sorell council · in summer, an influx of shack owners and visitors swells the population of this...

SORELL COUNCILANNUAL REPORT 2015/2016

C O M M U N I T Y C O A S T C O U N T R Y

COUNCIL1862

SORELL

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INTRODUCTION ..................................................................................................................................... 3About Sorell ................................................................................................................................................. 3

Invitation for Submissions ..................................................................................................................... 3

MAYOR'S REPORT ................................................................................................................................ 4

GENERAL MANAGER'S REPORT .................................................................................................... 6

YOUR COUNCILLORS .......................................................................................................................... 8Photos, Terms of Service and Representations ............................................................................... 8

Councillor Attendance ............................................................................................................................. 10

Councillor Allowance and Expenses .................................................................................................... 10

STATUTORY REPORTING .................................................................................................................. 12Enterprise Powers Statement ............................................................................................................... 12

Grants, Assistance and Benefits Provided Under Section 77 (1)................................................... 12

Public Disclosures Act 2002 .................................................................................................................... 13

Contract for the Supply of Goods and Services .............................................................................. 14

Donation of Land Statement .................................................................................................................. 14

Copping Refuse Disposal Site Joint Authority ................................................................................. 14

Senior Management Remuneration .................................................................................................... 14

Public Health Statement, Goals and Objectives ............................................................................. 15

ANNUAL PLAN REPORTING ............................................................................................................ 19Key Focus Areas and Summary of Strategies and Initiatives

for the 2015/2016 financial year. ............................................................................................................ 19

FINANCIAL STATEMENTS/REPORT ............................................................................................ 26Statement of Profit or Loss and Other Comprehensive Income

for the year ended 30 June 2016 ........................................................................................................... 27

Statement of Financial Position as at 30 June 2016........................................................................ 28

Statement of Cash Flows for the year ended 30 June 2016 ......................................................... 29

Statement of Changes in Equity for the year ended 30 June 2016 ............................................ 30

Notes to the Financial Report ................................................................................................................ 31

Certification of the Financial Report .................................................................................................... 80

AUDIT OPINION ..................................................................................................................................... 81

3S O R E L L C O U N C I L

IntroductionABOUT SORELL

Sorell is one of Tasmania’s oldest towns and today it

is popular for its history, beautiful southern beaches,

relaxed rural lifestyle and growing suburbs.

Located just 25 kilometres from Hobart in the coastal

area of south-east Tasmania, the Sorell Municipality

covers some 583 square kilometres and is characterised

by low forested hills and long coastlines filled with

beautiful beaches.

The key entrance points to the municipality are

Midway Point, Dunalley and Orielton. Our municipal

borders extend north through to Orielton and further

south-east around the scenic coastline encompassing

the townships of Dodges Ferry, Lewisham, Carlton,

Primrose Sands, Connelly’s Marsh, Dunalley, Marion Bay

and Boomer Bay. The border extends through rolling

hillsides and unique Tasmanian forests, incorporating

the townships of Bream Creek, Forcett, Copping, Nugent

and Kellevie.

The Sorell Township provides a regional commercial

focus for residents of the municipality, as well as

servicing the Tasman and Forestier Peninsulas and the

east coast as far north as Swansea.

The Southern Beaches, once a traditional shack

settlement, have become increasingly attractive to

retirees and families who are keen to take advantage of

the relaxed beachside lifestyle. In summer, an influx of

shack owners and visitors swells the population of this

area.

Sorell is one of the fastest growing municipalities in

the state and has been for many years. The Sorell

Municipality continues to attract young families with its

affordable housing, natural coastland, rolling hills and

the convenience of major shops and services all within

close proximity to Hobart.

INVITATION FOR SUBMISSIONS

Members of the community are invited to make

submissions on the Annual Report for discussion at

Council’s Annual General meeting which will be held

on 5.00pm on Tuesday 13 December in the Council

Chambers. Any person wishing to make a submission

should do so by close of business 7 December 2016.

DODGES FERRY AERIAL VIEW

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Mayor's ReportThe relationship between the South East Region

Development Association (SERDA) member Councils has

gone from strength to strength over the past twelve

months.

SERDA’s four member Councils of Sorell, Tasman,

Clarence and Glamorgan Spring Bay are united together

to achieve positive outcomes for the region and the

results are starting to come to fruition. We received

the South East Economic and Infrastructure Strategy

(SEEIS) report in August to overwhelmingly positive

feedback.

The SEEIS aims to bring attention back to the often

forgotten south east region and for our State and

Federal members to work with Local Government in

developing policy, strategy and funding arrangements

to accommodate and facilitate growth and improved

outcomes.

Council was privileged to have the opportunity

to present our municipalities growing hunger for

infrastructure and community facilities to then

Prime Minister Tony Abbott when we hosted a joint

Commonwealth and Tasmanian Economic Council in

August. This facilitated follow on visits from several

Federal Ministers of Parliament, including then

Infrastructure Minister Paul Fletcher.

Council hosted a regional State Cabinet meeting in

October and presented the SEEIS report to them.

Cabinet acknowledged the importance of the SEEIS

report and it has gone on to receive widespread praise

across all levels of Government (and their Agencies)

for its contemporary and evidence based approach to

raising awareness of, and lobbying for, infrastructure

and associated funding requirements.

I was also invited to address the board of Regional

Development Australia on behalf of our Municipality and

region on these issues.

It has been recognised and noted that a collaborative

regional effort is a commendable, fact based and

ultimately preferred way to highlight funding

requirements for infrastructure projects. SERDA

Councils will continue to work closely with relevant

Federal and State Government Departments to identify,

develop and cost both short and long term solutions to

the challenges identified in SEEIS for the benefit of our

towns and region.

LEWISHAM

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Council has made significant progress in our

interactions with the community through the

Community Conversations program throughout

2015/2016. These meetings have been an invaluable

tool for both Council and the community to engage in

positive two-way conversations about what’s happening

at the local level in our townships and where this sits

with State and Federal strategies, policies and budgets.

A new set of meetings will continue through the new

financial year. Council’s use of the tri-annual Community

News newsletter and Facebook continue to grow our

communications about our programs and activities with

the community.

At the August 2015 Council meeting Council resolved

to engage consultants to perform modelling work on

what a future amalgamated Council may look like and

what it may mean for the Sorell Municipality. KPMG

was contracted to conduct the feasibility study into

voluntary amalgamations and shared services. The

study focused on collating and modelling relevant

information on the four SERDA Councils in our south-

east region. The information gathered will allow factual

comparisons between Councils to occur. Whilst Council

is committed to investigating amalgamations there are

guiding principles leading the process. Amalgamations

must be in the best interest of the ratepayer; Improve

the level of service to the community; Preserve and

maintain local representation; and ensure the financial

status of the identity is strengthened. The latter half of

2016 will present us with some solid facts and figures

about what an amalgamation may look like for Sorell

Council. I look forward to sharing these results with the

community.

Once again, Council faces much pressure to meet

the communities demand for new services and

infrastructure whilst keeping rate rises to a minimum.

The challenge of balancing a growing Municipality’s

requirements within the confines of the annual

budget and Long Term Financial Plan comes at a cost.

Council’s finances are fully audited annually by the

Tasmanian Audit Office. This ensures that Council’s

operations are transparent and what we say we have

done has been done and every cent of every dollar is

accounted for.

The current revenue raised through rates covers

Council’s cost of maintaining and renewing current

infrastructure. This revenue does not cover upgrades

or construction of new infrastructure. Additional

funding is required to fund these and in a climate

where grant funding is increasingly harder to come

by, Council continues to investigate ways in which this

can be achieved.

I’d like to close by extending a thank you to Council’s

staff and Councillors. The past twelve months have

been as busy as usual and I appreciate everyone’s

commitment to achieving positive results for the

community. I must acknowledge the growing number

of staff who are doing contract work for other

Councils. This highlights the skill and professionalism

of Sorell’s indoor and outdoor workforce. Well done.

Mayor Kerry Vincent

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The focus for Council over the past 12 months has

been to build on the momentum generated through

the continual review of our operations and financial

performance whilst ensuring the Municipality and

greater south-east region is at the forefront of our

State and Federal representatives.

Looking back over 2015-2016 and the key focus areas of

the strategic and annual plans, I am proud of what the

organisation has achieved amongst an environment

compromising a Federal election, Local Government

reform, increasing accountability and scrutiny of Council

sustainability and of course, addressing ratepayer,

resident and visitor requirements and expectations.

The work carried out by the SERDA group of south-east

Councils through the development of the Economic

Infrastructure Strategy has been recognised at both

the State and Federal level as the preferred evidence

based and co-operative approach to addressing

regional infrastructure and service requirements. The

maturity of the four Council Mayors is a key to this body

of work achieving outcomes that benefit the region.

It is, however, a lengthy advocacy and engagement

process with both the elected members and their

respective agencies that requires a consistent and

concerted approach to achieve tangible and measurable

outcomes.

There has been a recognised increase in the relevance

of the south-east regarding transport and education

requirements, business investment through the

irrigation scheme and tourism infrastructure and

continuing strong residential growth. Further, that

the south-east plays an increasingly important and

relevant role to the economic performance of the

greater Hobart region. This has resulted in greater

recognition and being evidence based, has demanded

more than just token acknowledgment from those

bodies that have the financial capacity and jurisdiction

to effect positive change and investment in services

and infrastructure.

Whilst not in the glamorous category, the significant

body of work undertaken by the organisation to

accurately determine the short, medium and long term

resourcing requirements of managing $300m of assets

is absolutely vital. This culminated in a new 10 year Long

Term Financial Plan being adopted by Council which

provides a robust framework for informed decision

making into the future. It will be reviewed each year

in the preparation of budgets, capital works programs

and determining the required level of revenue. This

work continues and flows into our scoping, contracting

and procurement approach to ensure the Municipality

receives and generates the best value for money and

achieves full asset component life.

The matter of Local Government reform and how this

organisation has proactively entered into the process

should be commended along with the other south-

east Councils. Whilst the consultants report has been

General Manager's Report

PRIMROSE SANDS BOAT RAMP

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completed on investigating potential savings from a

number of merger and common service scenarios, there

is still a lot of work to be done and broader consultation

to be sought before any of the Councils decide which

way to head before the end of 2016-2017. The process

has also had a subtle but positive influence on our day

to day decisions and ‘keeping an eye’ on what the future

may hold for our residents and ratepayers.

Our financial performance strengthened with solid

results based on robust data which was recognised

through a successful audit. We ended the year with an

operating surplus of $18.303m, however, this included

$15.131m of recognised land under roads value which has

to be reflected in the profit and loss. As a more relevant

comparison, we had budgeted for a $1.581m surplus

but returned a surplus of $3.172m (not including the

land under road figure). In addition, our net assets and

total equity all increased. As expected grant income

reduced at both the Federal and State level. With the

ongoing asset management investigations comprising

location and ownership determination and condition

assessment and revaluation at the component level,

depreciation increased again through 2015-2016 at an

additional $500k out of the P&L. This trend is likely

to continue for 2016-2017 as stormwater, parks and

reserves are finalised.

It has been a financial and operational necessity

to approach the running of the organisation with a

more business minded focus. To this end Council is

generating additional revenue in the order of $400 -

$500k through our involvement in the common service

agreement with a number of other Councils. Some of

the functional services we provide to other Councils

on commercial terms include Human Resources, ICT,

GIS, Development Engineering, Facilities Management,

Works Management, Building Surveying, Environmental

Health and Plant acquisition/utilisation. This is only

possible with staff who have a can do attitude and flows

through our continually improving customer service

performance which has also been recognised at the

national level.

The Copping landfill and Lutana waste transfer station

continued to operate with increased profitability

through Southern Waste Solutions on behalf of the

Joint Authority. Significant development of the C Cell

business model and financing arrangements were

completed with construction to commence and reach

operational status through 2016-2017. The strategic

importance of the site overall but in particular the C

Cell for the south of the State will only become more

relevant over time. Council’s commitment to the

authority will continue into the future and support

best practice in waste management culminating in

the development of the Category C cell and other

improvements to operations.

As I acknowledged each year, Council is grateful

for the efforts of all community, recreational and

volunteer organisations and respective individuals who

continue to play vital roles that assist our operations

and importantly, keep the community together and

engaged.

My thanks again to staff and Councillors who through

hard work, consistent focus and co-operation achieved

continued improvement in what Council did and how

it conducted its business and should be proud of their

efforts. Please contact me if there are any matters you

wish to discuss or seek further clarification on.

Robert Higgins General Manager

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LINDSAY WHITE

Terms as Councillor 2011 – Present

Committee RepresentationsDevelopment Assessment Special Committee

East Coast Fire Management

GRAEME EVANS


Terms as Deputy Mayor 2001 – 2011

Committee RepresentationsCopping Refuse Disposal Site Joint Authority

Development Assessment Special Committee

Copping Hall and Reserves Committee

PHOTOS, TERMS OF SERVICE AND REPRESENTATIONS

MAYOR KERRY VINCENT


Terms as Mayor 2012 – Present

Committee RepresentationsMunicipal Emergency Management Committee

South East Region Development Association


Sorell Tasman Affected Area Recovery Committee

TasWater

Local Government Association of Tasmania

Southern Tasmania Councils Authority (STCA)

Sorell Streetscape Committee

Arts and Cultural Working Group Committee

Municipal Alliance Committee

Chair of Waste Strategy South

STCA Economic Committee

STCA Governance and Audit Committee

Chair South East Merger Options Steering Committee

DEPUTY MAYOR BRETT MCDONALD


Terms as Deputy Mayor 2011 – Present

Committee Representations

Midway Point Hall Committee

Local Government Association of Tasmania


Sorell Code of Conduct Panel

Municipal Alliance Committee

Pembroke Park Advisory Committee

Your Councillors

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KERRY DEGRASSI


Terms as Mayor 1999 – 2000

Committee RepresentationsSouthern Waste Strategy Authority

Arts and Cultural Working Group Committee

Primrose Sands Community Hall Committee


CARMEL TORENIUS

Terms as Councillor 1991 – 2012 and

2014 – Present

Terms as Mayor 1994 – 1999 and

2000 – 2012


Southern Waste Strategy Authority


Dunalley Hall and Reserves Committee

NATHAM REYNOLDS

Term as Councillor 2014 – Present




DEBORAH DE WILLIAMS







Sorell Audit Committee

VLAD GALA




Sorell Audit Committee

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COUNCILLOR ATTENDANCE

NAME WORKSHOPS/BRIEFINGS

COUNCIL MEETINGS

AGM DASC MEETINGS

BUDGET MEETINGS

SPECIAL COUNCIL

MEETINGS

OTHER MEETINGS

TOTAL OF MEETINGS FOR

FINANCIAL YEAR

Mayor Kerry Vincent

13 12 1 17 0 2 4 49

Deputy Mayor Brett McDonald

13 10 1 16 0 2 3 45

Clr Kerry Degrassi 6 9 1 8 0 1 2 27

Clr Vlad Gala 12 11 1 13 0 2 3 42

Clr Graeme Evans 12 12 1 14 0 2 2 43

Clr Carmel Torenius

13 11 1 14 0 2 2 43

Clr Natham Reynolds

13 12 1 17 0 2 1 46

Clr Lindsay White 13 11 1 13 0 1 2 41

Clr Deborah De Williams

10 10 1 12 0 2 4 39

Totals 105 98 9 124 0 16 23

COUNCILLOR ALLOWANCE AND EXPENSES

In 2015/2016 Council provided allowances and reimbursement for reasonable expenses to the Mayor, Deputy Mayor

and Councillors.

Councillor Allowance and expenses: $ 182,000


PARK BEACH

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Statutory Reporting

ENTERPRISE POWERS STATEMENT

Council has not resolved to exercise any powers or

undertaken any activities in accordance with Section 21

of the Local Government Act 1993.

GRANTS, ASSISTANCE AND BENEFITS PROVIDED UNDER SECTION 77 (1)

FUNDING ASSISTANCE FOR SPORTING AND RECREATION REPRESENTATION

State Representation x 5 750.00

National Representation x 3 450.00

Sub Total Funding Assistance 1,200.00

FUNDING ASSISTANCE FOR YOUTH

Midway Point Yacht Club 1,500.00

Okines Community House 1,500.00

Pittwater Community Centre 1,500.00

Primrose Sands Community Youth Group

(230.00)

Sorell Junior Football Club 1,500.00

Sorell on Stage 500.00

South East Districts Little Athletics 1,097.91

Sub Total Youth Grant 7,367.91

COMMUNITY ASSISTANCE GRANTS

Anglican Parish of Sorell, Richmond & Tasman

500.00

Bream Creek Show Society 1,000.00

Carlton Park Surf Life Saving Club 2,500.00

Combined Churches of South East Tasmania

1,000.00

Dodges Ferry Football Club 1,000.00

Dodges Ferry Junior Soccer Association

983.00

Forcett Community Hall 1,100.00

Historical Society of Sorell 750.00

Midway Point Yacht Club 1,000.00

Pittwater Scouts 1,500.00

Primrose Sands Hall Committee 1267.55

Sing Australia Choir Sorell 1,500.00

Sorell & Districts Garden Club 800.00

Sorell Cobras Boxing Club 1,500.00

Sorell Football Club 1,700.00

Sorell Girl Guides 736.00

Sorell Junior Cricket Club 1,000.00

Sorell on Stage 1,187.00

Sorell School – Camkids 900.00

WHALE VIEWING AREA AT SPECTACLE HEAD

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South East Community Band 400.00

South East District Little Athletics 1,500.00

South East Netball Association 2,000.00

South East United Football Club 1,000.00

Southern Beaches Historical Society 1,500.00

Southern Beaches Landcare/Coastcare

1,000.00

Southern Beaches Regional Arts 500.00

Southern Tasmania Country Music Muster

1,200.00

Sub Total Community Assistance 31,023.55

DONATIONS

Art Acquisition Prize 1500.00

Bream Creek Show Society 2,267.91

Dunalley Primary School 60.00

Edmund Rice Camps 5000.00

Garage Sale Trail 645.00

Lions Club of Sorell 200.00

Midway Point Fire Brigade 100.00

Natural Resource Management South World Wetlands Day

5000.00

Sea Rescue 2000.00

Sorell High School 900.00

Yarloop Town Hall Fire Rebuild 1000.00

Sub Total Donations $18,672.91

SCHOOL BURSARIES

Dodges Ferry Primary School 200.00

Dunalley Primary School 100.00

Sorell High School 400.00

Sorell Primary School 200.00

Sub Total School Bursaries $900.00

TOTAL DONATIONS AND GRANTS $59,164.37

PUBLIC DISCLOSURES ACT 2002

Section 86 of the Public Interest Disclosures Act 2002

states that Council as a public body is required by The

Local Government Act 1993 to prepare an Annual Report

and therefore must report on the following:

ü Information as to how persons may obtain or access

copies of the current procedures established by the

public body under the Act – via Council's website and

through direct contact to Council.

ü The number and types of disclosures made to the

relevant public body during the year and the number

of disclosures determined to be a public interest

disclosure – None.

ü The number of disclosures determined by the

relevant public body to be public interest disclosures

that it investigated during the year – None.

ü The number and types of disclosed matters

referred to the public body during the year by the

Ombudsman – None.

ü The number and types of disclosed matters

referred during the year by the public body to the

Ombudsman to investigate – None.

ü The number and types of investigations of disclosed

matters taken over by the Ombudsman from the

public body during the year – None.

ü The number and types of disclosed matters that

the relevant public body has declined to investigate

during the year – None.

ü The number and type of disclosed matters that were

substantiated upon investigation and the action

taken on completion of the investigation – None.

ü Any recommendations made by the Ombudsman

that relate to the relevant public body – None.

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CONTRACT FOR THE SUPPLY OF GOODS AND SERVICES

In accordance with Section 23(1) of the Local Government Act Regulations, below is a list of Goods and Services

valued at or above $250,000 excluding GST where entered into in the 2015-2016 financial year.

ITEM DESCRIPTION OF CONTRACT CONTRACT PERIOD CONTRACT VALUE $ SUCCESSFUL CONTRACTOR/S

1

Reconstruction and Realignment of a segment of Brinktop Road

26 August 2015 – 2 October 2015

$287,365.66Andrew Walters Construction

2

Reconstruction and Realignment of a segment of Fulham Road and Primrose Sands Road

2 November 2015 – 18 December 2015

$1,099,995.52Andrew Walters Construction

DONATION OF LAND STATEMENT

The Council has not resolved to donate any lands in

accordance with Section 177 of the Local Government

Act 1993.

COPPING REFUSE DISPOSAL SITE JOINT AUTHORITY

The Copping Refuse Disposal Site Joint Authority

(Trading as Southern Waste Solutions) was established

under Section 30 of the Local Government Act 1993

by Sorell Council, Clarence City Council and Tasman

Council. Kingborough Council later joined the Authority

in 2009.

ACTIVITIES

The Copping Refuse Disposal Site Joint Authority’s

function is to promote and manage a putrescible

landfill disposal site which conforms to its Development

Proposal and Environmental Management Plan

(DP&EMP) and permit conditions.

BUDGET AND PERFORMANCE

Net Operating result before tax was $499,575 (2015

profit $115,081) which was $124,179 above budget. The

contributing factors to the result were an increase

in gate revenue over budget of $1,090,702 offset by

operating expenditure above budget by $1,025,654.

SENIOR MANAGEMENT REMUNERATION

The table below provides the remuneration for those

positions designated by Council as senior positions

as required under the Local Government Act 1993. The

positions deemed to be senior positions are Manager

Finance and Information, Manager HR, Customer

and Community Services, Manager Engineering and

Regulatory Services.

TOTAL REMUNERATION BAND* NO. OF POSITIONS

$75,001 – $95,000 1

$115,001 – $135,000 1

$155,001 – $175,000 1

*The above includes cash salary, superannuation and

motor vehicle.

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PUBLIC HEALTH STATEMENT, GOALS AND OBJECTIVES

The Environmental Health section is responsible

for public health activities such as food business

regulation, public health risk activities, places of

assembly, water quality, immunisations, animal

management, fire hazard abatement on private land

and caravan licencing. Environmental Health Officers

(“EHO”) assess building, planning and plumbing

applications, investigate pollution complaints, provide

environmental health input into Council business

processes and administers the Environmental

Health and Public Places By-laws. The Senior EHO

administers the waste management contract

services. The Municipal Inspector manages the fire

hazard programme, is the Municipal Emergency

Management Co-ordinator and assists the Animal

Management Officer with animal control.

The section regulates major public events including

the Falls Festival and Bream Creek show. EHO’s

attended and check that permit conditions are

complied with.

Recreational water quality monitoring was completed

at swimming beaches during the summer and all

sites monitored have good water quality with the

exception of Red Ochre Beach (Southern end) which is

moderate quality.

There continued to be a significant number of

complaints about noise, backyard burning, barking

dogs, fire hazards and dog attacks. Council Officers

are using enforcement options including education,

warnings, infringement notices, seizures and formal

orders to manage these complaints.

Enforcement action has been taken for a number

of different environmental issues which resulted in

notices being issued. Council undertook action to

block off a septic tank that was discharging onto the

foreshore.

A number of foodborne illness investigations

were completed which were associated with local

businesses. Immediate public health interventions

were taken and no subsequent complaints have

been received.

The Engineering and Regulatory Services Department

has continued to work with Brighton Council to

enhance the Regulated Entities module of Council

First software used for recording activities such as

food business, public health activities and Aerated

Wastewater Treatment System.

The Senior EHO worked on a project for 3 months

at the Department of Justice preparing guidelines,

determinations, regulations and educational

information necessary for the implementation of the

Building Act 2016.

Green and hard waste booking services were improved

by introducing confirmation receipts and collection

areas and days were simplified.

A new Public Places By-law and policy were approved

for regulating activities on Council land.

There continues to be a high incidence of dogs

attacking people and other animals. Council Officers

typically resolve these incidents by seizing the dog

and/or issuing infringement notices or prosecutions. A

letter template was introduced to enable neighbours

to notify dog owners of nuisance barking. The letter

has assisted residents to resolve a number of problems

in a more amicable manner. There was a large

reduction in the number of dogs impounded compared

to previous years.

The summer and spring of 2015/2016 was very dry

which resulted in lower growth and significantly less

(1/3 less) fire abatement notices were issued.

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PROGRAMME TASKS KPI COMMENTSCOMPLETION DATE

Food Businesses Regulations

Inspections Each business inspected on an average of 1.5 per year

105 inspections completed - 41 for temporary food businesses and 35 food vans

Ongoing

Complaints Investigate as per complaints policy

9 Food complaints were investigated about food products

Ongoing

Asses new food business plans

Assess plans within 14 days as per Directors specified list

3 New food businesses applications were approved

Ongoing

Food sampling Participate in regional food sampling programme

Several food samples were collected most complied with the Food Standards Code

Ongoing

Temporary Food Business

Assess applications and inspect high risk businesses

Inspections completed at Bream Creek Show and the Falls Festival

During event

Food Businesses Food Business registered annually 82 Food Businesses registered, 21 temporary businesses and 24 Food Vans

30 June

Enforcement activities Take enforcement action where the EHO considers appropriate

No infringements notices 1 improvement notice was issued on a food business

Ongoing

Water Quality Monitor Swimming Beaches

Weekly sampling over summer months and report prepared annually by 30 June

Recreational water quality report completed

Completed

Monitor Swimming pools

Collect samples monthly 4 Samples collected at Swimming Pools all samples complied with guidelines

Nil

Infectious Diseases Prevention

Immunisation sessions Conduct monthly infant immunisation sessions and annual school programme

Annual school and monthly infant immunisations completed at Sorell School with statistics notified to DHHS.

Completed

Notifiable disease investigation

Investigate cases within 3 working days when referred by DHHS

13 notifiable diseases were referred for investigation. All investigations were completed but time limits were exceeded in some cases. 100% increase in notifications from last year

Completed

Pollution Prevention

Complaints investigation

Backyard burning

On-site Wastewater

Noise

Odour / dust

Water

Littering

Enforcement actions

Investigate in accordance with Customer Service Charter

Complaints received

25

19

42

7

17

21

2 EPN’s

3 EIN (warnings)

3 littering

Ongoing

Level One activities EMPCA

Monitor and investigate complaints

Level one activities have been included in a register, no routine inspection programme and respond to complaints

ANNUAL PLAN SECTION 9 CONTINUE TO DELIVER VALUED CORE SERVICES

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Application Assessments SPP’s

DA’s

Assess application within: 14 days

21 days

Applications assessed98

315

subdivisions and rezoning (included in DA numbers)

Ongoing

Public Health Activities

Place of Assembly Assess applications and investigate complaints

Licenses were issued and inspections completed. In 2015 changes were made to guidelines and only mass gatherings >1000 (Falls Festival, Bream Creek Show) now require a Places of Assembly license

Registration by 30 June

Unhealthy housing Investigated as per Customer Service Charter

Complaints received, failing septic tank systems, defective plumbing, damp proofing and electrical safety are the most common. Issued abatement notices and rectification notices

Ongoing

Public Health Risk Activities

Register premises 7 Premises registered 30 June

Regulated systems Inspect and issue a letter of compliance

Registered one cooling tower 30 June

Private water supplies Register water sources Sampling completed and one sample did not comply with guidelines and enforcement action was taken.

30 June

Water carters Inspected and issue letter of compliance every 3 years

Inspection of new vehicles completed. Some follow up inspections required. Commenced registering vehicles to comply with amendments to guidelines

30 June

Annual EH Report

Prepare Annual Health report

Report completed SEHO completed report October 2016

Dog Management

Investigate dog attacks Start investigation within 2 working days

Dog attacks reported:19 on people41 on other animalsInvestigations commenced within 2 days of report.

Ongoing

Barking complaints Start investigation within 7 working days

Council received at least 172 formal complaints for barking and creating a nuisance. 141 dogs impounded and 124 infringement notices issued for dogs at large.

Ongoing

Dog Management Plan Review plan every 5 years Due 2017

Collecting stray dogs Conduct routine patrols and respond to complaints about stray dogs

Minimal Door –to – door registration checks completed

Ongoing

Kennel Licences Kennels licenced annually 40 Licenced Kennels Ongoing


18


Fire Management

Inspect properties for Fire Hazards

Conduct fire hazard programme during spring/summer

106 Abatement notices issued which is significantly less than the previous year

Commence October each year

Parking Conduct parking patrols

Patrols conducted infrequently after complaints are received

5 infringement notices issued for parking offences

Ongoing

Littering Investigate littering complaints

Investigate in accordance with Customer Service Charter

Complaints investigated and 4infringement notices issued, focus on rubbish dumping at recycling centres

Ongoing

Conduct littering patrols

Conduct designated patrols each week and as part of other work activities

Occasional patrols at high risk sites such as at recycling centres were completed

Ongoing

Public Places and Street Stalls

Issues permits for activities

Assess applications within 14 days 4 permits were issued for street stalls and 2 for public places permits

Ongoing

Caravans Licencing

Issue licence for caravans

Register caravan annually 73 Caravan licence application were sent out and 20 did not pay licences

30 June



Annual Plan Reporting KEY FOCUS AREAS AND SUMMARY OF STRATEGIES AND INITIATIVES FOR THE 2015/2016 FINANCIAL YEAR.

1.0 IDENTIFY, SCOPE AND ATTRACT PRIORITY INFRASTRUCTURE PROJECTS

1.1 Coordinate and support grant funding applications to State and Federal Governments as appropriate.

In Progress – as funding programs are released.

Finalise South East Economic Infrastructure Strategy (SEEIS) through SERDA and partner stakeholders and agencies.

Completed – SEEIS finalised August 2015 and delivered to State Cabinet October 2015.

1.2 Irrigation

Assess the supporting infrastructure to maximise benefits of the irrigation scheme e.g. land zoning, power availability, labour availability, water, waste, transport.

In Progress – incorporated into 20 year Land Supply Strategy to be completed in 2016/2017.

1.3 Infrastructure Projects

Commercialise the Council land surrounding the CAC.

In Progress – MOU entered into with adjoining owner and joint Expressions of Interest undertaken for sale and development.

Reinvigorate the Sorell CBD through the continued upgrading of streetscape elements and implementation of contemporary urban design including the resealing of Gordon Street.

In Progress – through Capital Works program.

BONESSED WEEDING WORKING BEE

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1.4 Education

Scope future education requirements for the municipal area including the Trade Training Centre.

In Progress - discussion with Early Education and Care Providers around delivery of services within Sorell, formal engagement with Minister of Education and Minister of Transport on developing a strategic plan for redevelopment of Sorell School, commencement of skills demand audit project through State Growth for South East region (SERDA SEEIS key focus area).

1.5 Health & Housing

Assess Health, Housing and Aged Care development opportunities.

In Progress – incorporated into CAC Expressions of Interest project and through associated advocacy opportunities with developers.

Review with Sorell School and the Department of Education opportunities for residential infill.

In Progress – refer above.

1.6 Recreation

Review and finalise our Tracks and Trails Strategy delivering a prioritised and funded program of asset renewal and provision of upgraded and new facilities.

In Progress – incorporated into maintenance and capital budgets and through engagement with Crown Land Services to formalise existing and upgraded foreshore accessways.

Review and finalise Pembroke Park Master Plan in consultation with key stakeholders and commence implementing actions.

In Progress - @Leisure Planners engaged to provide final master plan business case feasibility and associated costings. Pembroke Park Advisory Committee and Pembroke Park users were engaged in the process.

1.7 Tourism

Explore opportunities associated with proposed airport extension.

In Progress – continued engagement with Hobart Airports Corporation, Destination Southern Tasmania and Office of Co-ordinator General.

1.8 Transport

Assist in progressing solutions to transport corridor blockages.

In Progress – formal and continued engagement with Minister of Transport and State Growth seeking practical and cost effective solutions to growing pressure points – Airport roundabout, Midway Point roundabout (and associated causeways), eastern bypass and additional overtaking opportunities on Arthur Highway.

2.0 IDENTIFY, SCOPE AND ATTRACT NEW INDUSTRY AND BUSINESSES

2.1 Continue direct communication with the Department of State Growth.

In Progress – Transport Division, Economic Development Division, Tourism Tasmania.

2.2 Progress identified industry and business opportunities from continued engagement with the shellfish industry, agriculture industry, TFGA, Tasmanian Irrigation and Hobart Airport Corporation.

In Progress – continued advocacy and engagement with above stakeholders.

KEY FOCUS AREAS AND SUMMARY OF STRATEGIES AND INITIATIVES (CONT.)

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2.3 Investigate and identify opportunities arising from NBN rollout with a continued engagement strategy with NBN Co.

In Progress – continued advocacy and engagement with NBN Co.

2.4 Implement necessary amendments to Interim Planning Scheme to address shortage of industrial land including approval of the Sorell Township Structure Plan.

Desktop audit of development sites, business demographics within the region, available and potential industrial land sites.

Completed – Interim Planning Scheme adopted and operational. Sorell Township Structure Plan review completed. 20 year Land Supply Strategy project commenced to inform Single Statewide Planning Scheme preparation in 2016-2017.

3.0 FORM ALLIANCES BETWEEN PUBLIC AND PRIVATE ORGANISATIONS TO TAKE PROJECTS AND STRATEGIES FORWARD AND ADVOCATE ACCORDINGLY.

3.1 Formalise engagement strategy with targeted public and private organisations.

In progress.

3.2 Form partnership with Department of Education to advocate for Year 11 and 12 at Sorell School.

In Progress - continued discussions with Department of Education, Sorell School and Sorell School Association. Years 11 and 12 to commence at Sorell School in 2017.

3.3 Continue to work with STCA, DST and SERDA.

In progress.

Facilitate a strategic approach to the sustainable growth of sporting clubs through targeted engagement and partnering with Sport and Recreation Tasmania.

In Progress – continued advocacy and engagement with Sport and Recreation Tasmania to deliver assistance and programs to strengthen membership and governance/finance of clubs.

Develop implementation model for SERDA South East Economic Infrastructure Strategy and utilise outcomes of Strategy to advocate for and support funding submissions.

In progress.

Form alliance with both Tas Infrastructure and the Co-ordinator General.

In progress.

Develop engagement and implementation strategy to consider amendments to Interim Planning Scheme and co-submission opportunities with community and development industry.

In Progress – assist and co-ordinate as opportunities arise through continued engagement.

3.4 Continue to explore and implement local government common services and associated opportunities to maximise operational and financial efficiencies (including common software platforms) and profitability.

In Progress – Council formally engaged through Common Service Agreement supplying / receiving services including – General Manager, Works Manager, Facilities Co-ordinator, GIS, Building Surveying, Finance, Environmental Health, Human Resources, ICT, Development Engineering, Plumbing Surveying, Animal Control, Natural Resource Management.

Investigate opportunities to maximise utilisation of CAC through appropriate partnering.

In progress – preliminary discussions with limited service providers and associated market rental assessment of CAC.


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4.0 IDENTIFY, PROMOTE AND MARKET EXISTING LOCAL BUSINESSES, EVENTS AND PLACES OF INTEREST IN THE MUNICIPAL AREA

4.1 Establish partnerships with Sorell Business Council.

In Progress – continued advocacy and engagement as appropriate.

4.2 Establish an alliance with major event holders within the municipal area with a key focus on whole area promotion.

In Progress – Discussions with Ten Days on the Island commenced. Ongoing involvement with the Falls Festival and local events including Jazz By the Sea, SBRA Art Prize and Exhibition.

4.3 Explore opportunities through Destination Southern Tasmania to make Sorell Municipality part of a Historic Trail between Richmond and Port Arthur.

In Progress – continued commitment to Destination Southern Tasmania membership and engagement in strategic work and project assistance/buy in.

5.0 SUPPORT AND ENCOURAGE COMMUNITY PARTICIPATION AND ENGAGEMENT

5.1 Support special committees and community groups.

Continued to support Special Committees and Advisory Groups of Council in undertaking their activities:

Copping Hall & Reserves Committee

Dunalley Hall Committee


Primrose Sands Hall Committee


Arts & Cultural Advisory Committee

Continued support of community groups, including users of Council’s sporting facilities, users of Council Halls, SBRA, Sorell Historic Society and Senior’s Advisory Group.

5.2 Explore opportunities to improve Council’s communications and engagement.

Continued roll out of Community Conversation Program – meetings held in Primrose Sands, Sorell, Nugent, Dodges Ferry, Midway Point, Dunalley and Copping.

5.3 Complete construction of Sorell Youth Centre and develop an operational plan.

Completed – construction completed and planning commenced for an Expression of Interest process to be undertaken for services to operate from the facility.

5.4 Advocate for the provision of Government and non-government youth services within the municipal area.

In Progress - ongoing discussion with various service providers through the Sorell Service Providers Network.

5.5 Continue to encourage the use of the newly completed Park & Ride Facility.

In Progress – bus service providers commenced utilisation of facility.


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5.6 Improve the utilisation and sustainability of Council Community Facilities in conjunction with the user groups and other stakeholders.

In Progress - implemented a more sustainable and equitable fee structure for sporting facilities and Community Halls. Supported South East Suns Netball Club and South East United Football Club in their first year of operation. Continued facilitation of Pembroke Park Advisory Committee. Promotion of Community Halls in Council publications.

Participate in voluntary amalgamation / common service modelling investigations and engage with communities as required throughout process.

In Progress – commenced project through formal engagement with DPAC, SERDA Councils and KPMG as consultant. Scheduled for completion September 2016 and public consultation through 2016/2017.

Support and encourage community organisations in the development of their events.

In Progress - In-kind and financial support provided to: Jazz By the SeaRSL Summer Festival SBRA Art Prize & Exhibition Pembroke Park Multi Sports Clinic DayCombined Churches Christmas FestivalSorell School Fair & Outdoor Cinema.

5.7 Explore opportunities for the concept/feasibility of a Sorell Cultural Precinct, with a focus on Arts, History and Heritage.

Inspiring Place engaged to develop concept plan and consultation with key stakeholders.

6.0 PROMOTE THE SORELL MUNICIPAL AREA AS A GOOD PLACE TO LIVE

6.1 Further develop streetscape concepts for Sorell, Dodges Ferry, Forcett and Dunalley.

In Progress – incorporated where appropriate with annual budget process.

6.2 Upgrade parks with a key focus on Vancouver St and Pembroke Park.

In Progress – incorporated into Capital Budgets.

6.3 Promote the sustainable management of Sorell’s natural environment.

Council’s NRM Officer worked with the various community groups including Friends of Pittwater Orielton Lagoon, Dodges Ferry Board Riders Group, Rotary Club of Sorell, Lions Club or Sorell, Green Army and Conservation Volunteers Australia in a range of environmental activities. Also supported World Wetland Day events, designed and supervised the construction of two outfall improvement projects and proclaimed a cat prohibited area within the Dodges Ferry Recreation Reserve and communicated these projects and activities with the community through various mediums.


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7.0 IDENTIFY, PROMOTE AND MARKET THE POTENTIAL USE OF THE COAST LINE OF THE MUNICIPAL AREA

7.1 Continue to partner with NRM South to house and support the local NRM resource and supplement with the Tasman Council NRM resource.

Completed.

Develop and prioritise a beach access maintenance and upgrade strategy and program.

In Progress – refer 1.6.

7.2 Establish communications and an alliance with:

Crown Land Services;

Southern Beaches Landcare/Coast Care;

Carlton Park Surf Life Saving Clubs;

Athletics South (possible triathlon events);

Recreational Fishing Groups;

Destination Southern Tasmania (tourism opportunities).

In Progress.

8.0 DEVELOP AND IMPLEMENT A LAND ACQUISITION AND DISPOSAL STRATEGY

8.1 Finalise register of Council owned land including current and possible future use.

Completed.

8.2 Develop a strategy to dispose of surplus holdings and that which considers the acquisition of land suitable for future development and investment.

In Progress – project commenced with Council and continuing through 2016/2017 considering associated land categorisation and statutory notification / disposal processes.

9.0 CONTINUE TO DELIVER VALUED CORE SERVICE

9.1 Continue to undertake all regulatory and legislative requirements.

Ongoing.

9.2 Continue to develop our people processes and systems.

In Progress.

9.3 Renew Council’s Customer Services Charter and develop a Customer Service Strategy.

Customer Service Charter has been reviewed. Customer Service Strategy in progress.


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PUBLIC HEALTH

Council will:

ü Conduct monthly immunisation clinics, annual

school immunisations and promote the need for

immunisation.

ü Ensure proper provision of on-site effluent disposal

in compliance with relevant standards.

ü Undertake routine inspection of places of public

assembly, food premises, public health risk activities

and water carters to ensure compliance with relevant

legislation.

ü Promptly investigate environmental health

complaints.

ü Maintain an effective analysis program for food,

recreational waters and general complaints.

RISK MANAGEMENT

Council will:

ü Continue to keep risk exposure to a minimum

by helping reduce injuries and potential loss.

Management practices will involve identifying risks,

analysing and treating by taking appropriate action.

ü Continue to be proactive in inspections and reviews

of roads, footpaths, written agreements with clubs/

user groups, building and financial services, town

planning and recreation functions.

ü Educate community groups on importance and

activities involved with risk management.

SOUTHERN BEACHES

26

Financial Report STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE

INCOME FOR THE YEAR ENDED 30 JUNE 2016 27

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016 28

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2016 29

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2016 30

NOTES TO THE FINANCIAL STATEMENTS 31

Note 1 Reporting entity 31

Note 2 Basis of accounting 31

Note 3 Use of judgements and estimates 31

Note 4 Functions/Activities of the Council 32

Note 5 Rates and charges 34

Note 6 Statutory fees and fines 34

Note 7 User fees 35

Note 8 Grants 35

Note 9 Contributions 36

Note 10 Interest 37

Note 11 Other income 37

Note 12 Net gain/(loss) on disposal of property,

infrastructure, plant and equipment 38

Note 13 Investment revenue from

water corporation 38

Note 14 Employee benefits 39

Note 15 Materials and services 39

Note 16 Depreciation and amortisation 40

Note 17 Finance costs 42

Note 18 Other expenses 42

Note 19 Investment in associates 43

Note 20 Investment in water corporation 44

Note 21 Cash and cash equivalents 44

Note 22 Trade and other receivables 45

Note 23 Inventories 45

Note 24 Other assets 45

Note 25 Property, infrastructure,

plant and equipment 46

Note 26 Investment property 52

Note 27 Intangible assets 52

Note 28 Trade and other payables 53

Note 29 Trust funds and deposits 53

Note 30 Provisions 54

Note 31 Interest-bearing loans and borrowings 56

Note 32 Reserves 57

Note 33 Reconciliation of cash flows

from operating activities to surplus (deficit) 59

Note 34 Reconciliation of cash

and cash equivalents 59

Note 35 Superannuation 60

Note 36 Commitments 62

Note 37 Operating leases 62

Note 38 Contingent liabilities and

contingent assets 62

Note 39 Financial Instruments 63

Note 40 Events occuring after balance date 69

Note 41 Related party transactions 69

Note 42 Special committees and other activities 69

Note 43 Significant Business Activities 70

Note 44 Management indicators 70

Note 45 Fair value measurements 73

Note 46 Material budget variations 76

Note 47 Interests in other entities 76

Note 48 Other significant accounting

policies and new accounting standards 76

Certification of the Financial Report 80

Audit Opinion 81

ST GEORGE'S SQUARE

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016

BUDGET ACTUAL ACTUAL

NOTE 2016 2016 2015

$,000 $,000 $,000

INCOME FROM CONTINUING OPERATIONS

Recurrent Income

Rates and charges 5 11,560 11,573 11,106

Statutory fees and fines 6 325 335 339

User fees 7 715 714 820

Grants 8 1,477 1,636 4,617

Contributions - cash 9 27 118 29

Interest 10 289 261 276

Other income 11 501 1,310 872

Investment revenue from water corporation 13,20 485 495 486

15,379 16,443 18,545

Capital income

Capital grants received specifically for new or upgraded assets 8 1,386 1,362 1,798

Contributions - non-monetary assets 9 - 2,099 -

Net gain/(loss) on disposal of property, infrastructure, plant and equipment

12 - (768) (3)

Recognition of Land Under Roads 25 - 15,131 -

De-recognition of Property and Infrastructure Assets 12 - (5,680) -

Share of net profits/(losses) of associates and joint ventures accounted for by the equity method

19 - 81 34

1,386 12,225 1,829

Total income from continuing operations 16,765 28,668 20,374

EXPENSES FROM CONTINUING OPERATIONS

Employee benefits 14 (5,271) (5,478) (5,010)

Materials and services 15 (4,105) (4,385) (3,895)

Depreciation and amortisation 16 (4,207) (4,639) (4,185)

Finance costs 17 (175) (173) (203)

Other expenses 18 (1,426) (1,369) (1,255)

Total expenses from continuing operations (15,184) (16,044) (14,548)

Result from continuing operations 1,581 12,624 5,826

Net result for the year 1,581 12,624 5,826

Other comprehensive income

Items that will not be reclassified to surplus or deficit

Net asset revaluation increment/(decrement) 32(a) - - 2,242

- - 2,242

Items that may be reclassified subsequently to surplus or deficit

Financial assets available for sale reserve

- Fair Value adjustment on Available for Sale Assets 20,32(b) - 417 187

- 417 187

Total Other Comprehensive Income - 417 2,429

Total Comprehensive result 1,581 13,041 8,255

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

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NOTE 2016 2015

$,000 $,000

ASSETS

Current assets

Cash and cash equivalents 21 6,680 6,548

Trade and other receivables 22 1,656 797

Inventories 23 129 49

Other assets 24 108 69

Total current assets 8,573 7,464

Non-current assets

Trade and other receivables 22 65 51

Investments in associates accounted for using the equity method 19 989 907

Investment in water corporation 20 24,566 24,149

Property, infrastructure, plant and equipment 25 207,456 195,483

Investment property 26 297 1,127

Intangible assets 27 238 230

Total non-current assets 233,611 221,946

Total assets 242,184 229,409

LIABILITIES

Current liabilities

Trade and other payables 28 880 832

Trust funds and deposits 29 465 579

Provisions 30 960 912

Interest-bearing loans and borrowings 31 163 271

Total current liabilities 2,468 2,594

Non-current liabilities

Provisions 30 114 93

Interest-bearing loans and borrowings 31 2,442 2,605

Other 28 8 4

Total non-current liabilities 2,564 2,702

Total liabilities 5,032 5,298

Net Assets 237,152 224,111

EQUITY

Accumulated surplus 85,714 73,090

Reserves 32 151,438 151,021

Total Equity 237,152 224,111


STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016

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NOTE

2016 2015

INFLOWS/(OUTFLOWS)

INFLOWS/(OUTFLOWS)

$,000 $,000

Cash flows from operating activities

Rates 11,502 11,103

Statutory fees and fines 335 339

User charges and other fines (inclusive of GST) 714 827

Grants (inclusive of GST) 1,636 4,637

Developer contributions (inclusive of GST) 75 29

Interest 265 278

Investment revenue from water corporation 486 498

Other receipts (inclusive of GST) 1,235 1,570

Net GST refund/payment 1,050 925

Payments to suppliers (inclusive of GST) (6,583) (7,336)

Payments to employees (including redundancies) (5,405) (4,941)

Finance costs (173) (195)

Net cash provided by (used in) operating activities 33 5,137 7,734

Cash flows from investing activities

Payments for property, infrastructure, plant and equipment (6,294) (6,831)

Proceeds from sale of property, infrastructure, plant and equipment 199 19

Net cash provided by (used in) investing activities (6,095) (6,812)

Cash flows from financing activities

Capital grants (inclusive of GST) 1,362 1,798

Repayment of interest bearing loans and borrowings (272) (349)

Net cash provided by (used in) financing activities 1,090 1,449

Net increase (decrease) in cash and cash equivalents 132 2,371

Cash and cash equivalents at the beginning of the financial year 6,548 4,177

Cash and cash equivalents at the end of the financial year 34 6,680 6,548

Restrictions on cash assets 21


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016

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2016 NOTE TOTAL

2016

ACCUMULATEDSURPLUS

2016

ASSETREVALUATION

RESERVE2016

FAIRVALUE

RESERVE2016

OTHERRESERVES

2016

$,000 $,000 $,000 $,000 $,000

Balance at beginning of the financial year

224,111 73,090 155,129 (5,158) 1,050

Surplus / (deficit) for the year 12,624 12,624 - - -

- Fair Value adjustment on Available for Sale Assets

20 417 - - 417 -

Net asset revaluation increment/(decrement)

32 - - - - -

Transfers between reserves - - - - -

Balance at end of the financial year 237,152 85,714 155,129 (4,741) 1,050

2015 NOTE TOTAL

2015

ACCUMULATEDSURPLUS

2015

ASSETREVALUATION

RESERVE2015

FAIRVALUE

RESERVE2015

OTHERRESERVES

2015

$,000 $,000 $,000 $,000 $,000

Balance at beginning of the financial year

215,856 67,264 152,887 (5,345) 1,050

Surplus / (deficit) for the year 5,826 5,826 - - -

- Fair Value adjustment on Available for Sale Assets

20 187 - - 187 -

Net asset revaluation increment/(decrement) reversals

32 2,242 - 2,242 - -

Balance at end of the financial year 224,111 73,090 155,129 (5,158) 1,050

The above statement should be read with the accompanying notes.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016

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NOTE 1: REPORTING ENTITY

(a) The Sorell Council was established in 1862 and is a body

corporate with perpetual succession and a common seal.

Council's main office is located at 47 Cole Street, Sorell,

Tasmania.

(b) The purpose of the Council is to:

provide for health, safety and welfare of the community;

to represent and promote the interests of the community;

provide for the peace, order and good government in the

municipality.

NOTE 2: BASIS OF ACCOUNTING

These financial statements are a general purpose financial

report that consists of a Statement of Profit and Loss and

Other Comprehensive Income, Statement of Financial Position,

Statement of Changes in Equity, Statement of Cash Flows,

and notes accompanying these financial statements. The

general purpose financial report complies with Australian

Accounting Standards, other authoritative pronouncements

of the Australian Accounting Standards Board, and the Local

Government Act 1993 (LGA1993) (as amended).Council has

determined that it does not have profit generation as a prime

objective. Consequently, where appropriate, Council has

elected to apply options and exemptions within accounting

standards that are applicable to not-for-profit entities.

This financial report has been prepared on the accrual and

going concern basis.

All amounts are presented in Australian dollars and unless

stated, have been rounded to the nearest thousand dollars.

This financial report has been prepared under the historical

cost convention, except where specifically stated in notes 20,

25, 26, 30, 31, and 48(d).

Unless otherwise stated, all accounting policies are consistent

with those applied in the prior year. Where appropriate,

comparative figures have been amended to accord with

current presentation, and disclosure has been made of any

material changes to comparatives.

All entities controlled by Council that have material assets or

liabilities, such as Special Committees of Management, and

material subsidiaries or joint ventures, have been included in

this financial report.

All transactions between these entities and Council have been

eliminated in full.

NOTE 3: USE OF JUDGEMENTS AND ESTIMATES

Judgements and Assumptions

In the application of Australian Accounting Standards, Council

is required to make judgements, estimates and assumptions

about carrying values of assets and liabilities that are not

readily apparent from other sources. The estimates and

associated assumptions are based on historical experience

and various other factors that are believed to be reasonable

under the circumstances, the results of which form the basis of

making the judgements. Actual results may differ from these

estimates.

The estimates and underlying assumptions are reviewed

on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimate is revised if the

revision affects only that period or in the period of the revision

and future periods if the revision affects both current and

future periods.

Council has made no assumptions concerning the future that

may cause a material adjustment to the carrying amounts

of assets and liabilities within the next reporting period.

Judgements made by Council that have significant effects

on the financial report are disclosed in the relevant notes as

follows:

Employee entitlements

Assumptions are utilised in the determination of Council’s

employee entitlement provisions. These assumptions are

discussed in note 30.

Defined benefit superannuation fund obligations

Actuarial assumptions are utilised in the determination of

Council’s defined benefit superannuation fund obligations. These

assumptions are discussed in note 35.

Fair value of property, plant & equipment

Assumptions and judgements are utilised in determining the

fair value of Council’s property, plant and equipment including

useful lives and depreciation rates. These assumptions are

discussed in note 25.

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016

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NOTE 4: FUNCTIONS/ACTIVITIES OF THE COUNCIL

(a) Revenue, expenditure and assets attributable to each function as categorised in (c) below:

GRANTS OTHERTOTAL

REVENUETOTAL

EXPENDITURESURPLUS/

(DEFICIT) ASSETS

Government and administration

2015-2016 1,186 22,620 23,806 7,456 16,350 69,652

2014-2015 2,720 10,865 13,585 8,649 4,936 75,775

Roads, streets and bridges

2015-2016 1,277 8 1,285 4,466 (3,181) 148,004

2014-2015 1,832 - 1,832 3,894 (2,062) 131,642

Drainage

2015-2016 - - - - - 16,698

2014-2015 - - - - - 16,455

Waste management

2015-2016 - 1,937 1,937 1,227 710 1,356

2014-2015 1,815 1,382 3,197 - 3,197 1,408

Environmental health

2015-2016 10 249 259 655 (396) -

2014-2015 - 196 196 395 (199) -

Planning services

2015-2016 - 205 205 348 (143) -

2014-2015 - 194 194 383 (189) -

Building control

2015-2016 - 285 285 366 (81) -

2014-2015 - 272 272 281 (9) -

Community amenities

2015-2016 1 54 55 722 (667) 6,474

2014-2015 25 230 255 200 55 4,129

Community services

2015-2016 525 310 835 803 32 -

2014-2015 23 819 842 746 96 -

TOTAL

2015-2016 2,999 25,668 28,667 16,043 12,624 242,184

2014-2015 6,415 13,958 20,373 14,548 5,826 229,409

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(b) Reconciliation of Assets from note 4(a) with the Statement

of Financial Position at 30 June:

2016 2015

Current assets 8,573 7,464

Non-current assets 233,611 221,946

242,184 229,409

(c) Governance and administration

Operation and maintenance of council chambers,

administration offices, and councillors.

Roads, streets and bridges

Construction, maintenance and cleaning of road, streets,

footpaths, bridges, parking facilities and street lighting.

Drainage

Operation and maintenance of open or deep drainage systems

in urban areas, including the lining of piping of creeks but

excludes drainage associated with road works, flood mitigation

and agriculture.

Waste Management

Collection, handling, processing and disposal of all waste

materials.

Environmental Health/Environmental Management

Environmental Health includes disease control, food

surveillance, public-use building standards, health education

and promotion, water quality, workplace safety and cemeteries.

Environmental management includes strategies and programs

for the protection of the environment and regulations of

activities affecting the environment.

Planning Services

Administration of the town planning scheme, subdivisions and

urban and rural renewal programs.

Building control

The development and maintenance of building constructions

standards.

Community amenities

Operation and maintenance of housing for aged persons and

persons of limited means, Civic Centre, Council halls (excluding

indoor sports complexes).

Community services

Administration and operation of dog registration, operation

of pounds, control of straying stock, and noxious weeds.

Operation of the Child Care Centre, operation and support

of the performing arts, museum and the presentation of

festivals. Community Development which provides for the

implementation of a process by which strategies and plans

can be developed so that the Council can fulfil their general

responsibility for enhancing the quality of life of the whole

community.

Recreation facilities

Operation and maintenance of sporting facilities (includes

swimming pools, active and passive recreation and recreation

centres).

Economic development

Maintenance and marketing of tourist facilities, property

development and operation of caravan parks.

Other - not attributable

Rates and charges and work not attributed elsewhere.

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NOTE 5 RATES AND CHARGES

Council uses Adjusted Capital Value as the basis of valuation of all properties within the municipality. The Adjusted Capital Value of a property is its Capital Value with an adjustment factor set for periods between revaluations, as determined by the Valuer General.

The valuation base used to calculate general rates for 2015-16 was $2,367 million (2014-15 $2,303 million). The 2015-16 general rate is a two tiered rating system with 41% (2014-15 42%) of the general rate generated by a fixed rate of $440.13 (2014-15 $434.48) and remaining by a rate of $0.002 (2014-15 $0.002) of the ACV, varied based on land use.

Rate Revenue 9,957 9,541

Fire Levy 410 378

Garbage charge 1,873 1,810

Less: Remissions (667) (623)

Total rates and charges 11,573 11,106

The date of the latest general revaluation of land for rating purposes within the municipality was 1 July 2010, and the valuation was first applied in the rating year commencing 1 July 2011.

ACCOUNTING POLICY

Rates and charges income

Rate income is recognised as revenue when Council obtains control over the assets comprising the receipt.

Control over assets acquired from rates is obtained at the commencement of the rating year as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of the rates. A provision for impairment on rates has not been established as unpaid rates represents a charge against the rateable property that will be recovered when the property is next sold.

NOTE 6 STATUTORY FEES AND FINES

Infringements and costs 20 22

Town planning fees 174 196

Land information certificates 139 118

Permits 2 3

Total statutory fees and fines 335 339

ACCOUNTING POLICY

Statutory fee and fine income

Fees and fines (including parking fees and fines) are recognised as revenue when the service has been provided, the payment is received, or when the penalty has been applied, whichever first occurs. A provision for impairment is recognised when collection in full is no longer probable.

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NOTE 7 USER FEES

Animal 75 84

Building services fees 108 135

Caravan licenses 17 21

Child care 308 311

Fire abatement 6 12

Health 30 44

Recreational vehicles 4 4

Kennel Licences 2 -

Plumbing Application and Inspection Fees 160 163

Other fees and charges 4 46

Total user fees 714 820

Ageing analysis of contractual receivables

Please refer to note 39(c) for the ageing analysis of contractual receivables.

ACCOUNTING POLICY

User fee income

Fee income is recognised as revenue when the service has been provided, or the payment is received, whichever first occurs. A provision for impairment is recognised when collection in full is no longer probable.

NOTE 8 GRANTS

Grants were received in respect of the following:

Summary of grants

Federally funded grants 2,406 4,714

State funded grants 79 678

Other 513 1,024

Total 2,998 6,416

Grants - Recurrent

Commonwealth Government Financial Assistance Grants - General Purpose 558 2,050

Commonwealth Government Financial Assistance Grants - Roads 461 1,406

Commonwealth Government - training subsidy 10 10

Commonwealth Government - sustainability children 53 48

Commonwealth Government - child care benefit 461 443

Commonwealth Government - health 3 2

Commonwealth Government - other - 168

Transport 12 12

Bushfire recovery 65 40

Other 13 438

Total recurrent grants 1,636 4,617

The Australian Commonwealth Government provides Financial Assistance Grants to Council for general purpose use and the provision of local roads. In 2014-15 the Commonwealth made early payment of the two quarterly instalments for the following year. In accordance with AASB1004 Contributions, Council recognises these grants as revenue when it receives the funds and obtains control. The early receipt of instalments resulted in Commonwealth Government Financial Assistance Grants being above that originally budgeted in 2014-15 by $1.144m. This has impacted the Statement of Profit or Loss and Other Comprehensive Income resulting in the Surplus being higher in 2014-15 by $1.144m.

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NOTE 8 GRANTS (CONT.)

Capital grants received specifically for new or upgraded assets

Commonwealth Government - roads to recovery 816 286

Commonwealth Government - culture, sport and recreation 50 310

Other 496 1,202

Total capital grants 1,362 1,798

Conditions on grants

Non-reciprocal grants recognised as revenue during the year that were obtained on condition that they be expended in a specified manner that had not occurred at balance date were:

Community Services - 288

Total - 288

Net increase (decrease) in non-reciprocal grant revenues for the year: - 288

ACCOUNTING POLICY

Grant income - operating and capital

Grant income is recognised as revenue when Council obtains control over the assets comprising the receipt.

Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and are valued at their fair value at the date of transfer.

Where grants recognised as revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at balance date, the unused grant is also disclosed. The note also discloses the amount of unused grant or contribution from prior years that was expended on Council’s operations during the current year.

A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not been provided at balance date and conditions include a requirement to refund unused contributions. Revenue is then recognised as the various performance obligations under an agreement are fulfilled. Council does not currently have any reciprocal grants

Unreceived contributions over which Council has control are recognised as receivables.

NOTE 9 CONTRIBUTIONS

(a) Cash

Roads 30 -

Stormwater 5 -

Car Parking - 25

Parks, open space and streetscapes 27 4

Other 56 -

Total 118 29

(b) Non-monetary assets

Roads 1,755 -

Kerb & Channel 188 -

Footpaths and cycleways 156 -

Total 2,099 -

Total contributions 2,217 29

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ACCOUNTING POLICY

Contribution income

Contributions are recognised as revenue when Council obtains control over the assets comprising the receipt.

Revenue is recognised when Council obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to Council and the amount of the contribution can be measured reliably. Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and are valued at their fair value at the date of transfer.

Where contributions recognised as revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at balance date, the unused contribution is also disclosed. The note also discloses the amount of unused contribution from prior years that was expended on Council’s operations during the current year.

Unreceived contributions over which Council has control are recognised as receivables.

Non-monetary contributions (including developer contributions) with a value in excess of the recognition thresholds, are recognised as revenue and as non-current assets.

NOTE 10 INTEREST

Interest on rates 100 108

Interest on cash and cash equivalents 161 168

Total 261 276

ACCOUNTING POLICY

Interest income

Interest is recognised progressively as it is earned.

NOTE 11 OTHER INCOME

Investment property rental 67 55

Copping Refuse land rental 63 53

Leased properties rental income 83 108

Donation received 197 228

Diesel fuel rebate 10 9

Distribution from Liquidators - Lehmann Brothers 263 -

Workers Compensation Reimbursements 142 67

External Labour Hire Recoveries 194 30

Other 291 322

Total other income 1,310 872

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ACCOUNTING POLICY

Rental income

Rents are recognised as revenue when the payment is due or the payment is received, whichever first occurs. Rental payments received in advance are recognised as a prepayment until they are due.

Donations Received

Donations are recognised as revenue when the payment is received.

Operating leases as lessor

Council is a lessor and enters into agreements with a number of lessees. These include commercial and non-commercial agreements.

Where leases are non-commercial agreements, these are generally with not for profit, such as sporting, organisations. In these cases subsidised or peppercorn rents are charged because Council recognises part of its role is community service and community support. In these situations, Council records lease revenue on an accruals basis and records the associated properties as part of land and buildings within property, plant and equipment. Buildings are recognised at depreciated replacement cost.

Where leases are commercial agreements, but properties leased are part of properties predominantly used by Council for its own purposes, Council records lease revenue on an accruals basis and records the associated properties as part of land and buildings within property, plant and equipment. Buildings are recognised at depreciated replacement cost.

NOTE 12 NET GAIN/(LOSS) ON DISPOSAL OF PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT

Proceeds of sale 998 17

Write down value of assets disposed (1,766) (20)

Total (768) (3)

De-recognition of Property and Infrastructure Assets

Buildings (2,091) -

Roads (1,623) -

Bulk Earthworks (1,966) -

(5,680) -

ACCOUNTING POLICY

Gains and losses on asset disposals

The profit or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer.

De-recognition of Property and Infrastructure Assets

Council regularly reviews the assets recognised on the balance sheet and where it identifies that assets do not meet the recognition criteria they are derecognised in accordance with AASB 116

NOTE 13 INVESTMENT REVENUE FROM WATER CORPORATION

Dividend revenue received 330 358

Tax equivalent received 126 90

Guarantee fee received 39 38

Total investment revenue from water corporation 495 486

ACCOUNTING POLICY

Dividend and other revenue

Dividend revenue is recognised when Council's right to receive payment is established.

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NOTE 14 EMPLOYEE BENEFITS

Wages and salaries 4,041 3,961

Workers compensation 138 121

Annual leave and long service leave 445 346

Superannuation 649 543

Fringe benefits tax 57 25

Employee associated costs 51 28

Recruitment costs 11 8

Training costs 58 27

Payroll tax 266 238

5,716 5,298

Less amounts capitalised (238) (288)

Total employee benefits 5,478 5,010

ACCOUNTING POLICY

Employee benefits

Expenses are recognised in the Statement of Profit or Loss and Other Comprehensive Income when a decrease in future economic benefits related to a decrease in asset or an increase of a liability has arisen that can be measured reliably.

Employee benefits include, where applicable, entitlements to wages and salaries, annual leave, sick leave, long service leave, superannuation and any other post-employment benefits.

NOTE 15 MATERIALS AND SERVICES

Computers and associated costs 102 166

Consultants 181 445

Contracts 114 33

Fire reduction - 2

Legal 86 110

Maintenance 1,438 1,092

Materials 281 291

Utilities 406 273

Valuation costs 62 40

Waste 1,212 1,299

Other 503 143

Total materials and services 4,385 3,895

ACCOUNTING POLICY

Materials and services expense


Routine maintenance, repair costs, and minor renewal costs are expensed as incurred. Where the repair relates to the replacement of a component of an asset and the cost exceeds the capitalisation threshold the cost is capitalised and depreciated. The carrying value of the replaced asset is expensed.

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NOTE 16 DEPRECIATION AND AMORTISATION

Property

Land improvements 229 168

Buildings

Buildings (including Marine Structures) 560 242

Leasehold improvements 25 24

Plant and Equipment

Plant, machinery and equipment 343 332

Fixtures, fittings and furniture 151 152

Computers and telecommunications 123 139

Infrastructure

Roads 2,536 2,385

Bridges 165 146

Footpaths and cycleways 122 124

Kerb and channel 75 133

Waste 52 52

Stormwater 258 256

Intangible assets

Intangible assets - 32

Total depreciation and amortisation 4,639 4,185

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ACCOUNTING POLICY

Depreciation and amortisation expense


Buildings, land improvements, plant and equipment, infrastructure and other assets having limited useful lives are systematically depreciated over their useful lives to Council in a manner which reflects consumption of the service potential embodied in those assets. Estimates of remaining useful lives and residual values are made on a regular basis with major asset classes reassessed annually. Depreciation rates and methods are reviewed annually.

Where assets have separate identifiable components that are subject to regular replacement, these components are assigned distinct useful lives and remaining values and a separate depreciation rate is determined for each component.

Land and road earthwork assets are not depreciated on the basis that they are assessed as not having a limited useful life.

Straight line depreciation is charged based on the residual useful life as determined each year.

Major depreciation periods used are listed below and are consistent with the prior year unless otherwise stated:

Period

Land improvements 10-50 years

Buildings

buildings 30-100 years

building improvements 15-100 years

Leasehold improvements

leasehold building improvements 15-30 years

Plant and Equipment

plant, machinery and equipment 3-15 years

fixtures, fittings and furniture 3-30 years

computers and telecommunications 3-10 years

Roads

road pavements and seals 15-30 years

road substructure 100 years

road formation and earthworks non-depreciable

road kerb, channel and minor culverts 60 years

Bridges

bridges deck 20-80 years

bridges substructure 20-80 years

Other Infrastructure

footpaths and cycleways 10-50 years

drainage 40-100 years

waste management 10-50 years

parks, open space and streetscapes 15-30 years

off street car parks 15-30 years

Intangible assets

intangible assets 5 years

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NOTE 17 FINANCE COSTS

Bank overdraft charges

Interest - Borrowings 173 203

Total finance costs 173 203

ACCOUNTING POLICY

Finance expense


Finance costs are recognised as an expense in the period in which they are incurred, except where they are capitalised as part of a qualifying asset constructed by Council. Where specific borrowings are obtained for the purpose of specific asset acquisition, the weighted average interest rate applicable to borrowings at balance date, excluding borrowings associated with superannuation, is used to determine the borrowing costs to be capitalised. No borrowing costs were capitalised during the period, ($0).

Borrowing costs include interest on bank overdrafts, interest on borrowings, unwinding of discounts, and finance lease charges.

NOTE 18 OTHER EXPENSES

External auditors' remuneration (Tasmanian Audit Office) 40 18

Internal auditors' remuneration (Audit Panel Members) 2 -

Councillors' allowances 178 173

Other

Bad debts 24 1

Children services expenses 32 28

Collection costs 46 31

Community development 6 17

Donations section 77 56 47

Government fire contributions 388 360

Insurance 192 184

Land tax 61 52

Operating leases 26 19

Other 318 325

Total other expenses 1,369 1,255

Audit Fees for the 2015/16 financial year were $23,650 with the balance representing accrual movements

ACCOUNTING POLICY

Other expenses


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NOTE 19 INVESTMENT IN ASSOCIATES

The Copping Refuse Disposal Site Joint Authority (Trading as Southern Waste Solutions) was established under section 30 of the Local Government Act 1993 by the Sorell Council, Clarence City Council and Tasman Council. Kingborough Council joined the authority in 2009. The Copping Refuse Disposal Site Joint Authroity's function is to promote and manage a putrescible landfill disposal site which conforms to its Development Proposal and Environmetnal Management Plan (DP&EMP) and permit conditions.

Investments in associates accounted for by the equity method are:

- Waste - Southern Waste Solutions 989 907

Total 989 907

Waste - Southern Waste Solutions

BackgroundSorell Council in financial year ending 30 June 2009 maintained an ownership interest of 30%, however as a result of the buyout of equity from Kingborough Council in July 2009, Council now maintains an ownership interest of 24%

Council's share of accumulated surplus(deficit)

Council's share of accumulated surplus(deficit) at start of year 616 597

Reported surplus (deficit) for year 81 19

Council's share of accumulated surplus(deficit) at end of year 698 616

Council's share of reserves

Council's share of reserves at start of year 150 150

Council's share of reserves at end of year 150 150

Movement in carrying value of specific investment

Carrying value of investment at start of year 907 873

Share of surplus (deficit) for year 81 19

Equity Injection - 15

Carrying value of investment at end of year 989 907

ACCOUNTING POLICY

Accounting for investments in associates

Council's investment in associates is accounted for by the equity method as Council has the ability to influence rather than control the operations of the entities. The investment is initially recorded at the cost of acquisition and adjusted thereafter for post-acquisition changes in Council's share of the net assets of the entities. Council's share of the financial result of the entities is recognised in the Statement of Profit or Loss and Other Comprehensive Income.

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NOTE 20 INVESTMENT IN WATER CORPORATION

Opening Balance 24,149 23,962

Fair Value adjustments on Available-for-Sale Assets 417 187

Total investment in water corporation 24,566 24,149

Council has derived returns from the water corporation as disclosed in note 13.

A State-wide water and sewerage corporation trading as "TasWater", commenced on 1 July 2013 in accordance with the Water and Sewerage Corporation Act 2012. TasWater took over the water and sewerage services and assets previously operated by Ben Lomon Water, Cradle Mountain Water and Southern Water.

ACCOUNTING POLICY

Investment assets

Council's investment in TasWater is valued at its fair value at balance date. Fair value was determined by using Council's ownership interest against the water corporation's net asset value at balance date. At 30 June 2016, Council held a 1.56% (2015:1.56%) ownership interest in TasWater which is based on Schedule 2 of the Corporation's Constitution which reflects the council's voting rights. Any unrealised gains and losses are recognised through the Statement of Profit or Loss and Other Comprehensive Income to a Financial assets available for sale Reserve each year (refer note 32).

NOTE 21 CASH AND CASH EQUIVALENTS

Cash on hand 3 2

Cash at bank 334 1,382

Term Deposit 6,343 5,164

Total cash and cash equivalents 6,680 6,548

Council's cash and cash equivalents are subject to a number of internal and external restrictions that limit amounts available for discretionary or future use. These include:

- Trust funds and deposits (Note 29) 465 579

- Leave provisions (Note 30) 1,074 1,005

Restricted funds 1,539 1,584

Total unrestricted cash and cash equivalents 5,141 4,964

The restrictions on the funds above are detailed in the respective notes

ACCOUNTING POLICY

Cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand, deposits at call, and other highly liquid investments with original maturities of three months or less, net of outstanding bank overdrafts.

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NOTE 22 TRADE AND OTHER RECEIVABLES

Current

Rates debtors 222 151

Other debtors 1,421 496

Net GST receivable 5 143

MPIA debtors 8 7

Total 1,656 797

Non-current

MPIA debtors 38 51

Long Term Recoverable Property Debt 27 -

Total 65 51

Total trade and other receivables 1,721 848

ACCOUNTING POLICY

Trade and other receivables

Receivables are carried at amortised cost using the effective interest rate method. A provision for impairment is recognised when there is objective evidence that an impairment loss has occurred.

NOTE 23 INVENTORIES

Inventories held for distribution 129 47

Inventories held for sale - 2

Total inventories 129 49

ACCOUNTING POLICY

Inventories

Inventories held for distribution are measured at cost adjusted when applicable for any loss of service potential. Other inventories are measured at the lower of cost and net realisable value.

Where inventories are acquired at no cost, or for nominal consideration, the cost shall be the current replacement cost as at the date of acquisition.

NOTE 24 OTHER ASSETS

Current

Prepayments 51 52

Accrued income 57 17

Total 108 69

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NOTE 25 PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT

Summary

at cost 20,268 13,722

Less accumulated depreciation (4,285) (3,936)

15,983 9,786

at fair value as at 30 June 291,606 286,242


191,473 185,697

Total 207,456 195,483

Property

Land

at cost as at 30 June 592 353


11,267 11,026

Land under roads

at fair value at 30 June 15,408 347

15,408 347

Land improvements

at cost as at 30 June 2,763 431

at fair value at 30 June 4,354 4,355

Less accumulated depreciation (886) (657)

6,231 4,129

Total Land 32,906 15,502

Buildings




19,538 20,684

Leasehold improvements

at fair value as at 30 June 545 545

Less accumulated amortisation (165) (140)

380 405

Total Buildings 19,918 21,089

Total Property 52,824 36,591

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NOTE 25 PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT (CONT.)

Plant and Equipment

Plant, machinery and equipment

at cost as at 30 June 3,423 3,249


1,774 1,676

Fixtures, fittings and furniture



1,509 1,572

Computers and telecommunications



351 356

Total Plant and Equipment 3,634 3,604

Infrastructure

Roads




55,928 56,905

Bridges




6,262 6,427

Footpaths and cycleways




3,217 2,817

Kerb and channel

at cost as at 30 June 271 -



2,898 2,702

Stormwater




16,680 16,455

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Waste



1,356 1,408

Bulk earthworks

at cost as at 30 June 662 -


63,902 65,206

Total Infrastructure 150,244 151,920

Works in progress

Buildings at cost 329 3,178

Office equipment, furnishings and fittings at cost 20 99

Road Transport Infrastructure at cost 344 50

Stormwater at cost 18 41

Bridges at cost 43 -

Total Works in progress 754 3,368

Total property, infrastructure, plant and equipment 207,456 195,483

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Reconciliation of property, plant and equipment and infrastructure

2016

BALANCE AT BEGINNING

OF FINANCIAL YEAR

ACQUISITION OF ASSETS

REVALUATION INCREMENTS

(DECREMENTS)(NOTE 32)

DEPRECIATION AND

AMORTISATION(NOTE 16)

WRITTEN DOWN VALUE

OF DISPOSALS

IMPAIRMENT LOSSES

RECOGNISED IN PROFIT OR

LOSS TRANSFERS

BALANCE AT END OF FINANCIAL

YEAR

(a)

$,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000

Property

land 11,026 - - - - - 241 11,267

land under roads 346 15,131 - - (70) - 1 15,408

land improvements 4,129 - - (229) - - 2,331 6,231

Total land 15,502 15,131 - (229) 70 - 2,573 32,906

buildings 20,684 - - (560) (2,091) - 1,505 19,538

leasehold improvements 405 - - (25) - - - 380

Total buildings 21,089 - - (585) (2,091) - 1,505 19,918

Total property 36,591 15,131 - (813) (2,161) - 4,078 52,824

Plant and Equipment

plant, machinery and equipment

1,677 - - (343) (262) - 702 1,774

fixtures, fittings and furniture

1,572 - - (151) - - 88 1,509

computers and telecommunications

356 - - (123) - - 118 351

Total plant and equipment 3,605 - - (617) 262 - 908 3,634

Infrastructure

roads 56,906 1,755 - (2,536) (2,230) - 2,033 55,928

bridges 6,427 - - (165) - - - 6,262

footpaths and cycleways 2,817 156 - (122) - - 366 3,217

kerb and channel 2,702 188 - (75) - - 83 2,898

stormwater 16,454 - - (258) - - 484 16,680

waste 1,409 - - (52) - - (1) 1,356

bulk earthworks 65,205 - - - (1,966) - 663 63,902

Total infrastructure 151,920 2,099 - (3,208) (4,196) - 3,628 150,244

Works in progress

buildings 3,178 1,717 - - - - (4,566) 329

office equipment 99 613 - - - - (692) 20

roads 50 3,167 - - - - (2,873) 344

bridges - 43 - - - - - 43

stormwater 41 460 - - - - (483) 18

Total works in progress 3,368 6,000 - - - - (8,614) 754

Total property, plant and equipment, infrastructure

195,483 23,230 - (4,639) (6,619) - - 207,456

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Reconciliation of property, plant and equipment and infrastructure

2015


OF FINANCIAL YEAR

ACQUISITION OF ASSETS

REVALUATION INCREMENTS

(DECREMENTS)(NOTE 32)

DEPRECIATION AND

AMORTISATION(NOTE 16)

WRITTEN DOWN VALUE OF

DISPOSALS

IMPAIRMENT LOSSES

RECOGNISED IN PROFIT OR LOSS TRANSFERS

BALANCE AT END OF FINANCIAL

YEAR

(a)

$,000 $,000 $,000 $,000 $,000 $,000 $,000 $,000

Property

land 11,052 - - - - - (26) 11,026

land under roads 346 - - - - - - 346

land improvements 3,841 431 - (168) - - 25 4,129

Total land 15,239 431 - (168) - - (1) 15,501

Buildings 8,623 223 11,278 (242) - - 802 20,684

leasehold improvements 429 - - (24) - - - 405

Total buildings 9,052 223 11,278 (266) - - 802 21,089

Total property 24,291 654 11,278 (434) - - 801 36,590

Plant and Equipment

plant, machinery and equipment

1,704 156 - (332) (21) - 170 1,677

fixtures, fittings and furniture

1,722 2 - (152) - - - 1,572

computers and telecommunications

465 30 - (139) - - - 356

Total plant and equipment 3,891 188 - (623) (21) - 170 3,605

Infrastructure

roads 102,618 - (45,329) (2,385) - - 2,002 56,906

bridges 6,217 - - (146) - - 356 6,427

footpaths and cycleways 3,719 71 (893) (124) - - 44 2,817

kerb and channel 3,891 - (1,218) (133) - - 162 2,702

stormwater 16,640 - - (256) - - 70 16,454

waste 1,461 - - (52) - - - 1,409

bulk earthworks 26,745 56 38,404 - - - - 65,205

Total infrastructure 161,291 127 (9,036) (3,096) - - 2,634 151,920

Works in progress

buildings 764 3,216 - - - - (802) 3,178

office equipment 1 268 - - - - (170) 99

roads 99 2,514 - - - - (2,563) 50

stormwater 115 (4) - - - - (70) 41

Total works in progress 979 5,994 - - - - (3,605) 3,368

Total property, plant and equipment, infrastructure

190,452 6,963 2,242 (4,153) (21) - - 195,483

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ACCOUNTING POLICY

Recognition and measurement of assets

Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition.

Property, infrastructure, plant and equipment received in the form of contributions, are recognised as assets and revenues at fair value by Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair value is the price that would be received to sell the asset in an orderly transaction between market participants at the measurement date.

Where assets are constructed by Council, cost includes all materials used in construction, direct labour, borrowing costs incurred during construction, and an appropriate share of directly attributable variable and fixed overheads.

The following classes of assets have been recognised. In accordance with Council's policy, the threshold limits detailed below have applied when recognising assets within an applicable asset class and unless otherwise stated are consistent with the prior year:

Threshold

$,000

Plant, Equipment and Intangibles 5

All other assets 10

Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment, furniture, and fixtures and fittings, are measured at their fair value in accordance with AASB 116 Property, Plant & Equipment and AASB 13 Fair Value Measurement. At balance date, Council reviewed the carrying value of the individual classes of assets measured at fair value to ensure that each asset class materially approximated its fair value. Where the carrying value materially differed from the fair value at balance date the class of asset was revalued.

In addition, Council undertakes a formal revaluation of land, buildings, and infrastructure assets on a regular basis to ensure valuations represent fair value. The valuation is performed either by experienced Council officers or independent experts.

Fair value valuations are determined in accordance with a valuation hierarchy. Changes to the valuation hierarchy will only occur if an external change in the restrictions or limitations of use on an asset result in changes to the permissible or practical highest and best use of the asset.

Where the assets are revalued, the revaluation increments are credited directly to the asset revaluation reserve except to the extent that an increment reverses a prior year decrement for that class of asset that had been recognised as an expense in which case the increment is recognised as revenue up to the amount of the expense. Revaluation decrements are recognised as an expense except where prior increments are included in the asset revaluation surplus for that class of asset in which case the decrement is taken to the reserve to the extent of the remaining increments. Within the same class of assets, revaluation increments and decrements within the year are offset.

Impairment of assets

Impairment losses are recognised in the statement of comprehensive income under other expenses.

Reversals of impairment losses are recognised in the statement of comprehensive income under other revenue.

Land under roads

Council recognised the value of land under roads it controls at fair value. This valuation was undertaken at 30 June 2016 and was based on land rates as provided by the State Valuer General.


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2016 2015

$,000 $,000

NOTE 26 INVESTMENT PROPERTY

Balance at beginning of financial year 1,127 1,127

Disposals (830) -

Balance at end of financial year 297 1,127

ACCOUNTING POLICY

Investment Property

Investment property is held to generate long-term rental yields. Investment property is measured initially at cost, including transaction costs. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefit in excess of the originally assessed performance of the asset will flow to Council. Subsequent to initial recognition at cost, investment property is carried at fair value, determined annually by independent valuers. Changes to fair value are recorded in the Statement of Profit or Loss and Other Comprehensive Income in the period that they arise. Rental income from the leasing of investment properties is recognised in the Statement of Comprehensive Income on a straight line basis over the lease term.

Investments, other than investments in associates and property, are measured at cost.

NOTE 27 INTANGIBLE ASSETS

Municipal revaluation 8 -

Water rights 230 230

Total intangible assets 238 230

Reconciliation of intangible assets MUNICIPAL REVALUATION

WATER RIGHTS

ROAD REVALUATION TOTAL

$,000 $,000 $,000 $,000

Gross carrying amount

Balance at 1 July 2014 160 23 70 253

Additions from internal developments - 207 - 207

Balance at 1 July 2015 160 230 70 460

Other 8 - - 8

Balance at 1 July 2016 168 230 70 468

Accumulated amortisation and impairment

Balance at 1 July 2014 128 - 70 198

Amortisation expense 32 - - 32

Balance at 1 July 2015 160 - 70 230

Amortisation expense - - - -

Balance at 1 July 2016 160 - 70 230

Net book value at 30 June 2015 - 230 - 230

Net book value at 30 June 2016 8 230 - 238

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2016 2015

$,000 $,000

ACCOUNTING POLICY

Intangible assets

Intangible assets with finite lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

The estimated useful lives for current and comparative periods are as follows:

Municipal Revaluation 5 years

Water Rights 5 years

Roads Revaluation 5 years

NOTE 28 TRADE AND OTHER PAYABLES

Current

Goods and services 338 123

Accrued expenses 458 674

Other 84 35

Total 880 832

Non-current

Other 8 4

Total 8 4

Total trade and other payables 888 836

NOTE 29 TRUST FUNDS AND DEPOSITS

Refundable application deposits 290 318

Retention amounts 175 112

Other refundable deposits - 149

Total trust funds and deposits 465 579

ACCOUNTING POLICY

Tender and other deposits

Amounts received as tender deposits and retention amounts controlled by Council are recognised as Trust funds until they are returned or forfeited.

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NOTE 30 PROVISIONS

ANNUAL LEAVE

LONG SERVICE LEAVE RDO'S ADO'S TOTAL

$,000 $,000 $,000 $,000 $,000

2016

Balance at beginning of the financial year 424 557 24 - 1,005

Additional provisions 338 162 48 19 567

Amounts used (367) (95) (36) - (498)

Balance at the end of the financial year 395 624 36 19 1,074

2015

Balance at beginning of the financial year 382 571 20 - 973

Additional provisions 209 99 87 - 395

Amounts used (167) (113) (83) - (363)

Balance at the end of the financial year 424 557 24 - 1,005

2016 2015

$,000 $,000

(a) Employee benefits

(i) Current

Annual leave 395 424

Long service leave 510 464

Rostered days off 36 24

Other (Accrued day off) 19 -

960 912

(ii) Non-current

Long service leave 114 93

114 93

Aggregate carrying amount of employee benefits:

Current 960 912

Non-current 114 93

1,074 1,005

The following assumptions were adopted in measuring the present value of employee benefits:

Weighted average increase in employee costs 2.50% 3.40%

Weighted average discount rates 1.72% 3.00%

Weighted average settlement period 12 12

(iii) Current

All annual leave and the long service leave entitlements representing 10 or more years of continuous service

- Short-term employee benefits, that fall due within 12 months after the end of the period measured at nominal value

960 912

960 912

(iv) Non-current

Long service leave representing less than 10 years of continuous service measured at present value 114 93

(v) Employee Numbers 67 65

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ACCOUNTING POLICY

Employee benefits

i) Short term obligations

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected

to be wholly settled within 12 months after the end of the period in which the employees render the related service are

recognised in respect of employees' services up to the end of the reporting period and are measured at the amounts

expected to be paid when the liabilities are settled. The liability for annual leave is recognised in the provision for

employee benefits. All other short-term employee benefit obligations are presented as payables.

ii) Other long term employee benefit obligations

The liability for long service leave and annual leave which is not expected to be wholly settled within 12 months after

the end of the period in which the employees render the related service is recognised in the provision for employee

benefits and measured as the present value of expected future payments to be made in respect of services provided

by employees up to the end of the reporting period 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 at the end of the reporting period on national government bonds with

terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

The obligations are presented as current liabilities in the statement of financial position if the entity does not have an

unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the

actual settlement is expected to occur.

iii) Sick leave

No accrual is made for sick leave as Council experience indicates that, on average, sick leave taken in each reporting

period is less than the entitlement accruing in that period, and this experience is expected to recur in future reporting

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

iv) Defined benefit plans

A liability or asset in respect of defined benefit superannuation plans would ordinarily be recognised in the statement

of financial position, and measured as the present value of the defined benefit obligation at the reporting date plus

unrecognised actuarial gains (less unrecognised actuarial losses) less the fair value of the superannuation fund’s assets

at that date and any unrecognised past service cost. The present value of the defined benefit obligation is based on

expected future payments which arise from membership of the fund to the reporting date, calculated annually by

independent actuaries using the projected unit credit method. Consideration is given to expected future wage and

salary levels, experience of employee departures and periods of service. However, when this information is not reliably

available, Council accounts for its obligations to defined benefit plans on the same basis as its obligations to defined

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

Council makes superannuation contributions for a number of its employees to the Tasplan Defined Benefits Fund,

which is a sub fund of the Tasplan Superannuation Scheme. The Tasplan Defined Benefits Fund has been classified as a

multi-employer sponsored plan. As the Fund’s assets and liabilities are pooled and are not allocated by employer, the

Actuary is unable to allocate benefit liabilities, assets and costs between employers. As provided under paragraph 30(a)

of AASB 119 Employee Benefits, Council does not use defined benefit accounting for these contributions.

v) Defined contribution plans

Contributions to defined contribution plans are recognised as an expense as they become payable. Prepaid

contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is

available.

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2016 2015

$,000 $,000

NOTE 31 INTEREST-BEARING LOANS AND BORROWINGS

Current

Borrowings - secured 163 271

163 271

Non-current

Borrowings - secured 2,442 2,605

2,442 2,605

Total 2,605 2,876

BorrowingsBorrowings are secured by a Deed of Negative Pledge that prevents the Council from creating or allowing a security interest over any of its assets unless the existing lender also has a similar, or equivalent, security interest.The maturity profile for Council's borrowings is:

Not later than one year 163 271

Later than one year and not later than five years 776 725

Later than five years 1,666 1,880

Total 2,605 2,876

ACCOUNTING POLICY

Interest bearing liabilities

The borrowing capacity of Council is limited by the Local Government Act 1993. Interest bearing liabilities are initially recognised at fair value, net of transaction costs incurred. Subsequent to initial recognition these liabilities are measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit or Loss and Other Comprehensive Income over the period of the liability using the effective interest method.

Leases

i) Operating leases as lessee

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

Council leases several parcels of Crown land under lease agreements with the State Government. These leases, in general, do not reflect commercial arrangements, are long-term and have minimal lease payments. Crown land is recognised as an asset in the Statement of Financial Position and carried at fair value when Council establishes that (i) it has control over the land and (ii) it will derive economic benefits from it.

Lease income from operating leases where Council is a lessor is recognised in income on a straight-line basis over the lease term.

ii) Leasehold improvements

Leasehold improvements are recognised at cost and are amortised over the unexpired period of the lease or the estimated useful life of the improvement, whichever is the shorter. At balance date, leasehold improvements are amortised over a 15 to 30 year period.

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NOTE 32 RESERVES


OF REPORTING

YEAR

INCREMENT (DECREMENT) BALANCE AT END OF

REPORTING YEAR

$,000 $,000 $,000 $,000

(a) Asset revaluation reserve

2016

Property

Land 8,589 - - 8,589

Land under roads 10 - - 10

Buildings 11,487 - - 11,487

20,086 - - 20,086

Infrastructure

Roads 121,014 - - 121,014

Bridges 3,925 - - 3,925

Waste 642 - - 642

Stormwater 9,407 - - 9,407

134,988 - - 134,988

Council equity interest

Southern Waste Solutions 55 - - 55

55 - - 55

Total asset revaluation reserve 155,129 - - 155,129

2015

Property

Land 8,589 - - 8,589

Land under roads 10 - - 10

Buildings 208 11,279 - 11,487

8,807 11,279 - 20,086

Infrastructure

Roads 130,051 - (9,037) 121,014

Bridges 3,925 - - 3,925

Waste 642 - - 642

Stormwater 9,407 - - 9,407

144,025 - (9,037) 134,988

Council equity interest

Southern Waste Solutions 55 - - 55

55 - - 55

Total asset revaluation reserve 152,887 11,279 (9,037) 155,129

The asset revaluation reserve was established to capture the movements in asset valuations upon the periodic revaluation of Council's assets.

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NOTE 32 RESERVES (C0NT.)

BALANCE AT BEGINNING OF

REPORTING YEAR

INCREMENT (DECREMENT) BALANCE AT END OF

REPORTING YEAR

$,000 $,000 $,000 $,000

(b) Fair value reserve

2016

Available-for-sale assets

Investment in water corporation (5,158) 417 - (4,741)

Total fair value reserve (5,158) 417 - (4,741)

2015

Available-for-sale assets

Investment in water corporation (5,345) 187 - (5,158)

Total fair value reserve (5,345) 187 - (5,158)

The available for sale financial asset reserve was established to capture the fair value movements in Council's Water Corporation investment.

BALANCE AT BEGINNING OF REPORTING YEAR

TRANSFER FROM ACCUMULATED SURPLUS

TRANSFER TO ACCUMULATED SURPLUS

BALANCE AT END OF REPORTING YEAR

$,000 $,000 $,000 $,000

(c) Other reserves

2016

Plant replacement 5 - - 5

Childrens services 56 - - 56

Tracks and trails 23 - - 23

Stormwater Southern Beaches 900 - - 900

Land 66 - - 66

Total Other reserves 1,050 - - 1,050

2015

Plant replacement 5 - - 5

Childrens services 56 - - 56

Tracks and trails 23 - - 23

Stormwater Southern Beaches 900 - - 900

Land 66 - - 66

Total Other reserves 1,050 - - 1,050

Other reserves represent the appropriation of surplus to reserves for the near future council capital works projects.

2016 2015

$,000 $,000

Total Reserves 151,438 151,021

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NOTE 33 RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO SURPLUS (DEFICIT)

2016 2015

$,000 $,000

Result from continuing operations 12,624 5,826

Depreciation/amortisation 4,639 4,185

(Profit)/Loss on disposal of property, plant and equipment, infrastructure

768 3

(Gain)/Loss on interest on associate (81) (34)

Developer Contributions (2,099) -

Recognition of Land Under Roads (15,131)

De-recognition of Property and Infrastructure Assets 5,680

Capital grants received specifically for new or upgraded assets (1,362) (1,798)

Change in assets and liabilities:

Decrease/(increase) in trade and other receivables (108) (54)

Decrease/(increase) in other assets (19) 157

Decrease/(increase) in inventories (81) -

Increase/(decrease) in trade and other payables 190 (627)

Increase/(decrease) in provisions 117 77

Increase/(decrease) in other liabilities - -

Net cash provided by/(used in) operating activities 5,137 7,734

NOTE 34 RECONCILIATION OF CASH AND CASH EQUIVALENTS

Cash and cash equivalents (see note 21) 6,680 6,548

Total reconciliation of cash and cash equivalents 6,680 6,548

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NOTE 35: SUPERANNUATION

Council makes superannuation contributions for a number

of its employees to the Quadrant Defined Benefits Fund

(the Fund). The Fund was a sub fund of the Quadrant

Superannuation Scheme (the Scheme) up to 30 November

2015. At this date the Quadrant Superannuation Scheme

merged (via a Successor Fund Transfer) into the Tasplan Super

and the Quadrant Defined Benefits Fund became a sub fund

of Tasplan Super (Tasplan) from that date. The Quadrant

Defined Benefits Fund has been classified as a multi-employer

sponsored plan. As the Fund’s assets and liabilities are pooled

and are not allocated by employer, the Actuary is unable to

allocate benefit liabilities, assets and costs between employers.

As provided under paragraph 34 of AASB 119 Employee Benefits,

Council does not use defined benefit accounting for these

contributions.

For the year ended 30 June 2016 Council contributed 14.5% of

employees’ gross income to the Fund. Assets accumulate in

the fund to meet member benefits as they accrue, and if assets

within the fund are insufficient to satisfy benefits payable,

Council is required to meet its share of the deficiency.

Rice Warner Pty Ltd undertook the last actuarial review of the

Fund at 30 June 2014. The review disclosed that at that time

the net market value of assets available for funding member

benefits was $66,310,000, the value of vested benefits was

$57,475,000, the surplus over vested benefits was $8,835,000,

the value of total accrued benefits was $58,093,000, and the

number of members was 187. These amounts relate to all

members of the fund at the date of valuation and no asset or

liability is recorded in the Quadrant Superannuation Scheme’s

financial statements for Council employees.

The financial assumptions used to calculate the Accrued

Benefits for the Fund were:

Net Investment Return 7.0% p.a.

Salary Inflation 4.0%p.a.

Price Inflation n/a

The actuarial review concluded that:

The value of assets of the Fund was adequate to meet the

liabilities of the Fund in respect of vested benefits as at 30

June 2014.

The value of assets of the Fund was adequate to meet the

value of the liabilities of the Fund in respect of accrued

benefits as at 30 June 2014.

Based on the assumptions used, and assuming the

Employer contributes at the levels described below, the

value of the assets is expected to continue to be adequate

to meet the value of the liabilities of the Fund in respect

of vested benefits at all times during the period up to 30

June 2017.

The Actuary recommended that in future the Council

contribute 11.0% of salaries in 2014/15 and 9.5% of salaries

thereafter.

The Actuary will continue to undertake a brief review of the

financial position the Fund at the end of each financial year

to confirm that the contribution rates remain appropriate.

The next full triennial actuarial review of the Fund will have an

effective date of 30 June 2017 and is expected to be completed

late in 2017.

Council also contributes to other accumulation schemes on

behalf of a number of employees; however the Council has no

ongoing responsibility to make good any deficiencies that may

occur in those schemes.

During the year Council made the required superannuation

contributions for all eligible employees to an appropriate

complying superannuation fund as required by the

Superannuation Guarantee (Administration) Act 1992.

As required in terms of paragraph 148 of AASB 119 Employee

Benefits, Council discloses the following details:

The 2014 actuarial review used the “aggregate” funding

method. This is a standard actuarial funding method. The

results from this method were tested by projecting future

fund assets and liabilities for a range of future assumed

investment returns. The funding method used is different

from the method used at the previous actuarial review in

2011.

Under the aggregate funding method of financing the

benefits, the stability of Councils’ contributions over time

depends on how closely the Fund’s actual experience

matches the expected experience. If the actual experience

differs from that expected, Councils’ contribution rate

may need to be adjusted accordingly to ensure the Fund

remains on course towards financing members’ benefits.

In terms of Rule 27.4 of the Tasplan Trust Deed (Trust Deed),

there is a risk that employers within the Fund may incur an

additional liability when an Employer ceases to participate

in the Fund at a time when the assets of the Fund are

less than members’ vested benefits. Each member of the

Fund who is an employee of the Employer who is ceasing

to Participate is required to be provided with a benefit at

least equal to their vested benefit in terms of Rule 27.4

(b) (A). However there is no provision in the Trust Deed

requiring an employer to make contributions other than

its regular contributions up to the date of cessation of

contributions. This issue can be resolved by the Trustee

seeking an Actuarial Certificate in terms of Rule 26.5

identifying a deficit and the Trustee determining in terms

of Rule 26.3(c) that the particular employer should make

the payment required to make good any shortfall before

the cessation of participation is approved.

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NOTE 35: SUPERANNUATION (CONT.)

The application of Fund assets on Tasplan being wound-

up is set out in Rule 41.4. This Rule provides that expenses

and taxation liabilities should have first call on the

available assets. Additional assets will initially be applied

for the benefit of the then remaining members and/

or their Dependants in such manner as the Trustee

considers equitable and appropriate in accordance with

the Applicable Requirements (broadly, superannuation and

taxation legislative requirements and other requirements

as determined by the regulators).

The Trust Deed does not contemplate the Fund

withdrawing from Tasplan. However it is likely that Rule 27.4

would be applied in this case (as detailed above).

The Fund is a defined benefit Fund.

The Quadrant Defined Benefits Fund has been classified

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

assets and liabilities are pooled and are not allocated

by employer, the Actuary is unable to allocate benefit

liabilities, assets and costs between employers. Thus the

Fund is not able to prepare standard AASB119 defined

benefit reporting.

During the reporting period the amount of contributions

paid to defined benefits schemes was $37k (2014-15, $43k),

and the amount paid to accumulation schemes was $529k

(2014-15, $500k).

During the next reporting period the expected amount

of contributions to be paid to defined benefits schemes

is $40k , and the amount to be paid to accumulation

schemes is $550k .

As reported on the first page of this note, Assets exceeded

accrued benefits as at the date of the last actuarial review,

30 June 2014. Moderate investment returns, since that

date, make it quite probable that this is still the position.

The financial position of the Fund will be fully investigated

at the actuarial review as at 30 June 2017.

An analysis of the assets and vested benefits of Funds

participating in the Scheme, prepared by Rice Warner Pty

Ltd as at 30 June 2014, showed that the Fund had assets

of $66.3 million and members’ Vested Benefits were

$57.5 million. These amounts represented 8.4% and 7.5%

respectively of the corresponding total amounts for the

Scheme.

As at 30 June 2015 the fund had 164 members and the total

employer contributions and member contributions for the

year ending 30 June 2015 were $2,083,883 and $325,833

respectively.

2016$'000

2015$'000

Fund

Defined benefits fund

Employer contributions to Quadrant Defined Benefits Fund

37 43

37 43

Accumulation funds

Employer contributions to Quadrant Defined Benefits Fund

37 43

Employer contributions to other funds 529 457

566 500

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2016 2015

$,000 $,000

NOTE 36 COMMITMENTS

Capital Expenditure Commitments

Buildings 136 580

Roads 73 34

Total Capital expenditure commitments 209 614

Contractual commitments

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

Garbage & recycling collection contract 943 114

Green Waste and hard waste contract 105 -

Recycling centre management 100 -

Cleaning contract 129 -

Total contractual commitments 1,277 114

NOTE 37 OPERATING LEASES

(a) Operating lease commitments

Sorell Council as lesseeAt the reporting date, Council had the following obligations under non-cancellable operating leases for the lease of equipment and land and buildings for use within Council's activities (these obligations are not recognised as liabilities):

Not later than one year 7 -

Later than one year and not later than five years 23 -

Later than five years - -

30 -

(b) Operating lease receivables

Sorell Council as lessorCommunity amenities, recreational facilities, land below communication facilities and walkwaysFuture minimum rentals receivable under non-cancellable operating leases are as follows:

Not later than one year 15 15

Later than one year and not later than five years 20 20

Later than five years - -

35 35

NOTE 38 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent liabilities

Council is presently involved in several confidential legal matters, which are being conducted through Council's solicitors.

As these matters are yet to be finalised, and the financial outcomes are unable to be reliably estimated, no allowance for these contingencies has been made in the financial report.

Contingent assets

Council will receive developer contributions for estates currently under development, however the amount cannot be determined as it will be based upon the Government Valuation of the completed development.

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NOTE 39 FINANCIAL INSTRUMENTS

(a) Accounting Policy, terms and conditions

RECOGNISED FINANCIAL INSTRUMENTS

NOTE ACCOUNTING POLICY TERMS AND CONDITIONS

Financial assets

Cash and cash equivalents 21 Cash on hand and at bank and money market call accounts are valued at face value.

On call deposits returned a floating interest rate of 1.33% (1.97% in 2014-15). The interest rate at balance date was 1.03% (1.97%).

Interest is recognised as it accrues. Funds returned fixed interest rate of between 2.15% (2.7%), and 3.09% (3.1% ) net of fees.

Investments and bills are valued at cost.

Investments are held to maximise interest returns of surplus cash.

Interest revenues are recognised as they accrue.

Managed funds are measured at market value.

Trade and other receivables

Other debtors 22 Receivables are carried at amortised cost using the effective interest method. A provision for impairment is recognised when there is objective evidence that an impairment loss has occurred. Collectability of overdue accounts is assessed on an ongoing basis.

General debtors are unsecured and arrears attract an interest rate of 3.0% (3.0%). Credit terms are based on 30 days.

Financial Liabilities

Trade and other payables 28 Liabilities are recognised for amounts to be paid in the future for goods and services provided to Council as at balance date whether or not invoices have been received.

General Creditors are unsecured, not subject to interest charges and are normally settled within 30 days of invoice receipt.

Interest-bearing loans and borrowings

31 Loans are carried at their principal amounts, which represent the present value of future cash flows associated with servicing the debt. Interest is accrued over the period it becomes due and recognised as part of payables.

Borrowings are secured by way of mortgages over the general rates of the Council. The weighted average interest rate on borrowings is 6.17% (6.25% in 2014-15).

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NOTE 39 FINANCIAL INSTRUMENTS (CONT.)

(b) Interest Rate Risk

The exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:

FIXED INTEREST MATURING IN:

WEIGHTED AVERAGE INTEREST

RATE

FLOATING INTEREST

RATE1 YEAR OR

LESSOVER 1 TO 5

YEARSMORE THAN

5 YEARS

NON-INTEREST BEARING TOTAL

2016 $,000 $,000 $,000 $,000 $,000 $,000

Financial assets

Cash and cash equivalents 2.08% 6,680 - - - - 6,680

Trade and other receivables 0.00% - - - - 1,648 1,648

Midway Point Improvement loan receivable

9.765% - - - 46 - 46

Investment in water corporation - - - - 24,566 24,566

Total financial assets 6,680 - - 46 26,214 32,940

Financial liabilities

Trade and other payables - - - - 888 888

Trust funds and deposits - - - - 465 465


6.17% - 163 776 1,666 - 2,605

Total financial liabilities - 163 776 1,666 1,353 3,958

Net financial assets (liabilities) 6,680 (163) (776) (1,620) 24,861 28,982

2015

Financial assets

Cash and cash equivalents 1.97% 6,548 - - - - 6,548

Trade and other receivables 0.00% - - - - 790 790

Midway Point Improvement loan receivable

9.765% - - - 58 - 59

Investment in water corporation - - - - 24,149 24,149

Total financial assets 6,548 - - 58 24,939 31,545


Trade and other payables - - - - 836 836

Trust funds and deposits - - - - 579 579


6.27% - 271 725 1,880 - 2,876

Total financial liabilities - 271 725 1,880 1,415 4,291

Net financial assets (liabilities) 6,548 (271) (725) (1,822) 23,524 27,254

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(c) Fair ValueThe aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:

FINANCIAL INSTRUMENTSTOTAL CARRYING AMOUNT AS

PER BALANCE SHEET AGGREGATE NET FAIR VALUE

2016 2015 2016 2015

$,000 $,000 $,000 $,000

Financial assets

Cash and cash equivalents 6,680 6,548 6,680 6,548

Trade and other receivables 1,721 848 1,721 848

Investment in water corporation 24,566 24,149 24,566 24,149

Total financial assets 32,967 31,545 32,967 31,545


Trade and other payables 888 836 888 836

Trust funds and deposits 465 579 465 579

Interest-bearing loans and borrowings 2,605 2,876 2,605 2,876

Total financial liabilities 3,958 4,291 3,958 4,291

(d) Credit RiskThe maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is represented by the carrying amount of those assets as indicated in the Statement of Financial Position.

(e) Risks and mitigation

The risks associated with our main financial instruments and our policies for minimising these risks are detailed below.

Market risk

Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of changes in market prices. Council's exposures to market risk are primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to which we are exposed are discussed below.

Interest rate risk

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that we use. Non derivative interest bearing assets are predominantly short term liquid assets. Our interest rate liability risk arises primarily from long term loans and borrowings at fixed rates which exposes us to fair value interest rate risk.

Our loan borrowings are sourced from major Australian banks by a tender process. Finance leases are sourced from major Australian financial institutions. Overdrafts are arranged with major Australian banks. We manage interest rate risk on our net debt portfolio by:

- ensuring access to diverse sources of funding;

- reducing risks of refinancing by managing in accordance with target maturity profiles; and

- setting prudential limits on interest repayments as a percentage of rate revenue.

Investment of surplus funds is made with approved financial institutions under the Local Government Act 1993. We manage interest rate risk by adopting an investment policy that ensures:

• conformity with State and Federal regulations and standards,

• capital protection,

• appropriate liquidity,

• diversification by credit rating, financial institution and investment product,

• monitoring of return on investment,

• benchmarking of returns and comparison with budget.

Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk.

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Credit risk

The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is represented by the carrying amount of those assets as indicated in the Statement of Financial Position. To help manage this risk:

• we have a policy for establishing credit limits for the entities we deal with;

• we may require collateral where appropriate; and

• we only invest surplus funds with financial institutions which have a recognised credit rating specified in our

Investment policy.

Credit risk arises from Council's financial assets, which comprise cash and cash equivalents, and trade and other receivables. Council's exposure to credit risk arises from potential default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is addressed in each applicable policy note. Council generally trades with recognised, creditworthy third parties, and as such collateral is generally not requested, nor is it Council's policy to securitise its trade and other receivables. It is Council's policy that some customers who wish to trade on credit terms are subject to credit verification procedures including an assessment of their credit rating, financial position, past experience and industry reputation. In addition, receivable balance are monitored on an ongoing basis with the result that Council's exposure to bad debts is not significant.

Council may also be subject to credit risk for transactions which are not included in the Statement of Financial Position, such as when Council provides a guarantee for another party. Details of our contingent liabilities are disclosed in note 38.

Credit quality of contractual financial assets that are neither past due nor impaired

FINANCIAL INSTITUTIONS

GOVERNMENT AGENCIES OTHER TOTAL

2016 (AAA CREDIT RATING)

(BBBB CREDIT RATING)

(MIN BBB CREDIT

RATING)

Cash and cash equivalents 6,680 - - 6,680

Trade and other receivables - - - -

Investments and other financial assets - - - -

Total contractual financial assets 6,680 - - 6,680

2015

Cash and cash equivalents 6,548 - - 6,548

Trade and other receivables - - - -

Investments and other financial assets - - - -

Total contractual financial assets 6,548 - - 6,548

Ageing of Trade and Other Receivables

At balance date other debtors representing financial assets were past due but not impaired. These amounts relate to a number of independent customers for whom there is no recent history of default. The ageing of the Council's Trade and Other Receivables was:

2016 2015

$,000 $,000

Rates, secured on property 222 151

Current (not yet due) 1,003 154

Past due by up to 30 days 54 318

Past due between 31 and 180 days 38 20

Past due between 181 and 365 days 326 19

Past due by more than 1 year 78 186

Total Trade & Other Receivables 1,721 848

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Liquidity risk

Liquidity risk includes the risk that, as a result of our operational liquidity requirements:

• we will not have sufficient funds to settle a transaction on the date;

• we will be forced to sell financial assets at a value which is less than what they are worth; or

• we may be unable to settle or recover a financial assets at all.

To help reduce these risks we:

• have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be

maintained;

• have readily accessible standby facilities and other funding arrangements in place;

• have a liquidity portfolio structure that requires surplus funds to be invested within various bands of liquid

instruments;

• monitor budget to actual performance on a regular basis; and

• set limits on borrowings relating to the percentage of loans to rate revenue and percentage of loan principal

repayments to rate revenue.

The Council's exposure to liquidity risk is deemed insignificant based on prior periods' data and current assessment of risk.

The table below lists the contractual maturities for Financial Liabilities.These amounts represent the discounted cash flow payments (ie principal only).

6 MTHSOR LESS

6-12MONTHS

1-2YEARS

2-5YEARS

>5YEARS

CONTRACTEDCASH FLOW

CARRYINGAMOUNT

$,000 $,000 $,000 $,000 $,000 $,000 $,000

2016

Trade and other payables 888 - - - - 888 888

Trust funds and deposits - 465 - - - 465 465


75 79 154 502 1,566 2,314 2,604

Total financial liabilities 963 544 154 502 1,566 3,729 3,957

2015

Trade and other payables 836 - - - - 836 836

Trust funds and deposits - 579 - - - 579 579


133 122 303 331 1,716 2,552 2,876

Total financial liabilities 969 701 303 331 1,716 3,967 4,291

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(f) Sensitivity disclosure analysis

Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, the Council believes the following movements are 'reasonably possible' over the next 12 months (Base rates are sourced from Reserve Bank of Australia):

• A parallel shift of + 1% and -2% in market interest rates (AUD) from year-end rates of 4.4%.

The table below discloses the impact on net operating result and equity for each category of financial instruments held by Council at year-end, if the above movements were to occur.

INTEREST RATE RISK

-2 % -200 BASIS POINTS

+1%+100 BASIS POINTS

PROFIT EQUITY PROFIT EQUITY

$,000 $,000 $,000 $,000 $,000

2016

Financial assets:


6,680 (134) 134 67 (67)

Financial liabilities:

Interest-bearing loans and borrowings 2,605 (52) 52 26 (26)

INTEREST RATE RISK

-2 % -200 BASIS POINTS

+1%+100 BASIS POINTS

PROFIT EQUITY PROFIT EQUITY

$,000 $,000 $,000 $,000 $,000

2015

Financial assets:


6,548 (131) 131 65 (65)

Financial liabilities:

Interest-bearing loans and borrowings 2,876 (58) 58 29 (29)

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NOTE 40 EVENTS OCCURING AFTER BALANCE DATE

(a) No significant events affecting these accounts occured after balance date

NOTE 41 RELATED PARTY TRANSACTIONS

(i) Responsible Persons

Names of persons holding the position of a Responsible Person at the Council at any time during the year are:

Councillors Councillor Kerry Vincent (Mayor 2012 to current)

Councillor Brett McDonald (Deputy Mayor 2011 to current)

Councillor Lyndsay White (Councillor 2011 to current)

Councillor Graham Evans (Councillor 1999 to current)

Councillor Kerry Degrassi (Councillor 1996 to current)

Councillor Deborah De Williams (Councillor 2014 to current)

Councillor Vlad Gala (Councillor 2014 to current)

Councillor Natham Reynolds (Councillor 2014 to current)

Councillor Carmel Torenius (Councillor 2014 to current)

General Manager Robert Higgins (September 2013 to current)

Manager Human and Community Services Jessica Radford (August 2013 to current)

Manager Engineering and Regulatory Services

Russell Fox (April 2014 to current)

Manager Finance and Information Tina House (March 2015 to current)

2016 2015

$,000 $,000

Total Remuneration for the reporting year for Councillors' Emoluments and reimbursements included above amounted to:

182 175

Total Remuneration for the reporting year for key management personnel included above included Salary and Wages, Superannuation and Car Benefits.

368 434

(v) In accordance with s84(2)(b) of the Local Goverment Act 1993, no interests have been notified to the General Manager in respect of any body or organisation with which the Council has major financial dealings.

NOTE 42 SPECIAL COMMITTEES AND OTHER ACTIVITIES

Council has the following Special Committees:

Copping Hall and Reserves Committee

Dunalley Hall and Reserves Committee


Primrose Sands Hall Committee

The above Special Committees financial transactions were included with Councils and resulted in Consolidated Financial Statements being prepared for the year ended 30 June 2016.

NOTE 43 SIGNIFICANT BUSINESS ACTIVITIES

Council has assessed the Significant Business Activities regulations and found there to be no activities that meet the regulations.

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NOTE 44 MANAGEMENT INDICATORS

BENCHMARK 2016 2015 2014 2013

$,000 $,000 $,000 $,000

(a) Underlying surplus or deficit

Recurrent income* less 17,588 17,434 17,484 16,728

Recurrent expenditure 16,812 14,551 15,177 15,700

Underlying surplus/deficit 0 776 2,883 2,307 1,028

* Recurrent income excludes income received specifically for new or upgraded assets, physical resources received free of charge or other income of a capital nature.

Positive surpluses continue.

(b) Underlying surplus ratio

Underlying surplus or deficit 776 2,883 2,307 1,028

Recurrent income* 17,588 17,434 17,484 16,728

Underlying surplus ratio % 0% 4% 17% 13% 6%

This ratio serves as an overall measure of financial operating effectiveness.

Council maintains results above benchmark.

(c) Net financial liabilities

Liquid assets less 8,336 7,345 4,919 9,161

Total liabilities 5,032 5,298 5,860 7,138

Net financial liabilities 0 3,304 2,047 (941) 2,023

This measure shows whether Council's total liabilities can be met by its liquid assets. An excess of total liabilities over liquid assets means that, if all liabilities fell due at once, additional revenue would be needed to fund the shortfall.During 2013/14 Council completed the new Administration Centre with payments reducing the cash position. Since this time Council has maintained positive cash surpluses.

(d) Net financial liabilities ratio

Net financial liabilities 3,304 2,048 (941) 2,023

Recurrent income* 17,588 17,434 17,484 16,728

Net financial liabilities ratio % 0% - (50%) 19% 12% -5% 12%

This ratio indicates the net financial obligations of Council compared to its recurrent income.

Liquid assets have continued to increase during the 2015/16 financial year, recovering after expenditure and borrowings incurred for the construction of the Council Administration Centre during 2013/14.

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NOTE 44 MANAGEMENT INDICATORS (CONT.)

BENCHMARK 2016 2015 2014 2013

$,000 $,000 $,000 $,000

(e) Asset consumption ratio

An asset consumption ratio has been calculated in relation to each asset class required to be included in the long-term strategic asset management plan of Council.

Transport Infrastructure

Depreciated replacement cost 132,208 134,057 143,190 139,000

Current replacement cost 216,745 220,259 179,650 172,446

Asset consumption ratio % 40%-60% 61% 61% 80% 81%

Buildings




Drainage




This ratio indicates the level of service potential available in Council's existing asset base.Council has well maintained assets that meet the benchmark.

(f) Asset renewal funding ratio

An asset renewal funding ratio has been calculated in relation to each asset class required to be included in the long-term strategic asset management plan of Council.

Transport Infrastructure

Projected capital funding outlays** 31,500 35,000 35,675 N/A

Projected capital expenditure funding*** 29,748 29,957 31,167 N/A

Asset renewal funding ratio % 90-100% 106% 117% 114% N/A

Buildings

Projected capital funding outlays** 850 900 2,269 N/A

Projected capital expenditure funding*** 648 424 1,196 N/A


Drainage

Projected capital funding outlays** 395 0 563 N/A

Projected capital expenditure funding*** 260 259 289 N/A


** Current value of projected capital funding outlays for an asset identified in Council's long-term financial plan.

*** Value of projected capital expenditure funding for an asset identified in Council's long-term strategic asset management plan.

This ratio measures Council's capacity to fund future asset replacement requirements.

Council has had Asset Management and Long Term Financial Plans in place since June 2014. The funding requirements for all categories of assets are reviewed on an annual basis.

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NOTE 44 MANAGEMENT INDICATORS (CONT.)

BENCHMARK 2016 2015 2014 2013

$,000 $,000 $,000 $,000

(g) Asset sustainability ratio

Capex on replacement/renewal of existing assets 2,337 3,220 4,229 4,318

Annual depreciation expense 4,639 4,185 3,924 3,891

Asset sustainability ratio % 100% 50% 77% 108% 111%

This ratio calculates the extent to which Council is maintaining operating capacity through renewal of their existing asset base.

Council invested significant expenditure in prior years (including the construction of the Administration Centre, which has resulted in the annual depreciation expense increasing above the amount expended on replacement / renewal of existing assets, resulting in this ratio not meeting benchmark for the financial year. Over a five year rolling period Council is forecasting to maintain an average in line with the benchmark.

CAPITAL RENEWAL

EXPENDITURE

CAPITAL NEW /UPGRADE

EXPENDITURE

TOTAL CAPITAL EXPENDITURE

$,000 $,000 $,000

2016

By asset class

Transport 1,392 1,827 3,219

Stormwater - 438 438

Land & Buildings 452 1,157 1,609

Other 493 467 960

Total 2,337 3,889 6,226

CAPITAL RENEWAL

EXPENDITURE

CAPITAL NEW /UPGRADE

EXPENDITURE

TOTAL CAPITAL EXPENDITURE

$,000 $,000 $,000

2015

By asset class

Transport 1,397 1,507 2,904

Stormwater - - -

Land & Buildings 361 2,345 2,706

Other 1,462 289 1,751

Total 3,220 4,141 7,361

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NOTE 45 FAIR VALUE MEASUREMENTS

Council measures and recognises the following assets at fair value on a recurring basis:Investment propertyInvestment in water corporationProperty, infrastructure plant and equipment

• Land

• Buildings, including footpaths & cycleways

• Roads

• Bridges

• Other infrastructure

Council does not measure any liabilities at fair value on a recurring basis.

(a) Fair Value HierarchyAASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a level in the fair value hierarchy as follows:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 Unobservable inputs for the asset or liability.

The table below shows the assigned level for each asset and liability held at fair value by the Council. The table presents the Council’s assets and liabilities measured and recognised at fair value at 30 June 2016.

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

As at 30 June 2016

NOTE LEVEL 1 LEVEL 2 LEVEL 3 TOTAL

Recurring fair value measurements $,000 $,000 $,000 $,000

Investment property 26 - - 297 297

Investment in water corporation 20 - - 24,566 24,566

Land 25 - - 30,437 30,437

Buildings 25 - - 22,603 22,603

Roads, including footpaths & cycleways 25 - - 197,531 197,531

Bridges 25 - - 12,509 12,509

Drainage 25 - - 26,539 26,539

Other Infrastructure 25 - - 1,987 1,987

- - 316,469 316,469

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(b) Highest and best use

All assets valued at fair value in this note are being used for their

highest and best use.

(c) Valuation techniques and significant inputs used to derive fair

values

Level 2 Measurements (recurring and non-recurring) - assets in this

category have been valued by independent external valuation in

June 2011.

Level 3 Measurements (recurring and non-recurring) - same as

Level 2 above.

Investment property and Investment in water corporation

Refer to Notes 26 and 20 respectively for details of valuation

techniques used to derive fair values.

Land

Land fair values were determined from the Valuer General’s

valuation of the 1 July 2010 and with an adjustment factor set

for periods between revaluations, as determined by the Valuer

General. There was no adjustment for 2015/16.

Land under roads

Land under roads is based on Council valuations at 30 June

2016 using site values adjusted for englobo (undeveloped and/

or unserviced) characteristics, access rights, private interests

of other parties and entitlements of infrastructure assets

and services. This adjustment is an unobservable input in the

valuation.

Buildings

The fair value of buildings were also determined by a qualified

independent valuer Assetic Pty Ltd effective 30 June 2015. Where

there is a market for Council building assets, fair value has been

derived from the sales prices of comparable properties after

adjusting for differences in key attributes such as property size.

The most significant input into this valuation approach was price

per square metre.

In determining the level of accumulated depreciation the asset

has been disaggregated into significant components which

exhibit useful lives. Allowance has been made for the typical asset

life cycle and renewal treatments of each component, residual

value at the time the asset is considered to be no longer available

for use.

While the unit rates based on square metres can be supported

by market evidence (level 2), the estimates of residual value and

useful life that are used to calculate accumulated depreciation

comprise unobservable inputs (level 3). Where these other inputs

are significant to the valuation the overall valuation has been

classified as level 3. The table at (d) below summarises the effect

that changes in the most significant unobservable inputs would

have on the valuation.

NOTE 45 FAIR VALUE MEASUREMENTS (CONT.)

As at 30 June 2015

NOTE LEVEL 1 LEVEL 2 LEVEL 3 TOTAL

Recurring fair value measurements $,000 $,000 $,000 $,000

Investment property 26 - 830 297 1,127

Investment in water corporation 20 - - 24,149 24,149

Land 25 - - 15,375 15,375

Buildings 25 - - 23,813 23,813

Roads, including footpaths & cycleways 25 - - 206,019 206,019

Bridges 25 - - 12,509 12,509

Drainage 25 - - 26,539 26,539

Other Infrastructure 25 - - 1,987 1,987

- 830 310,688 311,518

Transfers between levels of the hierarchyThere were no transfers between levels 1 and 2 during the year, nor between levels 2 and 3.

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NOTE 45: FAIR VALUE MEASUREMENTS (CONT.)

Infrastructure assets

All Council infrastructure assets were fair valued using written

down current replacement cost. This valuation comprises

the asset’s current replacement cost (CRC) less accumulated

depreciation calculated on the basis of such cost to reflect the

already consumed or expired future economic benefits of the

asset. Council first determined the gross cost of replacing the full

service potential of the asset and then adjusted this amount to

take account of the expired service potential of the asset.

CRC was measured by reference to the lowest cost at which

the gross future economic benefits of the asset could currently

be obtained in the normal course of business. The resulting

valuation reflects the cost of replacing the existing economic

benefits based on an efficient set of modern equivalent assets to

achieve the required level of service output.

The unit rates (labour and materials) and quantities applied

to determine the CRC of an asset or asset component were

based on a “Greenfield” assumption meaning that the CRC was

determined as the full cost of replacement with a new asset

including components that may not need to be replaced, such as

earthworks.

The level of accumulated depreciation for infrastructure assets

was determined based on the age of the asset and the useful life

adopted by Council for the asset type. Estimated useful lives and

residual values are disclosed in Note 16.

The methods for calculating CRC are described under individual

asset categories below.

Roads, including footpaths & cycleways

Council categorises its road infrastructure into urban and rural

roads and then further sub-categorises these into sealed and

unsealed roads. Urban roads are managed in segments based

on defined boundaries such as intersections with other roads.

All road segments are then componentised into formation,

pavement, sub-pavement and seal (where applicable). Council

assumes that environmental factors such as soil type, climate

and topography are consistent across each segment. Council

also assumes a segment is designed and constructed to the

same standard and uses a consistent amount of labour and

materials.

CRC is based on the road area multiplied by a unit price; the

unit price being an estimate of labour and material inputs,

services costs, and overhead allocations. Council assumes

that pavements are constructed to depths of 3.5 cms for high

traffic areas and 3 cms for lower traffic locations. For internal

construction estimates, material and services prices are based

on existing supplier contract rates or supplier price lists and

labour wage rates are based on Council’s Enterprise Bargaining

Agreement (EBA). Where construction is outsourced, CRC is

based on the average of completed similar projects over the last

few years.

Bridges

A full valuation of bridges assets was undertaken by independent

valuers, Tasspan effective 30 June 2014. Each bridge is assessed

individually and componentised into sub-assets representing the

deck and sub-structure.The valuation is based on the material

type used for construction and the deck and sub-structure area.

Construction estimates for material and services prices are

based on movements in bridge construction costs as published

by the ABS, and labour wage rates are based on Council’s

Enterprise Bargaining Agreement (EBA).

Stormwater

A full valuation of stormwater infrastructure was undertaken

by Council, effective 30 June 2014. Similar to roads, stormwater

assets are managed in segments; pits and pipes being the major

components.

Consistent with roads, Council assumes that environmental

factors such as soil type, climate and topography are consistent

across each segment and that a segment is designed and

constructed to the same standard and uses a consistent amount

of labour and materials.

CRC is based on the unit price for the component type. For pipes,

the unit price is multiplied by the asset’s length. The unit price for pipes is based on the construction material as well as the depth the pipe is laid.

Other InfrastructureOther infrastructure is not deemed to be significant in terms of Council’s Statement of Financial Position.

(d) Changes in recurring level 3 fair value measurements

The changes in level 3 property plant and equipment assets with recurring fair value measurements are detailed in note 25 (Property, infrastructure, plant and equipment). Investment in water corporation, which is classified as level 3 has been separately disclosed in note 20 and Investments classified as Level 3 has been separately disclosed in Note 26.

There have been no transfers between level 1, 2 or 3

measurements during the year.

(e) Valuation processes

Council’s current policy for the valuation of property,

infrastructure, plant and equipment, investment in water

corporation and investment property (recurring fair value

measurements) is set out in notes 25, 20, and 26 respectively.

Non-recurring fair value measurements are made at the point of

reclassification by a registered valuer.

(f) Assets and liabilities not measured at fair value but for which

fair value is disclosed

Council has assets and liabilities which are not measured at fair

value, but for which fair values are disclosed in other notes. (refer

note 39)

Council borrowings are measured at amortised cost with interest

recognised in profit or loss when incurred. The fair value of

borrowings disclosed in note 39 is provided by Tascorp (level 2).

The carrying amounts of trade receivables and trade payables are

assumed to approximate their fair values due to their short-term

nature (Level 2).

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NOTE 48: OTHER SIGNIFICANT ACCOUNTING POLICIES

AND NEW ACCOUNTING STANDARDS

(a) Taxation

Council is exempt from all forms of taxation except Fringe

Benefits Tax, Payroll Tax and the Goods and Services Tax.

Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the

amount of GST, except where the amount of GST incurred

is not recoverable from the Australian Tax Office. In these

circumstances the GST is recognised as part of the cost of

acquisition of the asset or as part of an item of the expense.

Receivables and payables in the balance sheet are shown

inclusive of GST.

Cash flows are presented in the Statement of Cash Flows on

a gross basis, except for the GST component of investing and

financing activities, which are disclosed as operating cash flows.

(b) Impairment of assets

At each reporting date, Council reviews the carrying value of

its assets to determine whether there is any indication that

these assets have been impaired. If such an indication exists, the

recoverable amount of the asset, being the higher of the asset’s

fair value less costs to sell and value in use, is compared to the

assets carrying value. Any excess of the assets carrying value

over its recoverable amount is expensed to the Statement of

Profit or Loss and Other Comprehensive Income, unless the asset

is carried at the revalued amount in which case, the impairment

loss is recognised directly against the revaluation reserve

in respect of the same class of asset to the extent that the

impairment loss does not exceed the amount in the revaluation

surplus for that same class of asset. For non-cash generating

assets of Council such as roads, drains, public buildings and the

like, value in use is represented by the deprival value of the asset

approximated by its written down replacement cost.

(c) Allocation between current and non-current

In the determination of whether an asset or liability is current

or non-current, consideration is given to the time when each

asset or liability is expected to be settled. The asset or liability is

classified as current if it is expected to be settled within the next

twelve months, being Council’s operational cycle, or if Council

does not have an unconditional right to defer settlement of a

liability for at least 12 months after the reporting date.

NOTE 46: MATERIAL BUDGET VARIATIONS

Council’s original budget was adopted by the Council on 17th

June 2015. The original projections on which the budget was

based have been affected by a number of factors. These include

State and Federal Government decisions including new grant

programs, changing economic activity, the weather, and by

decisions made by the Council. Material variations of more than

10% are explained below:

Revenues

1. Grants

Grant Revenue was up $159K on budget (10.8%) due mainly to a

very conservative estimate being made in the budget. Additional

grants for tthe Dunalley Skate Park ($65k)and for Child Care

Subsidies resulted in a result greater than budget expectations.

2. Cash Contributions

The increase of $91k budget (337%) was due to additional

ratepayer contributions being made towards infrastructure

installations.

3. Other

The increase of $714k (142%) was as a result of increased

Donations ($197k), Copping Tip Lease Fees ($63k) omitted from

the budget, increased external labour hire recoveries of $35k as

a result of services provided through the Joint Venture, increased

workers compensation claim reimbursements ($92k), distribution

from the administrators of Lehmann Brothers of $206k and

miscellaneous sundry revenue of $88k

4. Contributions - non monetary assets

As a result of detailed analysis of the transport infrastructure

network, additional assets have been identified and included

in Council’s database, resulting in a one-off non monetary

contribution increase that was not budgeted for.

Expenses

1. Depreciation and Amortisation

The increase on budget for this non cash expenditure is as a

result of the transition to the Assetic data services and the

revaluation of assets during the financial year, resulting in a

more detailed and accurate expectation of depreciation budget

requirements from 2016-17 onwards.

NOTE 47: INTERESTS IN OTHER ENTITIES

Interests in subsidiaries

Council does not have any interests in any other entities other

than those disclosed at Note 19 and Note 20.

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AND NEW ACCOUNTING STANDARDS (CONT.)

(d) Financial guarantees

Financial guarantee contracts are recognised as a liability at the

time the guarantee is issued. The liability is initially measured at

fair value, and if there is material increase in the likelihood that

the guarantee may have to be exercised, at the higher of the

amount determined in accordance with AASB 137 Provisions,

Contingent Liabilities and Contingent Assets and the amount

initially recognised less cumulative amortisation, where

appropriate. In the determination of fair value, consideration

is given to factors including the probability of default by the

guaranteed party and the likely loss to Council in the event of

default.

(e) Contingent assets, contingent liabilities and commitments

Contingent assets and contingent liabilities are not recognised

in the Statement of Financial Position, but are disclosed by way

of a note and, if quantifiable, are measured at nominal value.

Contingent assets and liabilities are presented inclusive of GST

receivable or payable respectively.

Commitments are not recognised in the Statement of Financial

Position. Commitments are disclosed at their nominal value

inclusive of the GST payable.

(f) Budget

The estimated revenue and expense amounts in the Statement

of Profit or Loss and Other Comprehensive Income represent

revised budget amounts and are not audited.

(g) Adoption of new and amended accounting standards

(i) AASB 2015-3 Amendments to Australian Accounting Standards

arising from the Withdrawal of AASB 1031 Materiality (effective

from 1 July 2015)

The completion of AASB project to remove Australian guidance

on materiality from Australian Accounting Standards with the

issue of the final amending standard to effect the withdrawal of

AASB 1031 Materiality. Guidance on materiality is now located in

AASB 101 Presentation of Financial Statements.

The adoption of this standard has not changed the reported

financial position and performance of Council.

(ii) AASB 2015-2 Amendments to Australian Accounting Standards

- Disclosure Initiative: Amendments to AASB 101 (effective from 1

January 2016)

The amendments do not require any significant change to

current practice, but should facilitate improved reporting,

including an emphasis on only including material disclosures,

clarity on the aggregation and disaggregation of line items,

the presentation and subtotals, the ordering of notes and the

identification of significant accounting policies.



(iii) AASB 2015-7 Amendments to Australian Accounting Standards

- Fair Value Disclosures of Not-for-Profit Public Sector Entities

(effective from 1 July 2016)

The amendment provides relief to not-for-profit public

sector entities from certain disclosures about the fair value

measurement of property, plant and equipment held for their

current service potential rather than to generate net cash

inflows that is categorised within Level 3 of the fair value

hierarchy.

The adoption of this standard has reduced the level of disclosure

within the financial statements.

(h) Pending Accounting Standards

Certain new accounting standards and interpretations have been

published that are not mandatory for 30 June 2016 reporting

periods. Council’s assessment of the impact of the relevant new

standards and interpretations is set out below. (Note: standards

are applicable to reporting periods beginning on or after to

effective date referred to below).

(i) AASB 2014-3 Amendments to Australian Accounting Standards

- Accounting for Acquisitions of Interests in Joint Operations

(effective from 1 January 2016)

Under AASB 2014-3 business combination accounting is required

to be applied to acquisitions of interests in a joint operation

that meets the definition of a ‘business’ under AASB 3 Business

Combinations.



(ii) AASB 2014-4 Amendments to Australian Accounting Standards

- Clarification of Acceptable Methods of Depreciation and

Amortisation (effective from 1 January 2016)

This amendment introduces a rebuttable presumption that

the use of revenue-based amortisation methods for intangible

assets is inappropriate. In addition to this, there is limited

opportunity for presumption to be overcome and clarifies that

revenue-based depreciation for property, plant and equipment

cannot be used.



(iii) AASB 2014-9 Amendments to Australian Accounting Standards

- Equity method in Separate Financial Statements (effective from 1

January 2016)

Under this amendment, the use of the equity method in separate

financial statements in accounting for associates, joint ventures

and subsidiaries is allowed.



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(iv) AASB 2015-1 Amendments to Australian Accounting Standards

- Annual Improvements to Australian Accounting Standards 2012-

2014 Cycle (effective from 1 January 2016)

Amendments to existing accounting standards, particularly in

relation to:

IFRS 5 - guidance on changes in method of disposal;

IFRS 7 - clarifies ‘continuing involvement for service contracts and

also clarifies offsetting disclosures are not specifically required in

interim financial statements, but may be included under general

requirements of IAS 34;

IAS 19 - clarifies that discount rates used should be in the same

currency as the benefits are to be paid; and

IAS 34 - clarifies that disclosures may be incorporated in the

interim financial statements by cross-reference to another part

of the interim financial report.



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

Extending Related Party Disclosures to Not-for-Profit Public Sector

Entities (effective from 1 July 2016)

The amendment extends the scope of AASB 124 Related Party

Disclosures to include not-for-profit public sector entities.

Council has not adopted this standard for the year ended 30th

June 2016. Council is reviewing the requirements of the standard

to ensure compliance for the next financial year.

(vi) AASB 1057 Application of Australian Accounting Standards,

AASB 2015-9 Amendments to Australian Accounting Standards -

Scope and Application Paragraphs (effective from 1 January 2016)

The AASB has reissued most of its Standards (and

Interpretations) that incorporate IFRSs to make editorial

changes. The editorial changes will enable the AASB to issue

Australian versions of IFRS more efficiently. As part of the

reissuance, the AASB has moved the application paragraphs

that identify the reporting entities and general purpose

financial statements to which the pronouncements apply to a

new Standard, AASB 1057 Application of Australian Accounting

Standards. However, the technical application requirements have

not been amended.



(viii) AASB 9 Financial Instruments and the relevant amending

standards (effective from 1 January 2018)

AASB 9 is one of a series of amendments that are expected

to replace AASB 139 Financial Instruments: Recognition and

Measurement. The main impact of the standard is to change the

requirements for the classification, measurement and disclosures

associated with financial assets. Under the new requirements

the four categories of financial assets in AASB 139 will be replaced

with two measurement categories: fair value and amortised cost.

Amortised cost is to be used for assets with contractual terms

giving rise to principal and interest payments.

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

losses on financial assets at fair value are to be recognised in

profit and loss unless the asset is part of a hedging relationship

or an irrevocable election has been made to present in other

comprehensive income changes in the fair value of an equity

instrument not held for trading .

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

accounting for its available-for-sale financial assets. Currently,

Council recognises changes in the fair value of its available-for-

sale assets through other comprehensive income. Under AASB 9

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

be recognised directly in profit or loss.

However, investments in equity instruments can be designated

as ‘fair value through other comprehensive income’ assets.

This designation is irrevocable. Council is likely to designate

its investment in TasWater as ‘fair value through other

comprehensive income’ and therefore the adoption of this

standard will not impact the way movements in the fair value are

accounted for.

There will be no impact on Council’s accounting for financial

liabilities, as the new requirements only affect the accounting

for financial liabilities that are designated at fair value through

profit or loss and Council does not have any such liabilities.

The derecognition rules have been transferred from AASB 139

Financial Instruments: Recognition and Measurement and have not

been changed.

(ix) AASB 15 Revenue from Contracts with Customers, and AASB

2014-5 Amendments to Australian Accounting Standards arising

from AASB 15 (effective from 1 January 2018)

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

with customers and two approaches to recognising revenue, at

a point in time or over time is proposed. The model features a

contract-based five-step analysis of transactions to determine

whether, how much and when revenue is recognised.

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

that are exchange contracts. AASB 1004 Contributions will

continue to apply to non-exchange transactions until the Income

from Transactions of Not-for-Profit Entities project is completed.



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(x) AASB 2014-10 Amendments to Australian Accounting Standards

- Sale or Contribution of Assets between an Investor and its

Associate or Joint Venture, AASB 2015-9 Amendments to Australian

Accounting Standards - Effective Date of Amendments to AASB10

and AASB 128 (effective 1 January 2018)

AASB 2014-10 amendments require the full gain or loss to be

recognised when the assets transferred meet the definition of a

‘business’ under AASB 3 Business Combinations(whether housed

in a subsidiary or not).

AASB 2015-10: the IASB postponed the effective date of this

amendment indefinitely pending the outcome of its research

project on the equity method of accounting. Deferring the

effective date indefinitely in the Australian jurisdiction may

have unintended legal consequences given AASBs are legislative

instruments. Accordingly, the AASB has deferred the effective

date of the amendments to 1 January 2018.



(xii) Disclosure Initiative - Amendments to AASB 107 (effective from

1 January 2017)

Amendments to AASB 107 will see the introduction of additional

disclosures to evaluate changes in liabilities arising from

financing activities, including both changes arising from cash

flows and non-cash changes (such as effects of changes in

foreign exchange rates and changes in fair values).



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The financial report presents fairly the financial position of the Sorell Council as at 30 June 2016, the results of its operations for the year then ended and the cash flows of the Council, in accordance with the Local Government Act 1993 (as amended), Australian Accounting Standards (including interpretations) and other authoritative pronouncements issued by the Australian Accounting Standards Board.

Robert Higgins General Manager

Dated 19 September 2016

Certification of the Financial Report

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Audit Opinion

…1 of 2

Independent Auditor’s Report To the Councillors of Sorell Council Financial Report for the Year Ended 30 June 2016 Report on the Financial Report I have audited the accompanying financial report (the financial report) of Sorell Council (Council), which comprises the statement of financial position as at 30 June 2016 and the statements of comprehensive income, changes in equity and cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the General Manager’s statement. Auditor’s Opinion In my opinion Council’s financial report:

(a) presents fairly, in all material respects, its financial position as at 30 June 2016 and financial performance, cash flows and changes in equity for the year then ended

(b) is in accordance with the Local Government Act 1993 and Australian Accounting Standards. The Responsibility of the General Manager for the Financial Report The General Manager is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and Section 84 of the Local Government Act 1993. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor’s Responsibility My responsibility is to express an opinion on the financial report based upon my audit. My audit was conducted in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance as to whether the financial report is free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on my judgement, including the assessment of risks of material misstatement of the financial report, whether due to fraud or error. In making those

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…2 of 2

risk assessments, I considered internal control relevant to the General Manager’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate to the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Council’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the General Manager, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. My audit responsibility does not extend to the budget figures included in the statement of comprehensive income and the budget disclosures in note 46, the asset renewal funding ratio disclosed in note 44. Furthermore, I express no opinion on the General Manager’s determination that Council did not have any Significant Business Activities for inclusion in the financial report as required by Section 84(2)(da) of the Local Government Act 1993. Independence In conducting this audit, I have complied with the independence requirements of Australian Auditing Standards and other relevant ethical requirements. The Audit Act 2008 promotes the independence of the Auditor-General. The Auditor-General is the auditor of all Tasmanian public sector entities and can only be removed by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant. Tasmanian Audit Office

Derek S Burns Acting Group Leader Financial Audit Delegate of the Auditor-General Hobart 20 September 2016

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47 Cole Street, Sorell TAS 7172PO Box 126, Sorell TAS 7172P H O N E 6269 0000FA X 6269 0014E M A I L [email protected]

W W W. S O R E L L .TA S . G O V. A U

COUNCIL1862

SORELL

sorell council · in summer, an influx of shack owners and visitors swells the population of this...

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