any

significant differences from the proposed expenditure; and

d) The outcomes achieved as a result of the actual program of expenditure; and

e) The additional revenue will also be used to improve the council’s financial

sustainability.

Over 10 years, the special variation would generate revenue of $10.4 million above the

assumed rate peg.

The council proposed to spend over the period from 2016-17 to 2025-26, an additional

$2.1 million on operational expenses:

1) $0.7 million on unsealed road maintenance;

2) $0.6 million on building maintenance; and

3) $0.8 million on loan interest repayments towards the works depot replacement.


A further $7.8 million will be used to fund higher capital expenditures:

1) $2.6 million on road re-sheeting, edgeworks, widening, footpaths, cycle ways, kerbs

and guttering;

2) $1.9 million on buildings, halls and community centers;

3) $2.1 million on sporting and recreation grounds, parks, reserves, swimming pools,

caravan parks and public toilets;

4) $1.0 million towards a retirement village; and

5) A further $0.2 million on information technology.

Over this period, $0.4 million will also be transferred to reserves.

In 2018/19 financial year, Council budgeted to raise an additional $436,000 from its Special

Rate Variation and applied this as follows:

Re-sheeting roads $200,000

Infrastructure renewals $236,000


Payments of Councillors and Overseas Visits

by Councillors & Council Staff

Details of Overseas visits by Councillors and Council Staff

No overseas visits were undertaken by Councillors during the reporting year. No expenses

were borne by Council for any spouse or partner of the elected representative who

accompanied a Councillor in the performance of their civic duties.

Details of Mayoral and Councillor Fees and Expenses

Council has a policy covering the payment of expenses and provision of facilities to

Councillors. This is available for public inspection at the Council office and on its website.

In line with this policy, Councillors receive payment for out of pocket expenses for travelling

and sustenance whilst undertaking Council business.

Accommodation expenses are also paid for meetings, delegations, and conferences held out

of the Shire.

All Councillors receive an allowance. Both the Mayor and Deputy Mayor receive an

additional allowance of $23,058 and $2,822 respectively. These allowances are in line with

the Local Government Act 1993 s249.

Council provides an office, telephone and shared secretarial support for the Mayor at its

Condobolin office.

Total costs for the 2018-2019 financial year appear in the table below:

Description Amount

Conferences and Seminars $ 7,461

Councillor’s Fees $ 114,933

Mayoral Allowances $ 25,879

Subscriptions and memberships $ 39,064

Telephone Charges $ 2,496

Travelling and Sustenance $ 37,759

TOTAL $ 227,592


Contracts awarded During the 2018-2019 financial year, Council paid the following contractors and suppliers in

excess of the amount prescribed in the Local Government (General) Regulation 2005.

Contractor Description of Service Total Amount Paid ($)

Boral Construction Materials

Bitumen services 2,749,870

Mays Earthmoving Plant hire 1,044,637

Jason Brennan Building Services

Payment of Tottenham swimming pool and works on Pat Timmins Oval

897,680

Ross Bros Excavations Plant hire 794,313

Stabilised Pavement Aust P/L

Road construction materials 788,535

JR Richards Refuse collection 749,187

Complete Civil Bridge works 595,084

Water Treatment (Aust) Pty Ltd

Replacements and upgrade water treatment plant

575,101

Phillips Building Company Pty Ltd

Construction services 511,932

TG & FB Ross Plant hire 470,506

Alliance Automotive Water services 403,053

Adaptive Interiors Library refurbishment services 400,477

Hunter H20 Consultancy 335,346

M & K Thorpe Pool management 304,442

G Burrett Project Management

Professional and Management Costs 304,247

Robertson's Ready Mix

Plant hire 301,843

Central West Line marking

Line marking services 297,021

Leisure & Recreation Group

Pool management 219,771

Daniel & Kate O'Connor

Management of Lake Cargelligo & Tottenham Caravan Parks

190,019

Trinity Skate parks Skate park construction 172,103

Aquawest P/L Irrigation and watering systems 168,405

West Windermere Enterprises


Pro Management Pty Ltd

Caravan Park management 161,699

Interflow Pty Limited Construction services 158,888

Statewide Pool Services Pty Ltd


A & B Rural Contracting

Plant hire 150,864


Rates and Charges written off Pensioner rates abandoned under the various rate types:

Rate Type Amount ($) Number of Assessments

Ordinary 57,475 447

Waste Management 44,730 447

Water 33,877 406

Sewerage 29,174 365

Total 165,258 447

Water consumption charges written off during the year:

Reason for adjustment Amount ($) Number

Council approved 765 5

Meter Test 0

Undetected Leak Policy 18,367 10

Hospital Allowance 864 4

Willow Bend Allowance 6,201 4

Total 26,197 23

Write off of rates interest during the year totaled $811.

Write off of interest for water charges during the year totaled $43

Summary of legal proceedings Council was not involved in any legal proceedings during the 2018-19 financial year.

Legal expenses incurred for debt recovery amounted to $46,366.

Private Works Council carried out minor works under section 67 of the Act such as road grading as well as

kerb and gutter laybacks.

No resolutions were made during the year under section 67 of the Act regarding works

carried out on private land. No private works were fully or partially subsidised by the council.

External Bodies During the period Western Plains Regional Development Inc. received a total of $249, 920

toward administration costs and the provision of youth services for Council.

Lower Lachlan Community Services Inc. received a total of $56, 210 funding toward

administration costs.

There were no other external bodies exercising functions delegated by Council.


Partnerships, Co-operatives or Joint Ventures

During the 2018-19 financial year, Council was not party to any partnership, co-operative or

joint venture. Council is an active member of CENTROC, Mid Lachlan Alliance, Netwaste

and a number of associations including Local Government NSW and the Association of

Mining Related Councils.

Council, either alone or with other Councils, did not have a controlling interest in any

company during the reporting period.

Environmental Planning and Assessment Act

1979

Council’s Voluntary Planning Agreement with Kimberley Metals Ltd relating to road

maintenance and upgrade contributions for the Mineral Hill Access Rd and Albert Rd south

to Henry Parkes Way was effectively terminated following liquidation of Kimberly Metals Ltd.

Senior staff employed

Four Senior Staff members are employed by Council on performance based contracts.

The total remuneration package for the General Manager was $258,189 and for the three

Directors was $690,895.

A further 10 staff members are employed at the middle management level. All staff, except

for the four Senior Officers, are employed under the Local Government (State) Award 2017

and a Council Enterprise Agreement. The Enterprise Agreement requires administrative and

operational staff to work a 40-hour week which is reflected in higher salary scales when

compared to other Councils.

Stormwater management services Council levied a Storm water Management Charge of $25 in the 2018-19 financial year. A

total of $52,499 was raised by the levy. Ongoing works were programmed for Lake

Cargelligo, Tullibigeal and Condobolin to improve existing storm water infrastructure.

Type Assessments Amount ($)

Business 287 7,124

Residential 1,815 45,375

Total 2,102 52,499


Government Information (Public Access) Act

2009 Council has determined which documents are available as open access information and

therefore subject to mandatory proactive release. Council has adopted a Publication Guide

which sets out the different types of information, whether the information is publically

available, how Council will make this available to the public and whether it is supplied free of

charge. Formal and informal requests for information can be made through Council’s Right

to Information Officer who can be contacted on 02 6895 1900.

Public Interest Disclosures

The Public Interest Disclosure Act 1994 requires public authorities to adopt a policy and

procedures for receiving, assessing and dealing with public interest disclosures.

The purpose of this internal reporting policy is to clearly state Council’s commitment to

supporting and protecting staff and others if they report wrong doing. Disclosures, under this Act, include: reports of corrupt conduct, maladministration, serious

and substantial waste of public money, government information contravention and local

government procurement pecuniary interest contravention.

Section 31 of the Public Interest Disclosures (PID) Act required public authorities to prepare

an annual report on their obligations under the PID Act. Lachlan Shire Council has reported

against its obligations and did not receive any public interest disclosure requests during the

2018/19 financial year.


Financial Assistance Provided

Council provided financial assistance to a number community based organizations’ and groups throughout the year for events that directly benefit and involve residents of the Lachlan Shire. This financial assistance was provided in the form of financial donations and rates concessions resolved at Councils Ordinary meetings.

Organisation Description Total Amount ($) Anglican Church of Australia Albert Donation Rates 121

Anglican Church of Australia Tullibigeal

Donation Rates 258

B Richards Sporting Donation 200

Condobolin Clay Target Club In Donation 1,000

Condobolin High School Donation Presentation Night 100

Condobolin Rotary Club Donation Rotary Christmas Carnival 500

Condobolin Rotary Club Christmas Tree Function 1,700

Condobolin RSL Diggers Swimming Western Districts AIF Carnival Donation

500

Condobolin Sports Club Limited Donation Towards Novemberfest 2,000

Condobolin Sports Club Limited Donation for Centre State Open 200

Condobolin Sports Promotions Donation for Condo 750 Event 2019 5,000

Country Women's Association Of Donation for Condobolin Harvest Moon Festival

200

Country Women's Association Of Condobolin

Donation for Cook Off 5,000

Country Women’s Association Tottenham

Donation Rates 901

Country Women’s Association Tullibigeal

Donation Rates 779

CWA Oxley Group Donation for public speaking competition

300

D Hoskins Donation Travel Cost Representing Australia

200

D Hoskins Sporting Donation 200

Lake Cargelligo Arts & Crafts Donation Blue Waters Exhibition 1,000

Lake Cargelligo Central School Donation Presentation Night 100

Lake Cargelligo Fisherama Donation Towards Fisherama 2018 1,000

Lake Cargelligo NAIDOC Ball Co Donation Community NAIDOC Celeb 920

Lakes Alive/Progress Association Donation 950

Presbyterian Church Tullibigeal Donation Rates 345

Roman Catholic Church Trustees Lake Cargelligo

Donation Rates 345

Roman Catholic Church Trustees Tottenham

Donation Rates 1,023

Roman Catholic Church Trustees Tullibigeal

Donation Rates 345

Rotary Club of Condobolin Donation Rates 1,230

Rotary of Lake Cargelligo Donation Christmas Tree 1,000

St Francis Xavier’s Catholic Scool Donation Presentation Night 100

Tottenham Bowling Club Donation for Classic Pairs Tournament

200


Tottenham Central School Donation Presentation Night 100

Tottenham Central School Donation 250

Tottenham Christmas Tree Donation Community Christmas Tree 1,000

Tottenham Welfare Council Donation Community Expo 1,000

Tottenhan Picnic Race Club Donation 2019 Tottenham Picnic Race

200

Tullibigeal & District Progress Donation Towards Remembrance Day

300

Tullibigeal Central School Donation Presentation Night 100

Tullibigeal Community Hall Church Hire Fees For Debutante 328

Tullibigeal Pool Committee Pool Operations & chlorinator 45,000

Uniting Church Lake Cargelligo Donation Rates 345

West Milby Rodeo & Gymkhana Association

Donation 1,000

Western Plains Regional Development

Donation for work experience trip 100

Western Region Academy of Sport Donation Towards Fisherama 2018 352

Yawarra Aboriginal Corporation Donation Rates 378

Total $ 78,169

Companion Animals Management

Lodgement of data relating to dog attacks with Office Local Government (OLG)

Council notifies the OLG when Council officers have investigated complaints of dog attacks.

Animal management / activities expenditure

Expenditure for animal management / activities including wages, vehicle running costs and maintenance of animal shelter totalled $276,069 for 2018-19.

Companion Animal and De-Sexing Community Education Program

RSPCA Vets and Council ran a De-Sexing program in September 2018. This was very successful, de-sexing a total of 81 cats and dogs.

Summary of Pound Data for 2018-19 Cats Dogs Total

Seized and transferred to Council’s facility 21 341 362

Returned to owner 257 257

Surrendered by Owners 47 123 170

Released to owners 35 35

Euthanized 68 146 214

Sold - - -

Released for rehoming 22 22

Died at Council’s facility - 4 4

Stolen or escaped from Council’s facility - - -

Holding pending court action - - -


Companion Animals Fund Expended

Council received $4,841 from the Companion Animals Fund for the 2018-19 financial year. These funds were used towards an annual de-sexing program for financially disadvantaged members of the community.

Euthanasia Alternatives for Unclaimed Animals

Council does not have any practical alternatives available to re-home dogs and cats. The majority of cats were identified as homeless so unable to be rehomed. During 2018-19, 22 dogs were rehomed.

Off Leash Areas Council acknowledges that dogs need space where they can walk and run without being on

a leash and as such, provides an off leash space in three designated areas throughout the

Shire.

These are located in Golf Links Road, Condobolin; adjacent to the Cemetery, Condobolin

and in Diggers Avenue, Condobolin north of the caravan park.

Swimming Pools In accordance with Swimming Pools Act 1992, Council is pleased to report on the following

activities undertaken in 2018-19:

Reporting Requirements Total Number

Number of inspections of tourist and visitor accommodation 0

Number of inspections of premises with more than 2 dwellings 0

Number of inspections that resulted in issuance a certificate of

compliance under s22D of the SP Act

7

Number of inspections that resulted in issuance a certificate of non-

compliance under cl 21 of the SP Regulation

3


Equal employment opportunities Council has continued to actively work towards achieving the strategies contained in its EEO

Management Plan which promotes and values the recognition of diversity in the workplace.

To assist in the development of policies, practices and behaviours that support the fair

treatment of all staff, Council is supported by the Consultative Committee and an EEO

Committee made up of representatives from all work areas of Council.

Council has continued to build on staff training and development opportunities through the

Centroc e-learning modules, staff induction, and opportunities for the EEO Committee

representatives. Integrated training plans which are part of this process afford opportunities to

improve career mobility.

Council continues to promote the Employee Assistance Program which provides support for

employees with both workplace and personal issues.

Work experience and work placements by young adults in our communities were undertaken

within the Tottenham depot. Council has also supported two school based trainees at both

the Library and Lachlan Children’s Services. This has been a positive experience both for

the individuals and the communities they are supporting.

Council staff attended and participated in NAIDOC week celebrations at the Wiradjuri

Condobolin Corporation Study Centre and other centres throughout the shire.


If you would like more information on this Report, please contact Mrs. Karen Pegler, Director

Corporate and Community Services, Lachlan Shire Council.

Email

[email protected]

Address

58 - 64 Molong Street,

Condobolin NSW 2877

Contact Person

Karen Pegler

Director Corporate and Community Services

Telephone

02 6895 1900

Fax

02 6895 3478

Mayor

Cr John Medcalf OAM

General Manager Mr Greg Tory

Ordinary Council Meeting

Ordinary Council meetings are held at 2pm on the fourth Wednesday of every month. Details of meeting venues and Council business papers are available on the Council website.

8

mailto:[email protected]

Lachlan Shire CouncilANNUAL FINANCIAL STATEMENTSfor the year ended 30 June 2019

§Cover§

Lachlan Shire CouncilGENERAL PURPOSE FINANCIAL STATEMENTSfor the year ended 30 June 2019

§Cover§

§MainTOC§

Contents Page

1. Understanding Council's Financial Statements

2. Statement by Councillors & Management

3. Primary Financial Statements:Income Statement Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows

4. Notes to the Financial Statements

5. Independent Auditor’s Reports:On the Financial Statements (Sect 417 [2]) On the Financial Statements (Sect 417 [3])

Lachlan Shire Council is constituted under the Local Government Act 1993 (NSW) and has its principal place of business at:

Overview

58-64 Molong StreetCONDOBOLIN NSW 2877

Council’s guiding principles are detailed in Chapter 3 of the LGA and includes:

• principles applying to the exercise of functions generally by council,• principles to be applied when making decisions,• principles of community participation,• principles of sound financial management, and• principles for strategic planning relating to the development of an integrated planning and reporting framework.

A description of the nature of Council’s operations and its principal activities are provided in Note 2(b).

Through the use of the internet, we have ensured that our reporting is timely, complete and available at minimum cost. Allpress releases, financial statements and other information are publicly available on our website: www.lachlan.nsw.gov.au.

Lachlan Shire Council

General Purpose Financial Statementsfor the year ended 30 June 2019

Page 2 of 85

Financial Statements 2019

3

4

56789

10

7780



http://www.lachlan.nsw.gov.au

§Note/Subtotal§

Each year, individual Local Governments across NSW are required to present a set of audited financial statements to theircouncil and community.

§Subnote§

Introduction

The financial statements set out the financial performance, financial position and cash flows of Council for the financial yearended 30 June 2019.

What you will find in the Statements

The format of the financial statements is standard across all NSW Councils and complies with both the accounting and reportingrequirements of Australian Accounting Standards and requirements as set down by the Office of Local Government.

The financial statements must be certified by senior staff as ‘presenting fairly’ the Council’s financial results for the year andare required to be adopted by Council – ensuring both responsibility for and ownership of the financial statements.

About the Councillor/Management Statement

The financial statements incorporate five "primary" financial statements:

1. The Income Statement

About the Primary Financial Statements

Summarises Council's financial performance for the year, listing all income and expenses. This statement also displaysCouncil's original adopted budget to provide a comparison between what was projected and what actually occurred.

2. The Statement of Comprehensive IncomePrimarily records changes in the fair value of Council's Infrastructure, property, plant and equipment.

3. The Statement of Financial PositionA 30 June snapshot of Council's financial position indicating its assets, liabilities and “net wealth”.

4. The Statement of Changes in EquityThe overall change for the year (in dollars) of Council's "net wealth".

5. The Statement of Cash FlowsIndicates where Council's cash came from and where it was spent. This statement also displays Council's original adoptedbudget to provide a comparison between what was projected and what actually occurred.

The Notes to the Financial Statements provide greater detail and additional information on the five primary financial statements.

About the Notes to the Financial Statements

Council’s financial statements are required to be audited by the NSW Audit Office.

About the Auditor's Reports

In NSW the auditor provides 2 audit reports:

1. an opinion on whether the financial statements present fairly the Council’s financial performance and position, and2. their observations on the conduct of the audit, including commentary on the Council’s financial performance and financial

position.

The financial statements are publicly available documents and must be presented at a Council meeting between seven daysand five weeks after the date of the audit report.

The public can make submissions to Council up to seven days subsequent to the public presentation of the financial statements.

Council is required to forward an audited set of financial statements to the Office of Local Government.

Who uses the Financial Statements?



Understanding Council's Financial Statements

Page 3 of 85

Financial Statements 2019Lachlan Shire Council


Understanding Council's Financial Statements



Statement by Councillors and Management made pursuant to Section 413(2 (c) of the LocalGovernment Act I 993 (NSVV) (as amended)

The attached General Purpose Financial Statements have been prepared in accordance with:

. the Local Government Act I993 (NSW) (as amended) and the regulations made thereunder,

. the Australian Accounting Standards and other pronouncements of the Australian Accounting Standards Board

. the Local Government Code of Accounting Practice and F1hancialReportihg.

To the best of our knowledge and belief, these statements:

. present fairly the Council's operating result and financial position for the year

. accord with Counal s accounting and other records.

We are not aware of any matter that would render these statements false or misleading in any way.

Signed in accordance with a resolution of Council made on 20 September 20.9.

,, Z'A edcalf OAM

yor

20 September 2019

^;,^,f

,^-,

ral Manager20 September 2019

I^^P PhillipsCouncillor

20 September 2019

K A PeglerResponsible A Dunting Officer20 September

Page I of IPage 4 of 85


§Statement§

Original unaudited

budget

Actual Actual2019 $ '000 Notes 2019 2018 1

Income from continuing operations Revenue:

10,385 Rates and annual charges 3a 10,451 9,4064,952 User charges and fees 3b 4,990 4,708

775 Interest and investment revenue 3c 997 9671,021 Other revenues 3d 836 2,457

17,132 Grants and contributions provided for operating purposes 3e,3f 20,627 20,15719,629 Grants and contributions provided for capital purposes 3e,3f 2,444 2,314

Other income: 93 Net gains from the disposal of assets 5 – –

53,987 Total income from continuing operations 40,345 40,009

Expenses from continuing operations 12,793 Employee benefits and on-costs 4a 10,748 10,627

97 Borrowing costs 4b 151 1335,052 Materials and contracts 4c 10,184 10,5269,837 Depreciation and amortisation 4d 10,653 9,4863,294 Other expenses 4e 3,374 3,304

– Net losses from the disposal of assets 5 1,973 650– Revaluation decrement / impairment of IPP&E 4d – 163

31,073 Total expenses from continuing operations 37,083 34,889

22,914 Operating result from continuing operations 3,262 5,120

22,914 Net operating result for the year 3,262 5,120

22,914 Net operating result attributable to council 3,262 5,120

3,285 Net operating result for the year before grants and contributions provided for capital purposes 818 2,806

(1) The Council has not restated comparatives when initially applying AASB 9. The comparative information has been prepared underAASB 139 Financial Instruments: Recognition and Measurement

The above Income Statement should be read in conjunction with the accompanying notes.


Income Statementfor the year ended 30 June 2019

Page 5 of 85


Income Statementfor the year ended 30 June 2019

§Note/Subtotal§

$ '000 Notes 2019 2018 1§Subnote§

Net operating result for the year (as per Income Statement) 3,262 5,120

Other comprehensive income:Amounts which will not be reclassified subsequently to the operating resultGain (loss) on revaluation of IPP&E 10(a) 1,180 (724)Impairment (loss) reversal relating to IPP&E 10(a) 3,023 1,371Total items which will not be reclassified subsequently to the operatingresult 4,203 647

Total other comprehensive income for the year 4,203 647

Total comprehensive income for the year 7,465 5,767

Total comprehensive income attributable to Council 7,465 5,767


The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.


Statement of Comprehensive Incomefor the year ended 30 June 2019

Page 6 of 85


Statement of Comprehensive Incomefor the year ended 30 June 2019

§Statement§

$ '000 Notes 2019 2018 1

ASSETS Current assets Cash and cash equivalent assets 6(a) 5,888 4,524Investments 6(b) 23,900 21,700Receivables 7 3,316 3,445Inventories 8a 2,339 2,508Other 8b 17 165Current assets classified as 'held for sale' 9i – 81Total current assets 35,460 32,423

Non-current assets Investments 6(b) 6,250 7,500Receivables 7 367 200Inventories 8a 215 207Infrastructure, property, plant and equipment 10(a) 351,763 346,390Intangible assets 11 198 248Total non-current assets 358,793 354,545

TOTAL ASSETS 394,253 386,968

LIABILITIES Current liabilities Payables 12 2,841 3,045Income received in advance 12 130 157Borrowings 12 103 100Provisions 13 3,825 3,925Total current liabilities 6,899 7,227

Non-current liabilities Borrowings 12 1,554 1,657Provisions 13 3,475 3,224Total non-current liabilities 5,029 4,881

TOTAL LIABILITIES 11,928 12,108

Net assets 382,325 374,860

EQUITY Accumulated surplus 14a 209,296 206,034Revaluation reserves 14a 173,029 168,826Council equity interest 382,325 374,860

Total equity 382,325 374,860


The above Statement of Financial Position should be read in conjunction with the accompanying notes.


Statement of Financial Positionas at 30 June 2019

Page 7 of 85


Statement of Financial Positionas at 30 June 2019

§Note/Subtotal§

2019 2018 1

$ '000 NotesAccumulated

surplus

IPP&E revaluation

reserveTotal

equityAccumulated

surplus

IPP&E revaluation

reserveTotal

equity

§Subnote§

Opening balance 206,034 168,826 374,860 200,933 168,160 369,093Restated opening balance 206,034 168,826 374,860 200,933 168,160 369,093

Net operating result for the year 3,262 – 3,262 5,120 – 5,120

Other comprehensive income– Gain (loss) on revaluation of IPP&E 10(a) – 1,180 1,180 – (724) (724)– Impairment (loss) reversal relating to IPP&E 10(a) – 3,023 3,023 – 1,371 1,371Other comprehensive income – 4,203 4,203 – 647 647

Total comprehensive income 3,262 4,203 7,465 5,120 647 5,767

Transfers between equity items – – – (19) 19 –Equity – balance at end of the reporting period 209,296 173,029 382,325 206,034 168,826 374,860

(1) The Council has not restated comparatives when initially applying AASB 9. The comparative information has been prepared under AASB 139 Financial Instruments: Recognition and Measurement

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.


Statement of Changes in Equityfor the year ended 30 June 2019

Page 8 of 85


Statement of Changes in Equityfor the year ended 30 June 2019

§Statement§

Original unaudited

budget

Actual Actual2019 $ '000 Notes 2019 2018

Cash flows from operating activities Receipts

10,385 Rates and annual charges 10,269 9,2044,952 User charges and fees 5,364 4,554

775 Investment and interest revenue received 821 98936,761 Grants and contributions 23,071 22,566

– Bonds, deposits and retention amounts received – 271,020 Other 3,334 5,286

Payments (12,793) Employee benefits and on-costs (10,742) (11,400)

(5,052) Materials and contracts (10,099) (10,851)(97) Borrowing costs (152) (74)

– Bonds, deposits and retention amounts refunded (74) –(3,294) Other (5,624) (6,305)

32,657Net cash provided (or used in) operating activities

15b

16,168 13,996

Cash flows from investing activities Receipts

– Sale of investment securities 22,200 43,75080 Sale of real estate assets 183 321

400 Sale of infrastructure, property, plant and equipment 818 1,142– Sale of non-current assets classified as ‘held for sale' 150 –– Deferred debtors receipts 18 20

Payments – Purchase of investment securities (23,150) (38,850)

(44,137) Purchase of infrastructure, property, plant and equipment (14,597) (18,115)– Purchase of real estate assets (325) –– Purchase of intangible assets (1) –

(43,657) Net cash provided (or used in) investing activities (14,704) (11,732)

Cash flows from financing activities Payments

(124) Repayment of borrowings and advances (100) (96)(124) Net cash flow provided (used in) financing activities (100) (96)

(11,124) Net increase/(decrease) in cash and cash equivalents 1,364 2,168

– Plus: cash and cash equivalents – beginning of year 15a 4,524 2,356

(11,124)Cash and cash equivalents – end of the year

15a

5,888 4,524

Additional Information:

– plus: Investments on hand – end of year 6(b) 30,150 29,200

(11,124) Total cash, cash equivalents and investments 36,038 33,724

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.


Statement of Cash Flowsfor the year ended 30 June 2019

Page 9 of 85


Statement of Cash Flowsfor the year ended 30 June 2019

§NotesTable§

Note Details Page

1 Basis of preparation 2(a) Council functions/activities – financial information 2(b) Council functions/activities – component descriptions 3 Income from continuing operations 4 Expenses from continuing operations 5 Gains or losses from the disposal, replacement and de-recognition of assets 6(a) Cash and cash equivalent assets 6(b) Investments 6(c) Restricted cash, cash equivalents and investments – details 7 Receivables 8 Inventories and other assets 9 Non-current assets classified as held for sale 10(a) Infrastructure, property, plant and equipment 10(b) Externally restricted infrastructure, property, plant and equipment 10(c) Infrastructure, property, plant and equipment – current year impairments 11 Intangible assets 12 Payables and borrowings 13 Provisions 14 Accumulated surplus, revaluation reserves, changes in accounting policies, changes in

accounting estimates and errors

15 Statement of cash flows – additional information 16 Commitments 17 Contingencies and other assets/liabilities not recognised 18 Financial risk management 19 Material budget variations 20 Fair Value Measurement 21 Related Party Transactions 22 Statement of developer contributions 23 Financial result and financial position by fund 24(a) Statement of performance measures – consolidated results 24(b) Statement of performance measures – by fund

Additional Council disclosures (unaudited)

24(c) Statement of performance measures – consolidated results (graphs) 25 Council information and contact details


Notes to the Financial Statementsfor the year ended 30 June 2019

Contents of the Notes accompanying the Financial Statements

Page 10 of 85


28

42

111516172328

2931323436374041

434649

5152535659616669707273

7476



Contents of the Notes accompanying the Financial Statements

§Note/Subtotal§

These financial statements were authorised for issue by Council on 31 October 2019. Council has the power to amend andreissue these financial statements.

§Subnote§

The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below.

These policies have been consistently applied to all the years presented, unless otherwise stated.

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards andAustralian Accounting Interpretations, the Local Government Act 1993 (NSW) and Regulations, and the Local GovernmentCode of Accounting Practice and Financial Reporting.

Council is a not for-profit entity.

The financial statements are presented in Australian dollars and are rounded to the nearest thousand dollars.

Unless otherwise indicated, all amounts disclosed in the financial statements are actual amounts. Specific budgetary amountshave been included for comparative analysis (to actuals) in the following reports and notes:

• Income statement• Statement of cash flows• Note 19 – Material budget variations

and are clearly marked.

(a) New and amended standards adopted by Council

There have been no new (or amended) accounting standards adopted by Council in this year's financial statements whichhave had any material impact on reported financial position, performance or cash flows.

(b) Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of certainfinancial assets and liabilities and certain classes of infrastructure, property, plant and equipment and investment property.

(c) Significant accounting estimates and judgements

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires managementto exercise its judgement in the process of applying the Council's accounting policies.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, includingexpectations of future events that may have a financial impact on the Council and that are believed to be reasonable underthe circumstances.

Council makes estimates and assumptions concerning the future.

Critical accounting estimates and assumptions

The resulting accounting estimates will, by definition, seldom equal the related actual results.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assetsand liabilities within the next financial year include:

(i) estimated fair values of infrastructure, property, plant and equipment – refer Note 10(ii) estimated tip remediation provisions – refer Note 13(iii) employee benefit provisions – refer Note 13.

NILSignificant judgements in applying the council's accounting policies

continued on next page ...



Note 1. Basis of preparation

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Note 1. Basis of preparation

Monies and other assets received by Council

In accordance with the provisions of Section 409(1) of the Local Government Act 1993 (NSW), all money and property receivedby Council is held in the Council’s Consolidated Fund unless it is required to be held in the Council’s Trust Fund.

(a) The Consolidated Fund

Cash and other assets of the following entities have been included as part of the Consolidated Fund:

◾ General purpose operations◾ Water Supply business◾ Sewerage business

In accordance with the provisions of Section 411 of the Local Government Act 1993 (NSW) (as amended), a separate anddistinct Trust Fund is maintained to account for all money and property received by the council in trust which must be appliedonly for the purposes of, or in accordance with, the trusts relating to those monies.

(b) The Trust Fund

Trust monies and property subject to Council’s control have been included in these reports.

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is notrecoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as partof the expense.

Goods and Services Tax (GST)

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverablefrom, or payable to the taxation authority is included with other receivables or payables in the Statement of Financial Position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activitiesthat are recoverable from, or payable to, the taxation authority are presented as operating cash flows.

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2019 reportingperiods (and which have not been early adopted by Council).

New accounting standards and interpretations issued not yet effective

Council's assessment of these new standards and interpretations (where they have been deemed as having a material impacton Council's future financial performance, financial positon and cash flows) are set out below:

AASB 16 Leases

AASB 16 will result (for YE 19/20 and beyond) in almost all operating leases being recognised on the balance sheet by Council(alongside existing finance leases) with the distinction between operating and finance leases removed.

Under the new standard, a financial liability (ie. a lease liability) and an asset (ie. a right to use the leased item) will berecognised for nearly all arrangements where Council commits itself to paying a rental fee for the use of a specific asset.

The only exceptions are short-term and low-value leases which are exempt from the accounting (but not disclosure)requirements of AASB 16 - Leases.

Council staff have reviewed all of Council’s leasing arrangements over the last 12 months taking into consideration the newlease accounting rules in AASB 16 (applicable from 1/7/19).

AASB 16 will (on the whole) affect Council's accounting for existing operating lease agreements that are in place as at 30/6/19.

At the end of this reporting period, Council has non-cancellable operating lease commitments of $36,000- refer Note 16. Thiscommitment will be treated as a low value lease as each of the photocopiers are valued at less than $10,000 each.




Note 1. Basis of preparation (continued)

Page 12 of 85




Council anticipates it will recognise lease liabilities (on its balance sheet) (after adjustments for prepayments and accrued leasepayments recognised as at 30 June 2019) and also recognise complimentary right-of-use assets (on its balance sheet) on1 July 2019.

Council’s activities as a lessor are not material and hence Council does not expect any significant impact on the financialstatements. However, some additional disclosures will be required from next year.

AASB 15 Revenue from Contracts with Customers and associated amending standards.

AASB15 introduces a five-step process for revenue recognition, with the core principle of the new standard being for entitiesto recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (thatis, payment) to which the entity expects to be entitled in exchange for those goods or services.

Accounting policy changes will arise in the timing of revenue recognition, treatment of contracts costs and contracts whichcontain a financing element.

Councils will assess each revenue stream but particular impact is expected for grant income and rates which are paid beforethe commencement of the rating period.

The changes in revenue recognition requirements in AASB15 may cause changes to the timing and amount of revenuerecorded in the financial statements as well as additional disclosures.

AASB 1058 Income of NFP Entities

AASB 1058 supersedes all the income recognition requirements relating to councils, previously in AASB 1004 Contributions.

Under AASB 1058 the future timing of income recognition will depend on whether the transaction gives rise to a liability orother performance obligation (a promise to transfer a good or service) related to an asset (such as cash or another asset)received by an entity.

AASB 1058 also applies when a council receives volunteer services or enters into other transactions in which the considerationto acquire an asset is significantly less than the fair value of the asset, and where the council’s objective is principally to enablethe asset to further the council’s objectives.

Upon initial recognition of the asset, this standard requires council to consider whether any other financial statement elements(called ‘related amounts’) should be recognised in accordance with the applicable accounting standard, such as:

(a) contributions by owners(b) revenue, or a contract liability arising from a contract with a customer(c) a lease liability(d) a financial instrument, or(e) a provision.

If the transaction is a transfer of a financial asset to enable council to acquire or construct a recognisable non-financial assetto be controlled by council (i.e. an in-substance acquisition of a non-financial asset), the council recognises a liability for theexcess of the fair value of the transfer over any related amounts recognised. Council will then recognise income as it satisfiesits obligations under the transfer similarly to income recognition in relation to performance obligations under AASB 15.

If the transaction does not enable council to acquire or construct a recognisable non-financial asset to be controlled by council,then any excess of the initial carrying amount of the recognised asset over the related amounts is recognised as income.

AASB 2018-8 Amendments to Australian Accounting Standards – Right-of-Use Assets of Not-for-Profit Entities

This Standard provides a temporary option for not-for-profit entities to not apply the fair value initial measurement requirementsfor right-of-use assets arising under leases with significantly below market terms and conditions, principally to enable the entityto further its objectives (for example, concessionary or peppercorn leases).

The Standard requires an entity that elects to apply the option (i.e. measures a class or classes of such right-of-use assets atcost rather than fair value) to include additional disclosures in the financial statements to ensure users understand the effectson the financial position, financial performance and cash flows of the entity arising from these leases





Page 13 of 85




As per a NSW Office of Local Government recommendation, Council has elected to measure right-of-use assets (under aconcessionary or peppercorn lease) at cost. The standard requires additional disclosures be provided in relation to belowmarket-value leases measured at cost.

Council has not applied any pronouncements before its operative date in the annual reporting period beginning 1 July 2018.

Apart from those standards listed above, there are no other released standards (with future effective dates) that are expectedto have a material impact on Council.

Council has not elected to apply any pronouncements before their operative date in these financial statements.




Page 14 of 85




§Note/Subtotal§§Subnote§

Income, expenses and assets have been directly attributed to the following functions or activities.Details of those functions or activities are provided in Note 2(b).

Income from continuing operations

Expenses from continuing operations

Operating result from continuing operations

Grants included in income from

continuing operations

Total assets held (current and non-current)

$ '000 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Functions or activitiesCommunity Services 1,330 1,172 1,525 1,536 (195) (364) 892 897 – 14,581Tourism & Economic Development 445 169 1,485 1,152 (1,040) (983) 264 16 – 6,530Transport 13,839 14,393 13,359 12,928 480 1,465 10,000 10,170 – 202,761Governance & Financial Control 14,841 13,011 4,225 4,755 10,616 8,256 6,338 5,647 – 35,163People & Environment 2,216 4,066 4,134 4,214 (1,918) (148) 242 435 – 4,805Recreation 1,039 1,258 4,645 3,712 (3,606) (2,454) 1,098 1,045 – 29,331Service Infrastructure 6,635 5,940 7,710 6,592 (1,075) (652) 203 539 – 93,797Other – – – – – – – (95) 394,253 –Total functions and activities 40,345 40,009 37,083 34,889 3,262 5,120 19,037 18,654 394,253 386,968



Note 2(a). Council functions/activities – financial information

Page 15 of 85



Note 2(a). Council functions/activities – financial information

§Note/Subtotal§

Community Services

§Subnote§

Details relating to the Council’s functions/activities as reported in Note 2(a) are as follows:

Includes connecting with our Aboriginal communities, assistance with successful transition from school to training toemployment, childcare services and facilities that meet the needs of young families, support for the elderly in our community,community participation in arts and cultural activities, improved health care for the community and social outcomes for thosewith disabilites, and wellbeing of youth

Tourism & Economic Development

Includes camping areas and caravan parks, facilitating tourism and area promotion, advocating and facilitating industrialdevelopment and real estate development and sales

Transport

Includes provision and maintenance of roads, bridges, pedestrian and cycle paths, parking areas

Governance & Financial Control

Includes an effective and responsive Council, financial controls, legislative compliance, corporate and governance support,communication with residents, and strategic management of villages and Crown Reserves

People & Environment

Includes waste management, community land, animal control, community safety, preservation of heritage, noxious plants andinsect/vermin control, emergency services, town planning and building control, street lights and street cleaning

Recreation

Includes lakes and rivers, community buildings, streetscapes, parks & gardens, sporting facilities and playgrounds, librariesand cemeteries

Service Infrastructure

Includes provision and maintenance of water and sewerage utilites and stormwater drainage



Note 2(b). Council functions/activities - component descriptions

Page 16 of 85



Note 2(b). Council functions/activities - component descriptions


§Note/Subtotal§

$ '000 2019 2018

(a) Rates and annual charges

§Subnote§

Ordinary ratesResidential 1,262 1,141Farmland 4,611 4,358Mining 388 53Business 280 229Less: pensioner rebates (mandatory) (60) (60)Rates levied to ratepayers 6,481 5,721

Pensioner rate subsidies received 32 33Total ordinary rates 6,513 5,754

Annual charges(pursuant to s.496, s.496A, s.496B, s.501 & s.611)

Domestic waste management services 854 806Stormwater management services 51 51Water supply services 1,265 1,185Sewerage services 1,460 1,322Waste management services (non-domestic) 361 339Less: pensioner rebates (mandatory) (113) (113)Annual charges levied 3,878 3,590

Pensioner subsidies received:– Water 19 19– Sewerage 16 17– Domestic waste management 25 26Total annual charges 3,938 3,652

TOTAL RATES AND ANNUAL CHARGES 10,451 9,406

Council has used 2016 year valuations provided by the NSW Valuer General in calculating its rates.

Rates and annual charges are recognised as revenue when the Council obtains control over the assets comprising thesereceipts.

Accounting policy for rates and charges

Pensioner rebates relate to reductions in rates and certain annual charges for eligible pensioners’ place of residence in thelocal government council area that are not subsidised by the NSW Government.

Pensioner rate subsidies are received from the NSW Government to provide a contribution towards the pensioner rebates.

Control over assets acquired from rates and annual charges is obtained at the commencement of the rating year as it is anenforceable debt linked to the rateable property or, where earlier, upon receipt of the rates.



Note 3. Income from continuing operations

Page 17 of 85



Note 3. Income from continuing operations


§Note/Subtotal§

$ '000 2019 2018

(b) User charges and fees

Specific user charges(per s.502 - specific 'actual use' charges)

Water supply services 2,612 2,504Sewerage services 2 –Total specific user charges 2,614 2,504

Other user charges and fees(i) Fees and charges – statutory and regulatory functions (per s.608)Regulatory/ statutory fees 112 119Section 10.7 certificates (EP&A Act) 17 19Section 603 certificates 12 16Other 3 –Total fees and charges – statutory/regulatory 144 154

(ii) Fees and charges – other (incl. general user charges (per s.608))Aerodrome 18 25Caravan park 509 439Cemeteries 28 51Child care 359 194Lease rentals 397 395Leaseback fees – Council vehicles 107 116Library and art gallery 3 3Park rents 4 4RMS (formerly RTA) charges (state roads not controlled by Council) 198 505Saleyards 7 5Waste disposal tipping fees 90 101Hall hire 16 3Meals on wheels and community care 67 56Private works – section 67 413 150Other 16 3Total fees and charges – other 2,232 2,050

TOTAL USER CHARGES AND FEES 4,990 4,708

User charges and fees are recognised as revenue when the service has been provided.Accounting policy for user charges and fees



Note 3. Income from continuing operations (continued)

Page 18 of 85





§Note/Subtotal§

$ '000 2019 2018

(c) Interest and investment revenue (including losses)

Interest on financial assets measured at amortised cost– Overdue rates and annual charges (incl. special purpose rates) 103 85– Cash and investments 894 882TOTAL INTEREST AND INVESTMENT REVENUE 997 967

Interest revenue is attributable to:Unrestricted investments/financial assets:Overdue rates and annual charges (general fund) 33 44General Council cash and investments 450 435Restricted investments/funds – external:Development contributions– Section 7.12 3 1Water fund operations 284 246Sewerage fund operations 202 215Domestic waste management operations 25 26Total interest and investment revenue 997 967

Interest income is recognised using the effective interest rate at the date that interest is earned.Accounting policy for interest and investment revenue

Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost ofthe investment.

(d) Other revenues§Subnote§

Legal fees recovery – rates and charges (extra charges) 46 –Commissions and agency fees 161 158Diesel rebate 175 121Insurance claims recoveries 23 41Sales – general 10 119Reimbursements – Other 391 261Revaluation / reassessment of tip rehabilitation provision – 1,723Other 30 34TOTAL OTHER REVENUE 836 2,457

Accounting policy for other revenueCouncil recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefitswill flow to the Council and specific criteria have been met for each of the Council’s activities as described below. Councilbases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specificsof each arrangement.

Fines are recognised as revenue when the service has been provided, or when the penalty has been applied, whichever occursfirst. Other revenue is recorded when the payment is due, the value of the payment is notified, or the payment is received,whichever occurs first.

Rental income is accounted for on a straight-line basis over the lease term.

Miscellaneous sales are recognised when physical possession has transferred to the customer which is deemed to be thepoint of transfer of risks and rewards.

Other income is recorded when the payment is due, the value of the payment is notified, or the payment is received, whicheveroccurs first.




Page 19 of 85





§Note/Subtotal§

Operating Operating Capital Capital$ '000 2019 2018 2019 2018

(e) Grants

General purpose (untied)Current year allocationFinancial assistance 500 – – –Financial assistance – general component 2,860 2,757 – –Financial assistance – local roads component 1,675 1,646 – –Payment in advance - future year allocationFinancial assistance – general component 2,957 2,829 – –Financial assistance – local roads component 1,745 1,692 – –Total general purpose 9,737 8,924 – –

Specific purposeWater supplies 50 – 92 460Sewerage services – – 62 43Bushfire and emergency services 121 146 33 131Child care 485 529 15 –Community care 378 359 – –Economic development 60 5 – –Heritage and cultural – – 9 –Library – 2 – –Library – per capita 35 41 – –Noxious weeds 53 61 – –Public halls – 1 (21) 21Recreation and culture 131 33 954 950Street lighting 43 43 – –Transport (roads to recovery) 3,357 2,986 – –Transport (other roads and bridges funding) 361 – 295 160Transport (flood damage) 2,567 3,691 – –Tourism – – 204 11Town planning 8 27 – –Waste management 5 10 – 19Youth 3 1 – –Total specific purpose 7,657 7,935 1,643 1,795

Total grants 17,394 16,859 1,643 1,795

Grant revenue is attributable to:– Commonwealth funding 13,717 12,639 315 11– State funding 3,612 4,210 1,328 1,784– Other funding 65 10 – –

17,394 16,859 1,643 1,795




Page 20 of 85





§Note/Subtotal§

Operating Operating Capital Capital$ '000 Notes 2019 2018 2019 2018

(f) Contributions

Developer contributions:(s7.4 & s7.11 - EP&A Act, s64 of the LGA):Cash contributionsS 7.12 – fixed development consent levies – – 46 83Total developer contributions – cash – – 46 83

Total developer contributions 22 – – 46 83

Other contributions:Cash contributionsBusiness development 20 8 – –Community services – – 200 –Recreation and culture – – – 16Roads and bridges – 136 – –RMS contributions (regional roads, block grant) 3,212 3,147 400 400Other 1 5 155 –FESL Admin Subsidy – 2 – –Parks gardens and reserves – – – 20Total other contributions – cash 3,233 3,298 755 436

Total other contributions 3,233 3,298 755 436

Total contributions 3,233 3,298 801 519

TOTAL GRANTS AND CONTRIBUTIONS 20,627 20,157 2,444 2,314

Control over grants and contributions is normally obtained upon their receipt (or acquittal) and is valued at the fair value ofthe granted or contributed asset at the date of transfer.

Accounting policy for grants and contributions

Where grants or contributions recognised as revenues during the financial year were obtained on condition that they beexpended in a particular manner, or used over a particular period, and those conditions were un-discharged at reporting date,the unused grant or contribution is disclosed below.

Council has obligations to provide facilities from contribution revenues levied on developers under the provisions of sections7.4, 7.11 and 7.12 of the Environmental Planning and Assessment Act 1979.

While Council generally incorporates these amounts as part of a Development Consents Order, such developer contributionsare only recognised as income upon receipt by Council, due to the possibility that individual development consents may notbe acted upon by the applicant and, accordingly, would not be payable to Council.

Developer contributions may only be expended for the purposes for which the contributions were required, but the Councilmay apply contributions according to the priorities established in work schedules

A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not beenprovided at reporting date.




Page 21 of 85




§Note/Subtotal§

$ '000 2019 2018

(g) Unspent grants and contributions

Certain grants and contributions are obtained by Council on condition that they be spent in a specified manner: Operating grantsUnexpended at the close of the previous reporting period 559 405Add: operating grants recognised in the current period but not yet spent 1,182 266Less: operating grants recognised in a previous reporting period now spent (282) (112)Unexpended and held as restricted assets (operating grants) 1,459 559

Capital grantsUnexpended at the close of the previous reporting period 471 348Add: capital grants recognised in the current period but not yet spent 633 278Less: capital grants recognised in a previous reporting period now spent (356) (155)Unexpended and held as restricted assets (capital grants) 748 471

ContributionsUnexpended at the close of the previous reporting period 120 123Add: contributions recognised in the current period but not yet spent 50 84Less: contributions recognised in a previous reporting period now spent – (87)Unexpended and held as restricted assets (contributions) 170 120




Page 22 of 85





§Note/Subtotal§

$ '000 2019 2018

(a) Employee benefits and on-costs

§Subnote§

Salaries and wages 9,323 9,036Employee leave entitlements (ELE) 1,035 813Superannuation 810 841Superannuation – defined contribution plans 123 4Workers’ compensation insurance 335 626Fringe benefit tax (FBT) 77 88Training costs (other than salaries and wages) 203 234Protective clothing 49 42Other 141 104Total employee costs 12,096 11,788

Less: capitalised costs (1,348) (1,161)TOTAL EMPLOYEE COSTS EXPENSED 10,748 10,627

Number of ‘full-time equivalent’ employees (FTE) at year end 137 135Number of ‘full-time equivalent’ employees (FTE) at year end (incl. vacancies) 143 147

Employee benefit expenses are recorded when the service has been provided by the employee.Accounting policy for employee benefits and on-costs

Retirement benefit obligations

All employees of the Council are entitled to benefits on retirement, disability or death. Council contributes to various definedbenefit plans and defined contribution plans on behalf of its employees.

Superannuation plans

Contributions to defined contribution plans are recognised as an expense as they become payable. Prepaid contributions arerecognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Council participates in a defined benefit plan under the Local Government Superannuation Scheme, however, sufficientinformation to account for the plan as a defined benefit is not available and therefore Council accounts for its obligations todefined benefit plans on the same basis as its obligations to defined contribution plans, i.e. as an expense when it becomespayable – refer to Note 17 for more information.

$ '000 Notes 2019 2018

(b) Borrowing costs

§Subnote§

(i) Interest bearing liability costsInterest on loans 69 73Total interest bearing liability costs expensed 69 73

(ii) Other borrowing costsDiscount adjustments relating to movements in provisions (other than ELE)– Remediation liabilities 13 82 60Total other borrowing costs 82 60

TOTAL BORROWING COSTS EXPENSED 151 133

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is requiredto complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed.

Accounting policy for borrowing costs



Note 4. Expenses from continuing operations

Page 23 of 85



Note 4. Expenses from continuing operations


§Note/Subtotal§

$ '000 2019 2018

(c) Materials and contracts

Raw materials and consumables 6,687 7,513Contractor and consultancy costs– Aerodromes 15 38– Animal Control 10 2– Buildings Dwellings 134 185– Caravan Parks 344 354– Cemeteries 165 83– Children’s services 6 13– Corporate Services 225 152– Engineering office and operations 241 241– Flood Works 949 851– Halls and community centres 204 1,932– Health 4 63– Home and community care 6 6– Libraries 152 475– Medical Health Centres 5 17– Noxious Weeds 5 5– Other Economic Affairs 123 106– Parks and reserves 576 290– Pits and quarries 85 63– Private Works 356 3– Public Amenities 150 44– Roads Infrastructure 5,224 5,269– Rural fire service and SES 49 100– Sewerage 377 676– Sports grounds and recreation facilities 402 1,306– Street Cleaning 10 8– Swimming Pools 1,311 792– Tourism 169 274– Town Planning Office 63 89– Waste 1,070 1,080– Water 1,886 716– Works Depots/Workshops/Plant 76 142– Western Plains Regional Development – Youth Services 176 172Auditors remuneration 2 48 82Legal expenses:– Legal expenses: debt recovery 46 3– Legal expenses: other 10 127Operating leases:– Operating lease rentals: minimum lease payments 1 13 18Total materials and contracts 21,372 23,290

Less: capitalised costs (11,188) (12,764)TOTAL MATERIALS AND CONTRACTS 10,184 10,526

Leases in which a significant portion of the risks and rewards of ownership are not transferred to Council as lessee are classifiedas operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged tothe income statement on a straight-line basis over the period of the lease.

Accounting policy for operating leases



Note 4. Expenses from continuing operations (continued)

Page 24 of 85





§Note/Subtotal§

$ '000 2019 2018

1. Operating lease payments are attributable to:Photocopiers 13 18 13 18

§Total§

2. Auditor remunerationDuring the year, the following fees were incurred for services provided by the auditor of Council, related practices and non-related audit firms Auditors of the Council - NSW Auditor-General: (i) Audit and other assurance servicesAudit and review of financial statements 48 49Remuneration for audit and other assurance services 48 49

Total Auditor-General remuneration 48 49

Non NSW Auditor-General audit firms (i) Audit and other assurance servicesOther audit and assurance services – Internal Audits – 33Remuneration for audit and other assurance services – 33

Total remuneration of non NSW Auditor-General audit firms – 33

Total Auditor remuneration 48 82

$ '000 Notes 2019 2018

(d) Depreciation, amortisation and impairment of intangible assets and IPP&E

§Subnote§

Depreciation and amortisationPlant and equipment 1,379 1,372Office equipment 50 39Furniture and fittings 44 36Land improvements (depreciable) 99 89Infrastructure:– Buildings – non-specialised 86 93– Buildings – specialised 1,018 786– Other structures 431 310– Roads 4,768 4,185– Bridges 288 298– Footpaths 70 69– Stormwater drainage 86 36– Water supply network 1,654 1,524– Sewerage network 546 521Other assets:– Library books 34 25Reinstatement, rehabilitation and restoration assets:– Tip assets 10(a),13 49 52Intangible assets 11 51 51Total depreciation and amortisation costs 10,653 9,486




Page 25 of 85





$ '000 Notes 2019 2018

Impairment / revaluation decrement of IPP&EInfrastructure:– Buildings – specialised – 163– Roads (3,023) (1,371)Total gross IPP&E impairment / revaluation decrement costs / (reversals) (3,023) (1,208)

Amounts taken through revaluation reserve 3,023 1,371Total IPP&E impairment / revaluation decrement costs / (reversals) charged to Income Statement – 163

TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT / REVALUATION DECREMENT FOR INTANGIBLES AND IPP&E 10,653 9,649

Accounting policy for depreciation, amortisation and impairment expenses of intangibles and IPP&E

Council recognises that the useful service life and associated service potential of its assets diminishes over time as these assetsare used in service delivery. Council accounts for this decline in service through depreciation and amortisation expenses.

Depreciation and amortisation

Depreciation and amortisation are calculated using the straight line method to allocate their cost, net of their residual values,over their estimated useful lives. Useful lives are included in Note 10 for IPPE assets and Note 11 for intangible assets.

Depreciation is capitalised where in-house assets have contributed to new assets.

Council assets held at fair value that are not held primarily for their ability to generate net cash flow, and that are deemed to bespecialised, are no longer required to be tested for impairment under AASB 136. This is because these assets are assessedon an annual basis to ensure that the carrying amount is not materially different from fair value and therefore an impairmentloss would be captured during this assessment.

Impairment of non-financial assets

Intangible assets that have an indefinite useful life, or are not yet available for use, are tested annually for impairment, or morefrequently if events or changes in circumstances indicate that they might be impaired. Other assets that do not meet the criteriaabove are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not berecoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverableamount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiablecash inflows that are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

Impairment losses for revalued assets are firstly offset against the amount in the revaluation surplus for the class of asset,with only the excess to be recognised in the Income Statement.




Page 26 of 85




§Note/Subtotal§

$ '000 2019 2018

(e) Other expenses

Advertising 34 38Bad and doubtful debts 89 120Bank charges 37 35Cleaning 92 99Computer software charges 230 283Contributions/levies to other levels of government– Emergency services levy (includes FRNSW, SES, and RFS levies) 9 11– NSW fire brigade levy 33 33– NSW rural fire service levy 312 322– Other contributions/levies 3 –Councillor expenses – Mayoral fee 27 25Councillor expenses – Councillors’ fees 115 116Councillors’ expenses (incl. Mayor) – other (excluding fees above) 51 64Donations, contributions and assistance to other organisations (Section 356) 111 125– Western Plains Regional Development 51 60– Lower Lachlan Community Services 51 50Electricity and heating 871 816Internal audit and risk committee 2 3Insurance 587 539Investment advisory service 8 12Postage 38 44Printing and stationery 35 30Street lighting 239 205Telephone and communications 110 118Valuation fees 41 40Write-down of inventories held for sale or distribution (54) 116Write down of real estate assets held for sale 228 –Other 24 –Total other expenses 3,374 3,304TOTAL OTHER EXPENSES 3,374 3,304

Other expenses are recorded on an accruals basis as the Council receives the goods or services.Accounting policy for other expenses




Page 27 of 85





$ '000 Notes 2019 2018

Property (excl. investment property)Proceeds from disposal – property – 18Less: carrying amount of property assets sold/written off (127) (583)Net gain/(loss) on disposal (127) (565)

Plant and equipment 10(a)

Proceeds from disposal – plant and equipment 818 1,124Less: carrying amount of plant and equipment assets sold/written off (973) (1,190)Net gain/(loss) on disposal (155) (66)

Infrastructure 10(a)

Less: carrying amount of infrastructure assets sold/written off (1,767) (20)Net gain/(loss) on disposal (1,767) (20)

Real estate assets held for sale 8

Proceeds from disposal – real estate assets 183 321Less: carrying amount of real estate assets sold/written off (176) (320)Net gain/(loss) on disposal 7 1

Investments 6(b)

Proceeds from disposal/redemptions/maturities – investments 22,200 43,750Less: carrying amount of investments sold/redeemed/matured (22,200) (43,750)Net gain/(loss) on disposal – –

Non-current assets classified as ‘held for sale’ 9

Proceeds from disposal – non-current assets ‘held for sale’ 150 –Less: carrying amount of ‘held for sale’ assets sold/written off (81) –Net gain/(loss) on disposal 69 –

NET GAIN/(LOSS) ON DISPOSAL OF ASSETS (1,973) (650)

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the IncomeStatement.

Accounting policy for disposal of assets

The gain or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer and theasset is de-recognised.

Note 6(a). Cash and cash equivalent assets§Note§

$ '000 2019 2018§Subnote§

Cash and cash equivalentsCash on hand and at bank 3,069 166Cash-equivalent assets– Deposits at call 2,819 4,358Total cash and cash equivalents 5,888 4,524

Accounting policy for cash and cash equivalentsFor Statement of Cash Flow presentation purposes, cash and cash equivalents include: cash on hand; deposits held at call with financial institutions; other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value; and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position.



Note 5. Gains or losses from the disposal, replacement and de-recognition of assets

Page 28 of 85



Note 5. Gains or losses from the disposal, replacement and de-recognition of assets

§Note/Subtotal§

2019 2019 2018 2018$ '000 Current Non-current Current Non-current

§Subnote§

Investments‘Financial assets at amortised cost’ / ‘held to maturity’ (2018) 23,900 6,250 21,700 7,500Total Investments 23,900 6,250 21,700 7,500

TOTAL CASH ASSETS, CASH EQUIVALENTS AND INVESTMENTS 29,788 6,250 26,224 7,500

Financial assets at amortised cost / held to maturity (2018)Long term deposits 23,900 6,250 21,700 7,500Total 23,900 6,250 21,700 7,500 §Subnote§

Accounting policy for investments

Financial instruments are recognised initially on the date that the Council becomes party to the contractual provisions of theinstrument.

Accounting policy under AASB 9 – applicable from 1 July 2018

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instrumentsmeasured at fair value through profit or loss where transaction costs are expensed as incurred).

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, dependingon the classification of the financial assets.

Financial assets

On initial recognition, Council classifies its financial assets into the following categories – those measured at:Classification

• amortised cost• fair value through profit and loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition.

Assets measured at amortised cost are financial assets where:Amortised cost

• the business model is to hold assets to collect contractual cash flows, and• the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on

the principal amount outstanding.

Council’s financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalentsin the Statement of Financial Position.

Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method lessprovision for impairment.

Interest income, impairment and gains or loss on de-recognition are recognised in profit or loss.

All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as describedabove are measured at fair value through profit or loss.

Financial assets through profit or loss

Net gains or losses, including any interest or dividend income, are recognised in profit or loss.

Council’s financial assets measured at fair value through profit or loss comprise investments in FRNs and NCDs in theStatement of Financial Position.

Accounting policy under AASB 139 – applicable for 2018 comparatives only




Note 6(b). Investments

Page 29 of 85



Note 6(b). Investments

ClassificationCouncil classifies its financial assets in the following categories: financial assets at fair value through profit or loss; loans andreceivables; held-to-maturity investments; and available-for-sale financial assets. The classification depends on the purposefor which the investments were acquired. Management determines the classification of its investments at initial recognitionand, in the case of assets classified as held-to-maturity, re-evaluates this designation at each reporting date.

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturitiesthat Council’s management has the positive intention and ability to hold to maturity. Assets in this category are measured atamortised cost.

Held to maturity investments

Regular purchases and sales of financial assets are recognised on trade-date: the date on which Council commits to purchaseor sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried atfair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair valueand transaction costs are expensed in the income statement. Investments are derecognised when the rights to receive cashflows from the financial assets have expired or have been transferred and Council has transferred substantially all the risksand rewards of ownership.

Recognition and de-recognition

When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in equity areincluded in the Income Statement as gains and losses from investment securities.



Note 6(b). Investments (continued)

Page 30 of 85



Note 6(b). Investments (continued)

§Note/Subtotal§


Total cash, cash equivalents and investments 29,788 6,250 26,224 7,500

§Subnote§§Total§

attributable to:External restrictions 11,618 6,250 9,360 7,500Internal restrictions 18,102 – 16,809 –Unrestricted 68 – 55 –

29,788 6,250 26,224 7,500

$ '000 2019 2018

Details of restrictions

§Total§

External restrictions – otherDeveloper contributions – general 170 120Specific purpose unexpended grants 2,349 1,030Water supplies 7,546 8,214Sewerage services 7,132 6,893Domestic waste management 161 186Stormwater management 420 363Meals on wheels 65 29Lachlan aged and community services 25 25External restrictions – other 17,868 16,860

Total external restrictions 17,868 16,860

Internal restrictionsPlant and vehicle replacement 3,971 2,612Employees leave entitlement 1,955 1,930Carry over works 4,213 3,575Aerodromes 150 145Capital improvements 670 770Chambers / computer equipment 79 90Condobolin cemetery 7 70Condobolin District Retirement Village 1,308 1,678Condobolin main street improvements 104 124Depot replacement 139 315Financial assistance grant – gen component 2,962 2,829Gravel pit restoration 595 795Gumbend lake 26 69Housing/land development 1,095 674Swimming pools 398 535Timber bridges – 51Tip restoration 160 160Tottenham swimming pool amenities – 139Town planning 33 26Waste management 207 207Elections 30 15Total internal restrictions 18,102 16,809

TOTAL RESTRICTIONS 35,970 33,669



Note 6(c). Restricted cash, cash equivalents and investments – details

Page 31 of 85



Note 6(c). Restricted cash, cash equivalents and investments – details


§Note/Subtotal§


§Subnote§

PurposeRates and annual charges 529 586 532 343Interest and extra charges 333 – 231 –User charges and fees 1,780 – 2,182 –Accrued revenues– Interest on investments 315 – 241 –Deferred debtors 3 93 3 111Net GST receivable 403 – 304 –Other debtors (7) – (7) –Total 3,356 679 3,486 454

Less: provision of impairmentRates and annual charges – (312) – (254)User charges and fees (40) – (41) –Total provision for impairment – receivables (40) (312) (41) (254)

TOTAL NET RECEIVABLES 3,316 367 3,445 200

§Subnote§

Externally restricted receivablesWater supply– Rates and availability charges 258 – 196 –– Other 1,097 – 905 –Sewerage services– Rates and availability charges 288 – 221 –Domestic waste management 58 – 107 –Stormwater management 12 – 10 –Total external restrictions 1,713 – 1,439 –

Unrestricted receivables 1,603 367 2,006 200

TOTAL NET RECEIVABLES 3,316 367 3,445 200

$ '000 2019 2018§Subnote§

Movement in provision for impairment of receivablesBalance at the beginning of the year (calculated in accordance with AASB 139) 295 310+ new provisions recognised during the year 77 56– amounts already provided for and written off this year (6) (69)– amounts provided for but recovered during the year (15) (2)Balance at the end of the period 351 295



Note 7. Receivables

Page 32 of 85



Note 7. Receivables

§Note/Subtotal§

Accounting policy for receivables

Receivables are included in current assets, except for those with maturities greater than 12 months after the reporting datewhich are classified as non-current assets.

Recognition and measurement

Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interestmethod, less provision for impairment. Receivables are generally due for settlement within 30 days.

Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

Impairment

Impairment of financial assets measured at amortised cost is recognised on an expected credit loss (ECL) basis.Accounting policy under AASB 9 applicable from 1 July 2018

When determining whether the credit risk of a financial asset has increased significantly since initial recognition, and whenestimating ECL, the Council considers reasonable and supportable information that is relevant and available without unduecost or effort. This includes both quantitative and qualitative information and analysis based on Council’s historical experienceand informed credit assessment, and including forward-looking information.

When considering the ECL for rates debtors, Council takes into account that unpaid rates represent a charge against therateable property that will be recovered when the property is next sold. For non-rates debtors, Council uses the presumptionthat an asset which is more than 30 days past due has seen a significant increase in credit risk.

The Council uses the presentation that a financial asset is in default when:• the other party is unlikely to pay its credit obligations to the Council in full, without recourse by the Council to actions

such as realising security (if any is held) or• the financial assets (for non-rates debtors) are more than 90 days past due.

Credit losses are measured as the present value of the difference between the cash flows due to the entity in accordance withthe contract, and the cash flows expected to be received. This is applied using a probability weighted approach.

On initial recognition of the asset, an estimate of the expected credit losses for the next 12 months is recognised. Where theasset has experienced significant increase in credit risk then the lifetime losses are estimated and recognised.

There has been no change in the estimation techniques or significant assumptions made during the current reporting period.

The Council writes off a trade receivable when there is information indicating that the debtor is in severe financial difficultyand there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered intobankruptcy proceedings, or when the receivables are over 2 years past due, whichever occurs first.None of the receivables that have been written off are subject to enforcement activity.

Where the Council renegotiates the terms of receivables due from certain customers, the new expected cash flows arediscounted at the original effective interest rate and any resulting difference to the carrying value is recognised in profit or loss.

For loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount andthe present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted atthe financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the lossis recognised in profit or loss.

Accounting policy under AASB 139 – applicable for 2018 comparatives only

Collectability of receivables is reviewed on an ongoing basis. Debts that are known to be uncollectable are written off byreducing the carrying amount directly. An allowance account (provision for impairment of receivables) is used when there isobjective evidence that the Council will not be able to collect all amounts due according to the original terms of the receivables.Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, anddefault or delinquency in payments (more than 30 days overdue) are considered indicators that the receivable is impaired.When a receivable for which an impairment allowance had been recognised becomes uncollectable in a subsequent period,it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited againstother expenses in the Income Statement.

Rates and annual charges outstanding are secured against the property.



Note 7. Receivables (continued)

Page 33 of 85



Note 7. Receivables (continued)


§Note/Subtotal§


(a) Inventories

§Subnote§

(i) Inventories at costReal estate for resale 320 215 677 207Stores and materials 1,710 – 1,831 –Total inventories at cost 2,030 215 2,508 207

(ii) Inventories at net realisable value (NRV)Real estate for resale 309 – – –Total inventories at net realisable value (NRV) 309 – – –

TOTAL INVENTORIES 2,339 215 2,508 207

(b) Other assets§Subnote§

Prepayments 17 – 165 –TOTAL OTHER ASSETS 17 – 165 –

(i) Other disclosures§Subnote§§Total§

2019 2019 2018 2018$ '000 Notes Current Non-current Current Non-current

(a) Details for real estate developmentResidential 562 118 415 110Industrial/commercial 67 97 262 97Total real estate for resale 629 215 677 207

(Valued at the lower of cost and net realisable value)Represented by:Acquisition costs 325 137 26 147Development costs 258 75 564 57Other holding costs 46 3 87 3Total costs 629 215 677 207

Total real estate for resale 629 215 677 207

Movements:Real estate assets at beginning of the year 677 207 997 207– Purchases and other costs 325 – – –– Transfers in from (out to) Note 10 38 – – –– WDV of sales (expense) 5 (176) – (320) –– Transfer between current/non-current (8) 8 – –– Write down of real estate assets held for sale (227) – – –Total real estate for resale 629 215 677 207



Note 8. Inventories and other assets

Page 34 of 85



Note 8. Inventories and other assets

§Note/Subtotal§

Accounting policy for inventories and other assets

Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Costs areassigned to individual items of inventory on the basis of weighted average costs. Costs of purchased inventory are determinedafter deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of businessless the estimated costs of completion and the estimated costs necessary to make the sale.

Raw materials and stores, work in progress and finished goods

Inventory held for distribution is held at cost, adjusted where applicable for any loss of service potential.Inventory held for distribution

Land held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specific identification andincludes the cost of acquisition, and development and borrowing costs during development. When development is completed,borrowing costs and other holding charges are expensed as incurred.

Land held for resale/capitalisation of borrowing costs

Borrowing costs included in the cost of land held for resale are those costs that would have been avoided if the expenditureon the acquisition and development of the land had not been made. Borrowing costs incurred while active development isinterrupted for extended periods are recognised as expenses.



Note 8. Inventories and other assets (continued)

Page 35 of 85



Note 8. Inventories and other assets (continued)

§Note/Subtotal§

(i) Non-current assets and disposal group assets

§Subnote§


Non-current assets ‘held for sale’Land – – 7 –Buildings – – 74 –Total non-current assets ‘held for sale’ – – 81 –

TOTAL NON-CURRENT ASSETS CLASSIFIED AS 'HELD FOR SALE' – – 81 –

(ii) Details of assets and disposal groups§Subnote§

Council sold property known as "The Pool House" in Lake Cargelligo.

(iii) Reconciliation of non-current assets ‘held for sale’ and disposal groups – i.e. discontinued operations

§Subnote§

2019 2018

$ '000Assets ‘held

for sale’Assets ‘held

for sale’

Opening balance 81 –Less: carrying value of assets/operations sold (81) –Balance still unsold after 12 months: – –

Plus new transfers in:– Assets ‘held for sale’ – 81Closing balance of 'held for sale' non-current assets and operations – 81

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principallythrough a sale transaction rather than through continued use. They are measured at the lower of their carrying amount andfair value less costs to sell, except for assets such as assets arising from employee benefits; financial assets; and investmentproperties that are carried at fair value.

§Subnote§

Accounting policy for non-current assets classified as held for sale

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value lesscosts to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group),but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by thedate of the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classifiedas held for sale.



Note 9. Non-current assets classified as held for sale

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Note 9. Non-current assets classified as held for sale


§Note/Subtotal§

as at 30/6/2018 Asset movements during the reporting period as at 30/6/2019

$ '000Gross carrying

amountAccumulated depreciation

Netcarryingamount

Additions renewals 1

Additions new assets

Carrying value of disposals

Deprec-iation expense

Impairment reversal (recogn-

ised in equity) WIP transfers

Adjust-ments and

transfers

Tfrs from/(to) real estate assets

(Note 8)

Revalu-ation increments to

equity (ARR)Gross carrying


Netcarryingamount

§Subnote§

Capital work in progress 4,745 – 4,745 708 231 – – – (3,698) – (38) – 1,948 – 1,948Plant and equipment 23,801 (13,409) 10,392 – 2,294 (972) (1,379) – 49 – – – 24,121 (13,737) 10,384Office equipment 1,314 (979) 335 10 23 – (50) – – – – – 1,347 (1,029) 318Furniture and fittings 1,126 (754) 372 – 119 – (44) – 25 – – – 1,270 (798) 472Land:– Operational land 3,494 – 3,494 29 – – – – – – – – 3,523 – 3,523– Community land 3,344 – 3,344 – – – – – – – – – 3,344 – 3,344Land improvements – non-depreciable 463 – 463 – 207 – – – – – – – 670 – 670Land improvements – depreciable 4,243 (2,458) 1,785 – 457 – (99) – 251 – – – 4,927 (2,533) 2,394Infrastructure:– Buildings – non-specialised 4,411 (1,248) 3,163 – – – (86) – 7 43 – – 4,440 (1,313) 3,127– Buildings – specialised 53,628 (25,325) 28,303 316 645 (127) (1,018) – 1,632 (43) – – 55,802 (26,094) 29,708– Other structures 15,680 (5,285) 10,395 21 1,063 (1) (431) – 409 – – – 17,169 (5,713) 11,456– Roads 257,247 (85,710) 171,537 3,485 3,301 (1,443) (4,768) 3,023 621 (2) – – 262,525 (86,771) 175,754– Bridges 27,054 (5,057) 21,997 360 – (29) (288) – 521 – – – 27,446 (4,885) 22,561– Footpaths 3,701 (679) 3,022 61 358 (44) (70) – 130 – – – 4,187 (730) 3,457– Stormwater drainage 9,025 (3,853) 5,172 – – – (86) – – – – – 9,026 (3,940) 5,086– Water supply network 94,689 (39,852) 54,837 588 183 (253) (1,654) – 25 2 – 860 96,632 (42,044) 54,588– Sewerage network 36,696 (16,346) 20,350 195 – – (546) – 28 – – 320 37,509 (17,162) 20,347Other assets:– Library books 1,047 (967) 80 – 31 – (34) – – – – – 1,078 (1,001) 77Reinstatement, rehabilitation and restoration assets (refer Note 14):– Tip assets 3,035 (431) 2,604 – – – (49) – – (6) – – 3,029 (480) 2,549Total Infrastructure, property, plant and equipment 548,743 (202,353) 346,390 5,773 8,912 (2,869) (10,602) 3,023 – (6) (38) 1,180 559,993 (208,230) 351,763

(1) Renewals are defined as the replacement of existing assets (as opposed to the acquisition of new assets).



Note 10(a). Infrastructure, property, plant and equipment

Page 37 of 85



Note 10(a). Infrastructure, property, plant and equipment


§Note/Subtotal§

as at 30/6/2017 Asset movements during the reporting period as at 30/6/2018

$ '000Gross carrying


Netcarryingamount

Additions renewals 1

Additions new assets

Carrying value of disposals

Depreciation expense

Impairment loss /revaluation

decrements (recognised in

P/L)

Impairment reversal

(recognised in equity)

Adjustments and transfers

Tfrs from/(to) ‘held for sale’

category

Revaluation decrements to

equity (ARR)

Revaluation increments to equity (ARR)

Gross carrying amount

Accumulated depreciation

Netcarryingamount

Capital work in progress – – – 1,804 2,785 – – – – 156 – – – 4,745 – 4,745Plant and equipment 27,024 (16,732) 10,292 – 2,666 (1,190) (1,372) – – (4) – – – 23,801 (13,409) 10,392Office equipment 1,253 (967) 286 80 11 – (39) – – (3) – – – 1,314 (979) 335Furniture and fittings 2,299 (1,949) 350 8 50 – (36) – – – – – – 1,126 (754) 372Land:– Operational land 3,031 – 3,031 – 621 (83) – – – (68) (7) – – 3,494 – 3,494– Community land 3,378 – 3,378 – – (24) – – – (10) – – – 3,344 – 3,344Land improvements – non-depreciable 464 – 464 – – – – – – (1) – – – 463 – 463Land improvements – depreciable 4,877 (2,838) 2,039 25 6 – (89) – – (196) – – – 4,243 (2,458) 1,785Infrastructure:– Buildings – non–specialised 13,137 (5,613) 7,524 – 513 (375) (93) – – (26) (75) (4,305) – 4,411 (1,248) 3,163– Buildings – specialised 67,045 (34,475) 32,570 65 1,980 (93) (786) (163) – (525) – (4,745) – 53,628 (25,325) 28,303– Other structures 6,895 (1,477) 5,418 5 1,157 (8) (310) – – (1,656) – – 5,789 15,680 (5,285) 10,395– Roads 251,645 (82,896) 168,749 5,535 8 – (4,185) – 1,371 59 – – – 257,247 (85,710) 171,537– Bridges 27,211 (4,761) 22,450 – – – (298) – – (155) – – – 27,054 (5,057) 21,997– Footpaths 3,658 (610) 3,048 43 – (20) (69) – – 20 – – – 3,701 (679) 3,022– Stormwater drainage 8,530 (3,657) 4,873 – – – (36) – – – – – 335 9,025 (3,853) 5,172– Water supply network 90,066 (37,289) 52,777 9 – – (1,524) – – 2,447 – – 1,128 94,689 (39,852) 54,837– Sewerage network 35,568 (15,484) 20,084 356 – – (521) – – 12 – – 419 36,696 (16,346) 20,350Other assets:– Library books 1,106 (942) 164 – 17 – (25) – – (76) – – – 1,047 (967) 80Reinstatement, rehabilitation and restoration assets (refer Note 14):– Tip assets 2,380 (379) 2,001 – – – (52) – – – – – 655 3,035 (431) 2,604Total Infrastructure, property, plant and equipment 549,567 (210,069) 339,498 7,930 9,814 (1,793) (9,435) (163) 1,371 (26) (82) (9,050) 8,326 548,743 (202,353) 346,390

(1) Renewals are defined as the replacement of existing assets (as opposed to the acquisition of new assets).



Note 10(a). Infrastructure, property, plant and equipment (continued)

Page 38 of 85




§Note/Subtotal§

Infrastructure, property, plant and equipment are held at fair value. Independent comprehensive valuations are performed atleast every five years, however the carrying amount of assets is assessed by Council at each reporting date to confirm thatit is not materially different from current fair value.

Accounting policy for infrastructure, property, plant and equipment

Water and sewerage network assets are indexed at each reporting period in accordance with the Rates Reference Manualissued by Department of Industry (DoI) – Water.

Increases in the carrying amounts arising on revaluation are credited to the revaluation reserve. To the extent that the increasereverses a decrease previously recognising profit or loss relating to that asset class, the increase is first recognised as profitor loss. Decreases that reverse previous increases of assets in the same class are first charged against revaluation reservesdirectly in equity to the extent of the remaining reserve attributable to the class; all other decreases are charged to the IncomeStatement.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when itis probable that future economic benefits associated with the item will flow to Council and the cost of the item can be measuredreliably. All other repairs and maintenance are charged to the Income Statement during the financial period in which they areincurred.

When infrastructure, property, plant and equipment are acquired by Council for nil or nominal consideration, the assets areinitially recognised at their fair value at acquisition date.

Land is not depreciated. The property, plant and equipment acquired under finance leases is depreciated over the asset’suseful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the Councilwill obtain ownership at the end of the lease term. Depreciation on other assets is calculated using the straight-line method toallocate their cost, net of their residual values, over their estimated useful lives as follows:

Plant and equipment Years Other equipment YearsOffice equipment 5 to 10 Playground equipment 5 to 15Office furniture 10 to 20 Benches, seats etc. 10 to 20Computer equipment 4Vehicles 5 to 8 BuildingsHeavy plant/road making equipment 5 to 8 Buildings: masonry - specialised 50 to 100Other plant and equipment 5 to 15 Buildings: other - non - specialised 20 to 40

Other AssetsLibrary Books 5 to 10

Water and sewer assets Stormwater assetsDams and reservoirs 80 to 100 Drains 80 to 100Bores 20 to 40 Culverts 50 to 80Reticulation pipes: PVC 70 to 80 Flood control structures 80 to 100Reticulation pipes: other 25 to 75Pumps and telemetry 15 to 20

Transportation assets Other infrastructure assetsSealed roads: surface 20 Swimming pools 50Sealed roads: structure 50 Other open space/recreational assets 20Unsealed roads 20 Other infrastructure 20Bridge: concrete 100Bridge: other 50Road pavements 60Kerb, gutter and footpaths 40

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.





Page 39 of 85




Land under roadsLand under roads is land under roadways and road reserves including land under footpaths, nature strips and median strips.Council has elected not to recognise land under roads acquired before 1 July 2008 in accordance with AASB 1051 LandUnder Roads.Land under roads acquired after 1 July 2008 is recognised in accordance with AASB 116 Property, Plant and Equipment.

Crown reserves under Council’s care and control are recognised as assets of the Council. While ownership of the reservesremains with the Crown, Council retains operational control of the reserves and is responsible for their maintenance and usein accordance with the specific purposes to which the reserves are dedicated.

Crown reserves

Improvements on Crown reserves are also recorded as assets, while maintenance costs incurred by Council and revenuesrelating to the reserves are recognised within Council’s Income Statement.

Under Section 119 of the Rural Fire Services Act 1997 (NSW), “all firefighting equipment purchased or constructed whollyor from money to the credit of the Fund is to be vested in the council of the area for or on behalf of which the firefightingequipment has been purchased or constructed”.

Rural Fire Service assets

These Rural Fire Service assets are recognised as assets of the Council in these financial statements.

Note 10(b). Externally restricted infrastructure, property, plant and equipment§Note§

2019 2018

$ '000


Accumulateddepn. and

impairment

Netcarryingamount


Accumulateddepn. and

impairment

Netcarryingamount

§Subnote§

Water supplyWIP 975 – 975 577 – 577Plant and equipment 951 613 338 816 617 199Land– Operational land 215 – 215 215 – 215Buildings 2,543 1,731 812 2,544 1,680 864Other structures 302 85 217 302 80 222Infrastructure 96,632 42,044 54,588 94,689 39,852 54,837Total water supply 101,618 44,473 57,145 99,143 42,229 56,914

Sewerage servicesWIP 279 – 279 224 – 224Plant and equipment 586 266 320 558 268 290Land– Operational land 208 – 208 208 – 208Buildings 329 258 71 329 254 75Other structures 174 65 109 174 61 113Infrastructure 37,509 17,162 20,347 36,696 16,345 20,351Total sewerage services 39,085 17,751 21,334 38,189 16,928 21,261

Domestic waste managementPlant and equipment 119 72 47 119 71 48Land– Operational land 71 – 71 42 – 42– Improvements – depreciable 15 5 10 15 4 11Buildings 202 15 187 203 40 163Other structures 348 127 221 348 120 228Total DWM 755 219 536 727 235 492

TOTAL RESTRICTED I,PP&E 141,458 62,443 79,015 138,059 59,392 78,667




Page 40 of 85




§Note/Subtotal§

$ '000 Notes 2019 2018§Subnote§

(i) Impairment losses recognised in the Income Statement:– Condobolin Ex-Bowling Club Building to be demolished – (22)– Revaluation decrement of buildings in Water Fund – (270)Total impairment losses – (292)

(ii) Reversal of impairment losses previously recognized in the Income Statement:– SRA Hall(old) impairment reversed with demolition & write down of asset – 129Total impairment reversals – 129

IMPAIRMENT OF ASSETS – GAINS/(LOSSES) in P/L 4d – (163)

(iii) Reversals of impairment losses previously recognised direct to equity (ARR):–Regional Roads (flooding) repaired 3,023 1,371Total impairment reversals 3,023 1,371

IMPAIRMENT OF ASSETS – DIRECT to EQUITY (ARR) 3,023 1,371



Note 10(c). Infrastructure, property, plant and equipment – current year impairments

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Note 10(c). Infrastructure, property, plant and equipment – current year impairments

§Note/Subtotal§

$ '000 2019 2018§Subnote§

Intangible assets are as follows: Opening values at 1 JulyGross book value 543 543Accumulated amortisation (295) (244)Net book value – opening balance 248 299

Movements for the year – Amortisation charges (51) (51) Closing values at 30 juneGross book value 543 543Accumulated amortisation (345) (295) TOTAL INTANGIBLE ASSETS – NET BOOK VALUE 198 248

The net book value of intangible assets represents: – Software 198 248 198 248

Accounting policy for intangible assets

Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute tofuture period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems.

IT development and software

Costs capitalised include external direct costs of materials and service, direct payroll, and payroll related costs of employees’time spent on the project. Amortisation is calculated on a straight line basis over periods generally ranging from three to fiveyears. IT development costs include only those costs directly attributable to the development phase and are only recognisedfollowing completion of technical feasibility, and where Council has an intention and ability to use the asset.



Note 11. Intangible assets

Page 42 of 85



Note 11. Intangible assets


§Note/Subtotal§


§Subnote§

PayablesGoods and services 1,020 – 1,056 –Goods and services – capital expenditure 1,405 – 1,325 –Accrued expenses:– Borrowings 15 – 16 –– Salaries and wages 162 – 232 –– Other expenditure accruals 124 – 227 –Security bonds, deposits and retentions 115 – 189 –Total payables 2,841 – 3,045 –

Income received in advancePayments received in advance 130 – 157 –Total income received in advance 130 – 157 –

BorrowingsLoans – secured 1 103 1,554 100 1,657Total borrowings 103 1,554 100 1,657

TOTAL PAYABLES AND BORROWINGS 3,074 1,554 3,302 1,657

(1) Loans are secured over the general rating income of Council.Disclosures on liability interest rate risk exposures, fair value disclosures and security can be found in Note 20.

$ '000 2019 2018

(a) Current payables and borrowings not anticipated to be settled within thenext twelve months

§Subnote§

The following liabilities, even though classified as current, are not expected to be settled inthe next 12 months.Payables – security bonds, deposits and retentions 104 141Other liabilities: ELE Oncosts 120 203Total payables and borrowings 224 344



Note 12. Payables and borrowings

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Note 12. Payables and borrowings


§Note/Subtotal§

(b) Changes in liabilities arising from financing activities

as at 30/6/2018 as at

30/6/2019

$ '000OpeningBalance Cash flows

Non-cash acquisitions

Non-cash fair value changes

Other non-cash

movementsClosing balance

Loans – secured 1,757 (100) – – – 1,657TOTAL 1,757 (100) – – – 1,657

as at 30/6/2017 as at

30/6/2018

$ '000OpeningBalance Cash flows

Non-cash acquisitions

Non-cash fair value changes

Other non-cash

movementsClosing balance

Loans – secured 1,853 (96) – – – 1,757TOTAL 1,853 (96) – – – 1,757

§Subnote§

$ '000 2019 2018

(c) Financing arrangements

§Subnote§

(i) Unrestricted access was available at balance date to the following lines of credit:Bank overdraft facilities 1 500 500Credit cards/purchase cards 50 52Total financing arrangements 550 552

Drawn facilities as at balance date:– Credit cards/purchase cards 12 17Total drawn financing arrangements 12 17

Undrawn facilities as at balance date:– Bank overdraft facilities 500 500– Credit cards/purchase cards 38 35Total undrawn financing arrangements 538 535

Additional financing arrangements information

Breaches and defaultsDuring the current and prior year, there were no defaults or breaches on any of the loans.

(1) The bank overdraft facility may be drawn at any time and may be terminated by the bank without notice.



Note 12. Payables and borrowings (continued)

Page 44 of 85




§Note/Subtotal§

Council measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities aremeasured at amortised cost using the effective interest rate method.

Accounting policy for payables and borrowings

The financial liabilities of the Council comprise trade payables, bank and other loans and finance lease liabilities.

These amounts represent liabilities for goods and services provided to the council prior to the end of financial year that areunpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

Payables

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured atamortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised inthe Income Statement over the period of the borrowings using the effective-interest method. Fees paid on the establishmentof loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facilitywill be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent that there is no evidence thatit is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity servicesand amortised over the period of the facility to which it relates.

Borrowings

Borrowings are removed from the Statement of Financial Position when the obligation specified in the contract is discharged,cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished ortransferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, isrecognised in other income or finance cost.

Borrowings are classified as current liabilities unless Council has an unconditional right to defer settlement of the liability forat least 12 months after the reporting date.

Leases of property, plant and equipment where Council, as lessee, has substantially all the risks and rewards of ownership,are classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value of the leased assetsor, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges,are included in other short-term and long-term payables. Each lease payment is allocated between the liability and financecost. The finance cost is charged to the Income Statement over the lease period so as to produce a constant periodic rate ofinterest on the remaining balance of the liability for each period.

Finance leases




Page 45 of 85




§Note/Subtotal§


Provisions

§Subnote§

Employee benefitsAnnual leave 981 – 1,002 –Sick leave 1,094 – 1,185 –Long service leave 1,300 305 1,309 129Gratuities 202 – 189 –Other leave 248 – 240 –Sub-total – aggregate employee benefits 3,825 305 3,925 129

Asset remediation/restoration:Asset remediation/restoration (future works) – 3,170 – 3,095Sub-total – asset remediation/restoration – 3,170 – 3,095

TOTAL PROVISIONS 3,825 3,475 3,925 3,224

$ '000 2019 2018

(a) Current provisions not anticipated to be settled within the next twelve months

§Subnote§

The following provisions, even though classified as current, are not expected to be settledin the next 12 months.Provisions – employees benefits 2,499 2,592

2,499 2,592

(b) Description of and movements in provisions§Subnote§

Other provisions

$ '000 OtherAsset

remediation Total

2019At beginning of year – 3,095 3,095

§Total§

Other – 75 75Total other provisions at end of period – 3,170 3,170

2018At beginning of year 6 4,759 4,765Remeasurement effects – (1,724) (1,724)Unwinding of discount – 60 60Unused amounts reversed (6) – (6)Total other provisions at end of period – 3,095 3,095

Asset remediation

§Subnote§

Nature and purpose of non-employee benefit provisions

Council has a legal/public obligation to make, restore, rehabilitate and reinstate the council tip and quarry.

Provisions are recognised when Council has a present legal or constructive obligation as a result of past events, it is probablethat an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated.

Accounting policy for provisions




Note 13. Provisions

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Note 13. Provisions

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined byconsidering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect toany one item included in the same class of obligations may be small.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the presentobligation at the reporting date. The discount rate used to determine the present value reflects current market assessmentsof the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time isrecognised as interest expense.

Short-term obligations

Employee benefits

Liabilities for wages and salaries (including non-monetary benefits, annual leave and accumulating sick leave expected to bewholly settled within 12 months after the end of the period in which the employees render the related service) are recognisedin respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paidwhen the liabilities are settled. The liability for annual leave and accumulating sick leave is recognised in the provision foremployee benefits. All other short-term employee benefit obligations are presented as payables.

Other long-term employee benefit obligations

The liability for long-service leave and annual leave that is not expected to be wholly settled within 12 months after the end ofthe period in which the employees render the related service is recognised in the provision for employee benefits and measuredas the present value of expected future payments to be made in respect of services provided by employees up to the end ofthe reporting period using the projected unit credit method. 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 atthe end of the reporting period on national government bonds with terms to maturity and currency that match, as closely aspossible, the estimated future cash outflows.

On-costs

The employee benefit provisions include the aggregate on-cost liabilities that will arise when payment of current employeebenefits is made in future periods.

These amounts include superannuation, payroll tax and workers compensation expenses which will be payable upon the futurepayment of certain leave liabilities which employees are entitled to at the reporting period.

The obligations are presented as current liabilities in the Statement of Financial Position if the Council does not have anunconditional right to defer settlement for at least 12 months after the reporting date, regardless of when the actual settlementis expected to occur.

Restoration

Provisions for close-down and restoration, and environmental clean-up costs – tips and quarries

Close-down and restoration costs include the dismantling and demolition of infrastructure, and the removal of residual materialsand remediation of disturbed areas. Estimated close-down and restoration costs are provided for in the accounting periodwhen the obligation arising from the related disturbance occurs, whether this occurs during the development or during theoperation phase, based on the net present value of estimated future costs.

Provisions for close-down and restoration costs do not include any additional obligations which are expected to arise fromfuture disturbance. The costs are estimated on the basis of a closure plan. The cost estimates are calculated annually duringthe life of the operation to reflect known developments, e.g. updated cost estimates and revisions to the estimated lives ofoperations, and are subject to formal review at regular intervals.

RehabilitationWhere rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure, provisionis made for the estimated outstanding continuous rehabilitation work at each reporting date, and the cost is charged to theIncome Statement.




Note 13. Provisions (continued)

Page 47 of 85




Provision is made for the estimated present value of the costs of environmental clean-up obligations outstanding at the reportingdate. These costs are charged to the Income Statement. Movements in the environmental clean-up provisions are presentedas an operating cost, except for the unwinding of the discount which is shown as a borrowing cost.

Remediation procedures generally commence soon after the time the damage, remediation process, and estimatedremediation costs become known, but may continue for many years depending on the nature of the disturbance and theremediation techniques.

As noted above, the ultimate cost of environmental remediation is uncertain and cost estimates can vary in response to manyfactors, including changes to the relevant legal requirements, the emergence of new restoration techniques, or experience atother locations. The expected timing of expenditure can also change, for example in response to changes in quarry reservesor production rates. As a result, there could be significant adjustments to the provision for close down and restoration andenvironmental clean-up, which would affect future financial results.

Other movements in the provisions for close-down and restoration costs, including those resulting from new disturbance,updated cost estimates, changes to the estimated lives of operations, and revisions to discount rates, are capitalised withinproperty, plant and equipment. These costs are then depreciated over the lives of the assets to which they relate.

Close-down and restoration costs are a normal consequence of tip and quarry operations, and the majority of close-down andrestoration expenditure is incurred at the end of the life of the operations. Although the ultimate cost to be incurred is uncertain,Council estimates the respective costs based on feasibility and engineering studies using current restoration standards andtechniques.

Council does not self-insure.Self-insurance




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§Note/Subtotal§

(a) Nature and purpose of reserves

§Subnote§

The infrastructure, property, plant and equipment revaluation reserve is used to record increments / decrements of non-currentasset values due to their revaluation.

Infrastructure, property, plant and equipment revaluation reserve



Note 14. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors

Page 49 of 85



Note 14. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors

§Note/Subtotal§

(b) Changes in accounting policies due to adoption of new accounting standards (not-retrospective)

During the year, Council adopted a number of new accounting standards. The impact of the adoption and associated transitiondisclosures are shown below.

The Council has adopted AASB 9 Financial Instruments for the first time in the current year with a date of initial adoption of 1July 2017. As part of the adoption of AASB 9, the Council adopted consequential amendments to other accounting standardsarising from the issue of AASB 9 as follows:

– AASB 101 Presentation of Financial Statements requires the impairment of financial assets to be presented in a separateline item in the income statement. In prior year, this information was presented as part of other expenses.

– AASB 7 Financial Instruments: Disclosures requires amended disclosures due to changes arising from AASB 9. Thesedisclosures have been provided for the current year.

The key changes to Council’s accounting policy and the impact on these financial statements from applying AASB 9 aredescribed below.

Changes in accounting policies resulting from the adoption of AASB 9 have been applied retrospectively except Council hasnot restated any amounts relating to classification and measurement requirements, including impairment, which have beenapplied from 1 July 2018.

§Total§

The financial assets of Council have been reclassified into one of the following categories on adoption of AASB 9, basedprimarily on the business model in which a financial asset is managed and its contractual cash flow characteristics are:

– measured at amortised cost

Classification of financial assets

– fair value through profit or loss– fair value through other comprehensive income – equity instruments

All equity instruments of the Council are measured at fair value under AASB 9 whereas there was a cost exception underAASB 139 that allowed certain unlisted investments to be carried at amortised cost in the absence of a reliable measurementof fair value. Any difference in the previous carrying amount and the fair value is recognised in the opening retained earnings(or other component of equity, as appropriate) at 1 July 2018.

Equity instruments are no longer subject to impairment testing and therefore all movements on equity instruments, classifiedas fair value through other comprehensive income, are taken to the relevant reserve.

Measurement of equity instruments

The incurred loss model from AASB 139 has been replaced with an expected credit loss model in AASB 9 for assets measuredat amortised cost. This has resulted in the earlier recognition of credit loss (bad debt provisions).

Impairment of financial assets



Note 14. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors (continued)

Page 50 of 85



Note 14. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors (continued)

§Note/Subtotal§

$ '000 Notes 2019 2018

(a) Reconciliation of cash assets

§Subnote§

Total cash and cash equivalent assets 6(a) 5,888 4,524Balance as per the Statement of Cash Flows 5,888 4,524

(b) Reconciliation of net operating result to cash provided from operating activities

§Subnote§

Net operating result from Income Statement 3,262 5,120Adjust for non-cash items:Depreciation and amortisation 10,653 9,486Net losses/(gains) on disposal of assets 1,973 650Losses/(gains) recognised on fair value re-measurements through the P&L:– Revaluation decrements / impairments of IPP&E direct to P&L – 163Other non cash items (Provision for reinstatement of tips reassessed) – 1,723Write down of real estate assets held for sale 227 –Unwinding of discount rates on reinstatement provisions – 60

+/– Movement in operating assets and liabilities and other cash items:Decrease/(increase) in receivables (113) (258)Increase/(decrease) in provision for impairment of receivables 57 (15)Decrease/(increase) in inventories 121 128Decrease/(increase) in other current assets 148 (156)Increase/(decrease) in payables (36) (453)Increase/(decrease) in accrued interest payable (1) (1)Increase/(decrease) in other accrued expenses payable (173) (5)Increase/(decrease) in other liabilities (101) 69Increase/(decrease) in provision for employee benefits 76 (785)Increase/(decrease) in other provisions 75 (1,730)Net cash provided from/(used in) operating activities from the Statement of Cash Flows 16,168 13,996



Note 15. Statement of cash flows - additional information

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Note 15. Statement of cash flows - additional information

§Note/Subtotal§

$ '000 2019 2018

(a) Capital commitments (exclusive of GST)

§Subnote§

Capital expenditure committed for at the reporting date but notrecognised in the financial statements as liabilities: Property, plant and equipmentBuildings – 730Plant and equipment 430 –Infrastructure 361 305Other 173 –Total commitments 964 1,035

These expenditures are payable as follows:Within the next year 964 1,035Total payable 964 1,035

Sources for funding of capital commitments:Future grants and contributions 235 685Internally restricted reserves 729 350Total sources of funding 964 1,035

Council entered into contracts in 2019 for the following capital projects and purchases:Details of capital commitments

• Purchase of 140M Caterpillar Grader• Drill and Blast Dwyers Hill Gravel Pit• Lake Cargelligo Water Treatment Plant - Pressure Valves• Standpipes at Lake Cargelligo and Condobolin• Shade Structure and Cool room at Tottenham race course

(b) Operating lease commitments (non-cancellable)§Subnote§

a. Commitments under non-cancellable operating leases at the reportingdate, but not recognised as liabilities are payable: Within the next year 18 18Later than one year and not later than 5 years 18 36Total non-cancellable operating lease commitments 36 54

b. Non-cancellable operating leases include the following assets:PhotocopiersContingent rentals may be payable depending on the condition of items or usage during the lease term.

– All finance agreements are secured only against the leased asset.Conditions relating to finance and operating leases:

– No lease agreements impose any financial restrictions on Council regarding future debt etc.



Note 16. Commitments

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Note 16. Commitments

§Note/Subtotal§

The following assets and liabilities do not qualify for recognition in the Statement of Financial Position, but their knowledgeand disclosure is considered relevant to the users of Council’s financial report.

§Subnote§

LIABILITIES NOT RECOGNISED

1. Guarantees

Council participates in an employer-sponsored defined benefit superannuation scheme and makes contributions as determinedby the superannuation scheme’s trustees.

(i) Defined benefit superannuation contribution plans

Member councils bear responsibility of ensuring there are sufficient funds available to pay out the required benefits as theyfall due.

While the scheme's most recent full actuarial review indicated that the net assets of the scheme were sufficient to meet theaccrued benefits of the scheme's defined benefit member category, member councils are required to make contributions infuture years where the scheme goes into deficit (as has occurred in previous years).

The Local Government Superannuation Scheme however is unable to provide Council with an accurate estimate of any shareof the net deficit and accordingly Council has not recorded any net liability from its defined benefit scheme obligations inaccordance with AASB 119.

Future planned contributions being made to the defined benefit scheme to rectify past (and projected) deficit positions will berecognised as an expense when they become payable – similar to the accounting for defined contributions plans.

Member councils are treated as Pooled Employers for the purposes of AASB119. Pooled Employers are required to paystandard employer contributions and additonal lump sum contributions to the Fund.

The standard employer contributions were determined using the new entrant rate method under which a contribution ratesufficient to fund the total benefits over the working life-time of a typical new entrant is calculated. The current standardemployer contribution rates are:

Division B 1.9 x times employee contributionsDivision C 2.5% salariesDivision D 1.64 x times employee contributions

The additional lump sum contribution for each Pooled Employer is a share of the total additional contributions of $40 million perannum from 1 July 2018 for 3 years to 30 June 2021, apportioned according to each employer's share of the accrued liabilitiesas at 30 June 2018. These additional lump sum contributions are used to fund the deficit of assets to accrued liabilities asat 30 June 2018.

The adequacy of contributions is assessed at each triennial actuarial investigation and monitored annually between triennials.

However, there is no relief under the Fund's trust deed for employers to walk away from their defined benefit obligations.Under limited circumstances, an employer may withdraw from the plan when there are no active members, on full paymentof outstanding additional contributions. There is no provision for allocation of any surplus which may be present at the dateof withdrawal of the Council.

There are no specific provisions under the Fund's trust deed dealing with deficits or surplus on wind-up.

There is no provision for the allocation of any surplus which may be present at the date of withdrawal of an employer.

The plan is a defined benefit plan. However, each sponsoring employer is exposed to the actuarial risks associated with currentand former employees of other sponsoring employers and hence shares in the associated gains and losses (to the extent thatthey are not bourne by members). As such, there is not sufficient reliable information to allow each sponsoring employer toaccount for its proportionate share of the defined benefit obligation, sub-group assets and costs associated with the sub-groupin the same way as it would for a single employer sponsored defined benefit plan.

As stated above, each sponsoring employer is exposed to the actuarial risks associated with current and former employeesof other sponsoring employers and hence shares in the associated gains and losses.




Note 17. Contingencies and other assets/liabilities not recognised

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Note 17. Contingencies and other assets/liabilities not recognised

The amount of Council employer contributions to the defined benefit section of the Fund and recognised as an expense anddisclosed as part of superannuation expenses at Note 4(a) for the year ending 30 June 2019 was $ 105,398.57.

The last valuation of the Fund was performed by Mr Richard Boyfield, FIAA on 31 December 2018, and covers the periodended 30 June 2018.

Council’s expected contribution to the plan for the next annual reporting period is $122,081.64.

The estimated employer reserves financial position for the Pooled Employers at 30 June 2019 is:

Employer reserves only * $millions Asset CoverageAssets 1,798.7Past Service Liabilities 1784.2 100.8%Vested Benefits 1792.0 100.4%

* excluding member accounts and reserves in both assets and liabilities.

The key economic long term assumptions used to calculate the present value of accrued benefits are:

Investment return 5.75% per annumSalary inflation * 3.5% per annumIncrease in CPI 2.5% per annum

* Plus promotional increases

The contribution requirements may vary from the current rates if the overall sub-group experience is not in line with the actuarialassumptions in determining the funding program; however, any adjustment to the funding program would be the same for allsponsoring employers in the Pooled Employers group.

Please note that the estimated employer reserves financial position above is a preliminary calculation and once all the relevantinformation has been received by the Funds Actuary, the 2019 triennial review will be completed around December 2019.

Council's additional lump sum contribution is around 0.15% of the total additonal lump sum contributions for all PooledEmployers (of $40m each year from 1 July 2018 to 20 June 2021). This percentage provides an indication of the level ofparticipation of Council compared with other employers in the Pooled Employer sub-group.

Council is a member of Statewide Mutual, a mutual pool scheme providing liability insurance to local government.

(ii) Statewide Limited

Membership includes the potential to share in either the net assets or liabilities of the fund depending on its past performance.Council’s share of the net assets or liabilities reflects Council’s contributions to the pool and the result of insurance claimswithin each of the fund years.

The future realisation and finalisation of claims incurred but not reported to 30/6 this year may result in future liabilities orbenefits as a result of past events that Council will be required to fund or share in respectively.

Council is a member of StateCover Mutual Limited and holds a partly paid share in the entity.

(iii) StateCover Limited

StateCover is a company providing workers compensation insurance cover to the NSW local government industry andspecifically Council.

Council has a contingent liability to contribute further equity in the event of the erosion of the company’s capital base as aresult of the company’s past performance and/or claims experience or as a result of any increased prudential requirementsfrom APRA.

These future equity contributions would be required to maintain the company’s minimum level of net assets in accordancewith its licence requirements.




Note 17. Contingencies and other assets/liabilities not recognised (continued)

Page 54 of 85




(iv) Other guarantees

Council has provided no other guarantees other than those listed above.

2. Other liabilities

The Council is involved from time to time in various claims incidental to the ordinary course of business including claims fordamages relating to its services.

(i) Third party claims

Council believes that it is appropriately covered for all claims through its insurance coverage and does not expect any materialliabilities to eventuate.

Council has classified a number of privately owned land parcels as local open space or bushland.

(ii) Potential land acquisitions due to planning restrictions imposed by Council

As a result, where notified in writing by the various owners, Council will be required to purchase these land parcels.

At reporting date, reliable estimates as to the value of any potential liability (and subsequent land asset) from such potentialacquisitions has not been possible.

As permitted under AASB 1051, Council has elected not to bring to account land under roads that it owned or controlled upto and including 30/6/08.

ASSETS NOT RECOGNISED

(i) Land under roads

Fines and penalty income, the result of Council issuing infringement notices is followed up and collected by the InfringementProcessing Bureau.

(ii) Infringement notices/fines

Council’s revenue recognition policy for such income is to account for it as revenue on receipt.

Accordingly, at year end, there is a potential asset due to Council representing issued but unpaid infringement notices.

Due to the limited information available on the status, value and duration of outstanding notices, Council is unable to determinethe value of outstanding income.




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Risk management

Council’s activities expose it to a variety of financial risks including (1) price risk, (2) credit risk, (3) liquidity risk and (4) interestrate risk.

The Council’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimisepotential adverse effects on the financial performance of the Council.

Council does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk.

Financial risk management is carried out by Council’s finance section under policies approved by the Council.

The fair value of Council’s financial assets and financial liabilities approximates their carrying amount.

Council's objective is to maximise its return on cash and investments while maintaining an adequate level of liquidity andpreserving capital. The finance team manage the cash and invesment portfolio with the assistance of independent advisors.Council has an investment policy which complies with the Local Government Act and Ministerial Investment Order 625. Thepolicy is reviewed by Council and its staff and a monthly investment report is provided to Council setting out the make-up andperformance of the portfolio as required by local government regulations.

The risks associated with the investments held are:

• price risk - the risk that the capital value of investments may fluctuate due to changes in market prices, whether thesechanges are caused by factors specific to individual financial insturments or their issuers, or factors affecting similarinstruments traded in a market

• interest rate risk - the risk that movements in interest rates could affect returns• liquidity risk - the risk that council will not be able to pay its debts as and when they fall due• credit risk - the risk that a contracting entity will not complete is obligations under a financial instrument resulting in

a financial loss to Council.

Council manages these risks by diversifying its portfolio and purchasing investments within policy credit rating allowances.Councill also seeks advice from independent advisors before placing funds in cash and investments.

(a) Market risk – price risk and interest rate risk§Subnote§

The impact on result for the year and equity of a reasonably possible movement in the price of investments held and interestrates is shown below. The reasonably possible movements were determined based on historical movements and economicconditions in place at the reporting date.

Increase of values/rates Decrease of values/rates$ '000 Profit Equity Profit Equity

2019Possible impact of a 10% movement in market values 3,300 3,300 (3,300) –Possible impact of a 1% movement in interest rates 33 33 (33) –

2018Possible impact of a 10% movement in market values 88 88 (88) (88)Possible impact of a 1% movement in interest rates 9 9 (9) (9)



Note 18. Financial risk management

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Note 18. Financial risk management


§Note/Subtotal§

(b) Credit risk

Council’s major receivables comprise (i) rates and annual charges and (ii) user charges and fees.

Council manages the credit risk associated with these receivables by monitoring outstanding debt and employing stringentdebt recovery procedures. Council also encourages ratepayers to pay their rates by the due date through incentives.

The credit risk for liquid funds and other short-term financial assets is considered negligible, since the counterparties arereputable banks with high quality external credit ratings.

There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industrysectors and/or regions.

Council makes suitable provision for doubtful receivables as required.

There are no material receivables that have been subjected to a re-negotiation of repayment terms.

Credit risk profile§Total§

Credit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the land relating to thedebts – that is, the land can be sold to recover the debt. Council is also able to charge interest on overdue rates and annualcharges at higher than market rates which further encourages the payment of debt.

Receivables – rates and annual charges

$ '000Not yet

overdue< 1 yearoverdue

1 - 2 years overdue

2 - 5 years overdue

> 5 years overdue Total

2019Gross carrying amount 646 220 147 65 37 1,115

2018Gross carrying amount 532 81 72 100 90 875

Council applies the simplified approach for non-rates and annual charges debtors to provide for expected credit lossesprescribed by AASB 9, which permits the use of the lifetime expected loss provision. To measure the expected credit losses,non-rates and annual charges debtors have been grouped based on shared credit risk characteristics and the days past due.

§Total§

Receivables - non-rates and annual charges

The loss allowance provision as at 30 June 2019 is determined as follows. The expected credit losses incorporate forward-looking information.

$ '000Not yet

overdue0 - 30 days

overdue31 - 60 days

overdue61 - 90 days

overdue> 91 days

overdue Total

2019Gross carrying amount 1,959 8 14 33 906 2,920Expected loss rate (%) 1.25% 0.00% 0.00% 1.00% 1.75% 1.39%ECL provision 24 – – – 16 40

2018Gross carrying amount 2,467 90 3 – 505 3,065Expected loss rate (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%ECL provision – – – – – –



Note 18. Financial risk management (continued)

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§Note/Subtotal§

(c) Liquidity risk

Payables and borrowings are both subject to liquidity risk – the risk that insufficient funds may be on hand to meet paymentobligations as and when they fall due.

Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer.

Payment terms can (in extenuating circumstances) also be extended and overdraft facilities utilised as required.

Borrowings are also subject to interest rate risk – the risk that movements in interest rates could adversely affect fundingcosts and debt servicing requirements. Council manages this risk through diversification of borrowing types, maturities andinterest rate structures. The finance team regularly reviews interest rate movements to determine if it would be advantageousto refinance or renegotiate part or all of the loan portfolio.

The timing of cash flows presented in the table below to settle financial liabilities reflects the earliest contractual settlementdates. The timing of expected outflows is not expected to be materially different from contracted cashflows.

The amounts disclosed in the table are the undiscounted contracted cash flows and therefore the balances in the table maynot equal the balances in the statement of financial position due to the effect of discounting.

payable in:

$ '000

Weightedaverageinterest

rate

Subjectto no

maturity ≤ 1 Year 1 - 5 Years > 5 Years Total cash

outflows

Actual carrying

values

2019Trade/other payables 0.00% 115 2,726 – – 2,841 2,841Loans and advances 4.05% – 170 848 1,103 2,121 1,657Total financial liabilities 115 2,896 848 1,103 4,962 4,498

2018Trade/other payables 2.78% 189 2,856 – – 3,045 3,045Loans and advances 4.05% – 170 848 1,272 2,290 1,757Total financial liabilities 189 3,026 848 1,272 5,335 4,802

There were no breaches to the loan agreement during the reporting year.Loan agreement breaches




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§Note/Subtotal§

Council’s original financial budget for 18/19 was adopted by the Council on 27/06/2018 and is unaudited.

§Subnote§

While the Income Statement included in this General Purpose Financial Statements must disclose the original budget adoptedby Council, the Local Government Act 1993 requires Council to review its financial budget on a quarterly basis, so that it isable to manage the various variations between actuals versus budget that invariably occur throughout the year.

This note sets out the details of material variations between Council’s original budget and its actual results for the year asper the Income Statement – even though such variations may have been adjusted for during each quarterly budget review.

Material variations represent those variances between the original budget figure and the actual result that amount to 10%or more.

Variation Key: F = Favourable budget variation, U = Unfavourable budget variation.

2019 2019 2019$ '000 Budget Actual -------- Variance --------

REVENUES

Interest and investment revenue 775 997 222 29% FPayment of 2018-2019 Financial Assistance Grant in advance, along with delays in sewer and water infrastructure worksprovided opportunities for increased investment returns.

Other revenues 1,021 836 (185) (18)% UAnticipated revenue from sale of Scott St subdivision did not eventuate.

Operating grants and contributions 17,132 20,627 3,495 20% FCouncil received $800k in unbudgeted grants for drought related road and community programs. Financial assistance Grantwas $300k more than expected and Flood damage grant funds of $2.5M were not in the 2019 original budget.

Capital grants and contributions 19,629 2,444 (17,185) (88)% UBudgeted capital works (for which capital grants were anticipated) did not proceed in 2018-2019. These included grants forCondobolin Sewer Treatment plant replacement ($5M), Sewer Treatment Effluent reuse in Lake Cargelligo, Condobolin andTottenham ($1.8M), a $7.75M grant for Condobolin Bore pipeline and Tottenhan Water supply storage grant of $2.2M.

Net gains from disposal of assets 93 – (93) 100% UBudgeted gains were note realised as sale of land an property resulted in a net loss from disposal of assets.



Note 19. Material budget variations

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§Note/Subtotal§

2019 2019 2019$ '000 Budget Actual -------- Variance --------

EXPENSES

Employee benefits and on-costs 12,793 10,748 2,045 16% F

§Total§

Council's budget for employee benefits include a portion of wages allocated to capital works, which are not included in thesefigures. Actual is in line with 2018.

Borrowing costs 97 151 (54) (56)% UThe variation in borrowing costs is attributed to amortisation expense for tip remediation not included in the budget.

Materials and contracts 5,052 10,184 (5,132) (102)% UCouncil expenditure in this area is similar to 2018 financial year. Flood damage repair works on roads continued in 2019.Council undertook state road works over the anticipated budget amount. Consultants for road planning - private works occurredduring the year. Contractors and consultants used for the Water and sewer supply network also contributed to this variance.

Net losses from disposal of assets – 1,973 (1,973) ∞ UNo provision was made in the budget for losses from disposal of assets.

STATEMENT OF CASH FLOWS

Net cash provided from (used in) operating activities 32,657 16,168 (16,489) (50)% U

Net cash provided from (used in) investing activities (43,657) (14,704) 28,953 (66)% F

Net cash provided from (used in) financing activities (124) (100) 24 (19)% F

Loan for Waste Transfer station did not take place this year.




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Council measures the following asset and liability classes at fair value on a recurring basis:

– Infrastructure, property, plant and equipment– Non-current assets classified as ‘held for sale’

The fair value of assets and liabilities must be estimated in accordance with various accounting standards for either recognitionand measurement requirements or for disclosure purposes.

AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a ‘level’ in thefair value hierarchy as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at themeasurement date.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directlyor indirectly.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(1) Assets and liabilities that have been measured and recognised at fair values §Subnote§

Fair value measurement hierarchy

2019Notes

Date of latest

valuation

Level 1Quoted

prices inactive mkts

Level 2Significantobservable

inputs

Level 3 Significant unobserv-

able inputs Total

Recurring fair value measurementsInfrastructure, property, plant and equipment

10(a)

Plant and equipment 30/06/19 – – 10,384 10,384Office equipment 30/06/12 – – 318 318Furniture and Fittings 30/06/12 – – 472 472Operational land 30/06/17 – – 3,523 3,523Community Land 30/06/17 – – 3,344 3,344Land Improvements – non depreciable 30/06/15 – – 670 670Land Improvements – depreciable 30/06/15 – – 2,394 2,394Buildings – Non Specialised 30/06/18 – – 3,127 3,127Buildings Specialised 30/06/18 – – 29,708 29,708Other Structures 30/06/18 – – 11,456 11,456Roads 30/06/16 – – 175,754 175,754Bridges 30/06/16 – – 22,561 22,561Footpaths 30/06/16 – – 3,457 3,457Water Supply network 30/06/17 – – 54,588 54,588Sewer Supply Network 30/06/17 – – 20,347 20,347Library Books 30/06/15 – – 77 77Tip restoration assets 30/06/18 – – 2,549 2,549Stormwater Drainage 30/06/15 – – 5,086 5,086Total infrastructure, property, plant and equipment – – 349,815 349,815



Note 20. Fair Value Measurement

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Note 20. Fair Value Measurement


§Note/Subtotal§

Fair value measurement hierarchy

2018Notes

Date of latest

valuation

Level 1Quoted

prices inactive mkts

Level 2Significantobservable

inputs

Level 3 Significant unobserv-

able inputs Total

Recurring fair value measurements§Total§

Infrastructure, property, plant and equipment

10(a)

Plant and equipment 30/06/15 – – 10,510 10,510Office equipment 30/06/12 – – 263 263Furniture and Fittings 30/06/12 – – 353 353Operational land 30/06/17 – – 3,494 3,494Community Land 30/06/17 – – 3,344 3,344Land Improvements – non depreciable 30/06/15 – – 463 463Land Improvements – depreciable 30/06/15 – – 1,785 1,785Buildings – Non Specialised 30/06/18 – – 3,163 3,163Buildings Specialised 30/06/18 – – 28,303 28,303Other Structures 30/06/18 – – 10,395 10,395Roads 30/06/16 – – 171,537 171,537Bridges 30/06/16 – – 21,997 21,997Footpaths 30/06/16 – – 3,022 3,022Water Supply network 30/06/17 – – 54,837 54,837Sewer Supply Network 30/06/17 – – 20,350 20,350Library Books 30/06/15 – – 80 80Tip restoration assets 30/06/18 – – 2,604 2,604Stormwater Drainage 30/06/15 – – 5,172 5,172Total infrastructure, property, plant and equipment – – 341,672 341,672

Non-current assets classified as ‘held for sale’

9

Land Held for Sale 30/06/17 – – 7 7Property Held for Sale 30/06/12 – – 74 74Total NCA’s classified as ‘held for sale’ – – 81 81

Note that capital WIP is not included above since it is carried at cost.

(2) Transfers between level 1 and level 2 fair value hierarchies§Subnote§

Council’s policy for determining transfers between fair value hierarchies is:

– at the end of the reporting period.



Note 20. Fair Value Measurement (continued)

Page 62 of 85




§Note/Subtotal§

(3) Valuation techniques used to derive level 2 and level 3 fair values

Where Council is unable to derive fair valuations using quoted market prices of identical assets (ie. level 1 inputs) Councilinstead utilises a spread of both observable inputs (level 2 inputs) and unobservable inputs (level 3 inputs).

The fair valuation techniques Council has employed while utilising level 2 and level 3 inputs are as follows:

Amortised CostFinancial assets

Valuation technique: ‘at amortised cost'Inputs Used (Level 2) Original investment value

Payables – Outstanding Creditor paymentsValuation technique: ‘Cost approach’Inputs used (Level 2) Cost of product or service

Financial liabilities

Plant & Equipment, Office Equipment and Furniture & Fittings

Infrastructure, property, plant and equipment (IPP&E)

Plant & Equipment, Office Equipment and Furniture and Fittings are valued at cost but are disclosed at fair value in the notes.The carrying amount of these assets is assumed to approximate fair value due to the nature of the items.

A stocktake on Plant & Equipment was undertaken by AssetVal as at 30 June 2019. As part of the stocktake and verificationthey assessed the current carrying value against the potential Fair Value of the asset. Fair Value assessments were done ona sample of the higher value assets with the current carrying values all within 10% of the estimated Fair Value.

There has been no change to the valuation process during the reporting period.

Operational & Community Land

Operational land was revalued as at 30 June 2017, by Scott Fullarton Valuations Pty Ltd.

Level 2 inputs were used to value land held in freehold title and those with special use, which are restricted under the zoningobjectives. Sale prices of comparable land parcels in close proximity were adjusted for differences in key attributes such assize and configuration. The most significant inputs into this valuation approach are price per square metre.

Parks, reserves and other special use parcels where there was no observable market evidence. This land was valued utilisingLevel 3 inputs, with the valuer using professional judgement to adjust the rate per square metre from the sales evidenceavailable.

Buildings – Non Specialised and Specialised

Non-specialised and Specialised Buildings were revalued as at 30 June 2018 by Australis Asset Advisory Group.

Non-specialised and Specialised Buildings are valued using the cost approach. The approach estimated the replacement costfor each building by componentising the building into significant parts. While all buildings were physically inspected and theunit rates based on square metres from Construction Guides no market based evidence (Level 2) could be established. Assuch these assets were classified as having been valued as Level 3 valuation inputs.

Non-specialised and Specialised Buildings were valued by way of Market Approach, Level 2 on the Fair Value Hierarchy, ora Cost Approach, being a Level 3 on the Fair Value hierarchy. All buildings were physically inspected.





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Where an active market for the assets could be observed, Fair Value has been measured under a Market Approach or IncomeApproach. To determine whether the asset is reliably measured under a market or income approach came down to the followingcriteria:

- The market participant and purchasing behaviour (based on sales evidence); and or

- The income potential of the property.

Where Level 2 analysis has been undertaken, the Valuer has apportioned the value of the asset over the relevant buildingcomponents and has provided useful life information for asset management purposes only.This is an apportionment only, and not be taken as a reflection of the valuation methodology.

Under the cost approach, the asset’s Fair Value is calculated as the gross current value less accumulated depreciation, toreflect the consumed or expired service potential of the asset. The most significant input into this valuation approach is therate per square metre based on the main and secondary building areas (to arrive at the Gross Replacement Cost), the usefullife of the asset and a condition score reflecting the remaining useful life of the Asset.

While the inputs to the Gross Replacement Cost (GRC), being a rate per square metre or per unit, can be supported by marketevidence (Level 2), the estimates of useful life, pattern of consumption, condition score and residual value, which are used tocalculate the accumulated depreciation, comprise unobservable inputs (Level 3). As these other inputs are significant to thevaluation, the overall Fair Value has been classified at Level 3.

Other Structures

Other Structures were revalued as at 30 June 2018 by Scott Fullarton Valuations Pty Ltd.

This valuation was undertaken in accordance with the requirements of Australian Accounting Standard AASB 113 Fair ValueMeasurement to establish fair value as “the price that would be received to sell an asset or paid to transfer a liability in anorderly transaction between market participants at the measurement date”.This involved establishing the nature of the asset, characteristics important to market participants, the appropriate marketand valuation premise. Having maximised the level of observable valuation inputs, it was deemed appropriate to use a CostApproach utilising Level 3 inputs.

The structures were physically inspected, measured and relevant detail noted during the process of valuation.

Roads

Roads comprise road carriageway, roadside shoulders & kerb & gutter. The cost approach using level 3 inputs was used tovalue this asset class. Valuations for this asset class were undertaken in-house based on actual cost and assumptions fromCouncils engineering department. No market value based evidence (level 2) inputs are available therefore Level 3 valuationinputs were used for this asset class.


Bridges

Bridges were valued in-house using Engineering Department Assumptions. While all bridges were physically inspected andunit rate based on square meters was used there was no reliable market evidence (Level 2) as other inputs (such as estimatesof residual value and pattern of consumption) require extensive professional judgement that impacts significantly on the finaldetermination of fair value.


Footpaths

Footpaths were valued in-house by Council’s engineering department and were based on actual cost per square metre.Footpaths are inspected annually and condition assessed.

There has been no change to the valuation process during the reporting period.Water Supply Network

Assets within this asset class comprise reservoirs, pumping stations and water pipelines.





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The Water Supply network was revalued as at 30 June 2017, by Australis Asset Advisory Group.

The ‘cost approach’ (level 3) estimated the replacement cost for each asset by componentising the asset into significant partswith different useful lives and taking into account a range of factors. While the unit rates based on linear metres of certaindiameter pipes and prices per pit or similar may be supported from market evidence (Level 2) other inputs (such as estimates ofpattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impactsignificantly on the final determination of fair value.Additionally, due to limitations in the historical records of very long lived assets there is uncertainty regarding the actual design,specifications and dimensions of some assets.

These assets were indexed in 2019 at 1.6%, in line with the NSW Reference Rates Manual issued by Crown Lands and Water(CLAW).

Sewer Network

Assets within this asset class comprise reservoirs, pumping stations and water pipelines.

The Water Supply network was revalued as at 30 June 2017, by Australis Asset Advisory Group.

The ‘cost approach’ (level 3) estimated the replacement cost for each asset by componentising the asset into significant partswith different useful lives and taking into account a range of factors. While the unit rates based on linear metres of certaindiameter pipes and prices per pit or similar may be supported from market evidence (Level 2) other inputs (such as estimates ofpattern of consumption, residual value, asset condition and useful life) required extensive professional judgement and impactsignificantly on the final determination of fair value.Additionally, due to limitations in the historical records of very long lived assets there is uncertainty regarding the actual design,specifications and dimensions of some assets.

These assets were indexed in 2019 at 1.6%, in line with the NSW Reference Rates Manual issued by Crown Lands and Water(CLAW).

Tip Assets

Assets in this class represent the expected cost of reinstatement, rehabilitation and restoration of Tip Sites within the Shire.

A review of the costings and how the landfill sites will be rehabilitated was undertaken by Councils’ Environmental and WasteOfficer in 2018 after receiving a landfill engineered design by Robert H. Amaral. Fair Value determined by “Cost Approach”Level 3.




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(a) Key management personnel

Key management personnel (KMP) of the council are those persons having the authority and responsibility for planning, directing and controlling the activities of the council, directly orindirectly.

The aggregate amount of KMP compensation included in the Income Statement is:

$ '000 2019 2018

Compensation:Short-term benefits 813 883Post-employment benefits 64 78Other long-term benefits 44 52Termination benefits 55 5Total 976 1,018



Note 21. Related Party Transactions

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Note 21. Related Party Transactions


§Note/Subtotal§

(b) Other transactions with KMP and their related parties

Council has determined that transactions at arm’s length between KMP and Council as part of Council delivering a public service objective (e.g. access to library or Council swimmingpool by KMP) will not be disclosed.

Nature of the transaction

$ '000 Ref

Value of transactions during year

Outstanding balance

(incl. loans and commitments) Terms and conditions

Provisionsfor impairmentof receivables

outstanding

Expenserecognised for

impairmentof receivables

2019Fuel supply for Rural Fire Service Vehicles 1 1 – – –Hire of trucks for water and gravel carting 2 214 – – –Newspaper Advertising 3 17 – – –Supply of Hardware 5 114 – – –Erection of Buildings and Structures 6 512 – – –RMS E-Safety Reports, Vehicle Windscreen Replacements 7 32 – – –Plumbing Services 8 13 – – –Lease Rental Income 10 13 – – –Gravel Royalties 11 2 – – –Building Certifications 12 17 – – –Hire of vehicle 13 3 – – –



Note 21. Related Party Transactions (continued)

Page 67 of 85




§Note/Subtotal§

Nature of the transaction

$ '000 Ref

Value of transactions during year

Outstanding balance

(incl. loans and commitments) Terms and conditions

Provisionsfor impairmentof receivables

outstanding

Expenserecognised for

impairmentof receivables

2018Fuel supply for Rural Fire Service Vehicles 1 1 – – –Hire of trucks for water and gravel carting 2 551 – – –Newspaper Advertising 3 20 – – –Gravel Extraction and Crushing 4 1,823 – – –Supply of Hardware 5 66 – – –Erection of Buildings and Structures 6 25 – – –RMS E-Safety Reports, Vehicle Windscreen Replacements 7 12 – – –Plumbing Services 8 8 – – –Signs 9 1 – – –Lease Rental Income 10 13 – – –Gravel Royalties 11 – – – –Building Certifications 12 – – – –Hire of vehicle 13 – – – –

1 Purchase of fuel from close relative of KMP2 Council engaged services for water and gravel haulage from a business owned by a relative of a KMP3 KMP is employed by local newspaper in which Council advertises4 Council engages gravel extraction contractor which employs a close relative of a KMP5 Council purchases hardware from a KMP-owned business6 Council engages a KMP to erect buildings in accordance with its Procurement & Disposal Policy7 Council engages a KMP to provide automotive services8 Council engages plumbing services from a close relative of a KMP9 Council paid close relative of KMP for a sign

10 Council receives rental income from a KMP11 Council pays gravel royalties to a business which employs a close relative of a KMP12 Council engages a company to certify buildings that is a close relative of a KMP13 Council hired a vehicle from a company which employs a close relatvive of a KMP




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Under the Environmental Planning and Assessment Act 1979, Council has significant obligations to provide Section 7.11 (contributions towards provision or improvement of amenities orservices) infrastructure in new release areas.

It is possible that the funds contributed may be less than the cost of this infrastructure, requiring Council to borrow or use general revenue to fund the difference. §Subnote§

Summary of contributions and levies

as at 30/6/2018 as at 30/6/2019Contributions

received during the year

$ '000OpeningBalance Cash Non-cash

Interest earned in year

Expenditure during

year

Internal borrowing

(to)/from

Held as restricted

asset

Cumulative internal

borrowings due/(payable)

Community facilities 120 46 – 3 – – 169 –S7.11 contributions – under a plan 120 46 – 3 – – 169 –

Total S7.11 and S7.12 revenue under plans 120 46 – 3 – – 169 –

Total contributions 120 46 – 3 – – 169 –

S7.11 Contributions – under aplan

§Subnote§

CONTRIBUTION PLAN NUMBER 2015Community facilities 120 46 – 3 – – 169 –Total 120 46 – 3 – – 169 –



Note 22. Statement of developer contributions

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Note 22. Statement of developer contributions


§Note/Subtotal§

General 1 Water Sewer$ '000 2019 2019 2019

Income Statement by fund

§Subnote§

Income from continuing operationsRates and annual charges 7,598 1,354 1,499User charges and fees 1,697 3,249 44Interest and investment revenue 511 284 202Other revenues 808 25 3Grants and contributions provided for operating purposes 20,542 69 16Grants and contributions provided for capital purposes 2,290 92 62Total income from continuing operations 33,446 5,073 1,826

Expenses from continuing operationsEmployee benefits and on-costs 9,369 1,019 360Borrowing costs 151 – –Materials and contracts 7,271 2,310 603Depreciation and amortisation 8,338 1,724 591Other expenses 2,504 659 211Net losses from the disposal of assets 1,720 253 –Total expenses from continuing operations 29,353 5,965 1,765

Operating result from continuing operations 4,093 (892) 61

Net operating result for the year 4,093 (892) 61

Net operating result attributable to each council fund 4,093 (892) 61 Net operating result for the year before grants and contributions provided for capital purposes

1,803 (984) (1)

NB. All amounts disclosed above are gross – that is, they include internal charges and recoveries made between the funds.

(1) General fund refers to all of Council's activities except for its water and sewer activities which are listed separately.



Note 23. Financial result and financial position by fund

Page 70 of 85



Note 23. Financial result and financial position by fund

§Note/Subtotal§

General 1 Water Sewer$ '000 2019 2019 2019

Statement of Financial Position by fund

ASSETSCurrent assetsCash and cash equivalents 3,490 1,233 1,165Investments 14,166 5,004 4,730Receivables 1,673 1,355 288Inventories 2,339 – –Other 17 – –Total current assets 21,685 7,592 6,183

Non-current assetsInvestments 3,704 1,309 1,237Receivables 367 – –Inventories 215 – –Infrastructure, property, plant and equipment 273,282 57,146 21,335Intangible assets 198 – –Total non-current assets 277,766 58,455 22,572

TOTAL ASSETS 299,451 66,047 28,755

LIABILITIESCurrent liabilitiesPayables 2,841 – –Income received in advance 130 – –Borrowings 103 – –Provisions 3,825 – –Total current liabilities 6,899 – –

Non-current liabilitiesBorrowings 1,554 – –Provisions 3,475 – –Total non-current liabilities 5,029 – –

TOTAL LIABILITIES 11,928 – –

Net assets 287,523 66,047 28,755

EQUITYAccumulated surplus 158,765 39,569 10,962Revaluation reserves 128,758 26,478 17,793Council equity interest 287,523 66,047 28,755

Total equity 287,523 66,047 28,755NB. All amounts disclosed above are gross – that is, they include internal charges and recoveries made between the funds. Assets and liabilities shown in the water and sewer columns are restricted for use for these activities.

(1) General fund refers to all of Council's activities except for its water and sewer activities which are listed separately.



Note 23. Financial result and financial position by fund (continued)

Page 71 of 85



Note 23. Financial result and financial position by fund (continued)

§Note/Subtotal§

Amounts Indicator Prior period Benchmark

$ '000 2019 2019 2018

1. Operating performance ratioTotal continuing operating revenue excluding capital grants and contributions less operating expenses 1, 2 2,791Total continuing operating revenue excluding capital grants and contributions 1

37,901 7.36% 9.60% >0.00%

2. Own source operating revenue ratioTotal continuing operating revenue excluding all grants and contributions 1 17,182Total continuing operating revenue 1 40,345

42.59% 43.60% >60.00%

3. Unrestricted current ratioCurrent assets less all external restrictions 22,129Current liabilities less specific purpose liabilities 4,176 5.30x 5.22x >1.50x

4. Debt service cover ratioOperating result before capital excluding interest and depreciation/impairment/amortisation 1 13,595Principal repayments (Statement of Cash Flows) plus borrowing costs (Income Statement)

251 54.16x 57.81x >2.00x

5. Rates, annual charges, interest and extra charges outstanding percentageRates, annual and extra charges outstanding 1,136Rates, annual and extra charges collectible 11,360 10.00% 8.43% <10.00%

6. Cash expense cover ratioCurrent year’s cash and cash equivalents plus all term deposits 36,038Monthly payments from cash flow of operating and financing activities

2,23316.14mths

14.09mths >3.00

mths

§Subnote§

(1) Excludes fair value adjustments, reversal of revaluation decrements, net gain on sale of assets, and net loss of interests in joint venturesand associates.

(2) Excludes impairment/revaluation decrements, net loss on sale of assets, and net loss on share of interests in joint ventures and associates



Note 24(a). Statement of performance measures – consolidated results

Page 72 of 85



Note 24(a). Statement of performance measures – consolidated results

§Note/Subtotal§

General Indicators 3 Water Indicators Sewer Indicators Benchmark$ '000 2019 2018 2019 2018 2019 2018

1. Operating performance ratioTotal continuing operating revenue excluding capital grants and contributions less operating expenses 1, 2

Total continuing operating revenue excluding capital grants and contributions 112.12% 12.96% (19.76)% (9.24)% (0.06)% (3.40)% >0.00%

2. Own source operating revenue ratioTotal continuing operating revenue excluding capital grants and contributions 1

Total continuing operating revenue 1 31.46% 34.00% 96.83% 90.37% 95.73% 96.39% >60.00%

3. Unrestricted current ratioCurrent assets less all external restrictionsCurrent liabilities less specific purpose liabilities 5.30x 5.22x ∞ 49.59x ∞ ∞ >1.50x

4. Debt service cover ratioOperating result before capital excluding interest and depreciation/impairment/amortisation 1

Principal repayments (Statement of Cash Flows) plus borrowing costs (Income Statement)

48.86x 50.14x ∞ ∞ ∞ ∞ >2.00x

5. Rates, annual charges, interest and extra charges outstanding percentageRates, annual and extra charges outstandingRates, annual and extra charges collectible 13.35% 5.77% 0.00% 16.08% 0.00% 16.25% <10.00%

6. Cash expense cover ratioCurrent year’s cash and cash equivalents plus all term depositsPayments from cash flow of operating and financing activities

15.07mths

13.24mths ∞ ∞ ∞ ∞ >3.00

mths

(1) - (2) Refer to Notes at Note 24a above.(3) General fund refers to all of Council's activites except for its water and sewer activities which are listed separately.

§Subnote§



Note 24(b). Statement of performance measures – by fund

Page 73 of 85



Note 24(b). Statement of performance measures – by fund

§Note/Subtotal§

1. Operating performance ratio

Purpose of operating performance ratio

This ratio measures Council’s achievement of containing

operating expenditure within operating revenue.

Commentary on 2018/19 result

2018/19 ratio 7.36%

This ratio reflects Councils ability to contain operatingexpenditure within its operating revenue. Although

this ratio shows a decline from the prior year, Councilis still within benchmark.

Benchmark: ― > 0.00% Ratio achieves benchmark

Source of benchmark: Code of Accounting Practice and Financial Reporting #27 Ratio is outside benchmark

§Subnote§

2. Own source operating revenue ratio

Purpose of own source operating revenue ratio

This ratio measures fiscal flexibility. It is the degree of reliance on external funding

sources such as operating grants and contributions.


2018/19 ratio 42.59%

This ratio reflects Council's reliance on external funding such as operating grants and contributions.



3. Unrestricted current ratio

Purpose of unrestrictedcurrent ratio

To assess the adequacy of working capital and its ability to satisfy obligations in the short

term for the unrestricted activities of Council.


2018/19 ratio 5.30x

Long term financial plans, including the special rate variation, continue to improve this ratio.

Benchmark: ― > 1.50x Ratio achieves benchmark





Note 24(c). Statement of performance measures – consolidated results (graphs)

Page 74 of 85




4. Debt service cover ratio

Purpose of debt servicecover ratio

This ratio measures the availability of operating cash to service debt including interest, principal and lease payments


2018/19 ratio 54.16x

Council remains in a solid position to meet its debt obligations for the SRA Pavilion loan.

Benchmark: ― > 2.00x Ratio achieves benchmark


5. Rates, annual charges, interest and extra charges outstanding percentagePurpose of rates, annual charges,

interest and extra charges outstanding

To assess the impact of uncollected rates and annual

charges on Council’s liquidity and the adequacy of recovery efforts.


2018/19 ratio 10.00%

Council has reached the upper limit of this benchmark for the first time in many years. Council iscommitted to reducing this outstanding percentage.

Benchmark: ― < 10.00% Ratio achieves benchmark


6. Cash expense cover ratio

Purpose of cash expense cover ratio

This liquidity ratio indicates the number of months a Council can continue paying for its immediate expenses without additional cash

inflow.


2018/19 ratio 16.14 mths

This ratio reflects Council's capacity to fund its operations. The long term financial plan provides thatthis benchmark will continue to be exceeded in the

future.

Benchmark: ― > 3.00mths Ratio achieves benchmark





Page 75 of 85




§Note/Subtotal§

Principal place of business:

§Subnote§

58-64 Molong StreetCondobolin NSW 2877

Contact details

Mailing Address:

PO Box 216Condobolin NSW 2877

Opening hours:

8:30am - 4.30pm Monday to Friday

Telephone: 02 6895 1900Facsimile: 02 6895 3478

Internet: www.lachlan.nsw.gov.auEmail: [email protected]

General ManagerOfficers

G P Tory

Responsible Accounting OfficerK A Pegler

Public OfficerKaren Pegler

Auditors

Audit Office of NSWGPO Box 12SYDNEY NSW 2001

MayorElected members

A J Medcalf OAM

Councillors

P PhillipsM HallB NelsonM BlewittM ReesD CarterP HarrisE BendallD Brady

ABN: 82 815 250 829Other information



Note 25. Council information and contact details

Page 76 of 85



Note 25. Council information and contact details

http://www.lachlan.nsw.gov.au

mailto:[email protected]

INDEPENDENT AUDITOR’S REPORT

Report on the general purpose financial statements


To the Councillors of the Lachlan Shire Council

Opinion

I have audited the accompanying financial statements of Lachlan Shire Council (the Council), which

comprise the Income Statement and Statement of Comprehensive Income for the year ended

30 June 2019, the Statement of Financial Position as at 30 June 2019, the Statement of Changes in

Equity and Statement of Cash Flows for the year then ended, notes comprising a summary of

significant accounting policies and other explanatory information, and the Statement by Councillors

and Management.

In my opinion:

• the Council’s accounting records have been kept in accordance with the requirements of the

Local Government Act 1993, Chapter 13, Part 3, Division 2 (the Division)

• the financial statements:

- have been presented, in all material respects, in accordance with the requirements of this

Division

- are consistent with the Council’s accounting records

- present fairly, in all material respects, the financial position of the Council as at

30 June 2019, and of its financial performance and its cash flows for the year then ended

in accordance with Australian Accounting Standards

• all information relevant to the conduct of the audit has been obtained

• no material deficiencies in the accounting records or financial statements have come to light

during the audit.

My opinion should be read in conjunction with the rest of this report.

Basis for Opinion

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the

standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’

section of my report.

I am independent of the Council in accordance with the requirements of the:

• Australian Auditing Standards

• Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for

Professional Accountants’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Page 77 of 85

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of

New South Wales are not compromised in their roles by:

• providing that only Parliament, and not the executive government, can remove an

Auditor-General

• mandating the Auditor-General as auditor of councils

• precluding the Auditor-General from providing non-audit services.

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Other Information

The Council’s annual report for the year ended 30 June 2019 includes other information in addition to

the financial statements and my Independent Auditor’s Report thereon. The Councillors are

responsible for the other information. At the date of this Independent Auditor’s Report, the other

information I have received comprise the special purpose financial statements and Special Schedules

(the Schedules).

My opinion on the financial statements does not cover the other information. Accordingly, I do not

express any form of assurance conclusion on the other information. However, as required by the Local

Government Act 1993, I have separately expressed an opinion on the special purpose financial

statements and Special Schedule - Permissible income for general rates.

In connection with my audit of the financial statements, my responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or my knowledge obtained in the audit, or otherwise appears to be materially

misstated.

If, based on the work I have performed, I conclude there is a material misstatement of the other

information, I must report that fact.

I have nothing to report in this regard.

The Councillors’ Responsibilities for the Financial Statements

The Councillors are responsible for the preparation and fair presentation of the financial statements in

accordance with Australian Accounting Standards and the Local Government Act 1993, and for such

internal control as the Councillors determine is necessary to enable the preparation and fair

presentation of the financial statements that are free from material misstatement, whether due to fraud

or error.

In preparing the financial statements, the Councillors are responsible for assessing the Council’s

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and

using the going concern basis of accounting except where the Council will be dissolved or

amalgamated by an Act of Parliament, or otherwise cease operations.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objectives are to:

• obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error

• issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in

accordance with Australian Auditing Standards will always detect material misstatements.

Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in

aggregate, they could reasonably be expected to influence the economic decisions users take based

on the financial statements.

Page 78 of 85

A description of my responsibilities for the audit of the financial statements is located at the Auditing

and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The

description forms part of my auditor’s report.

My opinion does not provide assurance:

• that the Council carried out its activities effectively, efficiently and economically

• on the Original Budget information included in the Income Statement, Statement of Cash Flows,

and Note 19 Material budget variations

• on the Special Schedules. A separate opinion has been provided on Special

Schedule - Permissible income for general rates

• about the security and controls over the electronic publication of the audited financial

statements on any website where they may be presented

• about any other information which may have been hyperlinked to/from the financial statements.

Karen Taylor

Director, Financial Audit Services

Delegate of the Auditor-General for New South Wales

31 October 2019

SYDNEY

Page 79 of 85

http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf

Mayor


58–64 Molong Street

CONDOBOLIN NSW 2877

31 October 2019

Dear Mayor

Report on the Conduct of the Audit

for the year ended 30 June 2019


I have audited the general purpose financial statements (GPFS) of Lachlan Shire Council (the Council)

for the year ended 30 June 2019 as required by section 415 of the Local Government Act 1993 (the

Act).

I expressed an unmodified opinion on the Council’s GPFS.

This Report on the Conduct of the Audit (the Report) for the Council for the year ended 30 June 2019

is issued in accordance with section 417 of the Act. This Report should be read in conjunction with my

audit opinion on the GPFS issued under section 417(2) of the Act.

INCOME STATEMENT

Operating result

2019 2018 Variance

$m $m %

Rates and annual charges revenue

10.45 9.41

Grants and contributions revenue

23.07 22.47

Other Revenue 0.84 2.46

Operating result for the year

3.26 5.12

Net operating result before capital grants and contributions

0.82 2.81

11.1

2.7

65.9

36.3

70.8

Contact: Karen Taylor

Phone no: 02 9275 7311

Our ref:

Page 80 of 85

Rates and annual charges revenue ($10.45 million) increased by $1.04 million (11.1 per cent) in

2018–2019. Council had an approved special variation of 7.4 per cent, plus a new mining operation

was rated for the first time in the current year contributing $0.33 million to the increase for the year.

Grants and contributions revenue ($23.07 million) increased by $0.6 million in 2018–2019, with a key

contributor being $0.5 million received under the Commonwealth Government’s Drought Community

Funding.

Council’s operating result ($3.26 million including the effect of depreciation and amortisation expense

of $10.65 million) was $1.86 million lower than the 2017–18 result. Other revenue decrease is mainly

due to the Council’s tip rehabilitation provision being reassessed in 2017–18 compared to no change

in 2018–19.

The net operating result before capital grants and contributions ($0.82 million surplus) was

$1.99 million lower than the 2017–18 result.

The operating surplus was generated primarily from the General Fund ($4.09 million) with Water Fund

reporting a $0.89 million deficit and Sewer Fund a $0.06 million operating surplus.

STATEMENT OF CASH FLOWS

2018–19 saw a net cash inflow of

$1.36 million. Council has grown its

cash and investment balance over the

past three years.

FINANCIAL POSITION

Cash and investments

Cash and investments 2019 2018 Commentary

$m $m

External restrictions 17.87 16.86 • Externally restricted balances include unexpended

developer contributions, water, sewer and domestic

waste management charges.

• Balances are internally restricted due to Council

policy or decisions for forward plans including

works program.

• Unrestricted balances provide liquidity for

day-to-day operations.

Internal restrictions 18.10 16.81

Unrestricted 0.07 0.05

Cash and investments 36.04 33.72

-35

-15

5

25

2017 2018 2019

$ m

illi

on

Year ended 30 June

Net cash flows for the year

Operating activities Investing activities Financing activities

Page 81 of 85

Debt

At 30 June 2019, Council had external borrowings of $1.6 million (30 June 2018: $1.7 million). The

loans are secured over Council’s general rating income.

At 30 June 2019, Council also had access to a $500,000 overdraft facility (2018: $500,000) and a

$50,000 credit card facility (2018: $52,000). All the overdraft facility and $38,000 of the credit card

facility (2018: $35,000) was unused at year end.

PERFORMANCE

Operating performance ratio

Council has exceeded the benchmark

for the last three years.

The ‘operating performance ratio’

measures how well council contained

operating expenditure within operating

revenue (excluding capital grants and

contributions, fair value adjustments,

and reversal of revaluation

decrements). The benchmark set by

the former Office of Local Government

(OLG) is greater than zero per cent.

Own source operating revenue ratio

The high level of grants and

contributions received by Council

decreases its own source operating

revenue ratio, resulting in an outcome

below the benchmark.

The ‘own source operating revenue

ratio’ measures council’s fiscal

flexibility and the degree to which it

relies on external funding sources

such as operating grants and

contributions. The benchmark set by

the OLG is greater than 60 per cent.

0

2

4

6

8

10

12

2017 2018 2019

Ratio%

Year ended 30 June



Industry benchmark > 0%

0

10

20

30

40

50

60

70

2017 2018 2019

Ratio%

Year ended 30 June



Industry benchmark > 60%

Page 82 of 85

Unrestricted current ratio

Council’s unrestricted current ratio of

5.3 times continues to exceed the

industry benchmark

The ‘unrestricted current ratio’ is

specific to local government and

represents council’s ability to meet its

short-term obligations as they fall due.

The benchmark set by the former

OLG is greater than 1.5 times.

Debt service cover ratio

The most recent two years result is

more normalised. 2016–17 was

impacted by Council drawing down a

$1.9 million loan in October 2016

where debt service costs were not for

a complete year.

The ‘debt service cover ratio’

measures the operating cash to

service debt including interest,

principal and lease payments. The

benchmark set by the former OLG is

greater than two times.

0

1

2

3

4

5

6

2017 2018 2019

Ratiox

Year ended 30 June



Industry benchmark > 1.5x

0

20

40

60

80

100

120

140

2017 2018 2019

Ratiox

Year ended 30 June



Industry benchmark > 2x

Page 83 of 85

Rates and annual charges outstanding percentage

Council’s rates and annual charges

outstanding ratio was better than the

benchmark for rural councils in 2016–

17 and 2017–18. In 2018–19 they are

equal to the benchmark.

The ‘rates and annual charges

outstanding percentage’ assesses the

impact of uncollected rates and

annual charges on council’s liquidity

and the adequacy of debt recovery

efforts. The benchmark set by the

former OLG is less than 10 per cent

for regional and rural councils.

Cash expense cover ratio

Council’s strong liquidity is reflected

by this measure. Council has

comfortably exceeded the benchmark

and has done so for several years.

This liquidity ratio indicates the

number of months the council can

continue paying for its immediate

expenses without additional cash

inflow. The benchmark set by the

former OLG is greater than three

months.

Infrastructure, property, plant and equipment renewals

Council renewed $5.77 million of assets in the 2018–19 financial year compared to $7.93 million in the

2017–18 financial year. The majority of these renewals were roads infrastructure.

0

2

4

6

8

10

12

2017 2018 2019

Ratio%

Year ended 30 June



Industry benchmark < 10%

0

5

10

15

20

2017 2018 2019

Rati

o(m

on

ths

)

Year ended 30 June



Industry benchmark > 3 months

Page 84 of 85

OTHER MATTERS

New accounting standards implemented

Application period Overview

AASB 9 ‘Financial Instruments’ and revised AASB 7 ‘Financial Instruments: Disclosures’

For the year ended 30 June 2019 AASB 9 replaces AASB 139 ‘Financial Instruments:

Recognition and Measurement’ and changes the way financial

instruments are treated for financial reporting.

Key changes include:

• a simplified model for classifying and measuring financial

assets

• a new method for calculating impairment

• a new type of hedge accounting that more closely aligns

with risk management.

The revised AASB 7 includes new disclosures due to AASB 9.

Council’s disclosure of the impact of adopting AASB 9 is

disclosed in Note 14.

Legislative compliance

My audit procedures did not identify any instances of non-compliance with legislative requirements or

a material deficiency in the Council’s accounting records or financial statements. The Council’s:

• accounting records were maintained in a manner and form to allow the GPFS to be prepared

and effectively audited

• staff provided all accounting records and information relevant to the audit.

Karen Taylor



Page 85 of 85

Lachlan Shire CouncilSPECIAL PURPOSE FINANCIAL STATEMENTSfor the year ended 30 June 2019

§Cover§

§MainTOC§

Contents Page

Statement by Councillors & Management

Special Purpose Financial Statements

Income Statement – Water Supply Business Activity Income Statement – Sewerage Business Activity

Statement of Financial Position – Water Supply Business Activity Statement of Financial Position – Sewerage Business Activity Statement of Financial Position –

Note 1 – Significant Accounting Policies

Auditor's Report on Special Purpose Financial Statements

i. These Special Purpose Financial Statements have been prepared for the use by both Council and the Office of LocalGovernment in fulfilling their requirements under National Competition Policy.

ii. The principle of competitive neutrality is based on the concept of a ‘level playing field’ between persons/entities competingin a market place, particularly between private and public sector competitors.

Essentially, the principle is that government businesses, whether Commonwealth, state or local, should operate withoutnet competitive advantages over other businesses as a result of their public ownership.

iii. For Council, the principle of competitive neutrality and public reporting applies only to declared business activities.

These include (a) those activities classified by the Australian Bureau of Statistics as business activities being watersupply, sewerage services, abattoirs, gas production and reticulation, and (b) those activities with a turnover of morethan $2 million that Council has formally declared as a business activity (defined as Category 1 activities.

iv. In preparing these financial statements for Council’s self-classified Category 1 businesses and ABS-defined activities,councils must (a) adopt a corporatisation model and (b) apply full cost attribution including tax-equivalent regimepayments and debt guarantee fees (where the business benefits from Council's borrowing position by comparison withcommercial rates).

Background


Special Purpose Financial Statementsfor the year ended 30 June 2019

Page 2 of 14

Special Purpose Financial Statements 2019

3

45

678

9

12





Statement by Councillors and Management made pursuant to the Local Government Code ofAccounting Practice and Financial Reporting

The attached Special Purpose Financial Statements have been prepared in accordance with:

. the NSW Government Policy Statement IAPp"Gallon of National Competition Policy to Local Government'.

. the Division of Local Government Guidelines 'Pricing and Costihg for Council Businesses - A Guide to CompetitiveNeutrality',

. the Local Government Code of Accounting Practice and Financial Reporting.

. the NSW Office of Water Best-Prectibe Management of Water and Sewerage Guidelines

To the best of our knowledge and belief, these statements:

. present fairly the operating result and financial position for each of Council's declared business activities forthe year, and

. accord with Council s accounting and other records.

. present overhead reallocation charges to the water and sewerage businesses as fair and reasonable

We are not aware of any matter that would render these statements false or misleading in any way.

Signed in accordance with a resolution of Council made on 20 September 20.9.

' ' "" I I I

A ,^""edcalf OA^' "'Mayor20 September 20.9

neral Manager

20 September 20.9

P PhillipsCouncillor

20 September 2019

K A PeglerResponsible counting Officer20 September 20*9

Page I of I

Page 3 of 14

Special Purpose Financial Statements 2019

§Note/Subtotal§

$ '000 2019 2018§Subnote§

Income from continuing operationsAccess charges 1,354 1,219User charges 3,249 3,030Interest 284 246Grants and contributions provided for non-capital purposes 69 19Other income 25 –Total income from continuing operations 4,981 4,514

Expenses from continuing operationsEmployee benefits and on-costs 1,019 694Materials and contracts 2,310 1,793Depreciation, amortisation and impairment 1,724 1,677Water purchase charges 116 52Loss on sale of assets 253 271Other expenses 543 444Total expenses from continuing operations 5,965 4,931

Surplus (deficit) from continuing operations before capital amounts (984) (417)

Grants and contributions provided for capital purposes 92 460Surplus (deficit) from continuing operations after capital amounts (892) 43

Surplus (deficit) from all operations before tax (892) 43

SURPLUS (DEFICIT) AFTER TAX (892) 43

Plus accumulated surplus 40,461 40,418Closing accumulated surplus 39,569 40,461

Return on capital % (1.7)% (0.7)%Subsidy from Council 1,738 1,914 Calculation of dividend payable:Surplus (deficit) after tax (892) 43Less: capital grants and contributions (excluding developer contributions) (92) (460)Surplus for dividend calculation purposes – –

Potential dividend calculated from surplus – –


Income Statement – Water Supply Business Activityfor the year ended 30 June 2019

Page 4 of 14

Special Purpose Financial Statements 2019Lachlan Shire Council

Income Statement – Water Supply Business Activityfor the year ended 30 June 2019

§Note/Subtotal§

$ '000 2019 2018§Subnote§

Income from continuing operationsAccess charges 1,499 1,360User charges 44 25Interest 202 215Grants and contributions provided for non-capital purposes 16 17Other income 3 3Total income from continuing operations 1,764 1,620

Expenses from continuing operationsEmployee benefits and on-costs 360 343Materials and contracts 603 602Depreciation, amortisation and impairment 591 551Other expenses 211 179Total expenses from continuing operations 1,765 1,675

Surplus (deficit) from continuing operations before capital amounts (1) (55)

Grants and contributions provided for capital purposes 62 43Surplus (deficit) from continuing operations after capital amounts 61 (12)

Surplus (deficit) from all operations before tax 61 (12)

SURPLUS (DEFICIT) AFTER TAX 61 (12)

Plus accumulated surplus 10,901 10,913Closing accumulated surplus 10,962 10,901

Return on capital % 0.0% (0.3)%Subsidy from Council 283 614 Calculation of dividend payable:Surplus (deficit) after tax 61 (12)Less: capital grants and contributions (excluding developer contributions) (62) (43)Surplus for dividend calculation purposes – –

Potential dividend calculated from surplus – –


Income Statement – Sewerage Business Activityfor the year ended 30 June 2019

Page 5 of 14


Income Statement – Sewerage Business Activityfor the year ended 30 June 2019

§Note/Subtotal§

$ '000 2019 2018§Subnote§

ASSETSCurrent assetsCash and cash equivalents 1,233 1,101Investments 5,004 5,286Receivables 1,355 1,101Total current assets 7,592 7,488

Non-current assetsInvestments 1,309 1,827Infrastructure, property, plant and equipment 57,146 56,914Total non-current assets 58,455 58,741

TOTAL ASSETS 66,047 66,229

LIABILITIESCurrent liabilitiesPayables – 151Total current liabilities – 151

TOTAL LIABILITIES – 151

NET ASSETS 66,047 66,078

EQUITYAccumulated surplus 39,569 40,461Revaluation reserves 26,478 25,617TOTAL EQUITY 66,047 66,078


Statement of Financial Position – Water Supply Business Activityas at 30 June 2019

Page 6 of 14


Statement of Financial Position – Water Supply Business Activityas at 30 June 2019

§Note/Subtotal§

$ '000 2019 2018§Subnote§

ASSETSCurrent assetsCash and cash equivalents 1,165 925Investments 4,730 4,435Receivables 288 220Total current assets 6,183 5,580

Non-current assetsInvestments 1,237 1,533Infrastructure, property, plant and equipment 21,335 21,261Total non-current assets 22,572 22,794

TOTAL ASSETS 28,755 28,374

NET ASSETS 28,755 28,374

EQUITYAccumulated surplus 10,962 10,901Revaluation reserves 17,793 17,473TOTAL EQUITY 28,755 28,374


Statement of Financial Position – Sewerage Business Activityas at 30 June 2019

Page 7 of 14


Statement of Financial Position – Sewerage Business Activityas at 30 June 2019


TOTAL EQUITY – –


Statement of Financial Position –as at 30 June 2019

Page 8 of 14


Statement of Financial Position –as at 30 June 2019

§Note/Subtotal§

A statement summarising the supplemental accounting policies adopted in the preparation of the Special Purpose FinancialStatements (SPFS) for National Competition Policy (NCP) reporting purposes follows.

These financial statements are SPFS prepared for use by Council and the Office of Local Government. For the purposes ofthese statements, the Council is a non-reporting not-for-profit entity.

The figures presented in these Special Purpose Financial Statements have been prepared in accordance with the recognitionand measurement criteria of relevant Australian Accounting Standards, other authoritative pronouncements of the AustralianAccounting Standards Board (AASB) and Australian Accounting Interpretations.

The disclosures in these Special Purpose Financial Statements have been prepared in accordance with the Local GovernmentAct 1993 (NSW), the Local Government (General) Regulation 2005, and the Local Government Code of Accounting Practiceand Financial Reporting.

The statements are prepared on an accruals basis. They are based on historic costs and do not take into account changingmoney values or, except where specifically stated, current values of non-current assets. Certain taxes and other costs,appropriately described, have been imputed for the purposes of the National Competition Policy.

§Subnote§

The Statement of Financial Position includes notional assets/liabilities receivable from/payable to Council's general fund. Thesebalances reflect a notional intra-entity funding arrangement with the declared business activities.

Council has adopted the principle of ‘competitive neutrality’ in its business activities as part of the National Competition Policywhich is being applied throughout Australia at all levels of government.

National Competition Policy

The framework for its application is set out in the June 1996 NSW government policy statement titled 'Application of NationalCompetition Policy to Local Government'.

The Pricing and Costing for Council Businesses, A Guide to Competitive Neutrality issued by the Office of Local Governmentin July 1997 has also been adopted.

The pricing and costing guidelines outline the process for identifying and allocating costs to activities and provide a standardfor disclosure requirements.

These disclosures are reflected in Council’s pricing and/or financial reporting systems and include taxation equivalents, Councilsubsidies, return on investments (rate of return), and dividends paid.

In accordance with Pricing and Costing for Council Businesses – A Guide to Competitive Neutrality, Council has declared thatthe following are to be considered as business activities:

Declared business activities

Category 1(where gross operating turnover is over $2 million)

Water Supplies

Comprising the whole of the operations and assets of the water supply systems servicing the towns of Condobolin, LakeCargelligo, Tottenham, Tullibigeal, Burcher and Fifield.

Category 2(where gross operating turnover is less than $2 million)

Sewerage Services

Comprising the whole of the operations and assets of the sewerage reticulation and treatment system servicing the towns ofCondobolin, Lake Cargelligo and Tottenham.



Notes to the Special Purpose Financial Statementsfor the year ended 30 June 2019

Note 1. Significant Accounting Policies

Page 9 of 14



Note 1. Significant Accounting Policies

Monetary amountsAmounts shown in the financial statements are in Australian dollars and rounded to the nearest one thousand dollars.

Council is liable to pay various taxes and financial duties. Where this is the case, they are disclosed as a cost of operationsjust like all other costs.

(i) Taxation equivalent charges

However, where Council does not pay some taxes which are generally paid by private sector businesses, such as incometax, these equivalent tax payments have been applied to all Council-nominated business activities and are reflected in SpecialPurpose Finanncial Statements.

For the purposes of disclosing comparative information relevant to the private sector equivalent, the following taxationequivalents have been applied to all Council-nominated business activities (this does not include Council’s non-businessactivities):

Notional rate applied (%)

Corporate income tax rate – 27.5%

Land tax – the first $692,000 of combined land values attracts 0%. For the combined land values in excess of $692,001 upto $4,231,000 the rate is 1.6% + $100. For the remaining combined land value that exceeds $4,231,000 a premium marginalrate of 2.0% applies.

Payroll tax – 5.45% on the value of taxable salaries and wages in excess of $850,000.

In accordance with the Department of Industry (DoI) – Water guidelines, a payment for the amount calculated as the annualtax equivalent charges (excluding income tax) must be paid from water supply and sewerage business activities.

The payment of taxation equivalent charges, referred to in the DoI – Water guidelines as a ‘dividend for taxation equivalent’,may be applied for any purpose allowed under the Local Government Act, 1993.

Achievement of substantial compliance to the DoI – Water guidelines is not a prerequisite for the payment of the tax equivalentcharges, however the payment must not exceed $3 per assessment.

An income tax equivalent has been applied on the profits of the business activities.

Income tax

Whilst income tax is not a specific cost for the purpose of pricing a good or service, it needs to be taken into account in termsof assessing the rate of return required on capital invested.

Accordingly, the return on capital invested is set at a pre-tax level - gain/(loss) from ordinary activities before capital amounts,as would be applied by a private sector competitor. That is, it should include a provision equivalent to the corporate incometax rate, currently 27.5%.

Income tax is only applied where a gain/ (loss) from ordinary activities before capital amounts has been achieved.

Since the taxation equivalent is notional – that is, it is payable to Council as the ‘owner’ of business operations - it representsan internal payment and has no effect on the operations of the Council. Accordingly, there is no need for disclosure of internalcharges in the SPFS.

The rate applied of 27.5% is the equivalent company tax rate prevalent at reporting date. No adjustments have been madefor variations that have occurred during the year.

A calculation of the equivalent rates and charges payable on all category 1 businesses has been applied to all land assetsowned or exclusively used by the business activity.

Local government rates and charges




Note 1. Significant Accounting Policies (continued)

Page 10 of 14




Loan and debt guarantee feesThe debt guarantee fee is designed to ensure that council business activities face ‘true’ commercial borrowing costs in linewith private sector competitors.

In order to calculate a debt guarantee fee, Council has determined what the differential borrowing rate would have beenbetween the commercial rate and Council’s borrowing rate for its business activities.

Government policy requires that subsidies provided to customers, and the funding of those subsidies, must be explicitlydisclosed.

(ii) Subsidies

Subsidies occur when Council provides services on a less-than-cost-recovery basis. This option is exercised on a range ofservices in order for Council to meet its community service obligations.

Accordingly, ‘subsidies disclosed’ (in relation to National Competition Policy) represents the difference between revenuegenerated from ‘rate of return’ pricing and revenue generated from prices set by Council in any given financial year.

The overall effect of subsidies is contained within the Income Statement of each reported business activity.

The NCP policy statement requires that councils with Category 1 businesses ‘would be expected to generate a return on capitalfunds employed that is comparable to rates of return for private businesses operating in a similar field’.

(iii) Return on investments (rate of return)

Such funds are subsequently available for meeting commitments or financing future investment strategies.

The actual rate of return achieved by each business activity is disclosed at the foot of each respective Income Statement.

The rate of return is calculated as follows:

Operating result before capital income + interest expense

Written down value of I,PP&E as at 30 June

As a minimum, business activities should generate a return equal to the Commonwealth 10 year bond rate which is 1.32%at 30/6/19.

Council is not required to pay dividends to either itself (as owner of a range of businesses) or to any external entities.

(iv) Dividends

Local government water supply and sewerage businesses are permitted to pay an annual dividend from its water supply orsewerage business surplus.

Each dividend must be calculated and approved in accordance with the Department of Industry – Water guidelines and mustnot exceed:

• 50% of this surplus in any one year, or• the number of water supply or sewerage assessments at 30 June 2019 multiplied by $30 (less the payment for tax

equivalent charges, not exceeding $3 per assessment).

In accordance with the Department of Industry – Water guidelines a Dividend Payment form, Statement of Compliance,Unqualified Independent Financial Audit Report and Compliance Audit Report are required to be submitted to the Departmentof Industry – Water.




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Report on the special purpose financial statements


To the Councillors of the Lachlan Shire Council

Opinion

I have audited the accompanying special purpose financial statements (the financial statements) of

Lachlan Shire Council’s (the Council) declared business activities, which comprise the Income

Statement of each declared business activity for the year ended 30 June 2019, the Statement of

Financial Position of each declared business activity as at 30 June 2019, Note 1 Significant

accounting policies for the business activities declared by Council, and the Statement by Councillors

and Management.

The declared business activities of the Council are:

• Water Supply

• Sewerage.

In my opinion, the financial statements present fairly, in all material respects, the financial position of

the Council’s declared business activities as at 30 June 2019, and its financial performance for the

year then ended, in accordance with the Australian Accounting Standards described in Note 1 and the

Local Government Code of Accounting Practice and Financial Reporting – update number 27 (LG

Code).


Basis for Opinion


standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’

section of my report.









Auditor-General

• mandating the Auditor-General as the auditor of councils


I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Page 12 of 14

Emphasis of Matter - Basis of Accounting

Without modifying my opinion, I draw attention to Note 1 to the financial statements which describes

the basis of accounting. The financial statements have been prepared for the purpose of fulfilling the

Council’s financial reporting responsibilities under the LG Code. As a result, the financial statements

may not be suitable for another purpose.

Other Information


the financial statements and my Independent Auditor’s Report thereon. The Councillors are

responsible for the other information. At the date of this Independent Auditor’s Report, the other

information I have received comprise the general purpose financial statements and Special Schedules

(the Schedules).

My opinion on the financial statements does not cover the other information. Accordingly, I do not

express any form of assurance conclusion on the other information. However, as required by the Local

Government Act 1993, I have separately expressed an opinion on the general purpose financial

statements and Special Schedule ‘Permissible income for general rates’.

In connection with my audit of the financial statements, my responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or my knowledge obtained in the audit, or otherwise appears to be materially

misstated.




The Councillors’ Responsibilities for the Financial Statements

The Councillors are responsible for the preparation and fair presentation of the financial statements

and for determining that the accounting policies, described in Note 1 to the financial statements, are

appropriate to meet the requirements in the LG Code. The Councillors’ responsibility also includes

such internal control as the Councillors determine is necessary to enable the preparation and fair

presentation of the financial statements that are free from material misstatement, whether due to fraud

or error.

In preparing the financial statements, the Councillors are responsible for assessing the Council’s

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and

using the going concern basis of accounting, unless it is not appropriate to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements


• obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error




Misstatements can arise from fraud or error. Misstatements are considered material if, individually or

in aggregate, they could reasonably be expected to influence the economic decisions users take

based on the financial statements.

A description of my responsibilities for the audit of the financial statements is located at the Auditing

and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The


Page 13 of 14




• about the security and controls over the electronic publication of the audited financial

statements on any website where they may be presented

• about any other information which may have been hyperlinked to/from the financial statements.

Karen Taylor



31 October 2019

SYDNEY

Page 14 of 14

Lachlan Shire CouncilSPECIAL SCHEDULESfor the year ended 30 June 2019

§Cover§

§MainTOC§

Contents Page

Special Schedules

Permissible income for general rates

Report on Infrastructure Assets - Values


Special Schedulesfor the year ended 30 June 2019

Page 2 of 10

Special Schedules 2019

3

7


Special Schedulesfor the year ended 30 June 2019

§Note/Subtotal§

Calculation Calculation$ '000 2019/20 2018/19

§Subnote§

Notional general income calculation 1

Last year notional general income yield a 6,334 5,883Plus or minus adjustments 2 b 661 8Notional general income c = a + b 6,995 5,891

Permissible income calculationSpecial variation percentage 3 d 7.40% 7.40% Plus special variation amount h = d x (c + g) 518 436Sub-total k = (c + g + h + i + j) 7,513 6,327

Plus (or minus) last year’s carry forward total l 4 9Less valuation objections claimed in the previous year m (2) –Sub-total n = (l + m) 2 9

Total permissible income o = k + n 7,515 6,336

Less notional general income yield p 7,513 6,334Catch-up or (excess) result q = o – p 2 2

Plus income lost due to valuation objections claimed 4 r – 2Less unused catch-up 5 s (1) –Carry forward to next year 6 t = q + r + s 1 4

Notes

(1) The notional general income will not reconcile with rate income in the financial statements in the corresponding year. The statements arereported on an accrual accounting basis which include amounts that relate to prior years’ rates income.

(2) Adjustments account for changes in the number of assessments and any increase or decrease in land value occurring during the year. The adjustments are called ‘supplementary valuations’ as defined in the Valuation of Land Act 1916.

(3) The ‘special variation percentage’ is inclusive of the rate peg percentage and where applicable Crown land adjustment.

(4) Valuation objections are unexpected changes in land values as a result of land owners successfully objecting to the land value issued bythe Valuer-General. Councils can claim the value of the income lost due to valuation objections in any single year.

(5) Unused catch-up amounts will be deducted if they are not caught up within 2 years. Usually councils will have a nominal carry forward figure. These amounts can be adjusted for in setting the rates in a future year.

(6) Carry forward amounts which are in excess (an amount that exceeds the permissible income) require ministerial approval by order published in the NSW Government Gazette in accordance with section 512 of the Local Government Act 1993. The OLG will extract these amounts from Council’s Permissible income for general rates Statement in the financial data return (FDR) to administer this process.



Page 3 of 10

Special Schedules 2019Lachlan Shire Council



Special Schedule - Permissible income for general rates


To the Councillors of Lachlan Shire Council

Opinion

I have audited the accompanying Special Schedule – Permissible income for general rates (the

Schedule) of Lachlan Shire Council (the Council) for the year ending 30 June 2020.

In my opinion, the Schedule is prepared, in all material respects in accordance with the requirements

of the Local Government Code of Accounting Practice and Financial Reporting – update number 27

(LG Code), and is in accordance with the books and records of the Council.


Basis for Opinion


standards are described in the ‘Auditor’s Responsibilities for the Audit of the Schedule’ section of my

report.









Auditor-General

• mandating the Auditor-General as auditor of councils


I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Emphasis of Matter - Basis of Accounting

Without modifying my opinion, I draw attention to the special purpose framework used to prepare the

Schedule. The Schedule has been prepared for the purpose of fulfilling the Council’s reporting

obligations under the LG Code. As a result, the Schedule may not be suitable for another purpose.

Page 4 of 10


Other Information


the Schedule and my Independent Auditor’s Report thereon. The Councillors are responsible for the

other information. At the date of this Independent Auditor’s Report, the other information I have

received comprise the general purpose financial statements, special purpose financial statements and

Special Schedule ‘Report on infrastructure assets as at 30 June 2019’.

My opinion on the Schedule does not cover the other information. Accordingly, I do not express any

form of assurance conclusion on the other information. However, as required by the Local

Government Act 1993, I have separately expressed an opinion on the general purpose financial

statements and the special purpose financial statements.

In connection with my audit of the Schedule, my responsibility is to read the other information and, in

doing so, consider whether the other information is materially inconsistent with the Schedule or my

knowledge obtained in the audit, or otherwise appears to be materially misstated.




The Councillors’ Responsibilities for the Schedule

The Councillors are responsible for the preparation of the Schedule in accordance with the LG Code.

The Councillors’ responsibility also includes such internal control as the Councillors determine is

necessary to enable the preparation of the Schedule that is free from material misstatement, whether

due to fraud or error.

In preparing the Schedule, the Councillors are responsible for assessing the Council’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting, unless it is not appropriate to do so.

Auditor’s Responsibilities for the Audit of the Schedule


• obtain reasonable assurance whether the Schedule as a whole is free from material

misstatement, whether due to fraud or error




Misstatements can arise from fraud or error. Misstatements are considered material if, individually or

in aggregate, they could reasonably be expected to influence the economic decisions users take

based on the Schedule.

A description of my responsibilities for the audit of the Schedule is located at the Auditing and

Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar8.pdf. The


Page 5 of 10





• about the security and controls over the electronic publication of the audited Schedule on any

website where it may be presented

• about any other information which may have been hyperlinked to/from the Schedule.

Karen Taylor



31 October 2019

SYDNEY

Page 6 of 10



§Note/Subtotal§

Asset Class Asset CategoryEstimated costto bring assetsto satisfactory

standard

Estimated costto bring to the

agreed level of service set by

Council

2018/19 Required

maintenance a

2018/19Actual

maintenanceNet carrying

amount

Gross replacement

cost (GRC)

Assets in condition as a percentage of gross replacement cost

1 2 3 4 5

(a) Report on Infrastructure Assets - Values

§Subnote§

Buildings 560 560 757 586 32,835 60,242 35.7% 15.4% 30.2% 17.3% 1.4%BuildingsSub-total 560 560 757 586 32,835 60,242 35.7% 15.4% 30.2% 17.3% 1.4%

Other structures – – 5 – 11,456 17,168 8.0% 51.0% 36.0% 5.0% 0.0%Other structures Sub-total – – 5 – 11,456 17,168 8.0% 51.0% 36.0% 5.0% 0.0%

Sealed roads 1,473 1,473 1,351 3,687 14,313 21,646 22.0% 53.0% 23.0% 1.0% 1.0%Unsealed roads 1,564 1,564 2,226 3,446 159,961 241,925 2.0% 26.0% 41.0% 18.0% 13.0%Bridges 94 94 46 36 22,405 27,289 63.0% 36.0% 1.0% 0.0% 0.0%Footpaths 121 121 221 36 3,264 3,994 78.0% 12.0% 10.0% 0.0% 0.0%Other road assets 623 623 164 131 – – 44.0% 25.0% 18.0% 13.0% 0.0%Other 49 49 90 325 1,829 – 26.0% 60.0% 11.0% 3.0% 0.0%

Roads

Sub-total 3,924 3,924 4,098 7,661 201,772 294,854 10.1% 28.7% 35.6% 14.8% 10.8%

Water supply network 14,721 14,721 1,649 1,600 54,588 93,632 36.0% 16.0% 30.0% 1.0% 17.0%Water supply network Sub-total 14,721 14,721 1,649 1,600 54,588 93,632 36.0% 16.0% 30.0% 1.0% 17.0%

Sewerage network 1,666 1,666 345 484 20,348 36,696 10.0% 11.0% 70.0% 8.0% 1.0%Sewerage network Sub-total 1,666 1,666 345 484 20,347 36,696 10.0% 11.0% 70.0% 8.0% 1.0%

Stormwater drainage 378 378 43 43 5,085 9,025 38.0% 31.0% 24.0% 6.0% 1.0%Stormwater drainage Sub-total 378 378 43 43 5,086 9,025 38.0% 31.0% 24.0% 6.0% 1.0%

TOTAL - ALL ASSETS 21,249 21,249 6,897 10,374 326,084 511,617 18.3% 24.3% 36.2% 11.6% 9.6%

(a) Required maintenance is the amount identified in Council’s asset management plans.

Infrastructure asset condition assessment ‘key’

1 Excellent/very good No work required (normal maintenance)2 Good Only minor maintenance work required3 Satisfactory Maintenance work required4 Poor Renewal required5 Very poor Urgent renewal/upgrading required


Report on Infrastructure Assetsas at 30 June 2019

Page 7 of 10


Report on Infrastructure Assetsas at 30 June 2019


§Note/Subtotal§

Amounts Indicator Prior period Benchmark

$ '000 2019 2019 2018

Infrastructure asset performance indicators (consolidated) *

Buildings and infrastructure renewals ratio 1

Asset renewals 2 6,811Depreciation, amortisation and impairment 5,924 114.97% 79.30% >=100.00%

Infrastructure backlog ratio 1

Estimated cost to bring assets to a satisfactory standard 21,249Net carrying amount of infrastructure assets 326,084 6.52% 6.56% <2.00%

Asset maintenance ratioActual asset maintenance 10,374Required asset maintenance 6,897

150.41% 91.48% >100.00%

Cost to bring assets to agreed service levelEstimated cost to bring assets toan agreed service level set by Council 21,249Gross replacement cost 511,617

4.15% 4.17%

(*) All asset performance indicators are calculated using classes identified in the previous table.

(1) Excludes Work In Progress (WIP)

(2) Asset renewals represent the replacement and/or refurbishment of existing assets to an equivalent capacity/performance as opposed tothe acquisition of new assets (or the refurbishment of old assets) that increases capacity/performance.


Report on Infrastructure Assets (continued)as at 30 June 2019

Page 8 of 10




§Note/Subtotal§

Buildings and infrastructure renewals ratio

Buildings and infrastructure renewals ratio

To assess the rate at which these assets are being renewed relative to the rate at which they

are depreciating.

Commentary on result

18/19 ratio 114.97%

Council continues to work to renew its buildings and infrastructure assets

and is now achieving benchmark.

Benchmark: ― >= 100.00% Ratio achieves benchmark


Infrastructure backlog ratio

Infrastructure backlog ratio

This ratio shows what proportion the backlog isagainst the total value of

a Council’s infrastructure.


18/19 ratio 6.52%

Council remains committed to decrease its infrastructure backlog.

Council will continue to seek funding to support this objective.

Benchmark: ― < 2.00% Ratio achieves benchmark


Asset maintenance ratio

Asset maintenance ratio

Compares actual vs. required annual asset maintenance. A ratio above 1.0 indicates Council is investing

enough funds to stop the infrastructure backlog growing.


18/19 ratio 150.41%

Council has achieved benchmark and remains committed to ensuring that assets are maintained at the

required service level.



Cost to bring assets to agreed service level

Cost to bring assets to agreed

service level

This ratio provides a snapshot of the

proportion of outstanding renewal

works compared to the total value of assets under Council's care

and stewardship.


18/19 ratio 4.15%

Council remains committed to maintaining its assets at the required

service levels.



Page 9 of 10



§Note/Subtotal§

General fund Water fund Sewer fund Benchmark$ '000 2019 2018 2019 2018 2019 2018

Infrastructure asset performance indicators (by fund)

Buildings and infrastructure renewals ratio 1

Asset renewals 2

Depreciation, amortisation and impairment 156.07% 114.80% 40.93% – 58.97% – >=100.00%

Infrastructure backlog ratio 1

Estimated cost to bring assets to a satisfactory standardNet carrying amount of infrastructure assets 1.94% 1.97% 26.97% 26.42% 8.19% 8.06% <2.00%

Asset maintenance ratioActual asset maintenanceRequired asset maintenance 169.08% 88.37% 97.03% 98.58% 140.29% 142.35% >100.00%

Cost to bring assets to agreed service levelEstimated cost to bring assets to an agreed service level set by CouncilGross replacement cost

1.28% 1.29% 15.72% 15.30% 4.54% 4.47%

(1) Excludes Work In Progress (WIP)

(2) Asset renewals represent the replacement and/or refurbishment of existing assets to an equivalent capacity/performance as opposed to the acquisition of new assets (or the refurbishment of old assets) thatincreases capacity/performance.



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