Tasman Council 10/11

TASMAN COUNCIL 1713 MAIN ROAD NUBEENA TAS 7184 PH 6250 9200 FX 6250 9220 [email protected] www.tasman.tas.gov.au

2 Tasman Council 10/11 MUNICIPALMUNICIPAL OVERVIEWOVERVIEW

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 majori- ty of people centered in and around the township of Nubeena and the localities of White Beach, High- croft, Port Arthur, Premaydena, Saltwater River, Koonya, Taranna, Eaglehawk Neck and Murdunna. The municipal area covers approximately 659.3 square kilometres. Practically an island, the diversity and abundance of wildlife and plant life is truly remarkable.

The population is relatively stable at approximately 2400, which swells 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 number 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 retirees looking for a quieter lifestyle.

The Tasman Peninsula was formally a bustling industrial zone fuelled by convict labor. In the era between 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 been said to have some of the world‟s best surf spots at Eaglehawk Neck, Roaring Beach and Shipstern Bluff.

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

3 Tasman Council 10/11 MISSIONMISSION——VISIONVISION——VALUESVALUES

Council’s Vision for 2012 Tasman will continue to progress as an innovative and vibrant community, valuing its people, environment and heritage while building a sustainable and diverse future.

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

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

Statement 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.

4 Tasman Council 10/11 COUNCILCOUNCIL ININ BRIEFBRIEF

Area 659.3 klms

Population 2400

Percentage of State Population 0.47

Non Current Assets $16,189,000

Non Current Liabilities $798,000

Full Time equivalent Employees 19.0 FTE

Revenue (inc capital) $5,248,000

Loan Debt $832,000.00

Roads Length 187

Sealed 70

Unsealed 117

Bridges 52

Rateable Properties 3485

Rateable Residential Properties 2104

Electors 2491

Voter Turnout (2009) 1793 (73.24%)

5 Tasman Council 10/11 ORGANISATIONALORGANISATIONAL CHARTCHART

Mayor & Councillors

General Manager

External Consultants & Contractors

Office Manager Infrastructure Bldg & Develop- Tourism & ment Service Community Coordinator NRM Officer Officer Development Officer Bldg & Develop- ment Services Assistant

Depot Staff

Administration Officer

Rates Officer

Customer Services Officer

Infrastructure/ Accounts Officer

6 Tasman Council 10/11 COUNCILLORSCOUNCILLORS asas atat 3030 JuneJune 20112011

Mayor Jan Barwick Deputy Mayor Roseanne Heyward

Clr Pam Fenerty Clr Joan Fazackerley Clr Gary Alexander ASM

Clr Glenn Skeggs Clr Roger Larner Clr James Noye

Clr David Moser 7 Tasman Council 10/11

Tasman Councillors & Various Tasmanian Politicians—Signing of Partnership Agreement

Council Meeting Attendance Records 2010/2011

ORDINARY J R G A J P R D G MEETINGS Barwick Heyward Alexander Briggs Fazackerley Fenerty Larner Moser Skeggs 26 Jul 10 √ √ √ √ √ √ √ √ √

23 Aug 10 √ √ √ √ √ √ √ √ √

27 Sep 10 √ √ √ √ √ √ √ √ √

25 Oct 10 √ √ √ √ √ √ √ √ √

22 Nov 10 √ √ √ √ √ √ √ √ √

13 Dec 10 √ √ √ √ √ √ √ √

J Noye 24 Jan 11 √ √ √ √ √ √ √ √ √ 28 Feb 11 √ √ √ √ √ √ √ √ √

28 Mar 11 √ √ √ √ √ √ √ √ √ 18 Apr 11 √ √ √ √ √ √ √ √ √

25 May 11 √ √ √ √ √ √ √ √ √ 22 Jun 11 √ √ √ √ √ √ √ √ √

SPECIAL J R G J J P R D G MEETINGS Barwick Heyward Alexander Noye Fazackerley Fenerty Larner Moser Skeggs 19 Jun 11 √ √ √ √ √ √ √ √ √

AGM J R G A J P R D G 13 Dec 11 Barwick Heyward Alexander Briggs Fazackerley Fenerty Larner Moser Skeggs √ √ √ √ √ √ √ √

8 Tasman Council 10/11 GOVERNANCE

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 Coun- cil;  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 functions and exercise of its powers; and  Both the Mayor and Deputy Mayor are to represent accurately the policies and decisions of the council in performing their functions.

9 Tasman Council 10/11 GOVERNANCE Cont...

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 Council;  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.

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.

ELECTED MEMBERS OVERVIEW

Members of the Tasman Council as at 1 June 2011

Term Expires Term Expires

Jan Barwick Mayor October 2011 Councillor October 2013

Roseanne Heyward Deputy Mayor October 2011 Councillor October 2013

Gary Alexander Councillor October 2011

Joan Fazackerley Councillor October 2011

Pam Fenerty Councillor October 2013

David Moser Councillor October 2011

Roger Larner Councillor October 2013

James Noye Councillor October 2011

Glenn Skeggs Councillor October 2011

10 Tasman Council 10/11 MAYOR’SMAYOR’S REPORTREPORT

Time certainly flies and, once again, I find myself reflecting on Councils achievements for the 2010/2011 financial year.

It is human nature that once one project is completed it is quickly forgotten as we find ourselves concentrating on our next mission. So by writing this report it forces me to take stock and realise how much has been achieved and enables me to give Councillors, Staff and the Community a pat on the back for a year well spent and for jobs well done.

For much of this financial year, as promised, Council have been concentrating efforts on improved maintenance to our roads, bridges, drains and other infrastructure. Clearly with some success as the complaints have decreased considerably which is not only very pleasing, it is also an enormous relief.

The restructure to reduce Council‟s administrative costs to enable increased expenditure on infrastructure, embarked upon several years ago, is now paying the required dividends for our community. Tasman‟s strategic alliance with Brighton Council remains strong and has been built upon with further resource sharing initiatives.

In many of my previous annual reports, I have made reference to “a turbulent 12 months”, or “a difficult year”, I don‟t feel the need to make these statements in this report, other than to say that the bulk of the year was smooth sailing, but it did include several very low periods, which were really beyond the control of the Council.

Our former General Manager Dr. Wendy Hunter in her wisdom appointed on a part-time, fixed term contract, the former Huon Valley General Manager, Mr. Geoff Cockerill, to assist Tasman with resolving some outstanding issues that had sat “in the too hard basket” for too long. Geoff also assisted with many other projects and day-to-day issues.

My specific request to both Wendy and Geoff was to try to develop a reasonable working relationship with staff from Hobart District Nursing Services (HDNS), as the transition of the Tasman MPS from Council‟s umbrella to the HDNS had stalled. My greatest concern was the effect this situation was having on the residents and staff of the MPS. I praise them both for their abilities to negotiate the final details of the transition of the MPS to the new service provid- ers.

The appointment of the new MPS Manager, Mr. Bert Dorgelo, has now enabled Council to build a very positive and cooperative working relationship with the MPS now renamed the Tasman Health and Community Service. From my recent observations, I now feel that the Tasman Health and Community Service is in good hands for the future.

Council in conjunction with the Tasman Op-Shop Committee successfully applied for grant funding to extensively upgrade the Op-Shop. With extremely hard work by the Committee and assistance from Council, the Tasman Op- Shop has been fully refurbished and extended and is now a fantastic facility for our community.

The Port Arthur Historic Site achieved their World Heritage listing for both the Port Arthur and the Coalmines Sites. The Port Arthur Historic Sites Visual Significance Overlay was also approved amidst concerns from some members of the community.

Over the past financial year, the Pearl‟s Court Independent Living Units have received some much-needed maintenance, which has brought them back to a reasonable condition.

In November a community forum was held by the then Premier Mr. David Bartlett and Cabinet, this allowed residents to voice their concerns on issues that were important to them. Tasman Council‟s second Partnership Agreement with the State Government was also signed at this forum. Our new partnership agreement includes:

11 Tasman Council 10/11 MAYOR’SMAYOR’S REPORTREPORT Cont...Cont...

ECONOMIC DEVELOPMENT AND TOURISM  Co-operative Enhancement of the Tasman Visitor Experience.  Tourism Strategy Review.  Premaydena Point Road.  Shipstern Bluff Walkers‟ Car Park.  Tasman Arch and Devils Kitchen Development.  The Three Capes Walk. ENVIRONMENT AND LAND MANAGEMENT  Marine Facilities Strategy.  Crown Land Reserves. ROADS AND TRANSPORT  Community Road Safety Partnerships Program.  Roadside Vegetation. COMMUNITY WELL BEING  Healthy Living.  Social Housing. COMMUNITY SAFETY  Public Safety.  Community Respect Order Program.  Emergency Management. EDUCATION  Community Youth Advisory Group and Youth Strategy.  Tasman Civic Centre.  Work Experience.

Many projects from the partnership agreement have been completed, for example, the new Tasman Tourism Devel- opment Strategy 2011-2016, the Shipstern Bluff car park, the Community Road Safety Partnership Program and a new Emergency Management Plan.

The following day Council met with the Premier and Cabinet, some issues discussed were:  Details to enable the finalisation of the transfer of operations of the Tasman Multi Purpose Service.  Streetscape makeovers.  Footpath for Sommers Bay Road.  The State Government‟s promised $18 million to upgrade the Arthur Highway.  Maintenance of the State Government‟s section of the Nubeena Secondary Road from the Taranna turnoff to Littles Road.

12 Tasman Council 10/11 MAYOR’SMAYOR’S REPORTREPORT Cont...Cont...

 Youth issues and the possibility of a Sport and Recreation Officer.  Issues regarding climate change and the possibility of sea level rises and extreme weather events, with particular areas of concern such as Oakwood and Eaglehawk Neck.  Portable water supply.  The Three Capes Walk and Tasman Council‟s infrastructure implications.  Social housing issues, with particular emphasis on additional units at Pearls Court.  School-based traineeships and our desire to provide placements at Council.

Upgrades to the Arthur Highway and work on the Three Capes Walk have commenced. Council are still pursuing many of the other issues discussed.

December was a very sad time for Council, due to the passing of Councillor Allen Briggs, a fine Councillor and a true gentleman, who often reminisced about the history of Tasman and his many and varied memories. He always had an interesting or funny story to tell and had the wonderful ability to laugh at himself. Council have dedicated our new Strategic Plan to Allen, so that he can continue to be our guiding light into the future. Allen‟s term was completed by Councillor James Noye, who made a worthwhile contribution to the Tasman team.

December was also the month when I received further bad news from our first female General Manager Dr. Wendy Hunter who informed me that she had decided to move on, thus in mid February we sadly farewelled Wendy. During her twelve months with Council, she did an outstanding job and left Tasman on a very solid foundation for the future. Council truly appreciated her efforts, her quiet manner, her well considered decisions, her complete honesty, her calming influence and her ability to spot further problems enabling her to fine tune the staffing structure even further.

In the interim Geoff Cockerill took on the role of Acting General Manager, Geoff‟s vast Local Government knowledge, sound advice, support and assistance was truly appreciated by Council.

Council‟s current General Manager, Mr. Robert Higgins, commenced his new position in March 2011. Prior to Rob- ert‟s appointment he had been with Council for two and a half years as our Senior Contract Planner.

Robert brings to the role over 11 years management and 6 years senior local government management experience. He was previously employed with Brighton Council managing their common service outsourcing business and providing Acting General Manager, Development Services Manager and Contract Planner functions to a number of rural Councils simultaneously. Having worked around Australia in the private and public sector in a number of different roles prior to this, Robert has extensive operational and practical experience which has been of benefit to Coun- cil in our continuous improvement.

Earlier in the year, prior to the Federal election, the Southern Tasmanian Councils Authority, comprising of the twelve Southern councils, conducted “A Fair Go For The South” campaign, with funding for the Arthur Highway at the top of our wish list for rural councils, we were ignored, despite our best efforts.

Council also supported the Nubeena & Tasman Community Bank Project by funding their feasibility study. This study gave the green light for the project to continue and the hardworking steering committee, which includes our Tourism and Community Development Officer, Kate McCarthy and Councillor Glenn Skeggs, continue to be very busy making this dream a reality. This is a very important initiative as the bank will provide 80% of its profits back to the community in grants and I would hope all residents of our municipal area wholeheartedly support this venture.

13 Tasman Council 10/11 MAYOR’SMAYOR’S REPORTREPORT Cont...Cont...

Some other highlights and achievements for both the Council and the Community include:

 The completion of the Southern Integrated Transport Plan.  The official opening of Tasman‟s new ambulance station and the provision of Paramedics.  The replacement of Robertson‟s Bridge on the Wielangta Road.  Completed the Southern Tasmanian Regional Land Use Strategy 2010-2035.  Continuously reviewing and updating Council‟s policies.  Reinstated the webcam overlooking Pirates Bay at Eaglehawk Neck.  Our Tourism and Community Development Officer, Kate McCarthy, has provided assistance to the Port Arthur and Tasman Tourism Association.  Following a municipal revaluation – Council workshopped at length a new rating strategy to smooth the spike in rates caused by increased valuations. This strategy was implemented for the 2011/2012 financial year.  Upgraded the Taranna boat ramp.  Extended or resealed sections of Spaulding Street and White Beach Road.  Upgraded Stormlea/Highcroft Road including re-sheeting, drainage works and the installation of culvert pipes.  Commenced drainage works on Turners Road.  Installed Amco railing on Roaring Beach Road, following repairs to storm damage that caused a landslide on that section of the road.  Installed a barbecue and picnic facilities at the Murdunna rest stop, with plans to add playgroup equipment in the future.

Some Civic or Ceremonial Responsibilities and Community Events include:

 Speech in honour of Vietnam Veterans Day.  Tasman Rotary School Fair.  Official opening of the new Prep Classroom at Tasman District School.  Officially launched Garden/Art/Craft on Carnarvon Bay.  Speech for the Premier and Cabinet‟s Community Forum, including the signing of Tasman‟s Second Part- nership Agreement followed by a meeting the next day with the Premier and Cabinet.  Beacon Foundation “No Dole Pledge” Ceremony.  Numerous Citizenship ceremonies.  Speech for the Official Opening of the refurbished Tasman Op-Shop.  Official opening of the refurbished Science Room at Tasman District School.  Judging the best floats at the Christmas Pageant and Family Fun Day.  Tasman District School Achievement Recognition Assembly.

14 Tasman Council 10/11 MAYOR’SMAYOR’S REPORTREPORT Cont...Cont...

 Funding for Three Capes Celebration.  Eulogy for the funeral of Councillor Allen Briggs.  The Lions Club Art and Craft Exhibition, the Regatta and the Peninsula Feast, which included the presentation of the Australian Citizen and Volunteer Organisation of the year awards.  Several Australian Citizenship Ceremonies.  The musical Wimmin Sing.  Ringing the Changes by Strange Fruit as part of the 10 Days on the Island celebration.  Speech for the ANZAC Day Service.  Speech for the Official Opening of the new barbeque and picnic facilities at the Murdunna rest stop.  Two Tasman Council Community Consultation meetings.  Speech and morning tea to thank Tasman‟s many volunteers, in conjunction with the Tasman Health and Community Service and the Port Arthur Historic Site.  The Boxing Day Chops.

Council has also placed funding in our reserve accounts for Asset Replacement, Dollar for Dollar Funding etc. We ended the year with a surplus of $732,000 which will enable us to complete some long overdue capital projects in the coming financial year.

I wish to thank all community members, the Port Arthur Historic Site Management Authority including staff and volunteers, 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 and Nubeena Neighbourhood House, the Tas- man Gazette, the Tasman Community Op-Shop Committee, the various Coast Care and Land Care groups, the vol- untary members of Council‟s Committees and Special Committees, our Code of Conduct Chair, the Tasman Commu- nity Bank Project Steering Committee, the many volunteers who remain committed to emergency services such as the Fire Brigades, Ambulance and S.E.S. and all volunteer organisations 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 wonderful team of staff for their constant hard work, loyalty, and dedication in their endless mission to make improvements and a positive difference for all residents and ratepayers of the Tasman Municipality.

Lastly, I thank the Deputy Mayor and Councillors for your continued commitment, teamwork and vision.

Jan Barwick, Mayor

15 Tasman Council 10/11 GENERALGENERAL MANAGER’SMANAGER’S REPORTREPORT

Having commenced as your General Manager in late March 2011 I would like to begin by acknowledging the efforts and focus of the Council, staff and Wendy Hunter for the 2010-2011 financial year prior to my appointment. It was a collaborative effort on behalf of all to continue the process of streamlining operations and reducing associated operating costs and to ensure the focus of Council did not deviate from the principal provision of necessary asset maintenance. Due to the financial position of the State, the previous year has seen a marked reduction in the availability of funds and grants to assist in the delivery of key capital works projects for Council. In addition, their respective department budgets (DIER, Parks and Wildlife Service) have been severely impacted upon affecting their ability to provide appropriate levels of service delivery to this region. It does, however, highlight the need for Council to ensure we have the necessary financial and operational capability to look after ourselves. Council will continue to work with each agency and respective Minister to ensure Tasman is appropriately represented in decisions that impact on the region. To this end, the signing of the second partnership agreement in November 2010 has assisted as it identified a number of relevant projects with a variety of State agencies and notwithstanding their budget constraints, has ensured they are aware of needs specific to the region. The financial statements and Auditor General Report demonstrate that Council is continuing to take positive steps to ensure our short, medium and long term sustainability is managed appropriately. The Local Government Financial Sustainability report prepared by the Tasmanian Audit Office for 2009-2010 was released in June 2011. This provides a comparative analysis of all local government authorities and an important guide as to the relative performance of Tasman Council. Whilst Council has made positive improvements to our overall short term liquidity, the longer term financial risk of road asset consumption and renewal/replacement will require particular attention to ensure this is managed with regard to maintaining sufficient revenue and reserves to match necessary and programmed expenditure. Our financial performance is improving each year which will enable Council to deliver on a range of key actions from our Strategic Plan and Annual Plan. Council‟s commitment in 2010-2011 to reducing operating costs, improving our recording systems and implementing a financial and asset management strategy will be continued into 2011-2012. The Enterprise Bargaining Agreement was finalized in 2010-2011 along with new insurance arrangements being entered into which have delivered savings and simplified associated administration. In addition, Council finalized the transfer of operations of the previous MPS (now known as the Tasman Health and Community Service) to Hobart District Nursing Service on behalf of the Department of Health and Human Services. This has significantly simplified Councils operations and reduced risk of a complex and specialised industry. The Copping landfill and Lutana waste transfer station during 2010-2011 recorded another moderate deficit, however, in the last few months of the financial year it recorded a surplus principally due to operational changes implemented at the latter. It was determined that a new governance structure of the co-council owned joint authority charged with the operation of the two sites (Southern Waste Solutions) was necessary to implement necessary changes and to further guarantee its profitability into the future and returns to owner councils. The joint authority now comprises four councils (Tasman, Sorell, Clarence and Kingborough) with Tasman holding an 8% share in the business. Rela- tionships between the joint owners continues to improve with all supporting the governance restructure to improve its performance and better place this strategically improving asset. The matter of local government amalgamations in southern Tasmania re-surfaced toward the end of the 2010-2011 financial year. There are various schools of thought available on the subject, however, Council is committed to advo- cate on behalf of our ratepayers that the current system of local representation and shared services with „partner‟ Councils such as Brighton is an effective arrangement. This position carries with it significant responsibility for Coun- cil to demonstrate that it is capable of sustainably providing relevant services to ratepayers and visitors.

16 Tasman Council 10/11 GENERALGENERAL MANAGER’SMANAGER’S REPORTREPORT Cont...Cont...

Maintenance activity during the first half of 2010-2011 was impacted on by the prior year‟s budget position. Works commenced in earnest thereafter both for maintenance and capital projects with a significant amount achieved. This, however, represented only the beginning of a longer term focused program to reduce the road maintenance backlog and which will continue for at least two more years. The stronger budget position of Council after 2010-2011 enables us to build on this with the program to be increased during 2011-2012. If anyone can assist in the control of rainfall during 2011-2012, that too will be appreciated. The Southern Regional Planning Project continued to progress through to the completion of the Regional Land Use Strategy and a revised Common Key Elements Template that will be the basis for all new Interim Planning Schemes. Council is actively involved in the project with a view to securing a long overdue revised planning scheme as soon as possible. To this end the Nubeena – White Beach Structure Plan was completed that will directly inform the development of the draft Interim Planning Scheme. The adoption of the Tasman Tourism Development Strategy 2011-2016 has provided Council and the local tourism industry a current and relevant guiding document in a constantly evolving and challenging market and will assist in an increasingly competitive grant environment. The industry across the State experienced some concerning trends during 2010-2011 as a result of external factors influencing the destination and expenditure decisions of local, national and international tourists. The economic and social value of tourism to our region is widely accepted and Council continued to play a key collaborative role with operators, industry groups and government agencies. It was encouraging news to learn of the successful listing of the Port Arthur and Coal Mines Historic Sites as part of the World Heritage Area network. Combined with the confirmation of the Three Capes Track project, the national and international profile of the Peninsula is hoped to increase. Whilst understandable, it is unfortunate that Federal Hotels determined during 2010-2011 to not pursue the re-development of the Comfort Inn at Port Arthur until such time as the review of the gaming industry and legislation has been confirmed. Similarly, the Remarkable Lodge Crescent Bay development if continued will collectively result in a tourism hub that will be internationally renowned. Council will continue to play an appropriate proactive role to achieve this. I would like to acknowledge the efforts of all community, recreational and volunteer organisations and respective individuals who continue to play a number of vital roles. This is not only with regard to the significant body of work they carry out that greatly assists Council and achieves proper utilization of our community and recreational assets, but more importantly the often overlooked and underestimated value of their efforts that keeps the community together, engaged and valued. My thanks also to staff and Councillors who through hard work, consistent focus and co-operation have together achieved substantial improvements in what Council does and how it conducts its business and should be proud of their efforts. This commitment will continue into 2011-2012 and beyond. Please contact me if there are any matters you wish to discuss or seek further clarification on.

Robert Higgins General Manager

17 Tasman Council 10/11 TOURISMTOURISM && COMMUNITYCOMMUNITY DEVELOPMENTDEVELOPMENT

TASMAN COUNCIL COMMUNITY GRANT FUND:

Tasman Council allocates funding annually to provide an opportunity for local community organisations to submit applications for projects that will benefit the community. The 2010-2011 rounds delivered in total $18,444 to the following successful applicants and projects:

Applicant Project/Purpose Funds Awarded

Port Arthur Sports Ground Installation of hot water system in club $2000 rooms.

Tasman Wildlife Carers Community awareness project – produc- $1000 tion of wildlife information packages.

Online Access Centre To engage a coach to provide basic com- $600 puter training. 5 x 2hr lessons.

Dunalley Tasman Neigh- To repair and upgrade the Taranna Com- $1600 bourhood House munity Centre children‟s play area.

Tasman Digital Collective To purchase a digital video editing comput- $1994 er to be housed at the Online Access Cen- tre. Nubeena Recreation To upgrade servery area in kiosk. $2000 Ground Club Rooms Com- mittee Tasman Golf Club To provide subsidised professional coach- $750 ing at Tasman Golf Course.

Out On A Limb To purchase LED lighting for production $2000 purposes.

Lions Club – Peninsula Seed funding for the purpose of staging $2000 Feast the Peninsula Feast.

Lions Club - Regatta Seed funding for the purpose of staging $2000 The Regatta.

Tasman District School To subsidise a field trip to Ben Lomond $2000 National Park for grade seven-ten stu-

Lions of Tasman Swim- To resurface and upgrade the toilet/ $500 ming Pool change room floors.

18 Tasman Council 10/11 TOURISM & COMMUNITY DEVELOPMENT Cont.

GRANTS AWARDED TO TASMAN COUNCIL

Tasman Council, in collaboration with the Tasman Op-Shop Committee, made submission to the Tasmanian Com- munity Fund for an extensive renovation to the Op-shop building. The submission was successful and the Op-shop was officially opened on December 10th 2010 amidst great anticipation and excitement among the community.

Parks and Wildlife Service provided funding to Tasman Council to modify the existing road reserve into a car park at the Cape Raoul / Shipstern Bluff. Tasman Council were concurrently awarded funding under the Regional Communi- ty Local Infrastructure Program, a non-competitive allocation of Federal funds, which was utilised to supplement the existing funding in order to allow for extra parking space. Due to Shipstern Bluff gaining increasing international recognition as a surfing destination and coupled with access to the popular Cape Raoul walking track, this upgrade to the infrastructure at the arrival point to the visitor node is a welcome necessity ensuring that cars can be parked in a safe manner and the infrastructure will last into the future.

Further RCLIP funding was utilised to develop the Murdunna rest-area with the addition of a BBQ, shelter and basic landscaping. Future plans for this area include the installation of play equipment for children of the local community.

Tasman Council was successful with two applications for funding from the Sport and Recreation Minor Grants Pro- gram. The Tasman Civic Centre Bowls Committee purchased indoor bowls mats and the Saltwater River Bowls Club had the floor of the Saltwater River Hall refurbished.

AUSTRALIAN CITIZENSHIP CEREMONIES

Several citizenship ceremonies were held during the course of the year. These ceremonies are presided over by the Mayor and the Highcroft CWA kindly caters and presents welcome gifts to the new citizens.

Tasman Council together with The District Nurses Association proudly sponsored the Tasman Dunalley Neighbour- hood House to hold the „Skaten Spectacular‟ at Judd Park on January 16th 2011. The day was action packed with fun for young and old including demonstrations of skating feats in the bowl at the park, a free BBQ and health related information available to youth in attendance.

19 Tasman Council 10/11 TOURISM & COMMUNITY DEVELOPMENT Cont.

SOCIAL SUPPORT SERVICE LAUNCH & VOLUNTEER THANK YOU MORNING TEA

Tasman Council partnered with the Tasman Health & Community Services and Port Arthur Historic Site Management 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.

CHRISTMAS TIME IN THE TASMAN

The annual Christmas Pageant & Family Fun Day funded by Tasman Council was again a great success. The Dunalley Tasman Neighbour- hood House facilitated and coordinated the event in conjunction with dedicated volunteers from the community. Santa visited all towns in the Mu- nicipality and finished up at the Family Fun Day to wish children a Merry Christmas. Families enjoyed market stalls, the ever popular Vertigo Climbing Wall, jumping castles, face painting and a performance by the talented Sand Family circus performers.

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: Alison Smith Alison Smith was acknowledged for her history of volunteering for both the ambulance service and the SES.

Volunteer Organisation of the Year: Tasman SES The SES was nominated for their volunteer service to the community in excellent emergency management and ongoing assistance with traffic management to ensure safe events for the local community.

20 Tasman Council 10/11 TOURISM & COMMUNITY DEVELOPMENT Cont.

TASMAN TOURISM DEVELOPMENT STRATEGY 2011-2016 In January 2011 Tasman Council ratified the revitalised Tasman Tourism Development Strategy 2011-2016. This strategy is a result of the Tasman Council‟s need to update, refine and enhance the previous strategy to ensure that the local tourism industry can thrive in a rapidly changing environment. The review was a partnership funded and overseen by key stakeholders Tourism Tasmania, Port Arthur Historic Site Management Authority, Parks & Wildlife Service and Port Arthur & Tasman Tourism Association.

The project was widely consultative with a range of ideas sought from community and government agency stakeholders and were carefully considered during the process of refining our vision for the future development of tourism in the Tasman region. This consultation also informed the practical and forward-looking implementation plan included in the revised strategy.

It identifies goals and strategies to achieve sustainable growth of the tourism industry in the Tasman region. The overarching goal is to achieve increased overnight stays and higher spend and yield from visitors.

PORT ARTHUR & TASMAN TOURISM ASSOCIATION Tasman Council continued to support the Port Arthur & Tasman Tourism Association during 2010-11. Council‟s Tourism & Community Development Officer was made the General Manager‟s nominee and worked closely with the committee to undertake a number of projects, including:  A Strategic Planning Day to assess ways and means to add value and support the Tasman Tourism Devel- opment Strategy.  A successful networking function.  A comprehensive review and audit of our website.  Production and distribution of the advertising and information booklet.  A redesign of the Hub Map.  An advertising investment in the regionally distributed „Land‟ newspaper.  Direct input to the Local Tourism Association and Capacity Building Project.

TASMAN & NUBEENA COMMUNITY BANK In December 2010 Tasman Council agreed to support efforts to establish a Community Bank in the Tasman Munici- pality. The Community Bank® is an innovative franchise program in which the local community owns and operates a Bendigo Bank branch which is separately incorporated. Bendigo Bank provides all the infrastructure and support. Profits from the Community Bank‟s operations are divided as follows: 20% dividends to shareholders and 80% to support community projects by way of grants.

Tasman Council seeks to contribute to the ongoing development and the sustainability of the Tasman Region through new project initiatives to enhance the local economy and employment opportunities. Council identified this initiative as having excellent potential for the Tasman community and this was underpinned by the community support revealed through pledges to shareholding. As such Council funded the Feasibility Study component which was necessary to ensure that the Tasman community could support this model of bank.

21 Tasman Council 10/11 NATURAL RESOURCE MANAGEMENT

NATURAL RESOURCE MANAGEMENT

In 2010 – 2011 Natural Resource Management (NRM) in the Tasman Municipality focussed on weed management, facilitation of Landcare and Coastcare activities, climate change and networking to improve strategic regional outcomes. The formation of a Tasman/Sorell NRM working group in late 2010 has provided an excellent platform for inter-organisational collaboration. Council‟s representation on this group provides an opportunity to keep local NRM issues on the agendas of several state government agencies, NGO‟s and private organisations. Significant progress has been made in weed management, and the maintenance of Landcare and Coastcare activities continues to deliver positive environmental outcomes in the Municipality.

WEED MANAGEMENT

This was the second year of the NRM South funded Tasman priority weeds project which was initiated in 2009 with the 6 month employment of a part time weeds officer. The weeds officer surveyed and conducted primary control on the following priority weeds:

 Boneseed  Gorse  African Boxthorn  Pampas Grass  Asparagus Fern  Serrated tussock

Contractor treating re-sprouting Boneseed Foliage African Boxthorn on Sloping Island In late 2010 the weeds officer was contracted to conduct follow-up treatment on all of the priority weed sites. Initial kill rates varied from 60-90%, so follow-up treatment was necessary to ensure successful weed control. New seed- lings were found at many sites, so follow-up treatment will need to continue for several years to come until the soil seed bank is exhausted. Some previously undiscovered adult plants & infestations were also found and treated, highlighting the need for continuing vigilance. Reports of new weeds and weed sites from members of the public are always welcome.

The management of Tasman weed records has been streamlined, with the development of a single user-friendly database in which all weed records are entered and updated. The database will make it easier to respond to & record new weed reports, and to monitor the success of weed management programs. To complement the database, new maps of all priority weeds in the Tasman have been developed to monitor weed distribution and identify priority areas for control. Regular updates of these resources will continue into the future to ensure that the best quality information is available to guide Council‟s weed management programs.

A review of the 2009 Draft Tasman Weed Management Strategy has commenced; a new weed strategy for Tasman Council is expected to be implemented by late 2011.

22 Tasman Council 10/11 NATURAL RESOURCE MANAGEMENT Cont.

COMMUNITY NRM EVENTS

Several events aimed at engaging community groups in NRM were held in 2010 – 2011. National Tree Day in July 2010 saw participants from the Tasman District School enthusiastically planting native trees, shrubs and grasses alongside Sucklings Creek in Nubeena. Sucklings Creek provides valuable habitat for a threatened species of cad- dis fly, and the work put in by the School and community over the past few years in increasing native vegetation has improved the habitat a great deal.

Several community groups including the Tasman Scouts, Coastcare groups and other volunteer groups 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 feral oyster control program continues and thanks to some funding through the Southern Coastcare Association of Tasmania, this years „donging‟ days were attended by work crews from Conservation Volunteers Australia. The large number of small oysters colonising rocks at the previously oyster-free White Beach highlights the need to maintain this program into the future. Big thanks to Lindsay James and his family who initiated the oyster control program and have dedicated countless hours to keep it going for many years. The sharp-shelled feral oysters colonise sand and rocks at popular recreational beaches and anyone who has sliced a foot on an oyster shell understands the value of this program!

LANDCARE AND COASTCARE In 2010 – 2011 the Tasman Landcare Group continued to implement a project funded by the Australian Government aimed at improving NRM outcomes through engagement with farmers, land managers and community. Through this project the following achievements in NRM have been made:  Construction of over 7km 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 3000 native plants for erosion control, shelter belts, and native habitat rehabilitation.  Control of significant gorse infestations.

Tasman Landcare Re-Vegetation Projects New Wallaby-proof fence at Port Arthur

In addition to these activities the group also hosted 2 field days covering the topics of holistic farm management and Aboriginal heritage site management. The field days were attended by over 40 local land managers. Two issues of the Tasman Landcare Newsletter „Across the Catchment‟ were also distributed to the group‟s 81 members.

To support future funding applications, in April 2011 the Tasman Landcare Group hosted a community environmental volunteer workshop aimed at identifying key NRM issues in the region. The workshop was attended by repre- sentatives from the Eaglehawk Neck, Shelly Beach, Saltwater River and Sommers Bay Coastcare Groups. The meeting provided a fantastic opportunity to acknowledge all the achievements to date that have been made by local environmental volunteers, and also to highlight future opportunities and to identify relevant local issues on which to focus working bees and funding applications.

23 Tasman Council 10/11 NATURAL RESOURCE MANAGEMENT Cont...

CLIMATE CHANGE AND ENERGY EFFICIENCY

Council continues to monitor its energy efficiency and greenhouse emissions through the Planet Footprint monitoring program. In 2010 – 2011 the municipality‟s energy consumption and emissions were again well below the average for other Australian Councils of similar size. The monitoring program allows Council to identify areas of greatest consumption & energy cost so that mitigation programs can be implemented.

To assist individuals to reduce their power costs Council has a Home Energy Auditing Toolkit (HEAT) still available for loan at no cost from the Tasman Council Offices. The toolkit is easy to use, and can tell you how much it costs to run your individual appliances per hour, day or year. It also includes tools which can be used to identify areas where energy is being wasted, e.g. leaking fridge seals or insufficient window coverings. The toolkit can be used to reduce an individual power bill by up to $500 per year.

The Southern Tasmania Councils Authority is currently administering programs aimed at developing regional climate change initiatives and implementing biodiversity offset guidelines for new developments that impact on valuable natural resources. Tasman Council continues to contribute to these programs through representation on working groups and participating in workshops. Through these programs work on a climate change adaptation program specific to Tasman Council and the endorsement of draft biodiversity offset guidelines is expected to occur in late 2011.

24 Tasman Council 10/11 PLANNING & ENVIRONMENT

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 provide to ratepayers, developers and State agencies.

Council has been involved where possible 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 values, transport, servicing, visual impact and associated issues that need to be considered in the new planning scheme for Tasman and other southern councils.

Council has also been involved in various other strategic planning projects that have been initiated by the State Gov- ernment. The introduction of regional planning projects and the review of Planning Directive No. 1 (planning scheme template) have been progressing this year and will eventually lead to the preparation of new planning schemes for all councils in the state.

The timeline for the completion of the strategic projects has been delayed which unfortunately has also delayed the preparation of draft planning schemes. Council continues to liaise with the appropriate State agencies to communi- cate the urgency of this issue in the Tasman municipality.

Council formally endorsed a structure plan for the Nubeena and White Beach Settlements. The structure plan will provide a detailed analysis of the land use planning issues, requirements and opportunities for this area ahead of the preparation of the new planning scheme. The project was conducted in conjunction with other structure plans for Glamorgan Spring Bay and Huon Councils and with assistance from the Department of Economic Development Tourism and the Arts.

Information documents and brochures have been prepared to ensure that applicants understand the planning process and the documentation required. This has resulted in the streamlining of the permit issue process.

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.

Two planning scheme amendments, as detailed below, were submitted to and approved by the Tasmanian Planning Commission (TPC) in 2010-2011:-

AM 1/2010 – Port Arthur Historic Sites Visual Significance Overlay.

AM 2/2010 – Specified departure to allow two heritage listed dwellings located within the former Saltwater River Probation station to be used for tourist accommodation.

25 Tasman Council 10/11 PLANNING & ENVIRONMENT Cont...

STATISTICS

Number of Number of Average Average number applications applications number of of days for which received approved days to pro- the clock was cess applica- stopped tions Planning - permitted use 67 67 11 5 Planning - discretionary use 51 51 35 10 Building 111 111 12 5

BUILDING & PLUMBING

A Council, 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 prepared in accordance with the Building Act 2000 prior to issuing permits. Council engages a consultant plumbing in- spector to inspect and issue plumbing permits in accordance with the Plumbing Regulations 2004.

An extensive audit of Council‟s building files was undertaken during 2009/2010. 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 under- taking 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.

26 Tasman Council 10/11 PLANNING & ENVIRONMENT Cont...

STATISTICS

Number Issued

Building Permit 107 Permit of Substantial Compliance 2 Permit to Proceed 2 Building Permit Extension 14 Certificate of Completion (Building Work) 80 Certificate of Completion (Plumbing Work) 50 Value of Work $6,335,815.00

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 prosecution. A total of 44 Building Notices were issued during the 2010/11 financial year. A total of 35 compliance files were resolved during 2010/11.

27 Tasman Council 10/11 PLANNING & ENVIRONMENT Cont...

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 Environmental Health Officer (EHO) and a number of roles to be fulfilled. 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. Activi- ties to meet this service include seminars where relevant, publications and campaigns.

Planning Permit applications require input from the EHO with respect to wastewater management and environmental management.

Council‟s responsibilities in accordance with the Food Act 2004 involve licensing of food businesses and food sampling 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 EHO 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. 40 Special Plumbing Permits were issued by Council during 2010/11.

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 license.

There are 18 buildings in the Tasman municipality which require inspections, registration and licensing. The Build- ing Surveyor issues Certificates of Occupancy and the EHO recommends registration.

The Public Health Act 1997 also provides powers for the issuing of a Closure Order by Council on receipt of a report from an EHO that the building is a high risk to public health and a report from a Building Surveyor that the building is substandard.

28 Tasman Council 10/11 PLANNING & ENVIRONMENT Cont...

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.

Infectious disease incidents are notifiable and 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 potable supplies, wastewater system and recreational waters have been carried out by Council during 2010/11. 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 impact 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 Act. The activities of this service include:

 Assessing and determining if environmental harm has occurred and the issuing of Environmental Infringe- ment Notices or Environmental Protection Notices. Infringements include the emission of 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 is sold and converted to residential).

29 Tasman Council 10/11 INFRASTRUCTURE & WORKS

CAPITAL WORKS FOR 2010/2011

For the second year in a row the inclement weather impacted on our capital works program. During the 2011 winter the Tasman area experienced significant weather conditions that contributed to severe road and bridge damage.

Cripps Creek Bridge Old Jetty Road, Eaglehawk Neck

Projects that were not finished have been programmed to be completed during the 2011/2012 financial year. These projects include Heywards Road, Marsh Road and Andersons Road Bridges.

Capital works projects completed during 2010/2011 were:

 Extension of the seal on Spaulding Street at White Beach.  Stabilisation and sealing of 400 metres at the end of White Beach Road.  Placement of culvert pipes at Stormlea Road, Highcroft.  Improvement to the roadside drainage at Stormlea Road, Highcroft.  Sheeting works on Stormlea Road, Highcroft.  Stage one of the drainage works at Turners Road, Saltwater River were also completed with stage two to be undertaken during the 2011/2012 financial year.  Placement of Armco railing on Roaring Beach Road has improved the safety of vehicles travelling on that road. With future black spot funding it is Councils intention to continue replacement of barrier fencing to bring all the municipal guard rails up to current Australian Standards.  The rock groyne at the Taranna Boat ramp has been built and has made retrieving and launching boats much easier and safer especially with the westerly winds common is that area.  Upgrade of Shipstern Bluff car park.

White Beach Road White Beach Road

30 Tasman Council 10/11 INFRASTRUCTURE & WORKS Cont...

ROAD MAINTENANCE & WORKS

Tasman Council committed to improving the quality of material used on gravel roads with 5,000 tonne of gravel crushed at Council‟s Robinsons Road, Highcroft Quarry. Council determined to use the gravel to improve the critical school bus routes and high volume traffic roads first and to over time, extend that to all by-roads.

Council commenced updating the road asset register and implementing an asset management system to improve the identification and programming of works and to better inform our longer term asset renewal obligations and associated impacts to Councils short, medium and long term financial management strategy.

A targeted potholing program on both gravel and sealed roads commenced in response to the maintenance backlog, however, the significant rainfall levels has ensured this process is ongoing and includes the continued maintenance of sealed road edge breaks to maximize the useful life of the pavement.

Effective roadside drainage is vital to the operation of the sealed and unsealed road network with Council commencing a rolling drain cleaning program which will continue into 2011/12 as a maintenance priority.

Drainage, sheeting and grading have been completed on all major gravel roads including Gwandalan Road, Storm- lea/Highcroft Road and Sommers Bay Road. Maintenance of Councils road network is and will continue to be a key focus now and into the future.

Road Maintenance Potholing

31 Tasman Council 10/11 COUNCIL & 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 miti- gate 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, strategic 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.

32 Tasman Council 10/11 COUNCIL & SPECIAL COMMITTEES Cont...

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 Coun- cil on behalf 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 strategies 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 manage 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

Tasman Civic Centre Port Arthur Sports Ground

33 Tasman Council 10/11 AUDIT REPORT

34 Tasman Council 10/11 AUDIT REPORT Cont...

35 Tasman Council 10/11 STATEMENT BY GENERAL MANAGER

TASMAN COUNCIL

Financial Report for the Year Ended 30 June 2011

Statement by the General Manager

In my opinion: a. The financial statement represents fairly the financial position of the Tasman Council as at 30 June 2011 and the results of its operations and cash flows for the year then ended in accordance with Statements of Account- ing Concepts, Australian Accounting Standards and Urgent Issues Group consensus views; and b. The financial statements have been prepared in accordance with the requirement of the Local Government Act 1993.

ROBERT HIGGINS GENERAL MANAGER

36 Tasman Council 10/11 FINANCIAL REPORT

STATEMENT OF COMPREHENSIVE INCOME

Actual Budget Actual Note 2011 2011 2010 $'000 $'000 $'000

Income Rates and charges 3 3,552 2,854 3,347 Statutory fees and fines 4 206 190 478 User fees 5 403 502 429 Grants 6 888 645 1,073 Other income 9 199 143 58

Total income 5,248 4,334 5,385

Expenses Employee benefits 10 (1,176) (1,169) (1,143) Materials and services 11 (2,097) (2,110) (2,081) Depreciation and amortisation 12 (985) (838) (960) Finance costs 13 (55) (69) (85) Share of net loss of associates and joint ventures accounted for by the equity method 15 (11) - (28) Impairment loss 21 (67) - - Other expenses 14 (125) (125) (417)

Total expenses (4,516) (4,311) (4,714)

Surplus / (deficit) before: 732 23 671

Capital grants received specifically for new or upgraded assets 6 145 - 264 Contributions - Non-monetary assets 7 130 - - Net gain/(loss) on disposal of property, infrastructure, plant and equipment 8 5 - (15)

Surplus / (deficit) 1,012 23 920

Other comprehensive income Net asset revaluation increment(decrement) reversals 27 672 - 460 Financial assets available for sale reserve

─ Fair Value initial adjustment on Final Treasurer's Allocation Order - - 258 ─ Fair Value adjustment on Available for Sale Assets 16 5 - - Comprehensive result 1,689 23 1,638

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

37 Tasman Council 10/11 FINANCIAL REPORT Cont...

STATEMENT OF FINANCIAL POSITION Note 2011 2010 $'000 $'000

Assets Current assets Cash and cash equivalents 17 1,973 1,677 Trade and other receivables 18 209 271 Financial Assets 19 250 - Other Assets 20 10 3 Total current assets 2,442 1,951

Non-current assets Investments in associates accounted for using the equity method 15 39 50 Investment in water corporation 16 920 915 Property, infrastructure, plant and equipment 21 15,215 14,595 Intangible assets 22 15 48 Total non-current assets 16,189 15,608 Total assets 18,631 17,559

Liabilities

Current liabilities Trade and other payables 23 181 307 Provisions 24 69 50 Interest-bearing loans and borrowings 25 89 219 Other liabilities 26 - 196 Total current liabilities 339 772

Non-current liabilities Provisions 24 20 20 Interest-bearing loans and borrowings 25 743 907 Other liabilities 26 35 68 Total non-current liabilities 798 995 Total liabilities 1,137 1,767

Net Assets 17,494 15,792

Equity Accumulated surplus 10,407 10,346 Reserves 27 7,087 5,446

Total Equity 17,494 15,792 The above statement should be read in conjunction with the accompanying notes.

38 Tasman Council 10/11 FINANCIAL REPORT Cont...

STATEMENT OF CHANGES IN EQUITY

Asset Fair Accumulated Revaluation Value Other Note 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 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

Asset Fair Accumulated Revaluation Value Other Total Surplus Reserve Reserve Reserves 2010 2010 2010 2010 2010

2010 $'000 $'000 $'000 $'000 $'000

Balance at beginning of the financial year 14,732 9,756 4,876 - 100

Surplus / (deficit) for the year 920 920 - - - Other Comprehensive Income:

Net asset revaluation increment (decrement) reversals 460 - 460 - - Fair Value initial adjustment on Final Treasurer's Allocation Order 258 258 - - -

Transfers between reserves (578) (588) - - 10

Balance at end of the financial year 15,792 10,346 5,336 - 110

39 Tasman Council 10/11 FINANCIAL REPORT Cont...

STATEMENT OF CASH FLOW

2011 2010 Inflows/ Inflows/ (Outflows) (Outflows) Note $'000 $'000 Cash flows from operating activities

Rates 3,518 3,222

Statutory fees and fines 553

Interest received 56

Receipts from Governments 811

Other receipts 413

Interest paid (55) (85)

Payment to suppliers (2,651) (2,367)

Payments to employees (1,157) (1,143)

Other payments -

Net cash provided by (used in) operating activities 28 1,539 1,460

Cash flows from investing activities

Payment for property, infrastructure, plant and equipment (853) (765)

Payment for other financial assets -

Capital grant 263

Proceeds from sale of property, infrastructure, plant and equipment 90

Net cash provided by (used in) investing activities (949) (412)

Cash flows from financing activities

Repayment of interest-bearing liabilities (294) (215)

Net cash provided by (used in) financing activities (294) (215)

Net Increase (Decrease) in Cash held 833

Cash and cash equivalents at the beginning of the financial year 1,677 844 Cash and cash equivalents at the end of the financial year 17 1,973 1,677

40 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT Introduction

(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 a Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and notes accompanying these financial statements. The general purpose financial report complies with Australian Accounting Standards, other authoritative 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 standards that are applicable to not-for-profit entities.

Note 1 Significant accounting policies Basis of accounting (a)

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 the relevant notes.

Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where appropriate, comparative figures have been amended to accord with current presentation, and disclosure has been made of any material changes to comparatives.

All entities controlled by Council that have material assets or liabilities, such as Special Committees of Management, have been included in this financial report. All transactions between these entities and Council have been eliminated in full. De- tails of entities not included in this financial report based on their materiality are detailed in note 37.

In the application of Australian Accounting Standards, Council is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates.

41 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

Judgements and Assumptions

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.

Judgements made by Council that have significant effects on the Financial Report are disclosed in the relevant notes. 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.

Council has made no assumptions concerning the future that may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. Judgements made by Council that have significant effects on the Financial Report are disclosed in the relevant notes as follows:

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(r) ,1(e)and in note 21.

Employee entitlements

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

42 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

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 en- forceable 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.

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.

Income 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.

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 un- discharged at balance 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.

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

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.

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

Interest Interest is recognised progressively as it is earned.

Dividends Dividend revenue is recognised when Council's right to receive payment is established. 43 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT (d) Inventories

Council do not maintain any inventory.

(e) Depreciation and amortisation of property, plant and equipment, infrastructure, intangibles

Buildings, land improvements, 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

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

Road earthworks are not depreciated.

Artworks 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

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 15 to 20 Years Bridges & Culverts 5 to 80 Years Intangibles 3 to 5 Years

(f) 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 capitalised and depreciated. The carrying value of the replaced asset is expensed.

44 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

(g) Finance costs Finance costs are recognised as an expense in the period in which they are incurred, except where they are capitalised as part of a qualifying asset constructed by Council. Where specific borrowings are obtained for the purpose of specific asset acquisition, the weighted average interest rate applicable to borrowings at balance date, excluding borrowings associated with superannuation, is used to determine the borrowing costs to be capitalised. Finance costs include interest on bank overdrafts, interest on borrowings and unwinding of discounts.

(h) 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 consideration 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 21. In accordance with Council's policy, the threshold limits detailed below have applied when recognising assets within an applicable asset class and unless otherwise stated are consistent with the prior year: Threshold

$'000

Property

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

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 written down replacement cost. . At balance date, Council reviewed the carrying value of the individual classes of assets measured at fair value to ensure that each asset materially approximated its fair value. Where the carrying value materially differed from the fair value at balance date the class of asset was revalued.

Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

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

Land under roads Under AASB 1051 Council elected not to recognise land under roads. From 1 July 2008 no land under roads has been recognised as the balance is immaterial.

(i) Cash and cash equivalents

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

46 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

Financial assets (j)

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.

(k) Investments in water corporation Investments in Southern Water Corporation are valued at fair value at balance date. Fair value was determined by using Council's ownership percentage against the water corporation's net asset value at balance date. Any unrealised gains and loses on holdings at balance date are recognised in the Statement of Comprehensive Income. Tasman Council's valuation percentage has been deemed at 0.1%. Councils share of the Corporations net assets at 30 June 2011 is $920,000 (2010, $915,000).

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

(m) Tender deposits

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

(n) 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 balance 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.

47 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

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 discounting future cash flows.

Long service leave Long service leave entitlements payable are assessed at balance date having regard to expected employee remuneration rates on settlement, employment related oncosts and other factors including accumulated years of employment, 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 expected 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. Commonwealth bond rates are used for discounting future cash flows.

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.

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

During the reported period the amount of contributions paid to accumulation schemes was $94,012 (2009-10 $96,000). Con- tributions to defined benefit schemes were nil.

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 would include all annual leave and unconditional long service leave entitlements.

(o) 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.

(p) Allocation between current and non-current In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next twelve months, being Council's operational cycle, or if Council does not have an unconditional right to defer settlement of a liability for at least 12 months after the reporting date.

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

Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. 48 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

(r) Impairment of assets At each reporting date, Council reviews the carrying value of its assets to determine whether there is any indication that these assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the comprehensive income statement, unless the asset is carried at the revalued amount in which case, the impairment loss is recognised directly against the revaluation reserve in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset. For non-cash generating assets of Council such as roads, drains, public buildings and the like, value in use is represented by the deprival value of the asset approximated by its written down replacement cost.

(s) Rounding Unless otherwise stated, amounts in the financial report have been rounded to the nearest thousand dollars. Figures in the financial statement may not equate due to rounding.

49 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

(aa) 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 Impact on reporting periods begin- Local Govern- ning or ending on ment financial statements AASB 9: Financial Instruments, These standards are applicable retrospectively and amend the Applicable for annual These chang- AASB 2009–11 and AASB 2010-7: classification and measurement of financial assets. Council has reporting periods comes are ex- Amendments to Australian Ac- not yet determined the potential impact on the financial state- mencing on or after pected to counting Standards arising from ments. Specific changes include: 1 January 2013. provide some AASB 9 [AASB 1, 3, 4, 5, 7, 101, * simplifying the classifications of financial assets into those simplification 102, 108, 112, 118, 121, 127, 128, carried at amortised cost and those carried at fair value; in the ac- 131, 132, 136, 139, 1023 & 1038 * removing the tainting rules associated with held-to-maturity counting for and Interpretations 10 & 12] assets; and disclo- * simplifying the requirements for embedded derivatives; sure of financial instru- * removing the requirements to separate and fair value embed- ments. ded derivatives for financial assets carried at amortised cost; * allowing an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends 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

AASB 124: Related Party Disclo- This standard removes the requirement for government related Applicable for annual Although this sures entities to disclose details of all transactions with the govern- reporting periods com- standard does ment and other government related entities and clarifies the mencing on or after not strictly definition of a related party to remove inconsistencies and 1 January 2011. apply to Local simplify the structure of the standard. Government it is often used as guidance, as such there will be greater clarity on the disclosure of inter government transactions. AASB 2009–12: Amendments to This standard makes a number of editorial amendments to a Applicable for annual These Australian Accounting Standards range of Australian Accounting Standards and Interpretations, reporting periods com- amendments [AASBs 5, 8, 108, 110, 112, 119, including amendments to reflect changes made to the text of mencing on or after are not ex- 133, 137, 139, 1023 & 1031 and International Financial Reporting Standards by the IASB. The 1 January 2011. pected to Interpretations 2, 4, 16, 1039 & standard also amends AASB 8 to require entities to exercise impact Coun- 1052] judgment in assessing whether a government and entities cil known to be under the control of that government are considered a single customer for the purposes of certain operating segment disclosures. AASB 2009–14: Amendments to This standard amends Interpretation 14 to address unintended Applicable for annual These Australian Interpretation — Pre- consequences that can arise from the previous accounting reporting periods com- amendments payments of a Minimum Funding requirements when an entity prepays future contributions into a mencing on or after are not ex- Requirement [AASB Interpreta- defined benefit pension plan. 1 January 2011. pected to tion 14] impact Coun- cil. AASB 2010-2: Amendments to Introduces reduced disclosure requirements for certain Applicable for annual This stand- Australian Accounting Standards types of entities. reporting periods ard is not arising from Reduced Disclosure commencing on or expected to Requirements after 1 January 2013. have a financial impact.

50 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT AASB 2010-5 : Amendments This Standard introduces a number of terminology Applicable for annual These to Australian Accounting changes as well as minor presentation changes to the reporting periods amendments Standards [AASB 1, 3, 4, 5, Notes to the Financial Report. There is no financial commencing on or are not ex- 101, 107, 112, 118, 119, 121, impact resulting from the application of this revised after 1 Jan 2011. pected to 132, 133, 134, 137, 139, 140, Standard. impact Coun- 1023 & 1038 and Interpreta- cil. tions 112, 115, 127, 132 &

Standard / Interpretation Summary Applicable for annual Impact on reporting periods Local Gov- beginning or ending ernment on financial statements AASB 2010-6: Amendments This Standard makes amendments to Australian Ac- Applicable for annual These to Australian Accounting counting Standards, introducing additional presentation reporting periods amendments Standards – Disclosures on and disclosure requirements for Financial Assets. commencing on or are not ex- Transfers of Financial Assets after 1 July 2011. pected to [AASB 1 & AASB 7]. impact Coun- cil. AASB 1053: Application of This Standard establishes a differential financial report- Applicable for annual These Tiers of Australian Accounting ing framework consisting of two tiers of reporting re- reporting periods amendments Standards quirements for preparing general purpose financial commencing on or are not ex- statements. This Standard is not expected to impact after 1 January 2013. pected to Council. However, it may affect disclosures if reduced impact Coun-

AASB 1054: Australian Addi- This Standard sets out the specific disclosures for enti- Applicable for annual This stand- tional Disclosures ties that have adopted Australian Accounting Standards reporting periods ard is not that are additional to the requirements under Interna- commencing on or expected to tional Reporting Standards, including disclosures relat- after 1 January 2011. have a finan- ing to the nature of the financial report, audit fees and cial impact. the reconciliation of net operating cash flows to net

(ab) Contingent assets and contingent liabilities and commitments Contingent assets and contingent liabilities are not recognised in the Statement of Financial Position, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receiveable 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.

(ac) Budget The estimated revenue and expense amounts in the Comprehensive Income Statement represent revised budget amounts

and are not audited.

51 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

Note 2 Functions/Activities of the Council (a) Revenue, expenditure and assets attributable to each function as categorised in (c) below:

Total Total Surplus/ Grants Other Revenue Expenditure (Deficit) Assets $'000 $'000 $'000 $'000 $'000 $'000 Governance and administration

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

2009-2010 391 3,160 3,551 3,734 ($183) 1,519

Regulatory Services

2010-2011 - 331 331 428 ($97) 6,592

2009-2010 55 56 111 100 $11 6,506

Economic Development

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

2009-2010 96 180 276 50 $226 1,145

Works Department

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

2009-2010 793 9 802 169 $633 8,321

Technical Services

2010-2011 - 11 11 158 ($147) -

2010-2011 ------

Waste and Environment

2010-2011 - 512 512 456 $56 -

2009-2010 2 483 485 365 $120 -

Other - not attributable

2010-2011 11 83 94 140 ($46) 77

2009-2010 - 424 424 311 $113 68

Total

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

2009-2010 1,337 4,312 5,649 4,729 920 17,559 Reconciliation of Assets from note 2 with Statement of Financial Position at 30 June: 2011 2010

Current assets 2,442 1,951

Non-current assets 16,189 15,608

18,631 17,559 52 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

(b) Functions and activities of the council The activities of the council are categorised into the following broad functions:

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 sur- veillance, 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. Construction 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 materials.

Other Other general services not specifically identifiable.

53 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

2011 2010 $'000 $'000

Note 3 Rates and charges

General 2,916 2,739

Waste management 188 185

Waste Collection 324 299

Fire Levy 124 124

Total rates and charges 3,552 3,347

The date of the latest general revaluation of land for rating purposes within the municipality was 1 January 2011, and the valuation will be first applied in the rating year commencing 1 July 2011. Rates in advance (included in above) 50 44

Note 4 Statutory fees and fines

Infringements and costs 2 1

Planning fees 150 430

Permits 54 48

Total statutory fees and fines 206 478

Note 5 User fees

Council Fees and Charges 23 10

Rent 48 19

Pensioner rate remissions 156 5

Other fees, charges and revenue 176 395

Total user fees 403 429

54 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT Note 6 Grants

Grants were received in respect of the following :

Summary of grants Federally funded grants 871 1,058 State funded grants 44 279 Total 915 1,337

Grants - Operating Roads - Financial assistance grant 345 551 General - Financial assistance grant 526 391 NRM 11 35 Tourism Strategy 4 15 Community Grants State 2 21

Water and Sewerage - 2

State Grants - 58

Total operating grants 888 1,073

Capital grants received specifically for new or upgraded assets Commonwealth Government - roads to recovery - 116 RLCIP 27 30 Marine and Safety Tasmania - 81 Parks and Wildlife - 37 Tasman Opportunity Shop 118 -

Total capital grants 145 264

Conditions on grants 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:

27 235 Total 27 235

55 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCIAL REPORT

Grants which were recognised as revenue in prior years and were expended during the current year in the manner specified by the grantor were: - 278 Roads To Recovery 128 - RLCIP Shipsterns car park 25 - MAST 28 -

181 278

Net increase (decrease) in restricted assets resulting from grant revenues for the year: (154) (43)

Contributions Note 7 Non-monetary assets

Land identified as Council owned 130 -

Total 130 -

Note 8 Net gain/(loss) on disposal of property, infrastructure, plant and equipment

9 15 Proceeds of sale

Write down value of assets disposed (4) (30)

Total 5 (15)

Other income Note 9

Interest 151 58 Other 48 - Total other income 199 58

Employee benefits Note 10

Wages and salaries 1,023 965 Superannuation 94 96 All other employee costs 59 82

Total employee benefits 1,176 1,143 56 Tasman Council 10/11 FINANCIAL REPORT Cont... NOTES TO THE FINANCIAL REPORT Note 11 Materials and services

Contract payments and Materials 1,229 1,617 Plant and equipment maintenance 149 120 Fire Levy 123 124 Utilities 61 65 Discounts and remissions 155 155

Other 380 - Total materials and services 2,097 2,081 Note 12 Depreciation and amortisation

Property Land

Land improvements - - Buildings

Buildings 80 50 Plant and Equipment

Plant, machinery and equipment 48 68

Motor Vehicles 41 42

Fixtures, fittings and furniture 11 - Infrastructure

Roads and Bridges 679 641

General Infrastructure 29 78

Other infrastructure 77 69 Intangible assets

Intangible assets 20 12 Total depreciation and amortisation 985 960 Note 13 Finance costs

Interest - Borrowings 55 85 Total finance costs 55 85 Note 14 Other expenses Auditors' remuneration 30 27 Councillors' allowances Fees and allowances 90 106 Other expenses 5 284 Total other expenses 125 417 57 Tasman Council 10/11 FINANCIAL REPORT Cont... NOTES TO THE FINANCIAL REPORT

Note Investment in associates

Investments in associates accounted for by the equity method are: Copping Refuse Disposal Site Joint Council 39 50 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 maintain an ownership interest of 8%. Total 39 50

Council's share of accumulated surplus(deficit) Council's share of accumulated surplus(deficit) at start of year (2) 26 Reported surplus(deficit) for year (11) (28) Transfers (to) from reserves - - Distributions for the year - - Council's share of accumulated surplus(deficit) at end of year (13) (2)

Council's share of reserves and contributed equity Council's share of reserves and contributed equity at start of year 52 52 Transfers (to) from reserves - - Council's share of reserves at end of year 52 52

58 Tasman Council 10/11 FINANCIAL REPORT Cont... NOTES TO THE FINANCIAL REPORT Note Investment in water corporation 16

In February of 2008 State and Local Government reached agreement to establish three Local Government owned, vertical- ly integrated businesses providing bulk, distribution and retail water and sewerage services, and a common service provid- er subsidiary company. The Water and Sewerage Act 2008 (Corporations Act) was subsequently enacted and received Royal Assent on 13 June 2008.

Full transfer of water and sewerage assets, liabilities and staff to the new corporations took place on 1 July 2009. From that date, responsibility for the provision of water and sewerage services moved from local councils to three new regional water and sewerage corporations (trading as Cradle Mountain Water, Ben Lomond Water and Southern Water). A fourth company provides common services and support to the three regional corporations.

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

There is no active market for the investment and so it is valued at Council’s share of total equity as at each balance date. Changes in the fair value are recognised through the Comprehensive Income Statement to a Fair Value Reserve each year.

Council has an ownership interest of 0.1% in Southern Water based on the Final Treasurer's Allocation Order in 2011, which is consistent with Council's initial ownership interest based on the Treasurer's initial draft order. Actual Actual

2011 2010

$ $

Opening Balance 915,000 - Net assets transferred 1 July 2009 - 657,000 Change in fair value of investment

- Fair Value initial adjustment on Final Treasurer's Allocation Order - 258,000 - Fair Value adjustments on Available-for-Sale Assets 5,000 -

Total investment in water corporation 920,000 915,000

Note 17 Cash and cash equivalents

Cash on hand 1 -

Cash at bank 29 -

Money market call account 1,943 1,677 Total cash and cash equivalents 1,973 1,677

59 Tasman Council 10/11 FINANCIAL REPORT Cont... NOTES TO THE FINANCIAL REPORT

Note 18 Trade and other receivables Current

Rates debtors 177 142

Sundry Debtors 56 153

Other debtors 5 5

Less Provision for impairment (29) (29)

Total trade and other receivables 209 271

Note 19 Financial assets

Current

Managed fund (note 1(j)) 250 -

250 -

Managed fund is held with Commonwealth bank and is represented by:

Fixed term deposit at interest rate 6.00% from 30 May 2011 to 28 November 2011.

Note 20 Other assets

Current Prepayments 10 3 Total 10 3

60 Tasman Council 10/11 FINANCIAL REPORT Cont... NOTES TO THE FINANCIAL REPORT Note 21 Property, infrastructure, plant and equipment 2011 2010 $'000 $'000 Summary at fair value 30,786 16,485 Less accumulated depreciation (15,571) (1,888)

15,215 14,597

Total 15,215 14,597

Property Land at fair value as at 30 June 2011 2,317 1,942

Total Land 2,317 1,942

Buildings at fair value as at 30 June 2011 2,980 3,544 Less accumulated depreciation - (183)

2,980 3,361

Total Property 5,297 5,303

Note 21 Property, infrastructure, plant and equipment (cont) 2011 2010 $'000 $'000 Plant and Equipment Plant, machinery and equipment

at cost 741 399

Less accumulated depreciation (380) (40)

361 359 Motor Vehicles

at cost 410 300

Less accumulated depreciation (169) (51)

241 249 Fixtures, fittings and furniture

at cost 328 135

Less accumulated depreciation (232) (29)

96 106

Total Plant and Equipment 698 714

61 Tasman Council 10/11 FINANCIAL REPORT Cont... NOTES TO THE FINANCIAL REPORT

Note 21 Property, infrastructure, plant and equipment (cont) 2011 2010

$'000 $'000

Infrastructure Roads and Bridges

Fair Value 21,001 6,735

Less accumulated depreciation (14,092) (650)

6,909 6,085

General Infrastructure

Fair Value 1,026 1,370

Less accumulated depreciation (385) (699)

641 671 Other Structures

Fair Value 1,828 1,738

Less accumulated depreciation (313) (236)

1,515 1,502

Note 21 Property, infrastructure, plant and equipment (cont)

Total Infrastructure 9,065 8,258

Valuation of land and buildings were undertaken by 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. Roads and Bridges assets was revalued at 30 June 2005 by independent valuer and have been indexed for the period.

Works in progress Infrastructure

at cost 156 322

Total Works in progress 156 322

14,597 Total property, infrastructure, plant and equipment 15,215

62 Tasman Council 10/11 FINANCIAL REPORT Cont... NOTES TO THE FINANCIAL REPORT

Note 21 Property, plant and equipment, infrastructure (cont.) Impairment Balance at Revaluation Depreciation Written losses recog- Balance beginning of Acquisition increments and down value nised in profit at end of 2011 financial year of assets (decrements) amortisation of or loss Transfers financial (note 27) (note 12) (note 8) (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

Motor Vehicles 251 35 - (41) (4) - - 241

Fixtures, fittings and furniture 106 27 - (11) - (26) - 96

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

Infrastructure 322 156 - - - (41) (281) 156

Total 14,596 983 672 (965) (4) (67) - 15,215 (a) Impairment losses Impairment losses are recognised in the statement of comprehensive income under other expenses. Reversals of impairment losses are recognised in the statement of comprehensive income under

63 Tasman Council 10/11 FINANCIAL REPORT Cont... NOTES TO THE FINANCIAL REPORT

2011 2010 $'000 $'000

Note 22 Intangible assets at cost 164 177 Less accumulated depreciation (149) (129)

Total intangible assets 15 48

Note 23 Trade and other payables

Trade payables 29 25 Other 16 8 Rent in Advance 8 8 Accrued expenses 128 266 Total trade and other payables 181 307

64 Tasman Council 10/11 FINANCIAL REPORT Cont... NOTES TO THE FINANCIAL REPORT Note 24 Provisions Annual Long service Other Total leave leave 2011 $ '000 $ '000 $ '000 $ '000 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

2010 Balance at beginning of the financial year 104 19 11 134 Amounts used (62) (2) - (64) Balance at the end of the financial year 42 17 11 70

$'000 $'000 Employee Provisions (i) Current Annual leave 44 42 Long service leave - Employee Oncost 15 8

69 50 (ii) Non-current Long service leave 17 17 Employee Oncost 3 3

20 20 Aggregate carrying amount of employee

Current 69 50 Non-current 20 20

89 70

(iii) Employee Numbers 21 19

65 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE REPORT

2011 2010 $'000 $'000

Note Interest-bearing loans and borrowings 25

Current

Borrowings - unsecured 89 219

89 219

Non-current Borrowings - unsecured 743 907

Total 832 1,126

The maturity profile for Council's borrowings is:

Not later than one year 49 219 Later than one year and not later than five years 114 454 Later than five years 669 453 Total 832 1,126

Aggregate carrying amount of interest-bearing loans and borrowings: Current 49 219 Non-current 783 907

Total interest-bearing loans and borrowings 832 1,126

Note Other liabilities 26

Current - 196 Non-current 34 68 Total 34 264

66 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE REPORT

Note 27 Reserves Balance at beginning Balance at end Increment (decrement) of report- of reporting ing period period

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

2011

Asset Revaluation Reserve 5,336 672 - 6,008

Public Open Space Reserve 107 12 - 119

Tasman Civic Centre Reserve 3 - - 3 Fair Value adjustment on Available for Sale

Assets - - 5 5

General Reserve - 952 - 952

Total Reserve 5,446 1,636 5 7,087

2010

Asset Revaluation Reserve 4,876 460 - 5,336

Public Open Space 86 21 - 107

Sewerage Reserve 11 - (11) -

Tasman Civic Centre 3 - - 3

Total Reserve 4,976 481 (11) 5,446

The asset revaluation reserve was established to capture the movements in asset valuations upon the periodic revaluation of Council's assets. The Sewerage reserve was closed as council is no longer involved in water and sewerage.

67 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE REPORT 2011 2010

$'000 $'000

Reconciliation of cash flows from operating activities to surplus (deficit) Note 28

Surplus/Deficit 1,012 920

Depreciation/amortisation 985 960

(Profit)/loss on disposal of property, plant and equipment, infrastructure (5) 15

Impairment losses 67 - Share of net loss of associates and joint ventures accounted for by the equity method 11 28 Capital grants received specifically for new or upgraded assets (145) (264) Contribution - Non-Monetary Assets (130) -

Other 26 142

Change in assets and liabilities:

Decrease/(increase) in trade and other receivables 62 (208)

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

Increase/(decrease) in trade and other payables (126) 50

Increase/(decrease) in provisions 19 (64)

Increase/(decrease) in other liabilities (230) (119)

Net cash provided by/(used in) operating activities 1,539 1,460

Note 29 Reconciliation of cash and cash equivalents

Cash and cash equivalents (see note 17) 1,973 1,677

Total reconciliation of cash and cash equivalents 1,973 1,677

Note 30 Restricted assets

Council has cash and cash equivalents that are subject to restrictions. As at the reporting date, Council had restrictions in relation to: 114 68

Total restricted assets 114 68 Restricted cash was related to public open space $114,000 (2010, $68,000) under Local Government (Buildings and Miscellaneous Provi- sions) Act 1996.

68 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE REPORT

2011 2010 $'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 34 Later than one year and not later than five years 17 13 Later than five years

24 47

69 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE REPORT

Note 32 Financial Instruments

(a) Accounting Policy, terms and conditions

Recognised financial instruments Note Accounting Policy Terms and Conditions Financial assets

Cash and cash 17 Cash on hand and at bank and money market call Funds returned weighted fixed interest equivalents account are valued at face value. rate of 5.76% (4.70% in 2009/10) net of fees.

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 General debtors are unsecured and the effective interest method. A provision for arrears attract an interest rate of doubtful debts is recognised when there is objec- 11.47% (11.47% in 2009/2010). Credit tive evidence that an impairment loss has oc- terms are based on 15 days. curred. Collectability of overdue accounts is assessed on an ongoing basis.

Financial Liabilities

Trade and other 23 Liabilities are recognised for amounts to be paid General Creditors are unsecured, not payables in the future for goods and services provided to subject to interest charges and are Council as at balance date whether or not invoic- normally settled within 30 days of es have been received. invoice receipt.

Interest-bearing 25 Loans are carried at their principal amounts, Borrowings are unsecured. loans and borrow- which represent the present value of future cash The weighted average interest rate on ings flows associated with servicing the debt. Interest borrowings is 6.71% (6.52% in is accrued over the period it becomes due and 2009/2010). recognised as part of payables.

70 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE 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:

2011 Fixed interest maturing in: Weighted Floating Over 1 More Non- average interest 1 year to 5 than 5 interest interest rate or less years years bearing Total rate $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash and cash equivalents 5.76% 29 1,943 - - 1 1,973 Financial assets - 250 - - - 250 Trade and other receivables 177 - - - 32 209 Total financial assets 206 2,193 - - 33 2,432

Financial liabilities Trade and other payables - - - - 181 181 Interest-bearing loans and borrowings 6.71% - 89 173 570 - 832 Total financial liabilities - 89 173 570 181 1,013

Net financial assets (liabilities) 206 2,104 (173) (570) (148) 1,419 2010 Fixed interest maturing in: Weighted Floating Over 1 More Non- average interest 1 year to 5 than 5 interest interest rate or less years years bearing Total rate $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash and cash equivalents 4.70% - 1,677 - - - 1,677 Trade and other receivables 142 - - - 129 271 Total financial assets 142 1,677 - - 129 1,948

Trade and other payables - - - - 307 307 Interest-bearing loans and borrowings 6.52% - 219 373 534 - 1,126 Total financial liabilities - 219 373 534 307 1,433

Net financial assets (liabilities) 142 1,458 (373) (534) (178) 515

71 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE REPORT Note 32 Financial Instruments (cont.) (c) Net Fair Values The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows: Total carrying amount as per Bal- Aggregate net fair value Financial Instruments ance Sheet 2011 2010 2011 2010 $'000 $'000 $'000 $'000

Financial assets Cash and cash equivalents 1,973 1,677 1,973 1,677 Other financial assets 250 - 250 - Trade and other receivables 209 271 209 271 Total financial assets 2,432 1,948 2,432 1,948

Financial liabilities Trade and other payables 181 307 181 307 Interest-bearing loans and borrowings 832 1,126 832 1,126 Total financial liabilities 1,013 1,433 1,013 1,433

(d) Credit Risk

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

(e) Risks and mitigation

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

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

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. 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.

- 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. - adopting strategic management principles 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.

72 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE 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. Expo- sure at balance date is addressed in each applicable policy note. Council generally trades with recognised, creditworthy third parties, and as such collateral is generally not requested, nor is it Council's policy to securitise its trade and other receivables. In addition, receivable balance are monitored on an ongoing basis with the result that Council's exposure to bad debts is not significant. Movement in Provisions for Impairment 2011 2010 $'000 $'000 Balance at the beginning of the year 29 32 New Provisions recognised during the year Amounts already provided for and written off as uncollectible - 3 Amounts provided for but recovered during the year - - Balance at end of year 29 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: 2011 2010 $'000 $'000 Current (not yet due) 17 64 Past due by up to 30 days 7 60 Past due between 31 and 365 days 122 92 Past due by more than 365 days 63 55 Total Trade & Other Receivables 209 271

(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-Jun-11 Available for sale financial assets - - 920,000 920,000 Total - - 920,000 920,000

Level 1 Level 2 Level 3 Total 30-Jun-10 Available for sale financial assets - - 915,000 915,000 Total - - 915,000 915,000 There were no transfers between Level 1 and Level 2 in the period.

Reconciliation of Level 3 Fair Value Movements 30-Jun-11 30-Jun-10 Opening balance 915,000 - Investment on transfer of assets - 657,000 Gains (losses) recognised in Other Comprehensive Income 5,000 - Change in fair value movement in Southern Water - 258,000 Closing balance 920,000 915,000 73 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE REPORT

Note 33 Auditors' remuneration 2011 2010 $'000 $'000 Audit fee to conduct external audit - Tasmanian Audit Office 30 27 30 27

Note 34 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.

Note 35 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: Mayor Jan Barwick elected until

Councillors 2013 Deputy Mayor Roseanne Heyward Elected until 2013 Councillor Gary Alexander Elected until 2011 Councillor Joan Fazackerly Elected until 2011 Councillor Pam Fenerty - Elected until 2013 Councillor Roger Larner - Elected until 2013 Councillor Glenn Skeggs - Elected until 2011 Councillor David Moser - Elected until 2011 Councillor James Noye - Elected until 2011

Chief Executive Officer Robert Higgins

2011 2010 $'000 $'000 Total Remuneration for the reporting year for Councillors' Emoluments and reimbursements included above amounted to: 94 106 Remuneration for the reporting year for senior management positions Including Chief Executive Officer, Manager Finance and Contracts and Manager Works and Services amounted to: 273 236

In accordance with s84(2)(b) of the Local Government Act 1993, no interests have been notified to the Gen-

(III) eral Manager in respect of anybody or organisation with which the Council has major financial dealings.

74 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE REPORT Note 36 Capital expenditure Note 2011 Capital expenditure areas $'000

Roads 248 Buildings 338 Plant and equipment 111 Other 156 Total capital works 853

Property, plant and equipment, infrastructure movement

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

Total capital works 853 Contributions no monetary assets 7 130 Asset revaluation movement 21,27 672 Depreciation/amortisation 21 (964) Impairment losses 21 (67) Written down value of assets sold 21 (3) Net movement in property, plant and equipment, infrastructure 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 origi-

nally. 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

(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 fu-

(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.

75 Tasman Council 10/11 FINANCIAL REPORT Cont...

NOTES TO THE FINANCE REPORT

Note 37 Special committees and other activities

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

Council Committees 2011 Opening Change Closing Tasman Community Centre 6,801 (221) Nubeena Recreation Ground 3,545 786 Koonya Hall Committee 5,491 (70) Saltwater River Hall Committee 2,807 (1,475) Port Arthur Sports Ground Committee 3,760 1,175 Tasman Civic Centre Committee 9,180 (1,921)

31,584 29,858