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Tasman Council 11/12

TASMAN COUNCILTASMAN COUNCILTASMAN COUNCIL

ANNUAL REPORTANNUAL REPORTANNUAL REPORT

201120112011---201220122012


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TASMAN COUNCIL

1713 MAIN ROAD

NUBEENA TAS 7184

PH 6250 9200

FX 6250 9220

[email protected]

www.tasman.tas.gov.au


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MUNICIPAL OVERVIEWMUNICIPAL OVERVIEW The Tasman municipality is located on Tasmania’s picturesque southeast coast approximately 90

minutes from Hobart. As in many rural communities, Tasman’s population is dispersed with the ma-

jority of people centered in and around the township of Nubeena and the localities of White Beach,

Highcroft, Port Arthur, Premaydena, Saltwater River, Koonya, Taranna, Eaglehawk Neck and Murdun-

na. The municipal area covers approximately 659.3 square kilometres. Practically an island, the diver-

sity and abundance of wildlife and plant life is truly remarkable.

The population is relatively stable at approximately 2400 swelling to between 8,000 and 9,000 as a

result of tourists and visitors during the summer months who come to enjoy favorable beaches, bush

walking and fishing areas as well as many other tourist attractions.

Tasman strives to be a welcoming community with an unbeatable quality of life which boasts a num-

ber of boating and sporting clubs with tourism services catering for all ages and interests. Tasman is

also proving to be an attractive area for property developers, people seeking a ‘sea change’ and retir-

ees looking for a quieter lifestyle.

The Tasman Peninsula was formally a bustling industrial zone fuelled by convict labor. In the era be-

tween convict settlement and the introduction of the modern tourist industry the area was mostly

engaged in timber and fishing. The terrain and soil types impeded large-scale agriculture although

fruit farming and general farming was and still is conducted in suitable locations.

The Tasman Peninsula is renowned for its rugged coastlines which have been the scene of a number

of shipwrecks. At Eaglehawk Neck there are many strange rock formations, including The Devils Kitch-

en, Tasmans Arch, Blow Hole and the Tessellated Pavements. Tasman has some of the world’s best

surf spots at Eaglehawk Neck, Roaring Beach and the renowned Shipstern Bluff.

An extremely scenic part of Tasmania that is dominated by rolling pastures, heavily timbered hills and

surrounded by a dramatic coastline of sheer cliffs, towering rocky outcrops, sheltered bays and sea

caves. Walking tracks and kayaks give access to the area’s most isolated areas.


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Council’s VisionCouncil’s Vision Tasman will continue to progress as an innovative and vibrant community, valuing its peo-

ple, environment and heritage while building a sustainable and diverse future.

Mission StatementMission Statement Tasman Council will be responsive to its community by: providing effective and strategic leadership; working in partnership with the community to progress its ideas, values and needs; identifying and acting on current and emerging priorities and service needs; enhancing economic growth opportunities through sound planning and leadership; responding efficiently to the expectations of the community through quality and val-

ue-for-money service; and adopting a creative and progressive approach in all that we do.

Vision StatementVision Statement Tasman – custodians of the past; visionaries for the future.

Statement of ValuesStatement of Values Tasman Council will operate in a way that:

values our historical, cultural and natural environment and the things that make the Municipality such a unique place to live and work;

seeks and encourages quality sustainable, innovative and compatible development; fosters and supports community participation and involvement, tolerance and pride

in our community;

promotes and maintains a community that is healthy, active, skilled and informed.

MISSIONMISSION——VISIONVISION——VALUESVALUES


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COUNCIL IN BRIEFCOUNCIL IN BRIEF

Area 659.3 klms

Population 2400

Percentage of State Population 0.47

Non Current Assets $45,570,000

Non Current Liabilities $743,000

Full Time equivalent Employees 19.0 FTE

Revenue (inc capital) $5,279,000

Loan Debt $754,000.00

Roads Length 197

- Sealed 71

- Unsealed 126

Bridges 62

Rateable Properties 3597

Rateable Residential Properties 1981

Electors 2491

Voter Turnout (2011) 1793 (73.24%)


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ORGANISATIONAL CHARTORGANISATIONAL CHART

Bldg & Develop-

ment Service

Officer

Bldg & Develop-

ment Services As-

sistant

Administration Officer

Rates Officer

Customer Services Officer

Accounts/Customer Ser-

vice Officer

General Manager

Infrastructure

Coordinator

External

Consultants

& Contractors

Office Manager Tourism & Com-

munity Devel-

opment Officer

Depot Staff

NRM Officer

Mayor & Councillors


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COUNCILLORS as at 30 June 2012COUNCILLORS as at 30 June 2012

Mayor Jan Barwick Deputy Mayor Roseanne Heyward

Clr Pam Fenerty Clr Joan Fazackerley Clr Gary Alexander ASM

Clr Glenn Skeggs Clr Roger Larner Clr Roger Self

Clr Alan Hull


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ORDINARY

MEETINGS J

Barwick

R

Heyward

G

Alexander

J

Noye

J

Fazackerley

P

Fenerty

R

Larner

D

Moser

G

Skeggs

27 Jul 11 √ √ √ √ √ √ √ √ √

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A A

23 Nov 11 √ √ √ √ √ √ √ √ √

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25 Jan 12 √ √ √ √ A √ √ √ √

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AGM

14 Dec 11

J

Barwick

R

Heyward

G

Alexander

A

Hull

J

Fazackerley

P

Fenerty

R

Larner

R

Self

G

Skeggs

√ √ √ A √ √ √ A √

Back Row: Councillors Alan Hull, Roger Larner, Pam Fenerty, Glenn Skeggs and General Manager Robert Higgins

Front Row: Councillors Roger Self, Gary Alexander, Deputy Mayor Roseanne Heyward, Mayor Jan Barwick and Councillor Joan Fazackerley

Council Meeting Attendance Record 2011-2012


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GOVERNANCEGOVERNANCE

The Local Government Act 1993 specifies the functions of the Council, Councillors and the General Manager para-

phrased as follows:

Councillors Collectively

To develop and monitor the implementation of strategic plans and budgets;

To determine and monitor the application of policies, plans and programs for the provision of services

and facilities, the management of assets and the fair and equitable treatment of employees of the

Council;

To facilitate and encourage the planning and development of the municipal area in the best interest of

the community;

To determine and review the Council’s resource allocation and expenditure activities; and

To monitor the manner in which services are provided by the Council.

Councillors Individually

To represent the community;

To act in the best interests of the community;

To facilitate communication by the Council with the community;

To participate in the activities and responsibilities as authorised by Council; and

To undertake duties and responsibilities as authorised by Council.

Mayor

To act as a leader of the community;

To act as chairperson of the Council;

To act as the spokesperson of the Council;

To oversee the Councillors in the performance of their functions and in the exercise of their power;

To liaise with the General Manager on the activities of the Council and the performance of its func-

tions and exercise of its powers; and

Both the Mayor and Deputy Mayor are to represent accurately the policies and decisions of the Coun-

cil in performing their functions.


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GOVERNANCE GOVERNANCE

General Manager

To provide advice and reports to the Council on the exercise and performance of its powers and functions and

any other matter requested by the Council;

To implement the decisions of the Council;

To coordinate proposals for the development of objectives, policies and programs for the consideration of Coun-

cil;

To assist the Council in the preparation of the strategic and annual plans, annual report and assessment of the

Council’s performance against the plans;

To implement the policies and programs of the Council;

To manage the resources and assets of the Council;

To be responsible for the day-to-day operations and affairs of the Council;

To liaise with the Mayor on the affairs of the Council and the performance of its functions; and

To perform any other function the Council decides.

Elected Member Overview

Members of the Tasman Council as at 1 July 2012

Council Meetings

Council is required to conduct its ordinary meetings on not less than a monthly basis and currently meetings are held every

fourth Wednesday of the month commencing at 1:00pm, unless otherwise advised. The public are invited to attend all open

Council meetings. The timing of Council Meetings is reviewed following each ordinary election.

Term Expires Term Expires

Jan Barwick Mayor October 2013 Councillor October 2013

Roseanne Heyward Deputy Mayor October 2013 Councillor October 2013

Gary Alexander Councillor October 2015

Joan Fazackerley Councillor October 2015

Pam Fenerty Councillor October 2013

Alan Hull Councillor October 2015

Roger Larner Councillor October 2013

R Self Councillor October 2015

Glenn Skeggs Councillor October 2015


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MAYOR’S REPORTMAYOR’S REPORT The 2011/12 Financial Year has passed and I am very pleased to report that it has been relatively smooth sailing with our General Manager, Mr. Robert Higgins at the helm. When I was elected Mayor almost five years ago it must be said that Tasman had lost its way. It had become the playground of empire builders, with too many administrative staff receiving the lions share of the funding, leaving very little left over for the vitally important things such as roads and other infrastructure maintenance. My fellow Coun-cillors and I knew that we had an enormous task to undertake to turn this around. I am very pleased to report that this has been achieved and that much of your ratepayer funding is now being spent where it should be.

This year we have concentrated our efforts on the maintenance of our roads, drains and other infrastructure. The coming year will have the same emphasis with the attitude of “a stitch in time saves nine” as Council will be working hard on reseals and the reconstruction of our sealed roads and continue to maintain our gravel roads to an improved standard. Once our existing assets have been restored to their former glory, I am looking forward to Council being in a position to undertake new capital projects. Continuing our prudent financial management, Tasman ended the year with a surplus of $1.849m. Together with keeping some finances on hand to enable Council to apply for and match any dollar for dollar grant funding that may become available, the future for Tasman is extremely positive and exciting. During the year the Munro Report was released, this report focussed on the restructuring of local government in the South of the State. That report made many recommendations and caused some discontent around the State in local government cir-cles. I was very pleased to note that within the report it wasn’t considered necessary nor recommended that Tasman be amal-gamated. The improvements we have made to the organisation combined with the continued partnering with Brighton and Glamorgan Spring Bay Councils for specialist shared services has been recognised as a practical and sustainable approach for a remote rural Council. To alleviate the spikes in rates created by the municipal revaluation, a new rating strategy was implemented in the 11/12 fi-nancial year and I am extremely pleased that in general it was well received. We are now into our second rating season with the new structure of CPI increases only. As the contract had expired it was necessary for Council to re-tender for waste collection and it was therefore decided that fortnightly collections would be implemented in an attempt to alleviate additional costs to ratepayers. A council election was held in October 2011 and two Councillors decided not to re-contest theirs seats, Dave Moser and James Noye. We were sorry to lose them from the team and sincerely thank them for their invaluable contribution to the Council and the community. Where one door closes another one opens and Roger Self regained a seat on Council after a two year break and we gained a new Councillor with Alan Hull, who has become a highly valued team player and whose contribution is greatly appreciated. Pearl’s Court Independent Living Units have continued to receive improvements and upgrades during the year and Council con-tinues to support the Nubeena and Tasman Community Bank Project with a significant amount of money transferred to them. It pains me to report that despite Council meeting all the requirements for the development of a new interim planning scheme (as is the case with the other 11 southern Councils), the project continues to drag on at the State level causing significant angst and delay to our residents, ratepayers and developers. The Councils have continued to meet their obligations with the MOU, however, each time we reach a significant step in the process it is further frustrated with delays or indecisiveness with the State. It is Councils view that as there have been significant risks and limitations identified with the new legislative process for Interim Planning Schemes, the alternative and long running ‘traditional’ process is a more robust and transparent mechanism that should be utilised.


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Some civic or ceremonial responsibilities and community events include:

Speeches in honour of Vietnam Veterans Day, Anzac Day and Remembrance Day.

Tasman Rotary School Fair.

Numerous Australian Citizenship ceremonies.

Tasman District School Achievement Recognition Assembly.

The Lions Club Art and Craft Exhibition, the Regatta and the Peninsula Feast which included the presentation of the Aus-tralian Citizen and Volunteer Organisation of the year awards.

Speech and morning tea to thank Tasman’s many volunteers in conjunction with the Tasman Health and Community Ser-vice and the Port Arthur Historic Site.

Speech and a Panel Member for the Tasmanian Regional Arts ‘No Frills Gathering’ hosted at Tasman as part of the “Open Your Eyes – Southern Tasmanian Arts Adventure”. This was followed by a fantastic local production called “A short history of the Peninsula and the World”.

Speech to officially launch an art display entitled ‘A Brush With My Brain’, all art produced by those with acquired brain injuries.

Speech to officially launch the Peninsula Walking Pedometer Challenge.

Drawing of the raffle for the Boxing Day Chops.

Tasman Community Christmas Pageant.

Carols by Candlelight.

The Eaglehawk Neck Fair.

Speech for the official handover of the new SES vehicle.

Speech to officially launch the “Be Equipped for Independence” expo.

Speech to official welcome to the Tasman Municipality the 2012 National Buick Rally.

I wish to thank all community members, the Port Arthur Historic Site Management Authority including both staff and volun-teers, the Tasman Health and Community Services staff and volunteers, the Tasman District School staff and volunteers, the Port Arthur and Tasman Tourism Association, the Dunalley Neighbourhood House, the Tasman Gazette, the Tasman Communi-ty Op-Shop Committee, the various Coast Care and Land Care groups, the voluntary members of Council’s Committees and Special Committees, our Code of Conduct Chair, the Tasman Community Bank Project Steering Committee, the many volun-teers who remain committed to emergency services such as the Fire Brigades, Ambulance and S.E.S. and all volunteer organisa-tions within Tasman for your ongoing support and commitment to making Tasman the best place in the world to live. I thank our General Manager and our fantastic team of staff for their constant hard work, loyalty and dedication in their end-less mission to make improvements and a positive difference for all residents and ratepayers of the Tasman Municipality. I especially thank all of them for working together with Councillors as a team, because when we work as a team we get the best outcomes for everyone. Lastly, I thank the Deputy Mayor and Councillors for your continued commitment, teamwork and vision.

Jan Barwick Mayor


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GENERAL MANAGER’S REPORTGENERAL MANAGER’S REPORT

Councils relationship with the Tasmanian Audit Office has improved significantly

based on our improved financial performance and associated reporting. These have also provided us with the right

tools to further plan our progress into the future and deliver a 10 year financial plan with associated asset manage-

ment plans during 12/13 (a road and bridge asset management policy and plan was endorsed in September 2012).

Federal funding provided in 11/12 to improve local government sustainability through the development of asset and

financial management plans has been a great success and benefit to Tasman. This was administered and imple-

mented across the State through the LGAT with the smaller Councils being able to produce practical and financially

robust plans.

The financial statements and Auditor General Report demonstrate that Council has continued to take positive steps

to ensure our short, medium and long term sustainability is managed appropriately. Whilst Council has made further

improvements to our overall short term liquidity, the longer term financial risk of road asset consumption and renew-

al/replacement will continue to require careful management with regard to maintaining sufficient revenue and re-

serves to match necessary and programmed expenditure. We are positioning ourselves to be able to sustainably

diversify our services and asset development into the future.

Our commitment to continuous improvement, streamlining operations and reducing operating costs did not wane

through 11/12 nor will it heading into the future. The respective and numerous achievements of each department are

detailed in this report demonstrating the delivery of practical and necessary services. Despite our modest size,

Council continued with their commitment to establish rates that did not exceed CPI and will do so until such time as

the 10 year financial plan has been completed and a longer term view to required revenue can be determined.

I reported in the 10/11 annual report the change in the funding environment of the Federal, and more particularly, the

State Governments and this continued through 11/12. Again, a direct impact of this is the need for Council to be self-

sufficient and accountable to its ratepayers in delivering quality and practical services as efficiently as possible. De-

spite the parlous financial position of the State and the impact this has had upon its agencies, it was positive news to

have the 3 Capes Track approved and upgrades confirmed for the Arthur Highway. Council is looking forward to con-

struction of both projects commencing in 12/13.

Council will continue to work with each agency and respective Minister to ensure Tasman is appropriately represent-

ed in decisions that impact on the region. It is my view, however, that the previous partnering relationships between

Council and some agencies and Ministers has and continues to lessen in relevance and effectiveness. This is pre-

sumably due to their respective financial positions but also the composition and focus of the Government. It is be-

coming increasingly difficult to find a relevant representative that will assume accountability to progress matters. It is

likely the long running formal partnership agreements will change as a result with fewer but more tangible and

achievable deliverables.

Council along with the other key local organisations (Tasman Health and Community Service, PAHSMA, Tasman

District School and Tas Police) identified a need to improve communications and met regularly through 11/12 to build

a co-operative relationship to influence where we can the best outcomes for the municipality.

The Copping landfill and Lutana waste transfer station during 2011-2012 recorded an improved financial perfor-

mance with the new governance structure implemented during the year assisting in this and the performance of the

joint authority overall. 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.

The past financial year has seen Council build a stronger base that will enable us

to continue forward into the future. Whilst not necessarily falling into the glamor-

ous category, your Council has nonetheless delivered on a variety of core local

government matters that will be further progressed into 12/13 including:

Implemented asset management software;

Reviewed and updated municipal road map;

Reviewed and updated road and bridge asset database;

Completed initial road asset condition rating; and

Reviewed and updated road and bridge asset valuations.


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GENERAL MANAGER’S REPORT GENERAL MANAGER’S REPORT Council committed to the reduction in the number of Councillors from nine to seven with this to be implemented over

the next two election cycles in 2013 and 2015.

Council’s maintenance and capital works continued in earnest through 11/12 with a significant amount achieved.

Substantial progress was made on reducing the road maintenance backlog and with a continued and programmed

effort through 12/13 combined with a stronger budget position, it is expected that more routine, preventative and cost

effective maintenance will be able to replace re-active works and make available more capital for other asset im-

provements.

The Southern Regional Planning Project has continued to progress slowly through the development of an Interim

Planning Scheme based on the revised Common Key Elements Template. Council is still actively involved in the

project and completed a draft Interim Planning Scheme as required, however, delays at the State level have frustrat-

ed its timely delivery.

With more time now having been spent at the helm, the role and influence of Council has proven to me both our rele-

vance and breadth of functions we carry out for ratepayers, residents and visitors that we can impact on directly and

conversely, the extent to which external factors impact on our sustainability and the operation of the municipality

overall that at times we are unable to control. I am referring of course to global and national finance conditions, con-

tinuing evolution of tourism behaviour and trends, demographic change and the often perplexing world of state and

federal politics and the impact this has on their associated agencies.

What this has demonstrated is that Council must be pro-active and intuitive in their strategic direction and positioning

and cannot afford to lose focus. Whilst we have a number of recently adopted guiding strategic documents and op-

erational plans (Strategic Plan 2011-2016 and the Tasman Tourism Development Strategy 2011-2016, etc), it is es-

sential that they be critically reviewed regularly to ensure they remain relevant and achievable.

As with the previous annual report, I would again like to acknowledge the efforts of all community, recreational and

volunteer organisations and respective individuals who continue to play a number of vital roles that not only assist

our operations but more importantly, keep the community stitched together.

My continued thanks again to staff and Councillors who through hard work, consistent focus and co-operation have

achieved substantial improvements in what Council does and how it conducts its business and should be justifiably

proud of their efforts. I must commend the staff in particular who have and continue to achieve outcomes for the bet-

terment of the municipality and do so without fanfare.

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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TOURISM & COMMUNITY DEVELOPMENTTOURISM & COMMUNITY DEVELOPMENT

Tasman Council Community Grant Fund: Tasman Council’s Community Grants Program provides financial and in-kind assistance to support community groups and individuals to develop projects, facilities and activities which contribute to the development and promo-tion of the community. The 2011-2012 rounds delivered in total $11,822 to the following successful applicants and projects:

In addition to the Community Grant Fund allocations, Tasman Council supported the Tasman Health & Community Service with a contribution of $8000 toward the Youth House Activity Program. These funds were allocated specifi-cally to support two casual youth workers and additionally, to assist with transport and vehicle costs. Tasman Council also set aside funds to assist with the ongoing establishment of the Nubeena & Tasman Community Bank and provided resources to assist with the development of the Business Plan and reconfirmation of pledgee commitment. During the previous reporting year Tasman Council sponsored the Feasibility Study for the establish-ment of the Community Bank franchise. Tasman Council was also awarded funding via the Department of Premier and Cabinet’s War Memorial and Mainte-nance Grants Program. The purpose of the submission was to seek funds to upgrade and repair the Cenotaph locat-ed outside the Tasman District School. *insert Cenotaph photo+ Tasman Council provided in-kind assistance to the staging of the Lions Club of Tasman Regatta and Peninsula Feast.

Applicant Project/Purpose Funds Awarded

Coastview Enterprises Reactivation of webcam at EHN $2000

Lions Club of Tasman Purchase of banners promoting The Re-gatta, The Feast and Art & Craft Fair

$600

Peninsula Aquatic Club Beautification of the Aquatic centre $2000

Tasman Golf Club Subsidised professional golf coaching $900

Dunalley Tasman Neigh-bourhood House

Art competition to beautify Judd Park Toilet

$2000

Georgia Wulf-Rhodes To assist with attending the National Youth Science Forum

$450

Eaglehawk Neck Commu-nity Hall

To purchase marquees $796

Lesley & Richard Kurek To upgrade facilities for rehabilitation of wildlife; specifically sea bird exercise pools

$1026

Tasman Community Broadcasters Association Inc

To assist with the purchase of a new computer for production purposes

$1600

Don Hoyle To assist with attending the National Youth Science Forum

$450


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Halls and Grounds Tasman Council was awarded funding through the Department of Sport & Recreation under both the minor and the major rounds. This program requires matched funding and Tasman Council elected to award the required amounts in order to undertake necessary upgrades to both the Nubeena and Port Arthur Sports Grounds. Tasman Council received in excess of $30,000 from Sport & Recreation to undertake drainage and turf upgrades. The Saltwater River Hall received some much needed attention with repairs to guttering and fascia’s whilst the Taranna Community Centre received some repair work to the gymnasium floor which was seriously degraded asso-ciated drainage. A workshop was facilitated to provide an opportunity for members of the Tasman Council sub-committees involved with halls and recreation grounds to meet with representatives of Council’s insurance broker. Casual Hall Hirers Policy, contents insurance and associated issues were topics on the agenda for clarification. This allowed our volun-teers to raise any queries or issues related to their role as custodians of our halls and grounds.

Pearls Court Units Tasman Council contracted a rental property manager to undertake management of the Pearl Court units, particu-larly lease agreements and condition reporting. The purpose of this contractual arrangement is to ensure all legal obligations are being met on behalf of tenants and Council and to receive professional appraisal of ongoing condi-tion of the units. A resource sharing arrangement was agreed upon with the Tasman Health & Community Service which enables Council to utilise the services of the maintenance worker to respond to minor maintenance issues. This arrange-ment has proved to be exceptionally beneficial with a raft of minor issues and reparations having been attended to during the last twelve months. The Tasman Health & Community Service has been a strong partner in the development of selection criteria and interview processes for prospective tenants of the units. The social work department at the TH&CS are a conduit for identification of prospective tenants as well as actively assisting existing tenants to enable successful tenancies. The STEPS units in Peace St, Nubeena were completed and Tasman Council was able to assist with the identification of suitable tenants by utilising the Pearl Court waiting list – both units ultimately were tenanted by applicants from that list. Works undertaken at the Pearl Court Units, Suckling St include: Purchase and replacement of shared water tanks; Repairs to roofs on four bottom units; Purchase and erection of garden sheds; Repairs to communal driveway; Two units repainted and re-carpeted.

Australian Citizenship Ceremonies Several citizenship ceremonies were held during the course of the re-porting year. These ceremonies are presided over by the Mayor and the Highcroft CWA kindly caters and presents welcome gifts to the new citi-zens.


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Australia Day Local Citizen Awards Mayor Jan Barwick proudly presented awards in two categories at the opening of the Peninsula Feast: Local Citizen of the Year: Beverly Cooper Beverly Cooper was acknowledged for her tireless work for the community – at almost eighty years of age she continues to give wholeheartedly for the benefit of all. Beverly has been a long time member of the Country Women’s Association, the Lions Club of Tasman, the Tasman Civic Centre Committee and many others. Volunteer Organisation of the Year: Lions Club of Tasman The Lions Club of Tasman was acknowledged for the innumerable efforts they undertake for the community. The Lions Club of Tasman stage popular events such as The Regatta, The Peninsula Feast, The Art & Craft Fair and they took over the running of the swimming pool in order for it to remain available as a public resource. They also under-take fundraising activities to assist those in our community that may be experiencing financial difficulty.

Social Support Service Launch & Volunteer Thank You Morning Tea Tasman Council once again partnered with Tasman Health & Community Services and Port Arthur Historic Site Man-agement Authority to facilitate a fabulous event which doubled to launch the Social Support Service and acknowledge and thank our wonderful volunteer community during National Volunteer Week. Robert Pennicott was a key speaker at this event relating some of the stories from his trip around Australia ‘The Yellow Boat Road’ to fundraise for the eradication of polio.

Christmas Time in the Tasman The annual Christmas Pageant & Family Fun Day funded by Tasman Council was again a great success. Tasman Council facilitated and coordinated the event in conjunction with dedicated volunteers from the community. The vehicle pageant was a terrific success with over twenty vehicles participating to bring some Christmas cheer to the children and families between Dunalley and Nubeena – this was very ably co-ordinated by Kylie Eastley and Ian Kingston. The pageant finished at the Tasman District School Grounds where the Family Fun Day was well attended. There were plenty of activities to entertain the children from face painting to the more intrepid adventures of the Vertigo Climbing Wall. The Dunalley Tasman Neighbourhood House sponsored cash prizes for the walking category and these were award-ed to:

1st prize: The Church of Christ $300 2nd prize: Make a Wish Foundation $200 3rd prize: The Peninsula Aquatic Club $100

Raine & Horne sponsored the Best Float category with fantastic hampers full of delicious goodies. These were awarded to:

1st prize: Koonya Earthmoving Truck decorated with life size reindeer – driven by Thomas Jackson 2nd prize: The Petting Zoo – a mobile Christmas float with animals on board driven by Denita Hills 3rd prize: Alan Fox & his dog – a decorated motor bike.


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Social impacts of Tourism in the Tasman: Federal funding was secured through Tourism Research Australia who partnered with Tasman Council and Tourism Tasmania to conduct a “Social impacts of Tourism” study in the Tasman Municipality. A survey was designed to measure community perceptions of tourism activity within the local area, to identify com-mon themes and assist Council and other agencies in understanding community views to aid in planning for tourism. Initially AMR researchers immersed themselves into the Tasman Region travelling through the area and speaking with local community members at a number of locations. The bulk of the research was then captured through a hard copy questionnaire mailed to all households in the Tasman region as well as to ‘shackies’ usual place of resi-dence. The survey response was at an unprecedented high with over 500 returns and overall, indicated a positive attitude toward tourism in our region. Social impacts - Overall: The community believe that tourism has an overall positive impact, with a greater positive impact on the wid-

er community than on their personal lives; Residents feel that tourism has a positive impact on their personal lives and on the wider Tasman community; Shackies feel that tourism has a positive impact on their personal lives and on the wider community; Compared to other regions previously surveyed, the Tasman’s overall impact scores are fairly consistent with

tourism positively impacting the community far more than for the individual, and; Of the eight regions in Tasmania who have undertaken community studies, the Tasman region is the second

most positive about the impact of tourism on the community as a whole, and records the third highest per-sonal impact.

Three Capes Track: The upgrade of the Cape Huay track heralded the commencement of the much anticipated Three Capes Track. Tasman Council accepted a seat on the Three Capes Track Project Reference Committee for which the purpose is to: Provide key stakeholders with regular and up to date briefings on the progress of the project. Membership includes Port Arthur Tasman Tourism Association, Tourism Industry Council of Tasmania, Port Arthur Historic Site Management Authority, Tasman Council, Environment Tasmania, Bushwalking Tasmania and the Parks and Wildlife Service. The objectives of the Three Capes Track Project Reference Committee are as follows: Ensure stakeholders are provided with regular updates on the progress of the project; Provide input to support the delivery of the project objectives; Provide advice and comment on the implementation of the project; and Promote support for the project in the government, tourism industry, Tasmanian and Tasman communities,

and, other relevant stakeholders. The scope of the Three Capes Track Project Reference Committee is as follows: Limit itself to matters relevant to the Three Capes Track project; Not make decisions relating to budget; and Provide direction and/or seek advice from stakeholders to inform or support the project, as appropriate.


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LTA Capacity Building Project:

The Southern Tasmanian Councils Authority (STCA), with the support of the Department of Economic Development, Tourism and Arts, initiated a project to find ways that Local Government can work with the Tourism Industry to better support the development of a stronger regional network of sustainable Local Tourism Associations (LTAs) in Southern Tasmania. This initiative, identified by Tourism and Economic development officers from each of the twelve southern councils has the following objectives: To undertake a situation analysis of Local Tourism Associations (LTAs) in Southern Tasmania. To undertake the identification and development of critical indicators of LTA sustainability and /or viability

that could be used by LTAs, Local and State Govt. Develop a 3 year action plan for Southern Tasmanian Councils to help create a stronger regional network of

sustainable LTAs. Develop and write a resource toolkit for LTA sustainability Tasman Council had a seat on the project steering committee and worked closely with local tourism operators to ensure that their participation was engaged to enable the voice of grass roots tourism to be heard.

PORT ARTHUR & TASMAN TOURISM ASSOCIATION Tasman Council continued to support the Port Arthur & Tasman Tourism Association during 2011-12. Council’s Tourism & Community Development Officer was elected the General Manager’s nominee and worked closely with the committee to undertake a number of projects, including: Reprint of ‘The Essence of Tasman’ A5 booklet which contributed to increased membership and finances for

the PATTA. The booklet was distributed via the Tourism Brochure Exchange to airports and the Spirit and on the basis of demand through TVIN’s.

Tasman Council funded the Hubmap, which is designed to be distributed for visitors already in the region. The redevelopment of the Tasman region website commenced. A representative was sent to the Caravan & Camping Show held in Melbourne to represent the region. A representative designed and delivered a presentation to staff of the Hobart TVIN about the region and its

offerings. A ‘Business Health’ survey was designed to gain insight into how local businesses were performing in light of

decreased visitation to Tasmania. PATTA offered a subsidised cooperative opportunity to advertise in the Hobart & Surrounds Your Holiday

Guide which added two pages to the bulk of the regions presence within the guide.


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NATURAL RESOURCE MANAGEMENT NATURAL RESOURCE MANAGEMENT

Natural Resource Management (NRM) The last financial year returned many achievements in Natural Resource Management (NRM) in the Tasman munic-ipality. The focus has been on weed management, facilitation of Landcare and Coastcare activities, climate change adaptation and improving strategic regional outcomes. Collaboration has been the key to success in our municipali-ty, enabling opportunities such as; Tasman Landcare Groups (TLG) serrated tussock project; Saltwater River Coastcare Impression Bay rehabilitation; Tasman District School Kindergarten and Parkers Beach and Shelley Beach Coastcare groups NRM South Nat-

urally Inspired grants; and Tasman Priority Weeds project. The Tasman community has embraced organised activities such as oyster ‘donging’, tree planting and rubbish clean ups. NRM has had a presence at local events such as the school and Eaglehawk Neck fairs, encouraging community involvement in awareness in NRM. There has also been repre-sentation at the Tasman/Sorell NRM Working Group and the STCA Biodiversity Offsets working group. A new collaboration with NRM South for the 2012/13 financial year will see further investment in NRM in our municipality. Tasman Council will con-tinue to seek opportunities to keep local NRM issues on the agendas of state government agencies, NGO’s and private organ-isations.

Tasman Weed Management In November 2011 the Tasman Council Weed Management Strategy 2011- 2016 was passed. This is a vital document for the strategic management of weeds in our municipality, with a vision ‘To implement an effective, coordinated and prac-tical weed management program to reduce the economical, ecological and social impacts of weeds in the Tasman Municipality’. The first annual review has been undertaken and already many of the actions listed in the strategy have been implemented. Key actions and achievements for the 2011/12 year: 1. Policy, Planning and Legislation: Tasman Weed Strategy developed and passed. Spanish Heath action plan

developed. Council also working with landowners on strategic control. 2. Coordination of the TWS 2011 -2015. Updates provided to Council monthly and also regularly in the Tasman

Gazette and TLG newsletter, Across the Catchment. Communication and collaboration with stakeholders on strategic control.

3. Preventative weed management: New weed reports followed up, weed hygiene promotion and local quarry inspections.

4. Strategic on-ground weed management: Spanish heath roadside control. Initial control successful leading to all Council roadsides flagged for control in 2012. Assisting TLG and P&WS with serrated tussock control. Im-pression Bay rehabilitation (with Saltwater River Coastcare) and Tasman Priority Weed project. Tasman Council weeds officer gazetted under the Weed Management Act 1999.

5. Education, awareness and training: Attending local fairs and events. Weed workshop and Field hygiene training for staff, contractors and local students. Regional weed officer meetings.

6. Data management and Information: Comparative maps of priority weed work developed for 2009 and 2011. The Tasman Weed Database updated and weed control actions added.

7. Monitoring, evaluation and reporting: TWS and SH action plan reviewed. Monthly updates to Council meetings. Regular updates on Council website.


21


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Heading into its third year the NRM South funded Tasman Priority Weeds project has produced some great results in weed reduction in the municipality. The project targets follow up control, along with control of newly identified sites for the following species; Boneseed Gorse African boxthorn Pampas grass Asparagus fern Serrated tussock Paterson’s curse Reports from the community have been vital in identifying previously un-known sites of weeds needing control. The cooperation of landowners has made the management of these weeds achievable. Weed management needs ongoing commitment but we are well on our way to achieving eradica-tion of the initial target species. Tasman Council is committed to ensuring on-going control in future years and will continue to pursue options to fund the follow-up. The Tasman Weeds Database has been updated with weed control works and additions of new sites. It has allowed easier identification of weed hot spots and guides monitoring actions. The removal of pampas seed heads to prevent seed dispersal was very successful this year because of these records. Successful weed control work was followed up in 2011 on Sloping Island, through collaboration between NRM South, PWS staff and assistance from Tasman Council. Given its proximity to the Tasman Peninsula it poses a sub-stantial risk of spreading serrated tussock to the mainland. With optimal weather conditions, a great deal of work was achieved to treat all African boxthorn populations, outlying serrated tussock populations and some Spanish heath control. PWS have secured funding for further control in 2012 to build on the important work that has al-ready taken place. Tasman Council has been represented at Southern Tasmania weed officer meetings where local councils and other organisations collaborate on weed control progress, share ideas and promote opportunities for weed control in Southern Tasmania.

Tasman Landcare Group Tasman Council and the TLG have been working collaboratively to achieve NRM outcomes. Tasman Council are proud to provide support to the work of the TLG, and over the past three years a project officer position has been hosted by Council and incorporated into the NRM officer role. The funding from this has come from an Australian Government, Caring for our Country grant. The three year project, aimed at improving NRM outcomes through engagement with farmers, land managers and community officially wrapped up this year. Through this project the following achievements in NRM have been made: Construction of over 12km of wallaby-proof fencing to control native browsing & assist farmers to manage

ground cover. Construction of 2km of fencing to protect native vegetation. Planting of over 6000 native plants for erosion control, shelter belts, and native habitat rehabilitation. Reduction of over 20.2ha of Weeds of National Significance. Site visits to over 70 sites. Delivery of field days reaching over 70 landowners


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The project was extremely beneficial to NRM in the Tasman catchment and Council continues to work closely with the TLG. New projects are on the horizon for the TLG, such as the TLG’s successful application; Protecting Biodiver-sity: Managing Serrated Tussock, announced in late 2011. The project has enlisted an experienced contractor to work with land managers to control serrated tussock and plan for ongoing management. It is well on its way to en-gaging 100% of landowners with serrated tussock on their properties in the Tasman Catchment in ongoing control. The TLG has been expanding their support for others working towards similar goals. Local Coastcare groups have been supported, working as an overseeing incorporated body allowing smaller groups more interested in on ground activities to be able to receive funding. Parkers Beach and Shelley Beach Coastcare groups have been able to re-ceive grants from NRM South’s Naturally Inspired Grants through this. The TLG also hosted a Native browsing field day in 2011 with a presentation and demonstration on fencing tech-niques.

Coastcare Coastcare groups joined forces in 2011 to celebrate their coastal works. The newly formed Duck Creek Beach Coastcare group celebrated their launch in style with a fantastic BBQ and a weed I.D session on the beach. Coast-care groups are active all across the municipality and are always looking for interested people to become involved. Parkers Beach Coastcare and Shelley Beach Coastcare groups have been pegging away at their respective are-

as, these dedicated groups focussing on weed management, tree planting and erosion control. There have been changes on the Impression Bay foreshore reserve, Premaydena. The Saltwater River Coast-

care group with support from Tasman Council has been tackling this project after receiving a Caring for our Country grant from the Australian Government. The focus is on removing pines and poplars and rehabili-tating the foreshore. The Parks and Wildlife Service felled the ‘weedy trees’ which has really opened up the foreshore and generated a lot of community interest. The project will be ongoing over the next few years.

Eaglehawk Neck Coastcare have been undertaking a variety of activities this year, getting involved with clean up Australia day, sea spurge removal, beach erosion monitoring and also weed control. Conservation Volun-teers were able to give a few helping hands to remove broom on a troublesome site on the Tasman Arch State Reserve.

Community Events As well as promoting NRM at the Tasman School and Eaglehawk Neck fair Tasman Council were active in promoting opportunities to be involved in NRM. The 2011 National Tree day saw the Tasman District School and Tasman Scouts planting a variety of species. Tas-man Early Learning Centre also undertook planting at the Spring Breakfast. Several community groups, individuals and Council staff participated in this year’s Clean up Australia day. Council organised a special rubbish collection for the day. Thanks to everyone who volunteered their time. The DPIPWE Southern Regional Weed Officer was on hand to provide assistance and control advice at a weed workshop in March 2012. The well attended work-shop highlighted weeds to watch out for, how to control problem weeds in our municipality and other projects that are happening in our area.


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Feral Oyster Removal

The feral oyster control program involves the removal or ‘smashing’ of oysters from rocks and beaches in priority beaches. The Southern Coastcare Association of Tasmania again supported the activities and this years ‘donging’ days were attended by work crews from Conservation Volunteers Australia. White Beach and Parsons Bay received control, both seeing a large amount of young oysters. This highlights the need to maintain this program into the future. Again Lindsay James and his family dedicated many hours to continue the control program. Tasman Council will be organising control activities for late 2012. The sharp-shelled feral oysters colonise sand and rocks at popular recreational beaches - anyone who has sliced a foot on an oyster shell understands the value of this program!

Climate Change And Energy Efficiency

Tasman Council continues to monitor its energy use and greenhouse emissions through independent energy moni-toring company, Planet Footprint. Through this monitoring changes have led to energy savings. The 11/12 financial year saw the total organisation wide electricity consumption decrease by 6% compared to the previous year which is an achievement given the rising cost of power. The Home Energy Audit Toolkit (HEAT) has been available for monitoring individual household energy use. This kit continues to be available for loan to assist Tasman residents. Energy consumption graph.

Tasman Council has been participating in the Regional Councils Climate Adaptation Project. The project aims to strengthen our capacity to identify climate impacts and vulnerabilities and to develop suitable responses and pro-cesses to address these. Through this a Tasman Council Climate Change Adaptation Plan has been developed. Pro-posing 25 actions to address priority climate change risks, it will act as an operational document for staff and man-agement. It is the first step in integrating climate change risk adaptation into council processes and will be re-viewed and updated annually.


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PLANNING & ENVIRONMENTPLANNING & ENVIRONMENT

Planning Council has focused on continually improving its performance as the statutory planning authority, ensuring the assessment and determination of all applications is carried out objectively and pragmatically based on the relevant Planning Scheme and applicable State legislation. This approach extends to the advice Council’s planning staff pro-vide to ratepayers, developers and State agencies. Council has been involved with the Southern Regional Planning Project. This project will assist in the provision of a strategic and co-ordinated approach to managing the various residential, rural, commercial, tourism, natural val-ues, transport, servicing, visual impact and associated issues that need to be considered in the new planning scheme for Tasman and other southern councils. The timeline for the completion of the State planning schemes has been delayed. Council continues to liaise with the appropriate State agencies to communicate the urgency of this issue in the Tasman municipality. An audit of historic planning files is ongoing, with completed files being scanned to Council’s record management system with a view to reducing storage of files. Three (4) planning scheme amendments, as detailed below, were submitted to Tasmanian Planning Commission (TPC) in 2011/2012:-

Tasman Planning Scheme 1979 AM 1/2011 & SA 1/2011 Section 43a Application – Rezone from Forest Protection to Village Infill & Subdivision (3 Lots & Balance) – Richard-sons Drive, Eaglehawk Neck (CT 142910/1). The draft amendment was rejected and planning permit refused by the Tasmanian Planning Commission on 21 December 2011. AM 2/2011 & SA 2/2011 Section 43a Application – Rezone from Forest Protection to Village Infill & Subdivision (5 Lots) – Alfred Street, Ea-glehawk Neck (CT S100359/1). The draft scheme amendment was rejected and planning permit refused by the Tasmanian Planning Commission on 31 January 2012. AM 3/2011 & DA 118/2011 Section 43a Application – Specified Departure – Motel (Tourist Accommodation) & Change of Use (Tourist Ac-commodation) – 717 Saltwater River Road, Saltwater River (CT 147466/1) - The planning scheme amendment and Planning Permit was modified and approved by the Tasmanian Planning Commission and became effective 1 June 2012.


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Sorell (Section 46) Planning Scheme (No. 2) 1990 AM 1/2012 Insert the use category ‘public utility’ as a discretionary use within the Public Purposes Zone, Open Space Zone, For-estry Zone and the Lakes, Rivers, Waters & Sea Zone of Schedule 2. The planning scheme amendment was ap-proved by the Tasmanian Planning Commission and became effective 19 June 2012.

Building & Plumbing A Council of a municipal area, as far as is reasonably practicable, is to ensure that that the owners of the property are informed of their duties under the Building Act 2000 in relation to building work and in maintaining and using a building. Council’s role as Permit Authority involves an assessment of documentation submitted to ensure it has been pre-pared in accordance with the Building Act 2000 prior to issuing permits. Council engages a consultant plumbing inspector to inspect and issue plumbing permits in accordance with the Plumbing Regulations 2004. An audit of Council’s building files is ongoing. As a result of the audit, approximately 200 Certificates of Completion were issued by Council with the properties also being listed for revaluation. Advertising has been undertaken to ensure that property owners are aware of their requirements in relation to un-dertaking building work. As a result, the number of applications received by Council has increased. Information documents and brochures have been prepared to provide applicants to ensure that they understand the building process, and the documentation required. This has resulted in the streamlining of the permit issue process. Historic building permit files are currently being archived, and scanned to Council’s record management system with a view to reducing storage of building files

.

Number of applications

received

Number of applications

approved

Average number of days to pro-

cess applications

Average number of days for which

the clock was stopped

Planning - permitted use 35 35 16 16

Planning - discretionary use 48 45 41 5

Number of applications received

Number of applications approved

Average number of days to pro-cess applications

Average number of days for which the clock was stopped

Planning - permitted use 67 67 11 5

Planning - discretionary use 51 51 35 10

Building 111 111 12 5

Number of appli-cations received

Number of appli-cations approved

Average number of days to process applications

Average number of days for which the clock was stopped

Number of devel-opment applica-tions completed within statutory timeframe

45 65 6 8 45


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Compliance As Permit Authority, Council must make itself aware of building work and plumbing work being undertaken within the municipality and ensure that proceedings are instituted against any person or body failing to comply with the Building Act 2000. Under the Building Act 2000, permit authorities are not specifically required to enforce the legislation, however, the role may be delegated to them by the General Manager. Enforcement is carried out through notices and orders, possibly leading to demolition of the building and/or prose-cution. A total of 21 Building Notices were issued during the 2011/12 financial year. A total of 18 compliance files were resolved during 201/12.

Environmental Health & Environmental Management Council has a number of statutory responsibilities with respect to environmental health. The Local Government Act 1993 is the principal Act for Council and includes the powers of entry for an EHO and a number of roles to be ful-filled. Section 337 certificates may be required on the transfer of a property and any orders such as Abatement Notices are flagged. It is important that the community is presented with authoritative information on environmental health risks. Ac-tivities to meet this service include seminars where relevant, publications and campaigns. Planning Permit applications require input from the Environmental Health Officer with respect to wastewater man-agement and environmental management. Council’s responsibilities in accordance with the Food Act 2004 involve licensing of food businesses and food sam-pling to ensure safe food hygiene standards are met. There are approximately 50 food premises currently regis-tered in the municipality, with approximately 9 temporary food licenses issued per annum. To carry out this service an average of two visits per premises per annum is required, plus food sampling as di-rected by the Director of Public Health and the issuing of improvement orders and other associated administrative work. It is vitally important that wastewater from un-sewered premises is properly and safely disposed of in an environ-mentally sound manner. The role of the Environmental Health Officer includes an inspection of each new rural property requiring a Special Plumbing Permit and advice and interpretation of any public health issue arising with respect to wastewater management. 60 Special Plumbing Permits were issued by Council during 2011/12. Councils have an obligation in accordance with the Public Health Act 1997 to ensure that public buildings are regu-larly inspected and meet safe standards, particularly relating to exits, and to issue a Place of Assembly licence. There are 18 buildings in the Tasman municipality which require inspections, registration and licensing. The Build-ing Surveyor issues Certificates of Occupancy and the Environmental Health Officer recommends registration. The Public Health Act 1997 also provides powers for the issuing of a Closure Order by Council on receipt of a report form an Environmental Health Officer that the building is a high risk to public health and a report from a Building Surveyor that the building is substandard. Immunisation is perhaps the most effective and practical single public health measure available for the reduction of morbidity and mortality arising from infectious diseases. Council’s obligation to provide this service includes the coordination of the school immunisation program.


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Infectious disease incidents are notifiable and may require an investigation and interview. Advice to Council may also be necessary. Few infectious disease investigations occur in a single year however this is an important role and obligation of Council. Water sampling of any potable supplies, wastewater system and recreational waters have been carried out by Council during 2011/2012. Separate annual reports for potable water and recreational waters are required for the Department of Health and Human Services. Burial of human remains outside of established cemeteries must be done in a responsible way with no adverse im-pact on public or environmental health. Supervision of exhumations is another role of the Environmental Health Officer. Council has a responsibility in accordance with the Environmental Management Pollution act 1994 to ensure that the impact of human activity on the environment is within acceptable limits in accordance with the Environmental Management Pollution Act 1994. The activities of this service include:

Assessing and determining if environmental harm has occurred and the issuing of Environmental Infringement No-tices or Environmental Protection Notices. Infringements include the emission noise, smoke or the discharge of polluted water.

Monitoring and assessing industrial waste, rural industries, residential waste, and intensive animal farming effluent are a duty expected of the Environmental Health Officer.

Contaminated Sites register should be held in Council so that when a premises has a change of use or is sold such activities are flagged and an assessment is carried out if required (E.g. a former service station sold and converted to residential)


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INFRASTRUCTURE & WORKSINFRASTRUCTURE & WORKS

Capital Works Completed During 2011-2012

Marsh Road bridge replaced with culvert pipes

Heywards Road bridge replaced with culvert pipes

Stabilised Nubeena Road south of Littles Road

Stabilised Pirates Bay Drive south of lookout

Reseals on White Beach Road, Sommers Bay Road and Saltwater

River Road

Stage two drainage on Clifford's Road, Turners Point

Linemarking and guide posts installed along White Beach Road

Extended the seal on Sommers Bay Road

Upgrade drainage George Street, Nubeena

Replaced safety fencing on Nubeena Road from White Beach Road

along to Alfred Street and on Noyes Hill

Upgraded jetty at Turners Point

Place concrete footpath Nubeena, School to Clarke Street

Deck replacement at Duck Creek Road bridge, Sommers Bay Road

Landslip repairs Main Road Nubeena and White Beach Road

Tasman Council extracted 6000m3 from Robinsons Road Quarry to sheet and pothole Councils gravel roads. Exten-

sive patching was undertaken on our sealed road network with dig outs and crack sealing. Drainage works have

been undertaken on numerous roads on both the Tasman & Forestier Peninsula’s.

Tasman Council is committed to improving its road network with roadside drainage, shoulders, furniture & pave-

ments on both gravel and sealed targeted this year and into the future.


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COUNCIL & SPECIAL COMMITTEESCOUNCIL & SPECIAL COMMITTEES

Finance & Administration Committee (FAC) The Finance and Administration Committee (FAC) was established in December 2008 and meets six (6) monthly or as required

to:

Examine and review financial statements, external auditor’s opinions and reports to members, and seek assurance

that action has been taken where necessary;

Identify where and how financial policies and practices can be improved;

Examine the effectiveness of the Council’s anti-fraud and anti-corruption arrangements;

Seek assurance that action is being taken on risk related issues identified by auditors;

Be satisfied that the Council has in place appropriate plans, policies and arrangements to manage and mitigate the

organisations business risks;

Ensure that there are effective relationships between inspection agencies and other relevant bodies, and that the

value of the audit process is actively promoted;

Identify and direct any special projects/investigations deemed necessary;

Assess compliance with Council’s Code of Conduct, Strategic Plans and Annual Business Plan, and ensure that these

documents support the future financial sustainability of Council;

Review Councils;

Complaints management service delivery in accordance with legislation requirements, both

internal and external;

HR processes e.g. leave processes;

Licenses, permits and fines management; Key Performance Indicators; and

To include any other matter deemed appropriate by the General Manager.

All Councillors are members of this Committee.

Works Infrastructure & Assets Committee (WIAC) The Works Infrastructure and Assets Committee (WIAC) was established in December 2008 and meets six (6) monthly or as

required to:

Advise Council in relation to replacement of major plant;

Review waste management issues;

Advise Council in relation to major capital development;

Develop and review asset and services 10 year plan;

Assist in the development and review of relevant Council policies and practices;

Review Council’s resource and asset use to determine compliance with Council’s operation plan, annual plan, strate-

gic plan, council policies, and effective work practices; and

To include any other matter deemed appropriate by the General Manager.

All Councillors are members of this Committee.


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Tourism & Economic Development Committee (TEDC) The Tourism & Economic Development Committee’s (TEDC) main purpose is to assist in creating, coordinating and promoting

opportunities for business growth and economic development. The Committee has acted as the steering committee for the

implementation of the Tasman Tourism Development Strategy and has made recommendations to Council on tourism and

economic development issues. Membership is made up of Members appointed by Council and consist of Mayor J Barwick

(Chairperson), Deputy Mayor R Heyward, Councillor J Fazackerley, Councillor A Hull, Robert Higgins, Kate McCarthy, Roger Self,

Kathy Wiedner, Geoff Copping, David Daniels, Maria Stacey and Stephen Large.

Tasman Civic Centre Committee The Tasman Civic Centre Committee was established in January 2007 to:

Prepare and authorise a Management Agreement between the Department of Education and the Council on be-

half of the community;

Examine opportunities for the development and use of the building known as the Tasman Civic Centre located at

Nubeena;

Investigate funding options for capital works associated with this building;

Recommend priorities and strategies for use of the building; and

Recommend operating procedures that will ensure that the building is used to achieve the priorities and strate-

gies identified.

Members are appointed by Council and consist of Kath Noye, Betty Wylie, Larissa Brenner, Tom Burden, Shane Bogus, Joan

Fazackerley, Robert Higgins and Kate McCarthy.

Halls & Grounds Committees Council has established six special committees made up of volunteers who feel passionate about community facilities to man-

age Council’s halls and recreation grounds. The six committees are:

Koonya Hall Committee

Saltwater River Hall Committee

Tasman Community Centre

Port Arthur Recreation Grounds Committee

Nubeena Recreation Grounds Committee

Premaydena Cricket Ground Committee


32

AUDIT REPORTAUDIT REPORT


33

AUDIT REPORTAUDIT REPORT


34

FINANCIAL REPORTFINANCIAL REPORT Statement of Comprehensive Income

For the Year Ended 30 June 2012

Budget Actual Actual

Note 2012 2012 2011

$'000 $'000 $'000 Continuing operations Income Rates and charges

3 3,671 3,686 3,552 Statutory fees and fines

4 192 204 206 User fees

5 287 390 403 Grants

6 1,026 1,228 888 Other Income

8 74 194 199 Share of net profits/(losses) of associates and joint ventures ac-counted for by the equity method 15 - 27 -

Total income 5,250 5,729 5,248

Expenses Employee benefits

10 (1,111) (1,135) (1,176) Materials and services

11 (2,665) (2,439) (2,097) Depreciation and amortisation

12 (1,101) (1,197) (985) Finance costs

13 (54) (54) (55) Share of net loss of associateds and joint ventures accounted for by the equity method - - (11) Impairment loss (67) Other expenses

14 (450) (139) (125)

Total expenses (5,381) (4,964) (4,516)

Surplus / (deficit) from continuing operations (131) 765 732

Capital grants received specifically for new or upgraded assets

6 - 571 145 Contributions - non-monetary assets

7 - 513 130 Net gain/(loss) on disposal of property, infrastructure, plant and equipment 9 - - 5

Surplus / (deficit) (131) 1,849 1,012

Other comprehensive income Financial assets available for sale reserve

─ Fair Value adjustment on Available for Sale Assets 28 - 2 5

Net asset revaluation increment(decrement) reversals 28 - 28,893 672

Comprehensive result (131) 30,744 1,689

The above statement should be read in conjunction with the accom-panying notes.


35

FINANCIAL REPORTFINANCIAL REPORT Statement of Financial Position

As at 30 June 2012

Note 2012 2011

$'000 $'000

Assets

Current assets

Cash and cash equivalents 17 3,057 1,973

Trade and other receivables 18 440 209

Financial assets 19 250 250

Inventories 20 6 -

Other assets 21 83 10

Total current assets 3,836 2,442

Non-current assets

Investments in associates accounted for using the equity method 15 66 39

Investment in water corporation 16 922 920

Property, infrastructure, plant and equipment 22 44,553 15,215

Intangible assets 23 29 15

Total non-current assets 45,570 16,189

Total assets 49,406 18,631

Liabilities

Current liabilities

Trade and other payables 24 267 181

Provisions 25 74 69

Interest-bearing loans and borrowings 26 84 89

Total current liabilities 425 339

Non-current liabilities

Provisions 25 47 20

Interest-bearing loans and borrowings 26 670 743

Other liabilities 27 26 35

Total non-current liabilities 743 798

Total liabilities 1,168 1,137

Net Assets 48,238 17,494

Equity

Accumulated surplus 12,256 10,407

Reserves 28 35,982 7,087

Total Equity 48,238 17,494

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


36

FINANCIAL REPORTFINANCIAL REPORT 2012 2011

Inflows/ Inflows/

(Outflows) (Outflows)

Note $'000 $'000

Cash flows from operating activities

Rates 3,625 3,518

Statutory fees and fines 468 746

Interest received 174 199

Receipts from Governments 1,228 888

Other receipts 179 144

Interest Paid (54) (55)

Payment to suppliers (2,658) (2,651)

Payments to employees (1,103) (1,157)

Other payments (125) (93)

Net cash provided by (used in) operating activities 29 1,734 1,539

Cash flows from investing activities

Payments for property, infrastructure, plant and equipment (1,143) (853)

Payment for other financial assets - (250)

Capital grants 571 145

Proceeds from sale of property, infrastructure, plant & equipment - 9

Net cash provided by (used in) investing activities (572) (949)

Cash flows from financing activities

Repayment of interest bearing loans and borrowings (78) (294)

Net cash provided by (used in) financing activities (78) (294)

Net increase (decrease) in cash and cash equivalents 1,084 296

Cash and cash equivalents at the beginning of the financial year 1,973 1,677

Cash and cash equivalents at the end of the financial year 17 3,057 1,973

The above statement should be read with the accompanying notes.


37

FINANCIAL REPORTFINANCIAL REPORT

Note

Asset Fair

Accumulated Revaluation Value Other

Total Surplus Reserve Reserve Reserves

2012 2012 2012 2012 2012

2012 $'000 $'000 $'000 $'000 $'000

Balance at beginning of the financial year

17,494

10,407

6,008

5

1,074

Adjustment due to compliance with revised accounting standard

-

-

-

-

-

Surplus / (deficit) for the year

1,849

1,849

-

-

- Other Comprehensive Income: Financial assets available for sale reserve

─ Fair Value adjustment on Available for Sale Assets

2

-

-

2

-

Net asset revaluation increment(decrement) reversals 28

28,893

-

28,893

-

Transfers between reserves

-

-

-

-

-

Balance at end of the financial year

48,238

12,256

34,901

7

1,074

Asset Fair

Accumulated Revaluation Value Other

Total Surplus Reserve Reserve Reserves

2011 2011 2011 2011 2011

2011 $'000 $'000 $'000 $'000 $'000

Balance at beginning of the financial year

15,792

10,346

5,336

-

110 Surplus / (deficit) for the year

1,012

1,012

-

-

- Other Comprehensive Income:

Net asset revaluation increment(decrement) reversals 28

672

-

672

-

-

Fair Value adjustment on Available for Sale Assets

5

-

-

5

-

Public Open Space Transfer

13

-

-

-

13

Transfers between reserves

-

(951)

-

-

951

Balance at end of the financial year

17,494

10,407

6,008

5

1,074

The above statement should be read with the accompanying notes.


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FINANCIAL REPORTFINANCIAL REPORT (a) The Tasman Council was established on 6 January 1908 and is a body corporate with perpetual succession and a

common seal. Council's main office is located at Nubeena.

(b) The purpose of the Council is to:

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

- to promote the social, economic and environmental viability and sustainability of the municipal area;

- to ensure that resources are used efficiently and effectively and services are provided in accordance with the Best Value Principles to best meet the needs of the local community;

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

- to promote appropriate business and employment opportunities;

- to ensure that services and facilities provided by the Council are accessible and equitable;

- to ensure the equitable imposition of rates and charges; and

- to ensure transparency and accountability in Council decision making.

This financial report is a general purpose financial report that consists of the Statements of Comprehensive In-come, Financial Position, Changes in Equity, Cash Flows, and notes accompanying these financial statements. The general purpose financial report complies with Australian Accounting Standards, other authoritative pro-nouncements of the Australian Accounting Standards Board (AASB), 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 stand-ards that are applicable to not-for-profit entities. As a result this financial report does not comply with International Financial Reporting Standards.

Significant accounting policies

(a) Basis of accounting

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

This financial report has been prepared under the historical cost convention, except where specifically stated in notes 1(e), 1(i), 1(k), 1(o), 1(p), 1(q).

Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where appropri-ate, 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 Manage-ment, and material subsidiaries or joint ventures, have been included in this financial report. All transactions be-tween these entities and Council have been eliminated in full. Details of entities not included in this financial report based on their materiality are detailed in note 37.


39

FINANCIAL REPORTFINANCIAL REPORT Judgements and Assumptions

In the application of Australian Accounting Standards, Council is required to make judgements, estimates and as-sumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The esti-mates 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 signifi-cant effects on the financial report are disclosed in the relevant notes as follows:

Employee entitlements

Assumptions are utilised in the determination of Council’s employee entitlement provisions. These assumptions are discussed in note 1(o).

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 notes 1(f) and in note 22.

Investment in water corporation

Assumptions utilised in the determination of Council’s valuation of its investment in Southern Water are discussed in note 1(k) and in note 16.

(b) Change in accounting policies

There was no change in any of Council's accounting policies for the period.


40

FINANCIAL REPORTFINANCIAL REPORT (c) Revenue recognition

Rates, grants and contributions

Rates, grants and contributions (including developer contributions) are recognised as revenues when Council obtains control over the assets comprising these receipts.

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

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

Where grants or contributions recognised as revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at bal-ance date, the unused grant or contribution is disclosed in note 6. 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.

Non-monetary contributions

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

User fees and Statutory fees and fines

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 rec-ognised when collection in full is no longer probable.

Sale of property, plant and equipment, infrastructure

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

Rent

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

Interest

Interest is recognised progressively as it is earned.

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


41

FINANCIAL REPORTFINANCIAL REPORT (d) Expense recognition

Expenses are recognised in the Statement of Comprehensive Income when a decrease in future economic bene-fits related to a decrease in asset or an increase of a liability has arisen that can be measured reliably.

Employee benefits

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

Depreciation and amortisation of property, plant and equipment, infrastructure and intangibles, buildings, land im-provements, plant and equipment, infrastructure and other assets having limited useful lives are systematically depreciated over their useful lives to the 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 residual values and a separate depreciation rate is determined for each com-ponent.

Road earthworks are not depreciated on the basis that they are assessed as not having a limited useful life.

Artworks and Land are not depreciated.

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

Property

Buildings

buildings 20 to 95 years

Plant and Equipment

small plant 2 years

other 5 to 15 years

Office Equipment and Furniture 5 years

Motor Vehicles 2 to 5 years

Computers 3 to 5 years Roads - Sealed Pavements 20 to 60 years

Roads - Unsealed Pavements 5 to 20 years

Roads - Seal 5 to 80 years

Bridges and Culverts 5 to 80 years

Intangibles 3 to 5 years


42

FINANCIAL REPORTFINANCIAL REPORT Repairs and maintenance 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 capi-talised and depreciated. The carrying value of the replaced asset is expensed.

Finance costs

Finance costs are recognised as an expense in the period in which they are incurred, except where they are capi-talised as part of a qualifying asset constructed by Council. Where specific borrowings are obtained for the pur-pose 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).

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

(e) Recognition and measurement of assets

Acquisition

The purchase method of accounting is used for all acquisitions of assets, being the fair value of assets provided as con-sideration at the date of acquisition plus any incidental costs attributable to the acquisition. Fair value is the amount for

which the asset could be exchange between knowledgeable willing parties in an arm's length transaction.

The asset capitalisation threshold adopted by Council is $1000. Assets valued at less than $1000 are charged to the Statement of Comprehensive Income in the year of purchase (other than where they form part of a group of similar

items which are material in total).

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 note 22. In accordance with Council's policy, the thresh-old limits detailed below have applied when recognising assets within an applicable asset class and unless other-wise stated are consistent with the prior year:

Threshold $'000

Land 10

Buildings 10

Plant, machinery and equipment 1

Motor vehicles 1

Fixtures, fittings and furniture 1

Roads and bridges 10

Intangible assets 1

Work in progress 1


43

FINANCIAL REPORTFINANCIAL REPORT (f) Recognition and measurement of assets

Revaluation

Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment, are measured at their fair value. Fair value is represented by the deprival value of the asset approximated by its writ-ten down replacement cost. At balance date, Council reviewed the carrying value of the individual classes of as-sets measured at fair value to ensure that each asset class materially approximated its fair value. Where the car-rying 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.

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 recog-nised as an expense in which case the increment is recognised as revenue up to the amount of the expense. Re-valuation decrements are recognised as an expense except where prior increments are included in the asset re-valuation 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.

Land under roads

Land under roads acquired after 30 June 2008 is brought to account at cost and subsequently revalued on a fair value basis. Council does not recognise land under roads that it controlled prior to that period.

(g) 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 over-drafts.

(h) 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.

(i) Financial assets

Managed funds are valued at fair value, being market value, at balance date. Any unrealised gains and losses on holdings at balance date are recognised as either a revenue or expense.

(j) 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.


44


(k) Investments in water corporation

Council's investment in Southern Water is valued at its fair value at balance date. Fair value was determined by us-ing Council's ownership interest against the water corporation's net asset value at balance date based on Final Treas-urer's Allocation Order in 2011. Council has an ownership interest of 0.1% in the corporation. Any unrealised gains and loses on holdings at balance date are recognised through the Statement of Comprehensive Income to a Financial assets available for sale Reserve each year. (refer note 16)

Council has classified this asset as an Available-for-Sale financial asset as defined in AASB 139 Financial Instru-ments: Recognition and Measurement and has followed AASB 132 Financial Instruments: Presentation and AASB 7 Financial Instruments: Disclosures to value and present the asset in the financial report.

(l) Investments

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

(m) 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 finan-cial result of the entities is recognised in the Statement of Comprehensive Income.

(n) Tender deposits

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

(o) Employee benefits

Wages and salaries

Liabilities for wages and salaries and rostered days off are recognised and measured as the amount unpaid at balance date and include appropriate oncosts such as workers compensation and payroll costs.

Annual leave

Annual leave entitlements are accrued on a pro-rata basis in respect of services provided by employees up to bal-ance date. Annual leave expected to be paid within 12 months is measured at nominal value based on the amount, including appropriate oncosts, expected to be paid when settled.

Annual leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discount-ing future cash flows.

Long service leave

Long service leave entitlements payable are assessed at balance date having regard to expected employee remu-neration rates on settlement, employment related oncosts and other factors including accumulated years of em-ployment, on settlement, and experience of employee departure per year of service.

Long service leave expected to be paid within 12 months is measured at nominal value based on the amount ex-pected to be paid when settled. Long service leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Common-wealth bond rates are used for discounting future cash flows.


45

FINANCIAL REPORTFINANCIAL REPORT Long service leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows.

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.

Classification of employee benefits

An employee benefit liability is classified as a current liability if the Council does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the period. This includes all annual leave and unconditional long service leave entitlements.

Superannuation

During the year Council made the required superannuation contributions for all eligible employees to an appropriation complying with the Superannuation Guarantee (Administration) Act 1992.

During the reported period the amount of contributions paid to accumulation schemes was $95,000 (2010-11 $94,000). Contributions to defined benefit schemes were nil.

(p) 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 meas-ured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Comprehensive Income over the period of the liability using the effective interest method.

(q) Leases

Operating leases

Lease payments for operating leases are required by the Australian accounting standard to be recognised on a straight line basis, rather than expensed in the years in which they are incurred.

(r) 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 set-tled 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.

(s) Taxation

Council is exempt from all forms of taxation except Fringe Benefits Tax, Payroll Tax and the Goods and Services Tax.


46

FINANCIAL REPORTFINANCIAL REPORT Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST in-curred 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 in-vesting and financing activities, which are disclosed as operating cash flows.

(t) Impairment of assets

At each reporting date, Council reviews the carrying value of its assets to determine whether there is any indica-tion 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 Comprehen-sive 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 as-sets of Council such as roads, drains, public buildings and the like, value in use is represented by the deprival val-ue of the asset approximated by its written down replacement cost.

(u) Rounding

Unless otherwise stated, amounts in the financial report have been rounded to the nearest thousand dollars.


47

FINANCIAL REPORTFINANCIAL REPORT (v) Pending Accounting Standards The following Australian Accounting Standards have been issued or amended and are applicable to Council but are not yet effective.

They have not been adopted in preparation of the financial report at reporting date.

Standard / Interpretation Summary Applicable for annual re-porting periods beginning

or ending on

Impact on Local Gov-ernment financial state-

ments

AASB 9: Financial Instruments These standards are applicable retrospectively and amend the classification and measurement of financial assets. Council has not yet determined the potential impact on the financial state-

ments. Specific changes include:

Applicable for annual reporting periods commencing on or after 1 January 2013.

These changes are expected to provide some simplification in the accounting for and disclosure of financial

instruments.

* simplifying the classifications of financial assets into those

carried at amortised cost and those carried at fair value;

* removing the tainting rules associated with held-to-maturity

assets; * simplifying the requirements for embedded derivatives;

* removing the requirements to separate and fair value em-bedded derivatives for financial assets carried at amortised

cost;

* allowing an irrevocable election on initial recognition to pre-sent gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Divi-dends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no

impairment or recycling on disposal of the instrument; and

* reclassifying financial assets where there is a change in an

entity's business model as they are initially classified based on:

a. the objective of the entity's business model for managing the

financial assets; and b. the characteristics of the contractual cash flows.

AASB 10: Consolidated Financial

Statements

This Standard supersedes requirements under AASB 127 Consolidated and Separate Financial Statements and Int 112 Consolidation - Special Purpose Entities, introducing a number of changes to accounting treatments. The Standard was issued

in August 2011.


Council has not yet determined the applica-tion or the potential

impact of the Standard.

AASB 11: Joint Arrangements This Standard supersedes AASB 131 Interests in Joint Ven-tures, introducing a number of changes to accounting treat-

ments. This Standard was issued in August 2011.




AASB 12: Disclosure of Interests in

Other Entities

This Standard supersedes AASB 127 Consolidated and Sepa-rate Financial Statements and AASB 131 Interests in Joint

Ventures. This Standard was issued in August 2011.




AASB 13: Fair Value Measurement This Standard defines fair value, sets out a framework for measuring fair value and requires disclosures about fair value

measurements. There is no financial impact.


No financial impact.

AASB 119: Employee Benefits This Standard supersedes AASB 119 Employee Benefits, introducing a number of changes to accounting treatments.

This Standard was issued in September 2011.




AASB 127: Separate Financial

Statements

This Standard supersedes requirements under AASB 127 Consolidated and Separate Financial Statements, introducing a number of changes to accounting treatments. This Standard

was issued in August 2011.




AASB 128: Investments in Associ-

ates and Joint Ventures

This Standard supersedes AASB 128 Investments in Associ-ates, introducing a number of changes to accounting treat-

ments. This Standard was issued in August 2011.




AASB 1053: Application of Tiers of

Australian Accounting Standards

This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements. This Standard is not expected to impact Council. However, it may affect

disclosures if reduced disclosure requirements apply.

Applicable for annual reporting periods commencing on or after 1 July 2013.

These amendments are not expected to impact

Council.

Standard / Interpretation Summary Applicable for annual reporting periods beginning or ending on

Impact on Local Gov-ernment financial state-

ments


48


AASB 2009-11: Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 &

1038 and int 10 & 12]

[Modified by AASB 2010-7] Applicable for annual reporting periods commencing on or after 1 July 2013.



AASB 2010-2: Amendments to Australian Accounting Standards arising from Reduced Disclosure

Requirements

Introduces reduced disclosure requirements for certain types of

entities.


This standard is not expected to have a

financial impact.

AASB 2010-7: Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and int 2, 5,

10, 12, 19 & 127]

This Standard makes consequential amendments to other Aus-tralian Accounting Standards and interpretations as a result of

issuing AASB 9 in December 2010.




AASB 2011-2: Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project - Reduced Disclosure Requirements [AASB

101 & 1054]

This Standard removes disclosure requirements from other Standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards for reduced disclosure reporting. There is

no financial impact.



AASB 2011-6: Amendments to Australian Accounting Standards - Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation - Reduced Disclosure Requirements [AASB 127, 128 &

131]

This Standard extends the relief from consolidation, the equity method and proportionate consolidation by removing the re-quirement for the consolidated financial statements prepared by the ultimate or any intermediate parent entity to be IFRS compli-ant, provided that the parent entity, investor or venturer and the ultimate or intermediate parent entity comply with Australian Accounting Standards - Reduced Disclosure Requirements.

There is no financial impact.



AASB 2011-7: Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Int

5, 9, 16 & 17]

This Standard gives effect to consequential changes arising from the issuance of AASB 10, AASB 11, AASB 127 Separate Financial Statements and AASB 128 Investments in Associates

and Joint Ventures.




AASB 2011-8: Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and int 2, 4, 12 , 13, 14, 17,

19, 131, 132]

This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpre-tations as the result of issuing AASB 13 in September 2011.

There is no financial impact.



AASB 2011-9: Amendments to Australian Accounting Standards - Presentation of Items of Other Com-prehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134,

1039 & 1049]

This Standard requires to group items presented in other com-prehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification

adjustments).




AASB 2011-10: Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) [AASB 1, 8, 101, 124, 134,

1049 & 2011-8 and int 14]

The Standard makes amendments to other Australian Account-ing Standards and interpretations as a result of issuing AASB

119 Employee Benefits in September 2011.




AASB 2011-11: Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Require-

ments

This Standard gives effect to Australian Accounting Standards - Reduced Disclosure Requirements for AASB 119 (September

2011). There is no financial impact.



AASB 2012-1: Amendments to Australian Accounting Standards - Fair value measurement - arising from Reduced Disclosure Require-

ments [AASB 3,7,13 & 140]

This Standard amends Reduced Disclosure Requirements aris-ing from AASB13 Fair Value Measurement and consequential amendments implemented through AASB 2011-8 Amendments

to Australian Accounting Standards arising from AASB13.





49

FINANCIAL REPORTFINANCIAL REPORT (w) 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 quantifi-

able, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

Commitments are not recognised in the Statement of Financial Position. Commitments are disclosed at their nominal value and inclusive of the GST

payable.

(x) Budget

The estimated revenue and expense amounts in the Statement of Comprehensive Income represent revised budget amounts and are not audited.

Note 2 Functions/Activities of the Council

Revenue, expenditure and assets attributable to each function as categorised in

(c) below:

Grants Other

Total

Revenue

Total

Expenditure

Surplus/

(Deficit) Assets

Governance and administration

2011 - 2012 657 3,392 4,049 1,300 2,749 3,180

2010 - 2011 525 3,336 3,861 1,187 2,674 1,751

Regulatory Services

2011 - 2012

- 347 347 341 6 6,592

2010 - 2011

- 331 331 428 (97) 6,592

Economic Development

2011 - 2012 95 73 168 417 (249) 1,296

2010 - 2011 125 188 313 446 (133) 1,296

Works Department

2011 - 2012 1,030 698 1,728 2,396 (668) 38,195

2010 - 2011 372 35 407 1,702 (1,295) 8,915

Technical Services

2011 - 2012

- 52 52 143 (91)

-

2010 - 2011

- 11 11 158 (147)

-

Waste and Environmental

2011 - 2012

- 599 599 458 141 66

2010 - 2011

- 512 512 456 56

-

Other - non attributable

2011 - 2012 16 8 24 63 (39) 77

2010 - 2011 11 83 94 140 (46) 77

Total

2011 - 2012 1,798 5,169 6,967 5,118 1,849 49,406

2010-2011 1,033 4,496 5,529 4,517 1,012 18,631


50


(b) Reconciliation of Assets from note 2 with the Statement of Financial

Position at 30 June:

2012 2011

Current assets 3,836 2,442

Non-current assets 45,570 16,189

49,406 18,631

(c) Governance and administration

Operation and maintenance of council chambers, administration offices, and

councillors.

Regulatory Services

Administration of Planning schemes and co-ordination of building applications. Environmental Health includes disease control, food surveillance, public-use

building standards, health education and promotion, water quality , workplace safety and cemeteries.

Economic Development

Development and promotion of tourism and economic services within the municipality including sustainable employment opportunities, and improved quality

of life in line with council's strategy, for the regions development and aspirations of the community.

Works Department

To provide an efficient and safe base for the outdoor workforce and a base for the storage of plant and vehicles also with materials and supplies. Construc-

tion and maintenance of roads, parks, bridges and buildings, parking facilities and street lighting.

Technical Services

To co-ordinate the technical side of construction and development of works activities.

Waste and Environment

Collection, handling, processing and disposal of all waste material

Other - Non-attributable

Other general services not specifically identifiable.


51


$'000 $'000

Note 3 Rates and charges

General

3,024

2,916

Waste Management

196

188

Waste Collection

339

324

Fire Levy

127

124

Total rates and charges

3,686

3,552

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

Rates in advance (included in above) 73 50

Note 4 Statutory fees and fines

Infringements and costs

2

2

Town planning fees

158

150

Permits

44

54

Total statutory fees and fines

204

206

Note 5 User fees

Council Fees & Charges

14

23

Rent

97

48

Pensioner Rate Remissions

172

156

Other fees and charges and revenue

107

176

Total user fees

390

403

Note 6 Grants

Grants were received in respect of the following :

Summary of grants

Federally funded grants 1,600 871 State funded grants 199 162

Total 1,799 1,033


52

FINANCIAL REPORTFINANCIAL REPORT Grants - Operating

Commonwealth Government Financial Assistance Grants - General Purpose 658 526

Commonwealth Government Financial Assistance Grants - Roads and Bridges 554 345

Department of Sustainability and Environment - NRM 16 11 Tourism Strategy

- 4 Community Grants State

- 2

Total operating grants 1,228 888

The Australian Commonwealth Government provides Financial Assistance Grants to Council for general purpose use and the provision of local roads. On 11 May 2012 the Government announced in the Commonwealth Budget following the downturn in the economy that, “to assist local councils with planning for the recovery and to ensure local government has maximum certainty to begin planning their 2012-13 works programs”, it would bring forward for payment to all councils in June 2012, the first two instalments of the 2012-13 grant pool. Since 2009-10 the Commonwealth has been making early payment of the first quarter-ly instalment for the following year. However, the above General Purpose and Roads Financial Assistance Grants for 2011-12 thus include an additional instal-ment over that received in 2010-11. In accordance with AASB1004 Contributions, Council recognises these grants as revenue when it receives the funds and obtains control. The effects of the early receipt of instalments each year has resulted in Commonwealth Government Financial Assistance Grants being above that originally budgeted in 2011-12 by $501,799 and 2010-11 by $218,805. This has impacted the Statement of Comprehensive Income resulting in the Net surplus/(deficit) from continuing operations being higher in both years by these amounts. With fewer instalments due to be received in 2012-13, the reverse

effect is expected to occur. Capital grants received specifically for new or upgraded assets

Commonwealth Government - roads to recovery 368 -

Department of Infrastructure Energy and Resources 108 -

Tasman Opportunity Shop - 118

Department of Police and Emergency Services 30 -

Department of Economic Development, Tourism and the Arts 30 -

State Emergency Service 27 -

RLCIP - 27

Department of Families Housing and Community Services 4 -

Department of Premier and Cabinet 4 -

Total capital grants 571 145

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:

- 27 Total

- 27

Non-reciprocal grants which were recognised as revenue in prior years and were expended during the

Roads to Recovery - 128 RLCIP Shipsterns car park - 25 MAST - 28

Total - 181

Net increase (decrease) in non-reciprocal grant revenues for the year: - (154)


53

FINANCIAL REPORTFINANCIAL REPORT Note 7 Contributions

Non-monetary assets

Land Identified as Council owned - 130

Roads - Footpath and Kerbs

513 -

Total contributions

513 130

Note 8 Other Income

Interest on financial assets 162 126

Interest on rates 32 25

Other

- 48

Total

194 199

Note 9 Net gain/(loss) on disposal of property, infrastructure, plant and equipment

Proceeds of sale - 9

Write down value of assets disposed

- (4)

Total

- 5

Note 10 Employee benefits

Wages and salaries

975 1,023

Superannuation

95 94

All other employee costs

65 59

Total employee benefits 1,135 1,176

Note 11 Materials and services

Contract payments and Materials

1,554 1,229

Plant and equipment maintenance

96 149

Fire Levy

126 123

Utilities

67 61

Discounts and remissions 174 155

Valuation expenditure 44 -

Other 378 380

Total materials and services

2,439 2,097


54


Note 12 Depreciation and amortisation

Property

Buildings

Buildings

63 80

Plant and Equipment

Plant, machinery and equipment

50 48

Motor vehicles

127 41

Fixtures, fittings and furniture

27 11

Infrastructure

Roads and bridges

817 679

General infrastructure

26 29

Other infrastructure

71 77

Intangible assets

Intangible assets

16 20

Total depreciation and amortisation

1,197 985

Note 13 Finance costs

Interest - Borrowings 54 55

Total 54 55

Note 14 Other expenses

External auditors' remuneration (Tasmanian Audit Office) 30 30

Councillors' allowances

Fees and allowances 95 90

Other expenses 14 5

Total other expenses 139 125


55


Note 15 Investment in associates

Investments in associates accounted for by the equity method are:

Copping Refuse Disposal Site Joint Council 66 39

Tasman Council in financial year ended 30 June 2009 maintained an ownership interest of 10%. As a result from the buyout of equity from Kingborough Council in July 2009, Council now main-

tain an ownership interest of 8%

Total 66 39

Council's share of accumulated surplus(deficit)

Council's share of accumulated surplus(deficit) at start of year (13) (2)

Reported surplus(deficit) for year 27 (11)

Transfers (to) from reserves - -

Distributions for the year - -

Council's share of accumulated surplus(deficit) at end of year 14 (13)

Council's share of reserves

Council's share of reserves at start of year 39 50

Transfers (to) from reserves 27 (11)

Council's share of reserves at end of year 66 39

Note 16 Investment in water corporation

Council has an ownership interest of 0.1% in Southern Water based on the Final Treasurer's Allocation Order in 2011. Council does not have significant influence to allow it to use the equity method to account for this interest. Which is consistent with Council's initial ownership interest

based on the Treasurers initial draft order.

Opening Balance

920 915

Fair Value adjustments on Available-for-Sale Assets

2 5

Total investment in water corporation

922 920


56

FINANCIAL REPORTFINANCIAL REPORT Note 17 Cash and cash equivalents

Cash on hand

1 1

Cash at bank

236 29

Money market call account

2,820 1,943

Total cash and cash equivalents

3,057 1,973

Note 18 Trade and other receivables

Current

Rates debtors

238 177

Sundry debtors

221 56

Other debtors

5 5

Provision for impairment

(24) (29)

Total

440 209

Note 19 Financial assets

Current

Managed funds (note 1(i))

250 250

Managed funds are held with Bendigo Bank and are represented by:

Fixed term deposit at interest rate 4.9% from 27 June 2012 to 27 December 2012.

Note 20 Inventories

Inventories held for distribution

6 -

Total inventories

6 -

Note 21 Other assets

Current

Prepayments

46 10

Accrued income

37 -

Total

83 10

* Accrued income only includes items that are reciprocal in nature. This does not include Rates in Advance.


57

FINANCIAL REPORTFINANCIAL REPORT Note 22 Property, infrastructure, plant and equipment

2012 2011

$'000 $'000

Summary

at cost

4,129 4,489

Less accumulated depreciation

1,083 1,479

3,046 3,010

at fair value as at 30 June

53,390 26,297


11,883 14,092

41,507 12,205

Total 44,553 15,215

Property

Land


2,317 2,317

Total Land 2,317 2,317

Buildings


2,980 2,980


63 -

2,917 2,980

Building improvements

at cost 80 -

Less accumulated depreciation - -

80 -

Total Property 5,314 5,297

Valuation of land (excluding land under roads) and buildings were undertaken by the Valuer General at 30 June 2011. The valuation of buildings is at fair value based on current replacement cost less accumulated depreciation at the date of valuation. The valuation of land is at fair value, being

market value based on highest and best use permitted by relevant land planning provisions.


58

FINANCIAL REPORTFINANCIAL REPORT Note 22 Property, infrastructure, plant and equipment (cont.) 2012 2011

$'000 $'000

Plant and Equipment

Plant, machinery and equipment

at cost 847 741

Less accumulated depreciation 430 380

417 361

Fixtures, fittings and furniture

at cost 329 328


69 96

Motor Vehicles

at cost 685 410


389 241

Total Plant and Equipment 875 698

Infrastructure

Roads and Bridges

at fair value as at 30 June 48,093 21,001

Less accumulated depreciation 11,820 14,092

36,273 6,909

General Infrastructure

at cost 641 1,026


615 641

Other Structures

at cost 1,515 1,828


1,444 1,515

Total Infrastructure 38,332 9,065

Valuation of road and bridge assets has been determined in accordance with an independent valuation undertaken by Brighton Council Engineers

and Tasspan. The valuation is at fair value based on replacement cost less accumulated depreciation as at 30 June 2012.

Works in progress

at cost 32 156

Total Works in progress 32 156

Total property, infrastructure, plant and equipment 44,553 15,216


59

FINANCIAL REPORTFINANCIAL REPORT Note 22 Property, plant and equipment, infrastructure (cont.)

Impairment losses

recognised in profit or

loss

Reconciliation of property, plant and equipment and infrastructure

2012

Balance at beginning of financial

year

Acquisi-tion of

assets

Revaluation increments

(decrements)

Depreciation and

amortisation

Written down

value of

disposals Transfers

Balance at end of

financial

year

(Note 28) (Note 12) (a)

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Property

Land 2,317 - - - - - - 2,317

Buildings 2,980 - -

(63) - - - 2,917

Building improvements - 80 - - - - - 80

Total property 5,297 80 -

(63) - - - 5,314

Plant and Equipment

Plant, machinery and equipment 360 107 -

(50) - - - 417

Fixtures, fittings and furniture 96 - -

(27) - - - 69

Motor vehicles 241 275 -

(127) - - - 389

Total plant and equipment 697 382 -

(204) - - - 875

Infrastructure

Roads and bridges 6,909 1,132 28,893

(817) - - 156 36,273

General infrastructure 641 - -

(26) - - 615

Other 1,515 -

(71) - - - 1,444

Total infrastructure 9,065 1,132 28,893

(914) - - 156 38,332

Works in progress

Roads 156 32 - - - -

(156) 32

Total works in progress 156 32 - - - -

(156) 32

Total property, plant and equipment,

infrastructure

15,215 1,626 28,893

(1,181) - - - 44,553


60


2011

Balance at beginning of financial

year

Acquisi-tion of

assets

Revaluation increments

(decrements)

Depreciation and

amortisation

Written down

value of

disposals Transfers

Balance at end of

financial

year

(Note 28) (Note 12) (a)

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Property

Land 1,942 130

245 - - - - 2,317

Buildings 3,361 338

(654)

(80) - - 15 2,980

Total property 5,303 468

(409)

(80) - - 15 5,297

Plant and Equipment

Plant, machinery and equipment 359 49 -

(48) - - - 360

Fixtures, fittings and furniture 106 27 -

(11) -

(26) - 96

Motor vehicles 251 35 -

(41)

(4) - - 241

Total plant and equipment 716 111 -

(100)

(4)

(26) - 697

Infrastructure

Roads and bridges 6,085 158

1,081

(679) - - 264 6,909

General infrastructure 668 - -

(29) - -

2 641

Other 1,502 90 -

(77) - - - 1,515

Total infrastructure 8,255 248

1,081

(785) - - 266 9,065

Works in progress

Roads 322 156 - - -

(41)

(281) 156

Total works in progress 322 156 - - -

(41)

(281) 156

Total property, plant and equipment,

infrastructure

14,596 983

672

(965)

(4)

(67) - 15,215

(a) Impairment losses

Impairment losses are recognised in the statement of comprehensive income under other ex-

penses.

Reversals of impairment losses are recognised in the statement of comprehensive income under other reve-

nue.


61


$'000 $'000

Note 23 Intangible assets

at cost 194 164


Total intangible assets 29 15

Note 24 Trade and other payables

Trade payables 9 29

Other

30 16

Rent in advance

8 8

Accrued expenses 220 128

Total trade and other payables 267 181

Note 25 Provisions

Annual leave Long service

leave Other Total

2012 $ '000 $ '000 $ '000 $ '000

Balance at beginning of the financial year 44 27 18 89

Additional provisions

10 27

(5) 32

Balance at the end of the financial year 54 54 13 121

2011

Balance at beginning of the financial year 42 17 11 70

Additional provisions 2 10 7 19

Balance at the end of the financial year 44 27 18 89

2012 2011

$'000 $'000

(a) Employee benefits

(i) Current

Annual leave 54 44

Long service leave 10 10

Other - Employee oncost and Superannuation 10 15

74 69

(ii) Non-current

Long service leave 44 17

Other - Employee oncost and Superannuation 3 3

47 20

Aggregate carrying amount of employee benefits:

Current 74 69

Non-current 47 20

121 89

(iii) Employee Numbers

20 21


62


$'000 $'000

Note 26 Interest-bearing loans and borrowings

Current

Borrowings - unsecured

84

89

84

89

Non-current

Borrowings - unsecured

670

743

Total

754

832

The maturity profile for Council's borrowings is:

Not later than one year

84

89

Later than one year and not later than five years

305

315

Later than five years

365

428

Total

754

832

Aggregate carrying amount of interest-bearing loans and borrowings;

Current

84

89

Non-current

670

743

Total interest-bearing loans and borrowings

754

832

Note 27 Other Liabilities

Current - -

Non-Current 26

35

Total 26

35


63

FINANCIAL REPORTFINANCIAL REPORT Note 28 Reserves

Balance at beginning of

reporting year Increment (decrement)

Balance at end of report-

ing year

(a) Asset revaluation reserve $'000 $'000 $'000 $'000

2012

Asset revaluation reserve 6,008

28,893 -

34,901

6,008

28,893

-

34,901



Balance at end of report-

ing year

$'000 $'000 $'000 $'000

2011

Asset revaluation reserve 5,336

672 -

6,008

5,336

672

-

6,008

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



Balance at end of re-

porting year

(b) Fair Value Reserve $'000 $'000 $'000 $'000

2012 Available-for-sale assets

Investment in Water Corporation

5

2

-

7

Total fair value reserve

5

2

-

7



Balance at end of re-

porting year

$'000 $'000 $'000 $'000

2011 Available-for-sale assets

Investment in Water Corporation -

5

-

5

Total fair value reserve -

5

-

5


64




Balance at end of reporting

year

(c) Other reserves $'000 $'000 $'000 $'000

2012

Public open space reserve 119 -

-

119

Tasman civic centre reserve

3 -

-

3

General reserve 952 -

-

952

Total other reserves 1,074 -

-

1,074



Balance at end of reporting

year

$'000 $'000 $'000 $'000

2011

Public open space reserve 107

12

-

119

Tasman civic centre reserve

3 -

-

3

General reserve -

952

-

952

Total other reserves 110

964

-

1,074

2012 2011

$'000 $'000

Total Reserves

35,982

7,087

2012 2011

$'000 $'000

Note 29 Reconciliation of cash flows from operating activities to surplus (deficit) Surplus/Deficit 1,849 1,012

Depreciation/amortisation 1,197 985

(Profit)/loss on disposal of property, plant and equipment, infrastructure - (5)

Impairment losses - 67

Share of net (profit)/loss of associates and joint ventures accounted for by the equity method (27) 11

Capital grants received specifically for new or upgraded assets (571) (145)

Contribution - Non-Monetary Assets (513) (130)

Other - 26

Change in assets and liabilities:

Decrease/(increase) in trade and other receivables (231) 62

Decrease/(increase) in other assets (73) (7)

Decrease/(increase) in inventories (6) -

Increase/(decrease) in trade and other payables 86 (126)

Increase/(decrease) in provisions 32 19

Increase/(decrease) in other liabilities (9) (230)

Net cash provided by/(used in) operating activities 1,734 1,539

Note 30 Reconciliation of cash and cash equivalents Cash and cash equivalents (see note 17) 3,057 1,973

Less bank overdraft - -

Total reconciliation of cash and cash equivalents 3,057 1,973


65


2012 2011

$'000 $'000

Note 31 Operating leases

(a) Operating lease commitments

At 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 7

Later than one year and not later than five years

11 17

Later than five years

- -

18 24

Note 32 Financial Instruments

(a) Accounting Policy, terms and conditions

Recognised finan-

cial instruments Note Accounting Policy Terms and Conditions

Financial assets

Cash and cash

equivalents 17 Cash on hand and at bank and money market call

account are valued at face value. On call deposits returned a floating interest rate of 4%

(5.76% in 2010/2011).

Interest is recognised as it accrues.

Investments and bills are valued at cost.

Investments are held to maximise interest returns of

surplus cash.

Managed funds are measured at market value.

Trade and other receivables

Other debtors 18 Receivables are carried at amortised cost using the

effective interest method. A provision for doubtful debts 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 11.47% (11.47% in 2010/11). Credit terms

are based on 15 days.

Financial Liabilities

Trade and other

payables 24 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 re-

ceived.

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

receipt.

Interest-bearing

loans and borrow-

ings

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

payables.

Borrowings are unsecured. The weighted average interest rate on borrowings is

6.65% (6.71% in 2010/2011).


66

FINANCIAL REPORTFINANCIAL REPORT Note 32 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:

2012

Weighted average

interest rate

Floating interest

rate

Fixed interest maturing in:

1 year or less

Over 1 to 5

years

More than 5

years

Non-interest

bearing Total $'000 $'000 $'000 $'000 $'000 $'000

Financial assets Cash and cash equivalents

4.56% 236 2,820 - - 1 3,057 Financial assets

4.90% - 250 - - - 250 Trade and other receivables

238 - - - 226 464

Investment in water corporation - - - - 922 922

Total financial assets

474 3,070 - - 1,149 4,693

Financial liabilities Trade and other payables

- - - - 267 267 Interest-bearing loans and borrowings

6.65% - 84 305 365 - 754

Total financial liabilities

- 84 305 365 267 1,021

Net financial assets (liabilities)

474 2,986 (305) (365) 882 3,672

2011

Weighted average

interest rate

Floating interest

rate

Fixed interest maturing in:

1 year or less

Over 1 to 5

years

More than 5

years

Non-interest

bearing Total $'000 $'000 $'000 $'000 $'000 $'000

Financial assets Cash and cash equivalents

5.76% 29 1,943 - - 1 1,973 Financial assets

6.00% - 250 - - - 250 Trade and other receivables

177 - - - 32 209 Investment in water corporation

- - - - 920 920

Total financial assets

206 2,193 - - 953 3,352

Financial liabilities Trade and other payables

- - - - 181 181 Interest-bearing loans and borrowings

6.71% - 89 315 428 - 832

Total financial liabilities

- 89 315 428 181 1,013

Net financial assets (liabilities)

206 2,104 (315) (428) 772 2,339


67

FINANCIAL REPORTFINANCIAL REPORT Note 32 Financial Instruments (cont.) The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:

Financial Instruments

Total carrying amount as per Balance Sheet

Aggregate net fair value

2012 2011 2012 2011

$'001 $'000 $'000 $'000

Financial assets

Cash and cash equivalents 3,057 1,973 3,057 1,973

Other financial assets 250 250 250 250

Trade and other receivables 440 209 440 209

Total financial assets 3,747 2,432 3,747 2,432

Financial liabilities

Trade and other payables 267 181 267 181

Interest-bearing loans and borrowings 836 832 754 832

Total financial liabilities 1,103 1,013 1,021 1,013

(d) Credit Risk

The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is represented by the carrying amount of those as-

sets 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.

We manage the interest rate exposure on our debt portfolio by appropriate budgeting strategies and obtaining approval for borrowings from the Department of

Treasury and Finance each year.

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.

Cash flow monitoring is used to predict expected shortfalls and matching this to maturity timing and therefore maximising interest rate return.


68

FINANCIAL REPORTFINANCIAL REPORT Credit risk Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause Council to make a financial loss. Council

have exposure to credit risk on some financial assets included in our Statement of Financial Position. 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 major Australian banks in quality investment products.

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.

We may also be subject to credit risk for transactions which are not included in the Statement of Financial Position, such as when we provide a guarantee for

another party.

Movement in Provisions for Impairment of Trade and Other Receivables 2012 2011

$'000 $'000

Balance at the beginning of the year 29 29

New Provisions recognised during the year - - Amounts already provided for and written off as uncollectible - - Amounts provided for but recovered during the year

(5) -

Balance at end of year 24 29

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:

2012 2011

$'000 $'000

Current (not yet due) 202 17

Past due by up to 30 days 147 7

Past due between 31 and 365 days 38 122

Past due by more than 1 year 77 63

Total Trade & Other Receivables 464 209

(g) Fair Value Hierarchy

The table below analyses financial instruments carried at fair value by valuation method.

The different levels have been defined as follows:

Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 inputs other than quoted prices included within level one that are observable for the asset or liability, either directly (ie prices) or indirectly (ie derived from prices)

Level 3 inputs for the asset or liability that are not based on observable market data. Level 1 Level 2 Level 3 Total

30 June 2012 $'000 $'000 $'000 $'000

Available for sale financial assets - - 922 922

Total - - 922 922

Level 1 Level 2 Level 3 Total

30 June 2011 $'000 $'000 $'000 $'000

Available for sale financial assets - - 920 920

Total - - 920 920

There were no transfers between Level 1 and Level 2 in the period.

Reconciliation of Level 3 Fair Value Movements 2012 2011

$'000 $'000

Opening balance 920 915

Change in fair value movement in Southern Water 2 5

Closing balance 922 920


69


Note 33 Auditors' remuneration $'000

Audit fee to conduct external audit - Tasmanian Audit Office 30

30 30

Events occurring after balance date

There is a possibility of exposure to expenses associated with a partial failure of part of the structure of the Cripps Creek Bridge. At the time of writing

the amount, nature and timing of the expenses are unknown and cannot be reliably measured.

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 Mayor Jan Barwick elected until 2013

Deputy Mayor Roseanne Heyward Elected until 2013

Councillor Gary Alexander Elected until 2015

Councillor Joan Fazackerly Elected until 2015

Councillor Pam Fenerty Elected until 2013

Councillor Roger Lamer Elected until 2013

Councillor Glenn Skeggs Elected until 2015

Councillor Alan Hull Elected until 2015

Councillor Roger Self Elected until 2015

General Manager Robert Higgins

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

108 94

Total Remuneration for the reporting year for senior manage-ment positions

229 273

In accordance with s84(2)(b) of the Local Government 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.


70

FINANCIAL REPORTFINANCIAL REPORT Note 36 Capital Expenditure

Note 2012 2011

Capital Expenditure areas $'000 $'000

Roads 620 248

Buildings 80 338

Plant and equipment 382 111

Other 32 156

Total capital works 1,114 853

Property, plant and equipment, infrastructure movement

The movement between the previous year and the current year in property, plant and equipment, infrastructure

as shown in the Statement of Financial Position links to the net of the following items:

2012 2011

$'000 $'000

Total capital works 1,113 853

Contributions no monetary assets 7 513 130

Asset revaluation movement 28 28,893 672

Depreciation/amortisation 22 (1,181) (964)

Impairment losses 22 - (67)

Written down value of assets sold 22 - (3)

Net movement in property, plant and equipment, infrastructure 29,338 621

(a) Renewal

Expenditure on an existing asset which returns the service potential or the life of the asset up to that which it had

originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the

components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact

on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time.

(b) Upgrade

Expenditure which enhances an existing asset to provide a higher level of service or expenditure that will increase the

life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in

additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future

because of the increase in the council's asset base.

(c) Expansion

Expenditure which extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users.

It is discretional expenditure which increases future operating and maintenance costs, because it increases council's asset base,

but may be associated with additional revenue from the new user group.


71

FINANCIAL REPORTFINANCIAL REPORT Note 36 Special committees and other activities

The transactions of Councils special committees have been included in the financial statements of Council as listed below.

Council Committees

Opening Change Closing

Tasman Community

Centre 6,580 (546) 6,034

Nubeena Recreation

Ground 4,331 (1,144) 3,187

Koonya Hall Committee 5,421 (497) 4,924

Saltwater River Hall Committee 1,332 539 1,871

Port Arthur Sports Ground Committee 4,935 (49) 4,886

Tasman Civic Centre Fundraising Committee - 13,294 13,294

Tasman Civic Centre Committee 7,259 4,798 12,057

29,858 46,253


72


Certification of the Financial Report

The financial report presents fairly the financial position of the Tasman Council as at 30 June 2012, the results of its operations for the year then ended and the cash flows of the Council, in accordance with the Local Gov-ernment Act 1993 (as amended), Australian Accounting Standards and other authoritative pronouncements issued by the Australian Accounting Standards Board.

Robert Higgins

General Manager

Date : 15/08/2012

tasman ouncil 11/12 tasman ounil annual … ouncil 11/12 2 ... enhancing economic growth...

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