S O R e l l C o u n CI L A n n u a l R e p o r t 2 0 0 9 - 1 0 www.sorell.tas.gov.au Contents ContentS page Annual Report 2009-10 About Us 3 Our Vision, Our Mission, Our Organisational Values 11

Mayor’s Message 13

General Manager’s Report 14

Your Councillors 15

People at Council 16

Sorell Scarecrow Trail 19

Finance & Information 20

Human Resources & Community Services 23

Environment & Development 26

Engineering Services 29

The Way We Plan 31

Legislative Requirements 39

Financials Snapshots 43

General Purpose Financial Report 47

Independent Audit Report 90

Appendix A - Council Owned Halls 91

12 Somerville Street, Sorell TAS 7172 PO Box 126, Sorell TAS 7172 Phone 6269 0000 Fax 6269 0014 Email [email protected] www.sorell.tas.gov.au

Sorell Council Annual Report 2009-10 2 HISTORY About Us Lieutenant John Bowen, of the British Royal By 1808 several settlers were working During this period businesses and some Navy, arrived on Tasmanian soil in 1803 small farms in the district and by 1815 large community services were established, however Sorell Municipality and the passengers from the two boats quantities of wheat were being grown and a it was after the first Municipal Council was Lady Nelson and Albion settled initially at flour mill had been built. The following year proclaimed in 1862 that further progress came. Risdon Cove. Later Bowen sent out several a site for a township was purchased and An electric telegraph service was introduced in exploration parties from the settlement at this was established by 1819. By this time 1876, the Bellerive to Sorell railway line was built Risdon, one of which journeyed across the approximately 60 farms were operating and in 1892, a water supply was connected in 1916 hills to discover a rich valley of coal and a the district had become firmly established and then finally electricity came to the town in river which was subsequently named the Coal as the ‘granary of Australia’. In June 1821 1930. River. Two years later a large expanse of water Governor Macquarie visited the district and (Pitt Water) was located and the site was named the new township of Sorell in honour of earmarked for a fine harbour with a city on its Colonel William Sorell, Lieutenant Governor of TODAY banks. This plan never came to fruition as it Van Diemen’s Land. Our municipality resides 25km north of the was found that the water was too shallow for A well known resident of the time was Mr capital city of Tasmania, Hobart, spanning an the passage of boats. James Gordon, the first Magistrate, who area of 583 km2 with the key entrance points received a grant of 600 acres in the Pitt Water being Midway Point, Dunalley and Orielton. area which he named Forcett. From 1815 Our borders extend East through to Orielton he farmed his property as well as engaging and further South-East around our scenic in trade with Sydney, New Zealand and coastline which encase the townships of Macquarie Island. In 1823 the population Dodges Ferry, Lewisham, Carlton, Primrose of Sorell numbered 133, of which 96 were Sands, Dunalley, Marion Bay and Boomer Bay. convicts and their families. Descendents of In addition, our border extends through many of these families still live in the district. enchanting hillsides and unique Tasmanian During those early years Sorell residents relied forestry incorporating the townships of Forcett, on primitive ferries for the crossing of Pitt Copping, Nugent and Kellevie. The main Water, or had to journey by way of Richmond highways through our municipality are the to Hobart. In 1854 Sir William Denison Arthur Highway, which connects us with our began negotiations which finally resulted in neighbours Tasman Council, and the East Coast the construction of a causeway which was Highway, that connects us to the picturesque completed in 1862. The first vehicle crossings Tasmanian East Coast. Because of this Sorell were made in 1872 with the causeway of has become a thriving regional, commercial and present time a manifestation of reconstruction business centre for the South East region of our that sees little of the original work remain. State.

Sorell Council Annual Report 2009-10 3 Land Area 582.6 km2 About Us Population (June 2009) 13,127 Key Facts Female 51% Population Gender % Male 49% Rate Properties 8,412 Sorell Midway Point Four Major Population Centres Dodges Ferry Primrose Sands Unemployment Rate 4.9% Number of Businesses 732 Annual Growth of Businesses 7% Gross Value from Agriculture $11.1 million Production Area of Holding for Agriculture 33161 ha % Fully Owned Buildings (2006 ABS) 35.4% % Being Purchased Buildings (2006 ABS) 43.4% % Rented Buildings (2006 ABS) 17.7% Public Housing as a percent of Residential Dwellings 1.7% Median Weekly Rent (2006 ABS Tasmania $135) $150 Median Weekly Average Individual Income (2006 ABS Tasmania $398) $396 Median Weekly Average Family Income (2006 ABS Tasmania $1,032) $983 Median Weekly Average Household Income (2006 ABS Tasmania $801) $779 GPs Full Time Equivalent per 100,000 (2007) 62.1

Sorell Council Annual Report 2009-10 4 Population supermarket chains, well known branded food This population trend does not include the outlets, and hotels. vacant land in the Southern Beaches area About Us We currently have a population of 13,127 which is restricted from further development Government services include a Service (June 2009 ABS data) which expands during due to wastewater environmental issues. Tasmania outlet, Centrelink and the Tourist Population & the weekend and holiday periods. We are a Once this area is sewered we are predicting Information Centre with additional services growing area that is currently experiencing a population growth to expand into the 19,000s such as major banks, medical facilities, real Demographics population trend of people moving from city by 2020. centres to outer regional areas, drawn by the estate agencies, chemists, sports facilities and natural coastland and inland environment as schools prevalent in the area. The demographic profile of our municipality well as affordability in purchasing a home. will change in the future. The national trend Demographics of an ageing population is being felt locally The region has a diverse range of agricultural The Sorell municipality has experienced and as Sorell moves into the next decade and marine producers as well as a number significant growth between 2001 and 2009. demographics will experience a 62 per cent of light industries with tourism becoming This growth increase of 19 per cent saw our increase in the 65 and over age sector. an important focus. All of these industries municipality ranked as the third fastest growing The other age sectors are all expected to contribute to the economic development of our area in the state. Predictions from the State increase 3 per cent, 2 per cent, 6 per cent area. Government indicate our municipality will and 16 per cent through the youth to mid age There is a bustling shopping district in Sorell continue to grow at a rate of 1.6 per cent per demographics, respectively. which includes numerous cafes, major annum until the 2020 decade.

Sorell Council Annual Report 2009-10 5 Transport Network Carlton Raprinner Street Public car park, public toilets About Us Sorell Council maintains 393 kilometres of roads which includes 112 kilometres of urban Copping Transport & road and 281 kilometres of rural road. The Marion Bay Road Community hall, recreational reserve Tasmanian State Government is responsible Dodges Ferry Community for 49 kilometres of roads and in addition Old Forcett Road Dodges Ferry Recreation Centre, recreational reserve, skate park Council maintains 72 bridges throughout Park Beach Road Public car park, public toilets Facilities the municipality. In 2009-2010 Council Tiger Head Road Playground including bbq’s, public toilets, boat ramp spent around $6.1 million on construction Dunalley and maintenance of this valuable transport Booth Street Public cemetery network. Dunalley Canal Public car park Franklin Street Dunalley Community Hall Imlay Street Recreational sport ground, playground and picnic area Community Facilities including Lewisham Lewis Court Playground Parks and Recreation Lewisham Scenic Drive Boat ramp, recreational reserve Sorell Council has numerous parks, gardens, Midway Point public amenities, recreational facilities and Fenton Street Playground facilities, open park space community halls. St Georges Square in the Hoffman Street Midway Point Community Hall including op-shop, basketball courts centre of the Sorell Township forms the Vancouver Street Playground facilities, open park space village green with its abundant roses and it Primrose Sands encapsulates the historic St Georges Church Gypsy Bay Boat ramp, public toilets and vast green lawns. Primrose Sands Road Primrose Sands Community Hall, playground and public open space The table to the right typifies the diversity in the Sorell public facilities offered to our community and Cole Street Sorell Memorial Community Hall, Sorell Council Dog Pound visitors to the region. Miena Park Wetland reserve Parsonage Place Sorell Tennis Club, Pioneer Park Recreational Reserve, playground and toilets Pembroke Park Sporting recreational facility including change rooms, cricket nets and club rooms, short term stay for recreational vehicles, dog exercise area, skate park Station Lane Public car park St Georges Square Public toilets, Sorell Visitor Information Centre, recreational reserve and playground

Sorell Council Annual Report 2009-10 6 The Sorell Municipality is currently viewed by Tourism Profile tourists as an en route destination to the east About Us coast of the state and the Tasman Peninsula. No. of accommodation premises in Sorell 28 The four top activities for tourists visiting the Types of accommodation in Sorell Beach houses, B&B’s, Motels, Hotels Tourism area are to walk or drive around, dine at our Key Statistics from Tourism Australia of Overnight Visitor (four year average to June 2007) eateries, visit friends and relatives, and go to the Average number of overnight visitors 28,000 beach. Visitor origin Interstate 41% Current research from Tourism Australia Intrastate 59% indicates that 75 per cent of tourists to the Accommodation preference Friends or relatives 39% Sorell area stay for up to two nights with the Caravan/camping 17% other 25 per cent staying up to a maximum Other 44% of four nights. Of these, 39 per cent stay with Top activities Walk or drive around 43% relatives or friends, 17 per cent camp and the Eat out/restaurants 42% remainder stay in bed and breakfasts, hotels or Visiting friends/relatives 42% beach houses. Go to the beach 38%

There are two key issues currently for our Duration of visit 1 to 2 nights 68% municipality. The first is the need to build a base 3 to 4 nights 22% market demand from our day tripper market Key Statistics from Tourism Australia of Day Visitor (four year average to June 2007) segment through product development of Average number of tourists 89,000 community tourism infrastructure. The second Top activities Walk or drive around 19% is to support the local tourism network in their Eat out/restaurants 18% provision of services to the overnight visitor. Visiting friends/relatives 46% By doing this Sorell Council aims to encourage Go to the beach 23% visitors to stop, either for services or points of Age 15 to 44 years 38% interest, thus enhancing our reputation as an 45-64 years 40% area to be included in the interstate or intrastate 65 years and over 22% visitor’s itinerary. Council is also working on Lifecycle group Young singles and Couples 20% strategies to try to capture more of the “passing Parents with Children 28 through” tourists which are estimated to have Older Working 15% been 300,000 in number for the 2009-2010 Older non-working 35% period.

Sorell Council recently undertook a The first step of this strategy is the upgrade of new perimeter fence), installing new BBQ’s preliminary review of the municipality’s tourism Pioneers Park, located near the Sorell Rivulet. and the new active playground. Council infrastructure to gain a complete picture of The park provides a picturesque outlook across would like to acknowledge the part funding our current product offerings. Through this grassland and the running stream and the contributed by the Federal Government review, the council has recognised the need upgrade has included new public amenities. to this project via the Regional and Local to significantly invest in building key tourism Current works are focused on completing the Community Infrastructure Program. offerings to grow interest for tourists in the area. history walk (a display incorporated into the

Sorell Council Annual Report 2009-10 7 A future enhancement to this area will be to link the walkways that will pass beside the natural About Us waterway to the foreshore. This will enable greater access to our stunning natural environment in the Tourism south and our business district in the north.

The second part of the strategy is infrastructure provision for the short term accommodation needs of recreational vehicles and camping enthusiasts. Council has recently completed the recreational short term stay park located near the Pembroke Park precinct in Sorell. This key project is part of a push for Sorell to become a recreational vehicle (RV) friendly town and municipality.

The next stage of this strategy is the creation of a short term RV and camping park at Dunalley. Dunalley is a small fishing village south-east of Hobart en route to Port Arthur and it is located on • The establishment of nature walks and Lastly, Sorell Council will retain its active a narrow isthmus that joins the Tasman Peninsula multi-purpose walkways that connect our participation on the South East Regional to the rest of Tasmania. The area is known for townships, with the first stage to focus on Development Authority (SERDA). This authority its open countryside and stunning waterways, the Sorell Rivulet. Subsequent walkways are is a partnership of south east councils to with the town’s natural attractions making it an also planned for Orielton lagoon, an area provide connections from Hobart to the ideal area to invest in with the provision for more known for its bird and habitat species, and peninsula and the East Coast of Tasmania. diverse accommodation facilities. Sorell Council Dodges Ferry Wetlands and Reserve. Previous initiatives by SERDA have included the Convict Trail Brochure, the connection of hopes that this will encourage an increase in • Development of a tourism strategy in Hobart to Port Arthur with a history trail, and overnight or extended stay visitation by tourists to consultation with our current local tourism the Shorebird Threatened Species Protection the area. providers and the Sorell Business Council. Project. The latter is aimed at adding a point of The third step is to build on our natural history • Upgrade of the Sorell Visitor Information interest for tourists by showcasing threatened and environment with some key projects on the Centre to provide a higher level of interactive bird species through informative signage in the horizon in the next few years including: information through improved use of Orielton Lagoon area. In the coming months, • History walks around our cemeteries technology. members of this authority will look towards the future of new projects which we hope will commencing with the St Georges cemetery • Showcase imagery of our area through enhance the tourist trail between Hobart, the in 2010-2011. several different mediums including a revamp East Coast and the peninsula. • Rejuvenation of the historical tram shed of the Council website and the Sorell Visitor in Station Lane incorporating a museum Centre via new electronic mediums. dedicated to the famous Tasmanian photographer Neil Davis.

Sorell Council Annual Report 2009-10 8 Building demand is the key to product development strategy. The Sorell municipality, About Us with greater investment from the Coles development, the Neil Davis Car Park, the Neil Economic Davis Exhibition Centre and the expansion of health services, will see increased activity Development in our service sector. The potential growth in new businesses will be driven by existing businesses becoming more profit driven by increased demand from both local and visitor custom. This new investment will revitalise existing businesses through increased competition and greater demand for enhanced services and product offerings.

The Neil Davis Carpark, as shown right, is currently in development and will enable greater off-street parking in our CBD in the future.

The Coles development, which is envisaged to be completed in November 2010, will provide the Sorell municipality and its neighbours with 2009-2010, the CBD traffic congestion has • Proposed new industrial land locations for an increase in choice of retail and service significantly eased and traffic flow to the East the future, given the current shortfall products. This activity will strengthen Sorell’s Coast has been improved. role as a strong regional, commercial and • Identified current residential land, The Sorell Township Master Plan is now business centre for the south east region. including reserve, will be sufficient to meet complete and the report will form the the demand to 2031 With the completion of the link road in foundation for future planning in the Sorell area. The aim of the report is to provide • The appropriate regional highway and decision makers with comprehensive traffic network including the bypass information to assist in future land use and routes essential to the functionality of the transport frameworks and to ensure long term town centre sustainable development of the area. The key • Identified the significance of transport and findings in the report are; movement planning and the requirement • Current regional catchment area with a of Council to lobby, and resident population exceeding 20,000 • Identified the town centre as a gateway • Proposed planning area over the next service centre and central place for the 20 years for retail, commercial and Municipal district and regional catchment community facilities area.

Sorell Council Annual Report 2009-10 9 About Us Economic Development

The Irrigation Development Board now has The irrigation scheme is predicted to increase Sorell listed as a stage on the South East the primary production sector’s level of Irrigation Scheme. The rollout of this stage is production and diversity, with significant expected to be completed by 2013 at which economic benefits through increased time Sorell will see irrigation and water for employment, export, support services and broad acre use delivered to its farming sector. capital investment.

Sorell Council Annual Report 2009-10 10 Sorell Our Vision To be the focus for services to a healthy and diverse community which enjoys a wonderful lifestyle; Council a Council open to change in the best interest of its community. Our Mission To lead with strength and integrity for the community and provide effective service delivery from which all generations can prosper and grow.

Our Organisational Values Integrity We behave and act ethically and seek to be truthful in all our operations and undertakings. Equitable We are fair and unbiased in our work and decisions. Respect We value the dignity and diversity of each person in our community. Openness We are transparent and take responsibility for our actions.

Sorell Council Annual Report 2009-10 11

Each financial year brings with it a new set of Mayor’s challenges and 2009/10 has been no different. I was re-elected Mayor for another term at the October Local Government elections and would like to take this opportunity to thank Message residents again for their support. I am possibly one of the longest serving female Mayors in Australia which would be a first for Sorell too. Councillors Kerry Degrassi and Mike Purdon were also re-elected this year and were joined by newcomer Kerry Vincent. Jack Rheinberger did not seek re-election this year and we will miss his expertise. I thank him for his commitment to our Council and the community and wish him all the best in the future.

The Sorell municipality remains one of the fastest growing areas in the State but much of the latter growth has been contained in the serviced areas. The transition of water and sewerage to a single authority was a significant issue for Local Government Councils this Traffic flow throughout the Sorell Township proposed extension of the Coal Valley Irrigation year and the Sorell Council played a major has improved considerably with the Pipeline into Sorell. The small but dedicated part in its augmentation. I make no excuses completion of the three roundabouts and new group of farmers involved in the discussions for raising the issue of inadequate water and commercial ventures within the town have remain resolute that this dream will be realised. sewerage infrastructure in many Council areas been encouraging with the promise of more This pipeline initiative has the potential to at a Local Government Conference a few years to come. The proposed GP Super Clinic and change the dynamics of Sorell and preserve ago. My motion, which initiated the changes, Learning and Information Network Centre in our valuable agricultural land for the near will eventually benefit many Tasmanians. Sorell will also be welcome services within our future. growing town. The proposed Southern Beaches Sewerage I wish to express my gratitude to the General infrastructure remains a health issue and a An unexpectedly wet winter highlighted Manger, Bill Costin, Department Managers priority with the new authority, Southern Water. inadequate drainage infrastructure in the area, and Councillors. I feel we are all working It was history in the making when I officially particularly in the Southern Beaches. Council well together to achieve our vision for the handed back the Bream Creek Show Grounds is committed to stormwater harvesting in future improvement of the Sorell Municipality, to the Show Committee this year. Council years and will endeavour to source external respecting its diversity by caring for those who agreed to an annual financial assistance grant funding for strategic engineering designs. choose to live and work here. but the Committee will continue to enjoy its Discussions with the Tasmanian Irrigation autonomy. Development Board continued over the Carmel Torenius Mayor Sorell Council Annual Report 2009-10 13 2009-10 was a defining year for Sorell framework for Southern Tasmania and, the East Coast which includes, from our Council. We successfully transferred our in particular, new planning schemes for municipality, rural and coastal areas east General water and sewerage components to Southern all local councils. In our case this was the of the Southern Beaches with the main Water and we achieved fiscal stability. Such provision for the replacement of the Sorell township being Dunalley. stability provides us with a strong platform for Planning Scheme 1993. The year has been productive and each of the infrastructure development and service support Manager’s • The Southern Integrated Transport Plan Councils Senior Managers will highlight the key to match a population growth that, in percentage helped address our traffic management and achievements by their respective departments terms, is still in Tasmania’s top five council public transport issues. later in this report. Activity levels have been jurisdictions. consistently high across all departments. We Report • The Sorell Township Urban Master Plan was Looking more closely at our financial results for have continued to maintain our baseline staff implemented as a strategic guide to cater the year and in particular at the seven indicators levels and accommodate the increased activity for sustainable growth and development of used by the Tasmanian Audit Office to analyse that growth brings. This operational cost area our main town centre. and compare financial sustainability within local will continue to be closely monitored. Turnover Government in Tasmania, only one fell short. • The South East Tasmanian Irrigation Study of staff for the year (not including transfers to This shortcoming was the investment and has meant an irrigation scheme is now Southern Water) was 9.18 per cent and we have renewal gap ratio which highlights the need to proposed for Sorell which will bring major been fortunate to find excellent new staff to fill balance investment and to fund 100 per cent economic development to the area. the vacancies. of asset renewals. We fell short on the asset • A GP Super Clinic will help to raise the I wish to thank Councillors and staff for a renewals portion and it has been a progressive, number of local general practitioners to progressive and successful year. Sorell is now calculated and deliberate undertaking for us, acceptable levels and add improved access well placed for the future. over the past few years, to hit this target. The to ancillary health providers. good news is that we are now in a position to do so in the next financial year. • Vision East 2030 aims to enhance the Bill Costin community and economic potential of The Council has been disciplined and General Manager responsible in its financial management. We have maintained our direction alongside the Sorell Community Strategic Plan 2008-2013 and continue to achieve the respective goals. This approach is successfully returning value and capability to the community.

Sorell Council has been actively involved with a number of strategic regional and local projects in the past year which will derive significant benefit for our municipality. These projects and their benefit relationship are:

• The Southern Tasmanian Regional Planning Project which provides a strategic land use

Sorell Council Annual Report 2009-10 14 Your Councillors

Graeme Evans Mike Purdon Judy Young Kerry Vincent Deputy Mayor

Kerry Degrassi Brett McDonald Bryan Dean James Dunbabin

Sorell Council Annual Report 2009-10 15 People at Council Sue Charles Manager – Finance & Administration Financial Management Executive Management Financial Reporting Annual Budgets Rates Payroll Administration

Robyn Watts Manager – Human Resources & Community Services

Youth Services Community Development Bill Costin General Manager Childrens Services Human Resources Economic Development Tourism Risk Management Bill Hyndes Manager – Environment & Development

Natural Resource Manangement Public Health Animal Control Waste Management Planning and Building

Steve Hodge Manager – Engineering Services

Infrastructure Works Asset Management Plumbing Services

Sorell Council Annual Report 2009-10 16 People at Council (cont.) Bill Costin Senior Management Team Bill Hyndes General Manager Sue Charles Manager Environment and Bill Costin joined Sorell Council in March 2008. Manager Finance and Information Development He has provided strong leadership with clear Bill is the longest serving Senior Manager on strategic thinking in relation to the future of the Sue joined us from the corporate sector in the Management Team with over 17 years municipality. Examples of this are a proactive February 2008, this being her first government at Sorell Council. Bill came to Sorell Council involvement in the GP Super Clinic project, role which has brought considerable from Glenorchy City Council, providing a solid initiating the development of a Sorell Township challenges in adapting to a local government mix of city, residential, and environmental Masterplan and building strong mutually culture. This role has provided Sue with the knowledge. Bill has been qualified as an beneficial relationships with community groups opportunity to bring a corporate or commercial environmental health officer for over 25 years. such as RSL, Lions Club, Pittwater Community focus to the local government environment. He has extensive knowledge and experience Centre, Historical Society, our business sector Sue held senior accounting/analyst roles prior in the local government sector which provides and government agencies. to her appointment with several large well known organisations within Tasmania including invaluable balance in a complex environment. Bill has over 20 year’s leadership, logistic The Federal Group and The Foster’s Group. Steve Hodge operations, major IT systems implementation Sue holds a Bachelor of Commerce and is and instructional experience with the Australian currently completing her Masters in Business Manager Engineering Services Army. Following time in the Defence Force, Administration. Steve commenced his role at Sorell Council Bill has worked in various Tasmanian state in September 2007, arriving from Cooma- management roles with Faulding Healthcare, Robyn Watts Monaro Council. Steve is a qualified engineer was appointed as National Business Manager HR and Community providing necessary professional qualifications Implementation Manager with Mayne Health, to our local Council. Steve has extensive local worked as General Manager of Gribbles Services government experience in civil engineering and Pathology and most recently he was General Robyn has worked with Council for 15 years, public works, having worked in several larger Manager of Hobart Private Hospital. having commenced as the Family Day Care interstate Councils, both rural and city. Prior Coordinator. During her time, Robyn has to his local government experience, Steve was worked extensively with varying community enlisted with the Australian Army as a Major groups to build strong supportive relationships where he gained extensive experience in a within the municipality enhancing the health broad range of military engineering activities and wellbeing of the community. Robyn’s within Australia and overseas. qualifications are a Bachelor of Arts and Diploma of Education. Robyn has been a member of the Premier’s Consultative Committee on Child Care and a member of various industry related groups. Robyn has extensive experience in the community services profession through her current and previous roles.

Sorell Council Annual Report 2009-10 17 Sorell Council Annual Report 2009-10 18 The Scarecrow People Rural Health Week The project participants were all very creative had an opportunity to tour the Community Health project was a partnership between Sorell in ensuring that their scarecrows incorporated Centre at Sorell at the launch of the project. Sorell Council, Glamorgan Spring Bay Council, Tasman some form of a health message displayed in Important partnerships were developed between Council, Sorell Community Health Centre, high visibility locations for passers-by to see and local government, the Departments of Health & Tasman Community Health Centre, Glamorgan enjoy. Human Services, Infrastructure, Energy & Roads, Spring Bay Health Centre, Southern Beaches Scarecrow The feedback we received about the project Southern Beaches Regional Arts, Education, the Regional Arts, DIER, and the Department was extremely positive, with the most common business community, Regional Health Services, of Health & Human Services. It highlighted response being that the participants really felt a community and service organisations. One of the importance of health and safety in rural sense of being connected to their community. the most successful strategies used was the Trail communities and involved a broad cross-section It was wonderful to see so many people get development of a Facebook page promoting the of the community, including youth, elderly and involved in the inititiative. project, which allowed the participants to upload families throughout the south east region. photos of their scarecrows onto the site and Given the range of services and organisations The project activity was advertised across the for others to view and comment on them. This involved in organising and delivering the project three municipalities in various forms including was a great way of getting the rural health week a wide range of health information was made newspapers, newsletters, local radio, television, messages out, not only within our community. available to the participants. Participants also word of mouth, road signage and a Facebook but also in the wider community. page. The project engaged community members of all ages, from local youth groups to senior citizens, businesses and individual families. The number of people who participated exceeded our expectations and it is estimated that we had over 500 scarecrows throughout the three municipalities.

While many families, individuals and businesses made scarecrows and displayed them on their properties, there was also great attendance at the community workshops held in each area. The Sorell workshop saw over 80 attendees and 42 scarecrows made. The schools within the area also demonstrated a high level of participation.

Scarecrows were engaged in a myriad of healthy activities in a variety of settings. These included scarecrows climbing fences, walking the dog, skipping, bike riding and many more activities. There was even a Council worker scarecrow that was easily recognised by the hat he wore!!

Sorell Council Annual Report 2009-10 19 This year was a challenging year for the entire > Revenue and debt management including Finance and Administration department with the main influence being rates, The finance team continued to focus on the Finance & the implementation of Civica, council’s new > Major grants for economic development, long term sustainability of Council in line with the integrated software solution. As with all new provision of current and potential future service system implementations there were significant > Front line customer service with reception levels. The 10 year financial plan, implemented change processes and cultural impacts, and cashiering, and Information through endorsement by a full Council in 2007 especially in an environment where there is a > Financial reporting and monitoring. Budget Estimates, has continued to provide heavy reliance on manual systems. We have the solid fiscal focus required for sustainable now moved from implementation of key software In addition, a key pivotal role of this department services. In addition this plan has provided us modules to integrating the new system into the is the provision of financial leadership in the with the flexibility to plan and fund future services relevant business practices. In the 2010-2011 delivery of fiscal management to Council. This is to a growing, diverse municipality, which is financial year we are envisaging efficient and delivered through; underpinned by changing demographics. effective business processes, enhancing our > the annual business planning, including service delivery to our community. The team is to be commended for their hard strategic risk management, work in supporting other departments with the This department provides a comprehensive > budget estimates, rollout of the Civica’s software modules which internal support function which forms a key has automated processes in purchasing and component in the Council’s delivery of internal > the implementation and continual review of enhanced the payroll and payment systems. and external customer service. These functions Council’s 10 year Financial Plan in line with include; the provision of current and future services, A key milestone for the finance team was the adoption of a new financial reporting model > Management of Council’s information > business modelling and analysis, and which the team commenced rolling out to other systems, > investment and borrowing strategies. areas of Council late in the financial year. > Management of Council’s information Early in the financial year we successfully Some key areas of achievement in this area technology and communication completed the due diligence process which were; infrastructure, culminated in the transfer of the Sorell > Commenced review of ratepayer’s > Cash management, Municipality’s water and wastewater operations compliance to payment of rates with a to Southern Water. > Payment of all suppliers including payroll, focus area, Some of the additional highlights by function > Sourcing and acquittal of economic > Wastewater treatment systems which within the department are: development grants, realised additional revenue,

> Agency service for Southern Water through the provision of rating services for the water point, and

> Compliance of land tax on council properties with the Land Tax Act 2000 resulting in seeking a review from the savings.

Sorell Council Annual Report 2009-10 20 Finance & Information (cont.)

Information, Communication Information Management Risk Management and Technology In this area the Information Management team In the 2009-2010 financial year I chaired the continued to focus on completing the transfer of new Risk Management and Ethics Committee, There was a complete personnel change in the Council’s manual records to our system library. which included members from each department. information communication and technology The benefit of this process being undertaken The aim of this committee is to implement an team. This was a challenging year for the team in-house is the significant reduction in duplicated Operational Risk Register which underpins the with the new system implementation and the records. Strategic Risk Register. The ultimate goal in all of need for respective members of the team to this is to create a risk aware culture at Council. familarise themselves in their new roles and the Council environment. In the 2010-2011 During the year the committee engaged in financial year Council will benefit from their Fleet Management numerous group think sessions to extract the greater understanding of Council’s business We continued to review the cost of the light key operational risks to Council. The register needs thus enhancing their service to the plant fleet throughout 2009/10 with a focus on was completed in mid 2010 in line with our risk organisation. greenhouse gas emissions through purchasing matrix which is outlined in our Risk Management vehicles with a minimum greenhouse rating of Strategy 2009-2010. In addition, this committee five. In addition we have been reducing the successfully reformed the Occupational Health Some key areas of achievement in this area fuel costs of the entire fleet over the last three and Safety Committee with direct reporting lines were: financial years through a whole of life costing to this committee. > Successful resolution of the Civica approach to replacement of vehicles. We have system issues indicated by only a small also implemented the business practice of a number of outstanding logged system maximum fuel consumption tolerance of 10/100 Sue Charles Manager Finance and Information issues still outstanding at the end of the kms on the light fleet. financial year,

> Complete review of information and communication technology infrastructure resulting in savings on communication costs,

> Tendering for the purchase of new computer hardware and photocopiers allowing for significant savings to be realised in the following financial year, and

> Increasing Wide Area Network speed for outer services thus creating greater efficiencies in the relevant personnel at these sites.

Sorell Council Annual Report 2009-10 21 Sorell Council Annual Report 2009-10 22 The Human Resources and Community Community Development – Health & Wellbeing Services department had a busy year which The Health and Wellbeing Committee afforded Human included staffing changes. We would like to Key Program Highlights staff the opportunity to participate in a health acknowledge the professionalism of staff in Community Assistance Grants and fitness assessment. The assessments the department and commend them on their Resources & were conducted by Worksite Fitness and unwavering commitment to excellence. This year Council provided in excess of $30,000 in grants to community groups. The Rehabilitation and each participant was Human Resources three categories of grants awarded were provided with a confidential assessment. Community Council was also provided with an overall Community Assistance, Youth Partnership Policy development, professional development, and Rec Run. These grants support a wide assessment of the health and fitness of the staff. staff recruitment and selection were the focus range of community groups in the provision of Services of the year for Human Resources staff. a variety of programs and events to the wider Community Halls Council contracted Workplace Innovations community. Council continued extensive capital works to complete an organisation-wide workforce and maintenance programs for its community audit. This involved interviewing every Walk Safely to School Day halls this year. Council also received employee in order to gain an overall snapshot Council once again provided support to Commonwealth Government funding under the of where people saw themselves and their schools within the municipality to enable them Regional and Local Community Infrastructure future ambitions within the organisation. This to provide a healthy breakfast for children Program which enabled landscaping and process highlighted the importance of effective walking to school. The aim of Walk Safely to acoustic works to be undertaken at the communication and resulted in the provision School Day is to encourage children to engage Midway Point Hall. The funding also allowed of targeted communication training for all in healthy exercise whilst at the same time for new storage facilities to be upgraded at the employees. ensuring it is done in a safe manner. Primrose Sands Hall. Council is pleased with the number of Copping Hall received funding for a new velvet employees who have demonstrated Organic Expo stage curtain, chairs for the hall and paint exceptional commitment by either Council assisted a local resident with the for the club rooms, which are being used commencing or completing formal studies organisation of an Organic Expo at the Forcett by a local youth group. Sorell Memorial Hall this year. These include studies at Certificate, Hall. This was a first time event and was well has new curtains in the supper room, new Diploma and Tertiary levels and involve staff in received by those who attended, with a diverse whitegoods and Council has funded new every department of Council. range of information and goods on offer for curtains for the hall. attendees. Council also funded new stage lights for the Dunalley Hall which enabled them to give the existing lights to the Copping Hall for their exclusive use. Previously these lights were shared between the two halls.

The Bream Creek Hall and Reserves were passed to the Bream Creek Show Society this year and they will manage the facility on behalf of the community.

Sorell Council Annual Report 2009-10 23 Human Resources & Community Services (cont.)

Events and Recreation – Mayor’s Christmas Party Youth Services – Youth Week Key Program Highlights The Mayor’s Christmas Party was held in Key Program Highlights Youth Week was a great success this year. the Sorell Memorial Hall due to the forecast The Gig in the Gardens in St Georges Square Australia Day of rain – yet again!!! Santa and Mrs Claus Youth Task Force provided an opportunity for young people to Australia Day was a great success again handed sweets out to the children, who were The Sorell Youth Taskforce was established this perform on stage in front of their peers and this year. In addition to an address by the entertained by Make Believe Entertainment year, with members drawn primarily from Sorell community members. There were a variety Australia Day Ambassador Margaret Lonsdale, and the Eastside Trampoline Club. School. The Taskforce committee consists of of stalls present that provided information from Dance Sport Australia, there were a President, Vice President and Secretary and for young people on many issues. The Youth demonstrations of a variety of dance styles in meets regularly at the school. This year the Week Disco held in the Sorell Memorial Hall Fitzroy Street. The street was closed for the Walking Groups Taskforce members worked on transforming was also very successful and this event would duration of the festivities and the dancers were the garage at the Community Services site in not have been possible without the generous Two Heart Foundation walking groups were enthusiastically received by those present. Fitzroy Street into a place for young people to support of many volunteers. We thank them for formed this year. A group of five enthusiastic Once again the Lions Club provided the ever- congregate outside school hours. They also their generosity in giving their time so willingly staff regularly walk twice each week around popular egg and bacon rolls for breakfast and commenced work on the painting of the fence and look forward to their involvement again the Sorell township. Another group of keen their support was very much appreciated. around St Georges Square. next year. community members walks once a week at The recipients of Australia Day Awards were: different locations. Look out for the red and Address by Australian white t-shirts pounding the pavements in Citizen of the Year Sorell! Young Ambassador Jointly awarded to Edie Ford, Gwen Reynolds and Joy Gough Samah Hamid, the Australian Young Ambassador to the United Nations, addressed Young Citizen of the Year the Taskforce at Sorell School earlier this year. Alana Bell Samah is a young Muslim woman who was Community Group of the Year selected to represent Australia at the United Sorell Men’s Shed Nations. She was keen to speak with young people in Sorell about their hopes for the Community Event of the Year future and facilitated a session with Taskforce Sorell 200 Years Celebrations members at Sorell School.

Sorell Council Annual Report 2009-10 24 Human Resources & Community Services (cont.)

Children’s Services – A shortage of both qualified and unqualified staff has impacted significantly on the Key Program Highlights centre at various times throughout the year. This is a problem throughout the child care Malunna Child Care Centre industry and one which will be magnified in A staffing restructure was completed this the future as the impact of Commonwealth year, resulting in the replacement of the requirements regarding staff/child ratios and position of Director with two senior staff. staff qualifications take effect. The Community Development Officer assumed During the year a new requirement to overall responsibility for all of Council’s child undertake regular kitchen audits was care services. Stacey Hall assumed the role implemented. of Accreditation Officer with a high level of A food safety program was introduced enthusiasm and commitment and she is also to ensure that the kitchen operates at a allocated time off the floor each fortnight to consistently high standard and that it meets all collect and collate evidence that the centre food compliance standards. is required to produce for the accreditation process. Outside School Hours Care The centre had two spot-checks during the Crystal Tyler and Joanne Langley continue to year – one by a validator from the National provide very popular after school and vacation Child Care Accreditation Council (NCAC) and care programs. A variety of activities were the other from compliance officers from the made possible through the Active After School Department of Employment, Education & Care Program. Workplace Relations (DEEWR). While such visits are stressful for the staff they are also positive as they reinforce positive practices Robyn Watts and behaviours and provide opportunities for Manager Human Resources and improvement. Community Services

Sorell Council Annual Report 2009-10 25 Public Health Objective Water Quality Infectious Diseases Water quality monitoring was conducted over Environment & and Goals > Monitoring for Ross River Virus continued Summer at Primrose Sands, Carlton, Red The public health objective is to develop and this year althought there was low vector Ochre and Tigerhead Beaches. All beaches Development deliver programs that promote public health activity due to the dry weather over were deemed suitable for swimming and within the Sorell municipal area. The details of summer. Consequently low numbers of comply with the criteria in the Public Health Act specific programs to achieve these goals and human infections occurred. objectives are contained in the environmental 1997 Recreational Water Quality Guidelines. health programs this year. Council delivers all Swimming is still not recommended after heavy > Planning for a flu pandemic continued public health programs under the Public Health rainfall due to contaminated stormwater. and the pandemic plan submitted to the Act 1997 and the Food Act 2003. Department of Health and Human Services has been approved. Public Health Goals On-site Wastewater > Infant and school immunisation clinics Council has continued to apply Schedule continued, providing vaccines to > Monitor recreational water quality and 12 of the Sorell Planning Scheme which children aged aged 0-16. H1N1 (Swine advise the public of areas unsuitable for requires that sufficient land be set aside as flu) vaccinations were also offered at swimming. part of any development to allow for disposal immunisation clinics this year. of wastewater. This has proven effective at > Deliver programs that promote safe food > Cases of notifiable disease were regulating development in unsewered areas. handling practices. investigated with reports on findings The majority of development applications forwarded to the Director of Public Health. > Develop programs to reduce the incidence received comply with Schedule 12 but some of vaccine preventable and other applications have required amendment or have > Several investigations of institutional communicable diseases. been refused. gastroenteritis outbreaks were investigated and also reported to the Director of Public > Ensure that proposed developments will An increased number of complaints were Health. not adversely affect public health. received about failing on-site systems > Develop programs to reduce the incidence throughout the municipal area, many of which of dog attacks and human exposure to dog originated from flooding associated with high faeces. rainfall in the winter of 2009. In each case action was taken to require owners to rectify > Educate the community on appropriate on- systems where practical and possible. Several site wastewater disposal practices. abatement notices and plumbing notices were > Educate the community on measures to issued on property owners. reduce emissions of pollution into the environment.

Sorell Council Annual Report 2009-10 26 Environment & Development (cont.)

Animal Control Fire Hazards Place of Assembly Pollution complaints Animal management officers continued to Assessments of vacant land were conducted Council’s public halls were inspected and all > There was an increased number of enforce the Dog Control Act 2000, with many in the spring and summer of 2009. It was were issued with licenses. Two major public complaints about backyard burning with infringement notices issued for offences such a very busy year owing to the high rates of gatherings, the Falls Festival and the Bream environmental infringement notices issued as dogs at large, dog attacks, dogs entering growth from the winter rainfall. Over 700 Creek Show, were assessed and licensed. for non compliance. prohibited areas and unregistered dogs. abatement notices were served on owners of > There was also an increased number land that presented a fire hazard. The majority Environmental Management An increased number of dog attacks were of complaints about failing septic tank of these lots were cleared by the property All development, subdivision and building reported which required numerous dogs to be systems (odour & water pollution). owners, where notices were not complied applications were scrutinised. Where seized and destroyed or declared dangerous. with, the council fire hazard contractor cleared developments were seen as having an > The most predominant complaint was from Some of the attacks on people resulted in the fire hazards at the owner’s cost. environmental or health impact an impact loud music. New laws recently introduced medical treatment (including hospitalisation) assessment was completed. control hours of use for playing amplified being required. Other dog attacks involved The new fire hazard register allowed music will assist in the management of this. other dogs or livestock being killed or seriously abatement notices to be efficiently issued Register of Level One activities, injured. and tracked to ensure all fire hazards were environmentally relevant activities and removed. properties where potentially contaminating There were also numerous dog barking activities were located was completed. Information Management complaints which were investigated. Food Premises The Civica Authority local government The civil enforcement action taken under the Regular patrols of the municipal area occurred A total of 66 businesses were annually computer software package went live on Environmental Management & Pollution Control with a strong focus on swimming beaches registered with seven food vehicles and 1 July 2009. Act 1994, initiated in early 2009 for a dust over the summer period. The exercise area on numerous temporary registrations issued nuisance, was complied with over the winter New registers for public health activities, Carlton Beach was used by many dog owners. for public events such as the Bream Creek and spring of 2009. plumbing, building, planning, safety and The number of people apprehended with their Show and Falls Festival. Several new food environmental management were also dogs in the prohibited areas of the beach was businesses were established and some One environmental protection notice was established at this time. less than the previous year. existing businesses were re-developed. issued on a business for causing pollution and this was substantially complied with. Door-to-door dog registration checks were Inspections conducted showed generally conducted throughout residential areas and satisfactory standards of food safety. One many unregistered dogs were found. improvement notice was issued requiring premises to be upgraded. There are three A new register was set up for dogs and kennel other premises with outstanding improvement licences which assisted with identification of notices that have completed the majority dogs, particularly those declared dangerous of upgrading works but have not yet fully dogs. complied with the notice.

Food businesses were invited to participate in the ‘I’m Alert’ on-line food safety training program which commenced in June 2010 and is free for businesses or residents to complete. Several businesses have so far completed the program.

Sorell Council Annual Report 2009-10 27 Environment & Development (cont.)

Land Use Planning Solid Waste Natural Resource This past year has seen a continued emphasis > Sorell Township Urban Master Plan 2009 Council resolved to carry out a review of its Management (NRM) on strategic planning projects initiated by the – this document aims to understand and waste service levels, particularly relating to Council was a partner in a Caring for our State Government and value added by local assess current and forecasted conditions the three recycling centres in the municipality. Country project ‘Protecting the Environmental government. Consequently Council’s senior so as to guide development and land A risk assessment of the Dodges Ferry Values of the Pitt Water-Orielton Lagoon – a planner has been Sorell’s representative use for the Sorell township and include recycling centre showed a number of issues Ramsar Wetland and Coastal hotspot.’ The relating to the following projects; responses to traffic and urban design that can only be resolved through a change of application for funding was led by NRM South. issues. management practices at the centres. > Southern Regional Planning Initiative The project will build on works previously Project / Framework – this is a project The senior planner is also Council’s Council, as one of the 12 members of the undertaken to deliver long term, cross tenure involving the twelve southern councils and representative on the Southern Tasmanian Southern Waste Strategy Authority, is part of management actions. Development of a is aimed at producing a southern regional Councils Authority Climate Change Group. a wide reaching review of the joint authority. Foreshore Action Plan and Weed Action Plan planning strategy to better coordinate This group comprises representatives from all Expressions of interest have been called for will guide implementation of weed control, sustainable development, land use and 12 councils whose aim is to share information consultants to undertake a review of local revegetation, fencing, access management, infrastructure. This project will also provide and resources and to seek appropriate funding government waste management services in interpretation signage and dog management in strategic input into the Tasmanian Planning to achieve a local government response to southern Tasmania. the area. This will help address key threats in Commission’s Common Key Elements climate change (both adaptation and mitigation collaboration with partners and the community which will result in a new uniform planning responses). Building Services and stormwater planning strategies will also be scheme for all council areas in Tasmania. A A process is commencing to identify This year has also seen major planning undertaken. technical working group comprising senior outstanding inspections and approvals for a approvals including the National Broadband planning staff from each southern council is large number of older building applications. This project will involve public and private Network in Midway Point and commencement providing input into both projects. land managers and will engage the wider and finalisation of others such as the new Inspections associated with Council approved community (including Landcare, Catchment > East Coast Planning – Vision East is a Sorell Plaza (Coles supermarket) and the Link building plans continues to decline, however Care and Coastcare groups, school subregional project involving the four Road. the enforcement activities relating to illegal communities and individuals) to build east coast councils including the rural building work is constant. awareness about the natural values and best and coastal section of Sorell municipality, practice natural resource management of the (not including Southern Beaches or the Pitt Water-Orielton Lagoon Ramsar wetland townships of Sorell or Midway Point but and surrounding coastal environment. comprising the main township of Dunalley). The resultant strategic document aims to The project will build momentum and enhance the community and economic collaboration for future management actions potential of the east coast by providing upstream to progressively address threats to information and direction in the preparation the Ramsar site and the coastal environment of new local planning schemes. This throughout the catchment. The project officer project’s outcomes will be incorporated into is housed in the Sorell Council offices. the abovementioned Southern Regional Project. The final document Vision East – 2030, December 2009, has been endorsed Bill Hyndes by each east coast council. Manager Environment and Development

Sorell Council Annual Report 2009-10 28 With the official hand over of assets and against selection criteria resulting in a priority by locating and commencing construction of personnel to the new water authority on 1 July listing of roads to be upgraded to a sealed a recreational vehicle (RV) short term parking Engineering 2009 the financial year 2009-2010 became standard in the upcoming years. The program area. The installation of this facility should a year of review and consolidation of the is dependent on funding available each year. allow Council to become recognised as an RV Department’s operations. A number of new friendly town in time for the up-coming summer Services After relinquishing the ownership and staff were appointed and they immediately season. responsibility for water and waste water took up the challenge to integrate into the provision it was determined that the next The 2009-2010 financial year was once again team and embark on the implementation of the major issue facing Council from an engineering a very busy year with large Capital Works Capital Works and Maintenance programs. perspective was the paucity of stormwater and Maintenance programs. Resources were The other major impact on the Department’s infrastructure in the Southern Beaches stretched, however the engineering staff operations was the funding provided under area. The heavy and frequent storm events dealt with the programs in a professional the Federal Government’s stimulus package. experienced in May and June of last year and efficient manner. We were also kept very Significant projects undertaken as a result of reinforced this as an ongoing problem. busy due to our involvement in development this funding included: and planning issues. This is an aspect of the For the upcoming 2010-2011 financial year department’s responsibility which shows no > major upgrade of Pioneers Park including funding was set aside to engage a consultant easing in the future. a new restroom, shelters and barbeques, to develop a stormwater management plan irrigation, play areas and expanded for the Southern Beaches. Forward budget A highlight of the year for the staff was carparks. estimates also included allowance for funding the attendance at a team building activity the future stormwater infrastructure. An that enhanced team and individual morale, > Re-flooring the Sorell Memorial Hall timber opportunity arose in late October 2009 for commitment and motivation. The day was floor. Council to bid for Federal funding towards very successful and it is planned to conduct > New fencing at the Dodges Ferry a stormwater harvesting and re-use project a similar experience locally in the 2010-2011 sportsground. based in the Southern Beaches area. Whilst financial year. our application was not successful it is > Retaining wall at the Midway Point considered that the project should proceed Community Hall. Steve Hodge in the future as part of the overall stormwater Manager Engineering Services 2009-2010 was the first year that the management scheme. newly developed policy for the upgrade of The year also saw us making headway in urban gravel roads to sealed roads was attracting more tourists to the Sorell region implemented. This policy allows for existing maintained urban gravel roads to be rated

Sorell Council Annual Report 2009-10 29 Sorell Council Annual Report 2009-10 30 5 Year Community The Way Strategic Plan 2008-2013 With extensive community consultation in 2007, We Plan a five-year Community Strategic Plan 2008-2013 (The Plan) was developed and approved by Council in 2008. The Community Strategic Plan sets out the Community Consultation strategic objectives to meet our community needs and 5 Year < Community aspirations within the life of the plan. Strategic Plan 2008-2013 The Plan outlines our key areas of focus or strategic themes. These are classified as Key Result Areas (KRAs), each having specific goals and objectives providing guidance and framework to Council to manage and achieve the five year time frame. The Plan is a key medium of communication to all our stakeholders and it provides a guide and a benchmark on Council’s performance. Annual Corporate Plan 2009-2010 The Corporate Plan is derived from our annual planning Annual Corporate Plan Department Action Plans 2009-2010 < process where outstanding strategies are identified with due consideration to minimise threats and maximise opportunities in our operating environment. With each strategy, detailed action plans are outlined, resources and funding established and a key responsible senior manager assigned. Annual Budget 2009-2010 The budget estimates for 2009-2010 include our financial performance represented by an Income Statement, a financial position represented by our Balance Sheet, and a Cashflow outlining expected cash inflows and outflows. Annual Budget 10 Year Financial Plan The budget estimates are derived from our 10 year 2009-2010 < Financial Plan. To comply with the Local Government Act 1993 (amended) each year, Council must prepare and adopt an annual Operational Plan and Budget Estimates. These must be adopted by Council before the 31 August but not later than one month before the start of the new financial year.

Sorell Council Annual Report 2009-10 31 No. Strategic Priority Actions Status 1. Core Services (KRA) Governance 1.1.1 Continue connection with key  Lobby State Government for public transport within our municipality by actively seeking to transfer and receive IP stakeholders information from Department of Infrastructure, Energy and Resources. GOAL:  Link Road completed by 2010. Deliver core services that align with C community expectations Greater water infrastructure for the farming sector  Extension of Coal River Scheme. OBJECTIVES: IP  Continue to lobby for stage 3 to be implemented. Deliver core services to agreed service levels Facilitate the growth of economic development through pursuing opportunities with representatives from the Establish service levels that provide the best IP Department of Economic Development, Tourism and the Arts. value to the community Engage Southern Water in committing to the Southern Beaches Sewerage Scheme. O Update organisational practices as knowledge develops Improve the level of health services to the community through;  active participation in the formation of the GP Super Clinic, O Regional cooperation for community benefit  effective relationships with health care providers in the municipality.

Effective transfer of water and sewerage infrastructure to Southern Water incorporating a restructure of C Council to minimise loss in income. 1.1.2 Strong and effective Governance Continue to embed risk management practices and protocols in the decision making O throughout the organisation of the whole Council through;  Adoption of Risk Management Strategy and renewed policy,  Formation of an Operational Risk Register, C  Continued improvement of our risk rating with our insurers (2010 = 76%),  Develop a disaster recovery plan for Council.

Council endorsement on policies for 2009-2010; C  Study Assistance Policy 1.1.3 Community engagement through Incorporated public opinion from forums into completed Sorell Township Master Plan. C effective communication. Website redesign, community update pack and community conversations. IP 1.1.4 Economic and Facilitate a tourism strategy through engagement with local tourism service providers to commence D Tourism Program development in 2010-2011 financial year. and implementation Tourism map and imagery on website, to be included early 2011. D Complete the entrance signs in progress with the township signs. IP 1.1.5 Focus on the delivery of effective Seek Council endorsement of service levels with an aligned customer service strategy to be finalised in 2011. customer service D

1.1.6 Strategy development Actively review current recreation and reserve strategy to incorporate a refinement and focus of Pembroke IP Park as the active recreation precinct. KEY: C – Completed IP – In Progress D – Deferred O – Ongoing Sorell Council Annual Report 2009-10 32 No. Strategic Priority Actions Status 1. Core Services (KRA) Environment and Development

1.2.1 Solid waste management Review current service levels of solid waste management with endorsement from Council to provide a sustainable service to be completed in 2011. IP

1.2.2 Land use planning: Active membership on the Southern and South East regional planning initiatives. IP strategic and regulatory

1.2.3 Animal Management Improve current level of service through the completion of new dog pound plans including an assessment on IP the environment and infrastructure to be completed in 2011.

1.2.4 Environmental and sustainable Remediation of land and access to environmental sensitive areas. IP land management Continue active participation in South East working group.

Engineering Services

1.3.1 Community Continue to upgrade Council Halls amenities  Significant upgrade to Sorell Memorial Hall Floor ($45,000) part of second round RCIP grant $45,000. Significant upgrade to Midway Point ($39,000) part of first round RCIP grant $21,000, Copping ($20,000) C and Primrose Sands ($11,000). Focus on upgrading toilets to improve services to our community and tourists  Completed Kellevie toilet ($42,000). C  Completed Pioneers Park toilet ($90,000).

1.3.2 Recreation and Review current recreational and park infrastructure to ensure sustainable infrastructure which meets the O Public Space changing municipality demographics.  Finalise Pioneer Park by June 2011 as per design part of first round RCIP grant $170,000 . C  Completed first stage of short term stay recreational vehicle park.  New fencing for Dodges Ferry Oval part of first round RCIP grant $16,000.  Commenced light installation for junior oval at Pembroke Park to be completed November 2010 ($95,000 IP project) part of second round RCIP grant $45,000.

1.3.3 Transport Network Ensure sustainable infrastructure without funding gaps C  Completed the Brinktop Bridge over the Orielton River.  Commenced replacement of the Rosendale Bridge.  Carlton Rover Road footpath. O  Fitzroy Street new curb and channelling and footpath.  Continued to seal roads as per priority plan. C

1.3.4 Capital Works Develop detailed 5 year program capital expenditure plan inline with Asset Management Plans. IP Implement maintenance works program in Civica.

KEY: C – Completed IP – In Progress D – Deferred O – Ongoing Sorell Council Annual Report 2009-10 33 No. Strategic Priority Actions Status 1. Core Services (KRA) Community Services

1.4.1 Communications of Services Increase the connectivity of Council and Community through conversations.

1.4.2 Children Services Improvements to Malunna Child Care provision of service. IP

1.4.3 Youth Programs, Referrals and Review Youth Service Directory. Recreation Continue to build and improve engagement with youth via developing a holiday program, and youth events. O Implement Youth Strategy.

1.4.4 Community Development Administer Community grant program. O 1.4.5 Events Management Deliver quality events to the community, e.g. Australia Day. O 1.4.6 Community Recovery and Complete Community Recovery Plan. O Emergency Management

1.4.7 Public Halls Management Review utilisation of halls by the community. O 1.4.8 Human Resources Strengthen the organisation’s human resource protocols and practices. O

Corporate Services

1.5.1 Finance Continue to update 10 year financial plan and incorporate into Council decision making. Build stronger financial governance within the organisation. Continue to support departments in reaching financial budget. O Review and implement stronger monthly financial reporting to meet business needs. Build and grow Councillor financial reporting knowledge through quarterly reporting and variance debriefings. Develop business case for new Council services

1.5.2 Information and Communications Continue with new system implementation, to be finalised by December 2011. O Technology Integrate document management system with main system. Seek opportunities to develop integrated service delivery with neighboroughing Councils. IP 1.5.3 Information Management Continued refinements with EDMS and ongoing transfer of data to an electronic platform. O

KEY: C – Completed IP – In Progress D – Deferred O – Ongoing Sorell Council Annual Report 2009-10 34 No. Strategic Priority Actions Status 2. Financial Financial Performance & Position

Performance and 2.1 Plan for, commit to and implement Develop a financial strategy aligned to the CSP with key strategic themes of effective financial management, Position (KRA) actions to achieve financial asset management excellence, organisational financial awareness and understanding of the value chain. IP sustainability

2.2 Access external funds to support Seek external grant funding to further tourism, economic development and community infrastructure. IP GOAL: infrastructure development Achieve a sustainable financial position 2.3 Review services and associated Continue to investigate an increased community and/or commercial return on our community asset base. IP OBJECTIVES: costs and fees for the purpose Research targets for financial sustainability of balancing service revenue and Implement financial reporting based on individual services delivered to the community. D Secure necessary funding prices with the value created for stakeholders. Identify opportunities and implement internal improvements

3. Asset Management Asset Management (KRA) 3.1 Continue the development and High level review of service levels. implementation of the Asset Incorporate new valuations in asset management plans. IP Management Strategy Complete asset management plans for all assets. GOAL: Provide infrastructure assets and facilities to support agreed service levels

OBJECTIVES: Develop and implement Asset Management plans that identify and deliver agreed asset related service levels

Entrench Asset Management as a core activity of the organisation

KEY: C – Completed IP – In Progress D – Deferred O – Ongoing Sorell Council Annual Report 2009-10 35 No. Strategic Priority Actions Status 4. Sustainable Sustainable Development

Development (KRA) 4.1 Land use planning Review planning scheme development standards. IP Develop a long term 20 year plan for settlements within the Sorell Municipality.

GOAL: 4.2 Environmental Management Investigate options to engage an NRM coordinator. O Promote balanced development that Continue to liaise with environmental care groups and manage environmental management in conjunction O recognises the needs of our existing residents with these groups. and allows for managed growth that is Implement a working group with environmental representation to seek options for an environment remission. IP consistent with existing land use zoning.

OBJECTIVES: Manage residential and commercial growth within current land use zones until long-term infrastructure needs are further understood and plans developed.

Reduce the impact of the built environment on the health of the community and the natural environment.

5. Priority Projects Priority Projects (KRA) 5.1 Community Administration Centre Finalise location and stakeholders by September 2011. developed in cooperation with the Present options for tourism centre and museum location. IP public and private sectors GOAL: 5.2 Traffic Management Neil Davis Car Park to be completed by August 2012. Implement systems to ensure all projects O meet objectives and are delivered on time and within budget.

OBJECTIVES: Deliver projects scheduled within the life of this plan, on time and on budget.

Incorporate measurable milestones and performance objectives in each project plan.

Communicate project plans to key stakeholders. KEY: C – Completed IP – In Progress D – Deferred O – Ongoing Sorell Council Annual Report 2009-10 36 No. Strategic Priority Actions Status 6. Climate Change Climate Change

(KRA) 6.1 Climate change awareness Understand and build internal knowledge of the impact of climate change to our coastal and rural O communities by liaising with Clarence City Council and leveraging from study undertaken in 2007-08.

6.2 Foreshore protection Understand and build internal knowledge of the impact of climate change to our coastal and rural GOAL: O Recognise the importance of climate change communities by liaising with Clarence City Council and leveraging from study undertaken in 2007-08. and its impact on environment values.

OBJECTIVES: Improve understanding of the impacts of climate change as it impacts environmental values.

Protect environmental values.

Communicate to key stakeholders the impacts and take proactive steps to incorporate appropriate changes to internal practices.

7. Community Community Wellbeing Wellbeing (KRA) 7.1 Seniors, youth and children Develop a positive strategy for our community with the first step being to engage the appropriate external IP focused activities delivering expert to undertake consultation with the community. valued community services Develop strategy incorporating action plans and outcomes 2009-2010. GOAL: Investigate viability of increasing the child placement capacity of Malunna. O Consult with the community to identify needs and cooperatively deliver key community 7.2 Safe community facilities Review community facilities utilisation considering compliance costs and best value outcomes. IP services. 7.3 Supporting Provide a greater level of service to the community via professionally run events. O OBJECTIVES: community focused events - Australia Day major annual event Establish a long tem plan that encourages a 7.4 Cultural plan Complete a cultural plan in consultation with key stakeholders identified during the cultural audit healthy community. O deferred to 2009/10. Promote the benefits of community 7.5 Support and recognition for Develop recognition program. O participation in delivering the plan. volunteers

KEY: C – Completed IP – In Progress D – Deferred O – Ongoing Sorell Council Annual Report 2009-10 37 No. Strategic Priority Actions Status 8. Partnerships (KRA) Partnerships 8.1 Lobby other levels of government Increase accessibility either by employment or regional cooperation. O GOAL: to access funds Develop partnerships for mutual benefit. 8.2 Partnership Agreement  Review annually and seek to achieve desired relevant outcomes to stimulate sustainable economic OBJECTIVES: opportunities, improvement in infrastructure and employment. Identify opportunities for external  Coordinate Business Assistance programs with a greater focus on 2010/11. partnerships that increase value.  Growth of interest in Integrated Public Service Model.  Establish joint working group with DIER to determine infrastructure project works on State roads within Establish effective partnerships. Sorell and submit quotes based on agreed works and conditions.  Establish joint working group with DIER to determine infrastructure project works on gateway landscaping within Sorell and submit quotes based on agreed works and conditions.  Jointly undertake a review of traffic management and assessment of traffic flows through Sorell and Midway O Point. Link Road project and Midway Point Traffic light reflow.  Foreshore Car Parks review joint control and seek Council to resume control via leasing. This has been enacted at Carlton Beach Car Park.  Public Transport opportunity.  Environment and Land Management key issues around Orielton Lagoon and Pittwater Ramsar site to be addressed through recent Federal Grant success. Address and Integrated South East Coastal Management Strategy.  Work with DTEA to identify strategies to better protect and promote cultural heritage  Community health and safety underlined in KRA 7.  Education, arts and culture via LINC’s project,

8.3 Cooperation with other Councils Continue to promote key opportunities. O in the Southeast Region

9. Organisational Organisational Health

Health (KRA) 9.1 Integrated strategies Undertake the appropriate review and implement accepted strategies in 2010-2011 for the following; - Asset Management - Human Resources O GOAL: - Community Brand and style guide Ensure organisational health through the - Service Levels development of people, processes, products - Key Performance Indicators and partners.

OBJECTIVES: Develop and implement strategies that underpin organisational health. KEY: C – Completed IP – In Progress D – Deferred O – Ongoing Sorell Council Annual Report 2009-10 38 Enterprise Power Statement Legislative Council has not resolved to exercise any powers or undertaken any activities in accordance with Requirements Section 21 of the Local Government Act 1993. Statement of Allowances and Expenses In 2009-10 Council provided allowances and reimbursement for reasonable expenses to the Mayor, Deputy Mayor and Councillors.

Allowances $145,275

Expenses $3,908

Senior Employee Remunerations The table below provides remuneration information for those positions designated by Council as senior positions as required under the Local Government Act 1993. The positions deemed to be senior positions are General Manager, Manager – Finance and Information, Manager Human Resources and Community Services, Manager - Engineering Services and Manager – Environment and Development.

TOTAL REMUNERATION BAND No. OF POSITIONS

130,000 – 150,000 1

100,000 – 120,000 4

Sorell Council Annual Report 2009-10 39 Legislative Councillor Attendance at Meetings Requirements (cont.) NAME WORKSHOPS/ COUNCIL AGM DASC MEETINGS WORKS TOUR/ SPECIAL COMMUNITY BRIEFINGS MEETINGS BUDGET COUNCIL & OTHER MEETINGS PROJECT MEETINGS

Mayor Carmel Torenius 15 11 1 26 1 2 2

Deputy Mayor Graeme Evans 12 11 1 29 1 2 2

Clr Kerry Degrassi 9 10 1 13 1 2 2

Clr Bryan Dean 10 9 1 28 - 2 2

Clr James Dunbabin 10 11 - - - 1 -

Clr Mike Purdon 11 11 1 25 - 2 -

Clr Kerry Vincent 10 7 1 13 1 - -

Clr Judy Young 14 12 1 - 1 2 1

Clr Brett McDonald 12 12 1 30 1 2 1

* Councillors Dunbabin and Young are not members of the DASC Committee. Councillor Vincent was elected to Council in October 2009.

Donation of Land Statement The Council has not resolved to donate any lands in accordance with Sections 177 of the Local Government Act 1993.

Contract for the Supply of Goods and Services Regulation 23(1) In accordance with Section 23(1) of the Local Government Act Regulations, below is a list of Goods and Services valued at or above $100,000 excluding GST where entered into in the 2009-10 financial year.

Item Description of Contract Contract Period Contract Value $ Successful Contractor(s) 1 Tandem Drive 8 metre Tipping Truck June 2010 217,576 CJD Equipment

2 Concrete Bridge Deck for Orielton Rivulet Bridge on Brinktop Road October 2009 140,000 Tasspan

TOTAL 401,614

Sorell Council Annual Report 2009-10 40 Legislative Grants, Assistance and Benefits provided under Section 77 (1) Requirements (cont.) Sorell Council’s Recurrent Grant Program GST inclusive Pittwater Community Centre 1,000 Forcett Hall 858 Salvation Army Carlton 1,000 Dunalley Neighbourhood House 1,000 South East Districts Little Athletics 1,000 Dodges Ferry Southern Beaches 1,000 Southern Beaches Landcare Group 500 Sorell Football Club 1,000 Sea Rescue Tasmania 1,000 Combined Churches of SE Tasmania 1,000 Summer Sensation Festive Community 1,000

Sorell Council’s Minor Financial Assistance Grant Program Sorell Men’s Shed & Heritage Museum 1,000 Dodges Ferry Artisans and Farmers Market 1,000 Sorell Historical Society 450 Dodges Ferry Senior Citizens 650 Dunalley Neighbourhood House 1,000 Midway Point Fire Brigade 1,000 Midway Point Developments 1,000 Sorell RSL Club 1,000 Sorell Bowls Club 1,000 Nugent Community Hall 1,000 Rotary Club of Sorell 1,000 Sorell and Districts Garden Club 1,000 Primrose Sands Hall Committee 300 Midway Point Hall Committee 150 Dunalley Hall and Reserve Committee 250 Sea Rescue Tasmania 1,000 Lions Club of Sorell 200

Sorell Council Annual Report 2009-10 41 Legislative Grants, Assistance and Benefits provided under Section 77 (1) Requirements (cont.) Sorell Council’s Youth Grant Program Lions Club of Sorell 350 Salvation Army Carlton 1,000 Sorell Football Club 1,000 Dunalley Neighborhood House 2,000 Midway Point Developments 2,000 South East Districts Little Athletics 1,000 Girl Guides Sorell 600 Primrose Sands Community Youth Group 1,000 Pittwater Community Centre 2,000

Sorell Council’s Other Grant Program Bream Creek Community Hall and Reserves 1,000 Copping Community Hall and Reserves 1,000 Dodges Ferry Recreational Centre 1,000 Dunalley Community Hall 1,000 Midway Point Community Hall 1,000 Primrose Sands Community Hall 1,000

Donations Choir of High Hopes 200 Copping Dinner 500 Southern Beaches Regional Arts 1,000 Pittwater Community Centre 1,000 Tasman District High School 100 Dodges Ferry School 200 Midway Point Hall 100 Sorell High School 600 Midway Point Senior Citizens Club 150 St Georges Church Women’s Guild 300 Sing Australia Choir Sorel 400 Lions Club of Sorell 200

Sponsorships for youth to compete in designated sports 300 TOTAL $45,358

Sorell Council Annual Report 2009-10 42 Financial Snapshot

Where the dollars come from Where the dollars go Expenditure by program

 Rates 9,085,053 57%  Maintenance of facilities and  Governance and administration 3,658,727 28%  User charges and fees 1,038,459 6% provision of services 4,012,159 30%  Public order safety 1,195,391 9%  Grants and contributions - 0%  Depreciation 3,617,837 27%  Health, Community services and  Capital Purposes 2,101,306 13%  Finance costs 290,855 2% education 1,779,458 13%  Revenue Purposes 2,108,665 13%  Employee costs 4,634,814 35%  Community amenities 1,720,040 13%  Interest 720,357 4%  State government fire levy 302,437 2%  Recreation and culture 641,197 5%  Southern Water investment 520,981 3%  Rate remissions 412,396 3%  Road network and communication 4,275,685 32%  Other 478,015 3%

Sorell Council Financial Report 2009-10 43 Financial Snapshot – Capital Works

Capital Works by Type Capital Works by Area Key Highlights Capital Works

 Car Parks $309,556  Sorell $2,461,363 Completed Projects  Council Plant, IT and Offices $702,201  Orielton $107,761 New curb and guttering along Fitzroy Street Sorell $320,000  Drainage $296,776  Midway Point $105,812 New curb and guttering Main Road Sorell $226,000  Parks and Recreation $156,228  Penna $295,183 Road pothole patching with State Government funding $120,000  Public Amenities $515,281  Lewisham $45,190 Pawleena Road reconstruction $160,000  Bridges $287,358  Carlton $303,759 Bridge on Brinktop Road over Orielton River $185,000  Roads $2,151,879  Dodges Ferry $412,627 Sealing of the road along the Esplanade in Primrose Sands $92,000  Primrose Sands $124,166 Widening and safety improvements to Carlton river Road  Copping $14,597 Under Road to Recovery Federal Government Funds $207,000  Kellevie $105,930 Carlton River Road gravel footpath $73,000  Forcett $40,433 Kellevie Reserve new toilets $44,000  Nugent $131,327 Midway Point Hall $39,000  Dunalley $63,251  Marion Bay $66,359 In Progress  Bream Creek $141,522 Neil Davis Car Park Land Acquisition $229,000 Pioneer Park improvements of new toilets, BBQ’s tables, shelters and lightening $212,000 Dubs and Co Sorell new drainage $150,000 Rosendale Road Bridge replacement $102,000 Sorell short term Recreational Vehicle Park $63,000 Pembroke Park training lights back oval $41,000 Dodges Ferry Oval new fence around the perimeter $32,000

Sorell Council Financial Report 2009-10 44 Financial Ratios 2009-10 2008-09 2007-08 2006-07 2005-06

Current Ratio 4:1 3:1 3:1 2:1 2:1 To assess the adequacy of working capital Current Assets 9,597,208 9,675,865 8,842,476 5,415,725 6,205,490 Current Liabilities 2,681,771 3,328,481 3,100,005 3,561,581 3,780,402

To assess the degree to which revenue is committed to interest Interest Expense 254,285 519,001 226,869 266,496 187,714 Operating Revenue 13,539,134 15,117,579 13,941,269 13176828 12,487,691

Rate Coverage Ratio 64% 65% 65% 62% 60% To assess dependence on rate revenue Rate Revenue 8,672,657 9,899,467 9,086,744 8,166,433 7,544,867 Operating Revenue 13,539,134 15,117,579 13,941,269 13,176,828 12,487,691

Grant and Contributions Coverage Ratio 16% 16% 16% 13% 18% To assess dependence on grant and contribution revenue Grant and Contribution Revenue 2,119,867 2,387,920 2,233,568 1,764,811 2,186,093 Operating Revenue 13,539,134 15,117,579 13,941,269 13,176,828 12,487,691

User Charges and Fees Coverage Ratio 8% 11% 12% 12% 12% To assess dependence on user charges and fees User Charges and Fees Revenue 1,038,459 1,713,988 1,733,099 1,584,055 1,507,022 Operating Revenue 13,539,134 15,117,579 13,941,269 13,176,828 12,487,691

Capital Expenditure to Depreciation 1.2:1 1.23:1 0.94:1 0.87:1 0.74:1 To compare assets added with depreciation of assets Capital Works 4,419,280 5,017,449 4,237,977 3,794,297 3,249,621 Depreciation 3,617,837 4,089,056 4,491,291 4,344,749 4,414,033

Ratio Coverage New v Renewal Assets 94% 86% 80% 75% 47% To assess the renewal and replacement of current infrastructure Depreciation 3,617,837 4,089,056 4,491,291 4,344,749 4,414,033 Capital Works Renewal/Replacement Assets 3,409,329 3,506,653 3,601,863 3,256,201 2,083,178 Capital Works New Assets 1,009,951 1,510,796 636,114 538,096 1,166,443

Average Residential Rate $851 $790 $757 N/A N/A To assess the movement in the average general residential rate Residential Rate Revenue - General Non Vacant Properties 5,062,988 4,625,844 4,222,473 No of residential ratepayers 5,948 5,858 5,576

Rate Revenue Per Capita $386 $361 $339 N/A N/A To assess the rate raised per head of population Residential Rate Revenue - General Non Vacant Properties 5,062,988 4,625,844 4,222,473 Population as at June 2009 ABS estimates 13,127 12,805 12,451

Sorell Council Financial Report 2009-10 45 Sorell Council Financial Report 2009-10 46 General ContentS page Certification of the Financial Report 47 Purpose Statement of Comprehensive Income 49 Statement of Financial Position 50

Financial Statement of Changes in Equity 51 Report Statement of Cash Flows 52 Notes to the financial Statements 53 for the year ended 30 June 2010 Auditors report 90

Appendix A – Council Owned Halls 91

Sorell Council Financial Report 2009-10 47 Certification of the Financial Report

The financial report presents fairly the financial position of the Sorell Council as at 30 June 2010, the results of its operations for the year then ended and the cash flows of the Council, in accordance with the Local Government Act 1993 (as amended).

Bill Costin General Manager

Sorell Council Financial Report 2009-10 48 Actual Budget Actual Statement of 2010 2010 2009 $ $ $ Comprehensive Notes Income Income Rates and annual charges 3 8,672,657 8,464,515 9,899,467 for the year ended 30 June 2010 User charges and fees 4 1,038,459 985,980 1,713,988 Interest and investment income 5 720,357 600,500 758,063 Other income 6 478,015 138,247 246,403 Investment income from water corporation 7 (a) 520,981 - - Grants 8 (a) 2,104,722 1,927,880 2,375,470 Fair value adjustments for financial assets at fair value 17 - - 45,730 Contributions - cash 8 (b) 3,943 - 12,450 Share of interests in joint ventures and associates using the equity method 25 - 160,000 66,008 Total income 13,539,134 12,277,122 15,117,579

Expenses Employee benefits 9 4,634,814 4,698,532 5,010,389 Finance costs 10 254,285 248,965 519,001 Materials and contracts 11 2,804,894 2,623,412 3,487,806 Depreciation and amortisation 12 3,617,837 4,163,088 4,089,056 Impairment expenses 13 - - 203,587 Net loss from disposal of assets 15 28,873 2,000 30,260 Fair value adjustments for financial assets at fair value 17 36,570 - - Share of interests in joint ventures and associates using the equity method 25 29,743 - - Other expenses 14 1,451,086 1,379,961 1,515,098 Total expenses 12,858,102 13,115,958 14,855,197

Surplus (deficit) before: 681,032 (838,836) 262,382 Grants capital 8 (a) 676,043 510,000 881,063 Contributions cash 15,145 - 90,977 Contributions - non monetary 8 (c) 1,410,118 300,000 1,747,088 Net Surplus (deficit): 2,782,338 (28,836) 2,981,510

Other comprehensive income Fair value adjustments for investment property 23 36,888 52,132 29,193 Net asset revaluation increment 30 3,243,209 68,624,720 Fair value adjustments for investment in Southern Water 24 (2,553,600) - - Comprehensive result 3,508,835 23,296 71,635,423

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

Sorell Council Financial Report 2009-10 49 Actual Actual Statement of 2010 2009 $ $ Financial Position Notes Assets for the year ended 30 June 2010 Current assets Cash and cash equilavents 16 3,320,992 3,176,869 Investments 17 5,270,940 5,307,510 Trade and other receivables 18 981,369 1,058,175 Inventories 19 2,010 2,355 Other assets 20 21,897 130,956 Total current assets 9,597,208 9,675,865

Non current assets Trade and other receivables 18 89,386 103,614 Intangible assets 21 56,000 65,000 Property, infrastructure, plant and equipment 22 163,398,890 187,890,221 Investment properties 23 1,189,622 864,635 Investment in Southern Water 24 29,489,790 - Interests in associates 25 150,325 5,595,086 Other assets 20 4,143 4,419 Total non current assets 194,378,156 194,522,975 Total assets 203,975,364 204,198,840

Liabilities Current liabilities Trade and other payables 26 1,273,677 1,801,286 Trust funds and deposits 27 161,062 111,877 Interest bearing liabilities 28 396,853 557,973 Provisions 29 850,179 857,345 Total current liabilities 2,681,771 3,328,481

Non current liabilities Interest bearing liabilities 28 3,082,008 6,063,059 Provisions 29 66,453 171,003 Total non current liabilities 3,148,461 6,234,062 Total liabilities 5,830,232 9,562,543

Net Assets 198,145,132 194,636,297

EQUITY Accumulated surplus 58,177,342 36,221,151 Reserves 30 139,967,790 158,415,146 Total equity 198,145,132 194,636,297

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

Sorell Council Financial Report 2009-10 50 Statement of Changes in Equity for the year ended 30 June 2010 Total Accumulated Asset Revalua- Other Re- Surplus tion Reserve serves Notes $ $ $ $

2010 Balance at beginning of the financial year 194,636,297 36,221,151 157,419,384 995,762 Comprehensive Result 3,508,835 265,626 3,243,209 - Transfers to other reserves 30 - (554,586) - 554,586 Transfers(from) other reserves 30 - 22,245,151 (21,902,948) (342,203) Balance at end of the financial year 198,145,132 58,177,342 138,759,645 1,208,145

2009 Balance at beginning of the financial year 123,000,874 33,141,788 88,794,664 1,064,422 Comprehensive Result 71,635,423 3,010,703 68,624,720 - Transfers to other reserves 30 - (381,976) - 381,976 Transfers (from) other reserves 30 - 450,636 - (450,636) Balance at end of the financial year 194,636,297 36,221,151 157,419,384 995,762

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

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

Sorell Council Financial Report 2009-10 51 Actual Actual Statement of 2010 2009 Inflows/ Inflows/ Cash Flows Outflows Outflows

Notes $ $ for the year ended 30 June 2010 Cash flows from operating activities

Rates and annual charges 8,473,525 9,820,926

User charges and fees 1,326,095 1,758,926

Interest received 715,972 756,236

Other income 100,356 237,436

Rents (inclusive of GST) 169,318 -

Grants (inclusive of GST) 2,121,481 2,418,735

Contributions (inclusive of GST) 3,193 -

Interest paid (248,380) (494,926)

Payments to employees (4,646,482) (4,763,808)

Payments to government (417,072) (443,149)

Payments to suppliers (inclusive of GST) (3,912,215) (6,147,357)

Net GST refund/payment 735,128 616,193

Net cash provided by (used in) operating activities 34 4,420,920 3,759,212

Cash flows from investing activities

Payments for infrastructure, property, plant and equipment (4,648,427) (4,794,077)

Proceeds from sale of infrastructure, property, plant and equipment 180,713 360,312

Loss on sale of financial assets - (33,413)

Gain (loss) on financial assets (36,570) 45,730

Loss on Collateral Debt Obligation - (203,587)

Capital grants (inclusive of GST) 470,942 1,429,285

Investment revenue from Southern Water 440,195 -

Payments headworks to Southern Water (478,938) -

Dividends received from interest in associates - 352,731

Equity share buy-out for Southern Waste Solutions 82,200 -

Net cash provided by (used in) investing activities (3,989,886) (2,843,019)

Cash flows from financing activities

Trust funds and deposits 49,184 27,031

Repayment of interest bearing liabilities (372,664) (564,712)

Net cash provided by (used in) financing activities (323,481) (537,681)

Net increase/(decrease) in cash and cash equivalents 107,553 378,512

Cash and cash equivalents at the beginning of the reporting period 8,484,379 8,105,867

Cash and cash equivalents at the end of the financial year 33 8,591,932 8,484,379 The above statement should be read in conjunction with the accompanying notes.

Sorell Council Financial Report 2009-10 52 Introduction except where specifically stated in notes 1(f), 1(k), notification that a grant has been secured, and is Notes to the 1(l), 1(g), 1(l), and 1(o). valued at their fair value at the date of transfer. Financial Statements (a) “The Sorell Council was established in Unless otherwise stated, all accounting policies Income is recognised when the Council obtains 1862 and is a body corporate with perpetual are consistent with those applied in the prior control of the contribution or the right to receive for the year ended 30 June 2010 succession and a common seal. year. Where appropriate, comparative figures the contribution, it is probable that the economic have been amended to accord with current benefits comprising the contribution will flow to The Council’s main office is located at 12 presentation, and disclosure has been made of the Council and the amount of the contribution Somerville Street, Sorell, Tasmania. “ any material changes to comparatives. can be measured reliably.

A liability is recognised in respect of revenue (b) Changes in accounting policy that is reciprocal in nature to the extent that The purpose of the Council is to: the requisite service has not been provided at There has been no changes in accounting policy balance date.

- provide for the peace, order and good government of the municipal area; (c) Revenue recognition User charges and fees Revenue is measured at the fair value of the User charges and fees (including fines) are - to provide for the health , safety and welfare consideration received or receivable. Revenue recognised as revenue when the service has of the community; is measured on the following major income been provided, the payment is received, or when categories: - to represent and promote the interests of the the penalty has been applied, whichever first community. Rates, annual charges, grants and occurs. contributions This financial report is a general purpose A provision for impairment is recognised when financial report that consists of an Statement Rates, annual charges, grants and contributions collection in full is no longer probable. of Comprehensive Income, Statement of (including developer contributions) are recognised Sale of plant, property, infrastructure and Financial Position, Statement of Changes in as revenues when the Council obtains control equipment Equity, Statement of Cash Flows, and notes over the assets comprising these receipts. accompanying these financial statements. Developer contributions may only be expended The profit or loss on sale of an asset is The general purpose financial report complies for the purposes for which the contributions were determined when control of the asset has with Australian Accounting Standards, other required but the Council may apply contributions irrevocably passed to the buyer. authoritative pronouncements of the Australian according to the priorities established in work Receivables Accounting Standards Board (AASB), and the schedules. Local Government Act 1993 (LGA1993) (as Receivables are recognised initially at cost and amended). subsequently measured at amortised cost, Control over assets acquired from rates less provision for impairment. Receivables are and annual charges is obtained at the generally due for settlement within 30 days. Note 1 commencement of the rating year as it is an Significant accounting policies enforceable debt linked to the rateable property Collectability of receivables is reviewed on an or, where earlier, upon receipt of the rates. ongoing basis. Debts which are known to be uncollectible are written off. A provision for a) Basis of preparation A provision for impairment on rates has not impaired receivables is established when there been established as unpaid rates represent a This general purpose financial report has been is objective evidence that the Council will not be charge against the rateable property that will be prepared on the accrual and going concern able to collect all amounts due according to the recovered when the property is next sold. bases. original terms of receivables. Control over granted assets is normally obtained This general purpose financial report has been upon their receipt (or acquittal) or upon earlier prepared under the historical cost convention,

Sorell Council Financial Report 2009-10 53 Note 1 Summary of significant accounting Joint ventures (f) Acquisition of assets (i) Inventories policies (continued) Jointly controlled entities The purchase method of accounting is used Inventories are measured at cost and adjusted to account for all acquisitions of assets. Cost is when applicable for any loss of service potential. The interest in Council’s joint venture known measured as the fair value of the assets given, as Southern Waste Solutions is accounted for plus costs directly attributable to the acquisition. using the equity method and is carried at cost. (j) Non-current assets held for sale Fair amount is the amount for which the asset Under the equity method, the share of the profits could be exchanged between knowledgeable or losses of the partnership is recognised in the Interest and Investment revenue parties in an arm’s length transaction. Non-current assets are classified as held for sale Statement of Comprehensive Income, and the and stated at the lower of their carrying amount Interest and investment revenues are recognised share of movements in reserves is recognised in Where assets are constructed by Council, costs and fair value less costs to sell if their carrying as revenue on a proportional basis when the reserves in the Statement of Financial Position. includes materials used in construction, direct amount will be recovered principally through a payment is due, the value of the payment is Details’ relating to the partnership is set out in labour, contractors and an appropriate share of sale transaction rather than through continuing notified, or the payment is received, whichever Note 25. variable and fixed overheads. first occurs. use. The exception to this is plant and motor Jointly controlled operations vehicles which are turned over on a regular Dividends basis – these are retained in property, plant and Council has no jointly controlled operations at (g) Impairment of assets equipment. The effect of this is considered Dividend revenue is recognised when Council’s present. At each reporting date, Council reviews the immaterial. right to receive payment is established. carrying value of its assets to determine (e) Leases whether there is any indication that these assets (k) Investments and other financial assets (d) Principles of consolidation have been impaired. Assets that are subject Finance Leases The consolidated fund to amortisation are reviewed for impairment Council classifies its investments in the following At present Sorell Council has no finance leases. whenever events or changes in circumstances categories: financial assets at fair value through The following Committees, the transactions indicate that the carrying amount may not be profit or loss, loans and receivables and held-to- Operating Leases of which are considered immaterial either by recoverable. An impairment loss is recognised for maturity investments. The classification depends amount or nature, have been excluded: Leases in which a significant portion of the risks the amount by which the asset’s carrying amount on the purpose for which the investments and rewards of ownership are not transferred exceeds its recoverable amount. The recoverable were acquired. Management determines Bream Creek Hall Committee to Council as lessee are classified as operating amount is the higher of an asset’s fair value less the classification of its investments at initial Copping Hall Committee leases. Payments made under operating leases costs to sell and value in use. recognition and, in the case of assets classified (net of any incentives received from the lessor) as held-to-maturity, re-evaluates this designation Dodges Ferry Committee For non-cash generating assets of the Council are charged to the Statement of Comprehensive at each reporting date. Dunalley Hall Committee such as roads, drains, public buildings and the Income on a straight-line basis over the period of 2010 2009 like-value in use is represented by the asset’s (i) Financial assets at fair value through profit Midway Point Hall Committee the lease. $ $ written down replacement cost. or loss Primrose Sands Hall Committee Total Revenue 33,654 48,330 Financial assets at fair value through profit or loss The Sorell Memorial Hall Committee was Leasehold Improvements are financial assets held for trading. A financial Totalendorsed Expenditure unanimously by Council 29,443 on 18th 44,382 (h) Cash and cash equivalents TotalSeptember net assets (Equity) the held Sorell Memorial Hall 41,431 be 31,672 Leasehold improvements are recognised at asset is classified in this category if acquired disolved. cost and are amortised over the unexpired Cash and cash equivalents includes cash principally for the purpose of selling in the short term. The total revenue and expenditure from period of the lease or the estimated useful life on hand, deposits held at call with financial of the improvement, whichever is the shorter. institutions, other short-term, highly liquid continuing operations and the net assets held by (ii) Loans and receivables these Committees is as follows: At balance date, leasehold improvements are investments with original maturities of three amortised over a 15 to 50 year period. months or less that are readily convertible to Loans and receivables are non-derivative financial known amounts of cash and which are subject to assets with fixed or determinable payments an insignificant risk of changes in value, and bank that are not quoted in an active market. They overdrafts. Bank overdrafts are shown within are included in current assets, except for those finances in current liabilities on the Statement of with maturities greater than 12 months after Financial Position. the Statement of Financial Position date which

Sorell Council Financial Report 2009-10 54 are classified as non-current assets. Loans transferred substantially all the risks and rewards Investment Policy • Operational land (last valuation conducted and receivables are included in trade and other of ownership. in 2004), since indexed using 2008-2009 Council has an approved investment policy receivables in the Statement of Financial Position. AAV’s as the base then Hobart CPI March to When securities classified as available-for-sale complying with section 75 of the Local March). (iii) Held-to-maturity investments are sold, the accumulated fair value adjustments Government Act 1993. Investments are placed recognised in equity are included in the and managed in accordance with that policy. • Buildings (last valuation 2004), indexed using Held-to-maturity investments are non-derivative Statement of Comprehensive Income as gains Council maintains an investment policy that a weighted average of annual CPI, internal financial assets with fixed or determinable and losses from investment securities. complies with the Act and ensures that it or its labour and the building construction index. payments and fixed maturities that Council’s representatives exercise care, diligence and skill management has the positive intention and ability Subsequent measurement • Drainage/Stormwater Networks (valued that a prudent person would exercise in investing to hold to maturity. If Council were to sell other internally 2005) indexed using a weighted Loans and receivables and held-to-maturity Council funds. than an insignificant amount of held-to-maturity average of annual CPI, internal labour and the investments are carried at amortised cost using financial assets, the whole category would be (l) Investment in Southern Water (water building construction index. the effective interest method. tainted and reclassified as available-for-sale. Held- corporation) • Roads and earthworks (valued externally to-maturity financial assets are included in non- Fair value Our investments in Southern Water is valued 2009), indexed using a weighted average of current assets, except for those with maturities The fair values are based on quoted market at fair value; at balance date. Fair value was annual CPI, internal labour and the building less than 12 months from the reporting date, prices. If the market for a financial asset is not determined by using our ownership percentage construction index. which are classified as current assets. active (and for unlisted securities), Council against Southern Waters’ net asset value at • Bridges (valued externally 2008), indexed establishes fair value by using valuation balance date. Any unrealised gains and loses on using a weighted average of annual CPI, techniques. These include the use of recent holdings at balance date are recognised in the internal labour and the building construction Financial Assets - reclassification arm’s length transactions, reference to other Statement of Comprehensive Income. index. instruments that are substantially the same, Council may choose to reclassify a non-derivative discounted cash flow analysis, and option pricing trading financial asset out of the held-for-trading (m) Fair value estimation models making maximum use of market inputs Plant and equipment and office equipment is held category if the financial asset is no longer held for and relying as little as possible on entity-specific The fair value of financial assets and financial at cost. the purpose of selling it in the near term. inputs. liabilities must be estimated for recognition and Increases in the carrying amounts arising on Reclassifications are made at fair value as of the measurement or for disclosure purposes. The Impairment revaluation are credited to the asset revaluation reclassification date. Fair value becomes the fair value of financial instruments traded in active reserve. To the extent that the increase reverses new cost or amortised cost as applicable, and Council assesses at each balance date whether markets is based on quoted market prices at the a decrease previously recognising profit or loss, no reversals of fair value gains or losses recorded there is objective evidence that a financial asset Statement of Financial Position date. the increase is first recognised in profit or loss. before classification date are subsequently made. or group of financial assets is impaired. In the The nominal value less estimated credit Decreases that reverse previous increases of the case of equity securities classified as available- adjustments of trade receivables and payables same asset are first charged against revaluation for-sale, a significant or prolonged decline in the Recognition and derecognition are assumed to approximate their fair values. reserves directly in equity to the extent of the fair value of a security below its cost is considered The fair value of financial liabilities for disclosure remaining reserve attributable to the asset; all Regular purchases and sales of financial assets as an indicator that the securities are impaired. purposes is estimated by discounting the future other decreases are charged to the Statement of are recognised on trade-date - the date on If any such evidence exists for available-for-sale contractual cash flows at the current market Comprehensive Income. which Council commits to purchase or sell the financial assets, the cumulative loss - measured interest rate that is available to the Council for asset. Investments are initially recognised at as the difference between the acquisition cost Subsequent costs are included in the asset’s similar financial instruments. fair value plus transaction costs for all financial and the current fair value, less any impairment carrying amount or recognised as a separate assets not carried at fair value through profit loss on that financial asset previously recognised asset, where appropriate, only when it is probable or loss. Financial assets carried at fair value in profit or loss - is removed from equity and (n) Infrastructure, property, plant and that future economic benefits associated with through profit or loss is initially recognised at fair recognised in the Statement of Comprehensive equipment the item will flow to Council and the cost of the value and transaction costs are expensed in the Income. Impairment losses are recognised in the item can be measured reliably. All other repairs Statement of Comprehensive Income. Financial Statement of Comprehensive Income. Revaluation and maintenance are charged to the Statement assets are derecognised when the rights to of Comprehensive Income during the financial Council assets are progressively revalued to fair receive cash flows from the financial assets have period in which they are incurred. value with the following classes stated at their fair expired or have been transferred and Council has value:

Sorell Council Financial Report 2009-10 55 Note 1 Summary of significant accounting Land under roads Finance costs include interest on bank overdrafts Long service leave policies (continued) and interest on loans. Land under roads acquired after 30 June 2008 is Long service leave entitlements payable are brought to account using the cost basis. Council assessed at balance date having regard to has lected not to recognise land under roads expected employee remuneration rates on (r) Provisions that it controlled prior to that period in its financial settlement, employment related oncost and report. Provisions are recognised when: the Council has other factors including accumulated years of a present legal or constructive obligation as a employment, on settlement, and experience of Depreciation result of past events; it is more likely than not that employee departure per year of service. (o) Investment property an outflow of resources will be required to settle Land and bulk earthworks are not depreciated. Long service leave expected to be paid within 12 Investment property, principally comprising the obligation; and the amount has been reliably Depreciation on other assets is calculated using months is measured at nominal value based on freehold building, is held for three (3) year term estimated. Provisions are not recognised for the straight line method to allocate their cost, net the amount expected to be paid when settled. of their residual values, over their estimated useful rental and is not occupied by the Council. future operating losses. Investment property is carried at fair value, Long service leave expected to be paid later than lives, as follows: Where there are a number of similar obligations, representing open-market value determined one year has been measured at the present value the likelihood that an outflow will be required Class of Asset Useful Life (years) annually by the Valuer-General until 2009/2010 of the estimated future cash outflows to be made in settlement is determined by considering the when it will be valued externally. Changes in for these accrued entitlements. Commonwealth Earthworks Unlimited class of obligations as a whole. A provision is fair values are recorded in the Statement of bond rates are used for discounting future cash Bridges Infrastructure 2 to 80 recognised even if the likelihood of an outflow Comprehensive Income as part of other income. flows. with respect to any one item included in the same Building and Land Improvements 10 to 85 Full revaluations are carried out every six years class of obligations may be small. Classification of provisions - employee with the annual March to March CPI index used Drainage/Stormwater Infrastructure 40 to 120 benefits every year between the full revaluations. Office Equipment and Furniture 3 to 30 (s) Employee benefits An employee benefit liability is classified as a current liability if the Council does not have an Plant and Vehicles 3 to 15 (p) Payables Wages and salaries unconditional right to defer settlement of the Roads/Footpaths Infrastructure 5 to 60 These amounts represent liabilities for goods and Liabilities for wages and salaries and rostered liability for at least 12 months after the end of the Sewerage Infrastructure (for 2008-2009) 20 to 120 services provided to the Council prior to the end days off are recognised and measured as period. This would include all annual leave and unconditional long service leave entitlements. Waste Infrastructure 10 to 50 of financial year which are unpaid. The amounts the amount unpaid at balance date and are unsecured and are usually paid within 30 include appropriate oncost such as workers Superannuation Water Infrastructure (for 2008-2009) 5 to 100 days of recognition. compensation and payroll costs. A liability or asset in respect of defined benefit Annual Leave superannuation plans would ordinarily be The assets’ residual values and useful lives are (q) Interest bearing liabilities Annual leave entitlements are accrued on a recognised in the Statement of Financial reviewed, and adjusted if appropriate, at each pro-rata basis in respect of services provided by Position, and measured as the present value of Statement of Financial Position date. Finance costs are recognised as an expense employees up to balance date. the defined benefit obligation at the reporting in the period in which they are incurred, except An asset’s carrying amount is written down date plus unrecognised actuarial gains (less where they are capitalised as part of a qualifying Annual leave expected to be paid within 12 immediately to its recoverable amount if the unrecognised actuarial losses) less the fair value asset constructed by Council. For the financial months is measured at nominal value based asset’s carrying amount is greater than its of the superannuation fund’s assets at that date years reported in this financial report there was on the amount, including appropriate oncost, estimated recoverable amount. and any unrecognised past service cost. The no capitalised finance costs. Where specific expected to be paid when settled. present value of the defined benefit obligation is Gains and losses on disposals are determined finances are obtained for the purpose of Annual leave expected to be paid later than one based on expected future payments which arise by comparing proceeds with carrying amount. specific asset acquisition, the weighted average year has been measured at the present value of from membership of the fund to the reporting These are included in the Statement of interest rate applicable to finances at balance the estimated future cash outflows to be made date, calculated annually by independent Comprehensive Income. date, excluding finances associated with for these accrued entitlements. Commonwealth actuaries using the projected unit credit method. superannuation, is used to determine the finance bond rates are used for discounting future cash Consideration is given to expect future wage and costs to be capitalised. flows. salary levels, experience of employee departures and periods of service.

Sorell Council Financial Report 2009-10 56 (t) Rounding of amounts Standard / Interpretation Summary Applicable Impact on Local Government Unless otherwise indicated, amounts in the for annual financial statements financial report have been rounded off to the reporting periods nearest dollar. beginning or ending on AASB 2009-5 Further Amendments to Australian Some amendments will result in accounting changes Beginning Terminology and editorial changes. (v) Allocation between current and non- Accounting Standards arising from the Annual for presentation, recognition or measurement 1 Jan 2010 Impact minor. current Improvements Project. [AASB 5, 8, 101, 107, 117, purposes, while other amendments will relate to 118, 136 & 139] terminology and editorial changes. In the determination of whether an asset or liability AASB 2009-8 Amendments to Australian Accounting The amendments clarify the scope of AASB 2. Beginning No impact. AASB 2 does not apply to is current or non-current, consideration is given to Standards – Group Cash-settled Share-based 1 Jan 2010 Local Government; consequently this the time when each asset or liability is expected Payment Transactions. [AASB 2] Standard does not apply. to be settled. The asset or liability is classified as current if it is expected to be settled within AASB 2009-9 Amendments to Australian Accounting Applies to entities adopting Australian Accounting Beginning No impact .Relates only to first time Standards – Additional Exemptions for First-time Standards for the first time, to ensure entities will not 1 Jan 2010 adopters of Australian Accounting the next twelve months, being the Council’s Adopters [AASB 1} face undue cost or effort in the transition process in Standards. operational cycle. In the case of liabilities where particular situations. Council does not have the unconditional right to defer settlement beyond 12 months, such as AASB 2009-10 Amendments to Australian The Standard makes amendments to AASB 132, Beginning No impact. Local Government do not Accounting Standards – Classification of Rights stating that rights issues must now be classed as 1 Feb 2010 issue rights, warrants and options, vested long service leave, the liability is classified Issues [AASB 132] equity rather than derivative liabilities. consequently the amendment does not as current even if not expected to be settled impact on the statements. within the next 12 months. AASB 9 Financial Instruments This standard simplifies requirements for the Beginning 1 Detail of impact is still being assessed. classification and measurement of financial assets Jan 2013 (w) New accounting standards and resulting from Phase 1 of the IASB’s project to interpretations replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Certain new accounting standards and Recognition and Measurement). interpretations have been published that are not AASB 2009-11 Amendments to Australian This gives effect to consequential changes arising from Beginning 1 Detail of impact is still being assessed. mandatory for 30 June 2009 reporting periods. Accounting Standards arising from AASB 9 [AASB 1, the issuance of AASB 9. Jan 2013 Council’s assessment of the impact of these new 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, standards and interpretations that were available 131, 132, 136, 139, 1023 & 1038 and Interpretations for early adoption but have not been applied are 10 & 12] set out at right. AASB 2009-12 Amendments to Australian This Standard amends AASB 8 to require an entity Beginning 1 AASB 8 does not apply to Local Accounting Standards [AASBs 5, 8, 108, 110, 112, to exercise judgement in assessing whether a Jan 2011 Government therefore no impact 119, 133, 137, 139, 1023 & 1031 and Interpretations government and entities know to be under the control expected. Otherwise, only editorial 2, 4, 16, 1039 & 1052] of that government are considered a single customer changes arsing from amendments for purposes of certain operating segment disclosures to other standards, no major impact. .This Standard also makes numerous editorial Impacts of editorial amendments are not amendments to other AASs. expected to be significant. AASB 2009-13 Amendments to Australian Consequential amendment to AASB 1 arising from Beginning 1 Local Governments do not extinguish Accounting Standards arising from Interpretation 19. publication of Interpretation 19 Jul 2010 financial liabilities with equity instruments, [AASB 1] therefore requirements of Interpretation 17 and related amendments have no impact AASB 2009-14 Amendments to Australian Amendment to Interpretation 14 arising from the Beginning 1 Expected to have no significant impact Interpretation – Prepayments of a Minimum Funding issuance of Prepayments of a Minimum Funding Jan 2011 Requirement [AASB Interpretation 14] Requirement

Sorell Council Financial Report 2009-10 57 Note 1 Summary of significant accounting policies (continued)

(x) 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 Taxation 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 expense. The net amount of GST recoverable or payable to the Australian Taxation Office is included as a current asset or liability in the Statement of Financial Position. Cash Flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component on investing and financing activities, which are disclosed as operating cash flows.

(y) Budget figures The budget estimates for revenue and expenses in the Statement of Comprehensive Income represent our original budget amounts and are not subject to audit.

Sorell Council Financial Report 2009-10 58 Note 2 (a) Functions/activities of the Council

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

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

Revenue Expenses Comprehensive Result Grants included in Total assets revenue

Original Actual Actual Original Actual Actual Original Actual Actual Actual Actual Actual Actual Budget 2010 2009 Budget 2010 2009 Budget 2010 2009 2010 2009 2010 2009 2010 $ $ 2010 $ $ 2010 $ $ $ $ $ $ $ $ $

Functions/Activities

Governance - 577 (6,255) 567,875 608,763 553,331 (567,875) (608,186) (559,586) - - - 36,393

Administration 595,259 992,279 397,468 3,394,070 3,337,716 3,364,600 (2,798,811) (2,345,437) (2,967,132) 10,840 15,235 9,311,994 8,568,762

Public order safety 544,650 589,148 531,764 1,138,779 1,195,391 1,505,649 (594,129) (606,243) (973,885) - - 4,114 126,014

Health 254,284 290,888 44,689 370,765 759,766 284,299 (116,481) (468,878) (239,610) 1,498 764 1,865 40,266

Community services and education 570,663 591,687 558,400 1,015,954 1,019,692 1,085,615 (445,291) (428,005) (527,215) 272,865 238,393 302,997 322,921

Housing and community amenities 1,558,732 1,761,650 2,365,248 1,768,508 1,720,040 1,937,440 (209,776) 41,610 427,808 - - 18,246,569 2,371,401

Water supplies - - 1,452,632 - - 947,748 - - 504,884 - - - 14,363,933

Sewerage services - - 1,714,230 - - 801,500 - - 912,730 - - - 15,186,390

Recreation and culture 236,420 319,731 113,469 580,888 641,197 478,674 (344,468) (321,466) (365,205) 291,807 27,600 4,595,686 4,343,972

Mining, manufacturing & construction 168,588 184,567 76,089 252,453 220,858 125,731 (83,865) (36,291) (49,642) - - - -

Transport and communications 964,194 2,187,826 1,766,288 4,699,210 4,275,685 3,736,973 (3,735,016) (2,087,859) (1,970,685) 404,340 903,147 130,069,122 142,639,899

Economic affairs 2,004 7,266 30,827 44,476 63,533 33,636 (42,472) (56,267) (2,809) 2,739 30,000 - -

Total functions & activities 4,894,794 6,925,619 9,044,849 13,832,978 13,842,641 14,855,196 (8,938,184) (6,917,022) (5,810,347) 984,089 1,215,139 162,532,347 193,653,011

Assets not allocated with reliability to a function ------41,443,017 10,545,829

Shares of gains or losses in associates & fair 160,000 (28,873) 66,008 - 2,553,600 - 160,000 (2,582,473) 66,008 - - - - value adjustment Southern Water

General purpose income (1) 8,801,480 13,008,330 77,379,762 - - - 8,801,480 13,008,330 77,379,762 1,796,676 2,041,394 - -

Surplus/(deficit) from all activities 13,856,274 19,905,076 86,490,619 13,832,978 16,396,241 14,855,196 23,296 3,508,835 71,635,423 2,780,765 3,256,533 203,975,364 204,198,840

Note: (1) Includes: rates and annual charges, Non capital general purpose grant Southern Water dividends and interest and investment revenue

Sorell Council Financial Report 2009-10 59 Note 2 (a) Administration Sewerage services Functions/activities of the Council Costs of administration, finance and corporate Construction and maintenance of all sewerage service functions infrastructures, which includes treatment plants, pits, pipes. Public order and safety (b) Reconciliation of Assets from note 2 with Recreation and culture Balance Sheet at 30 June: Fire protection, animal control, beach control, 2010 2009 enforcement of local government regulations, Public Libraries, art galleries, community centres, emergency services, other. public halls, other cultural services, sporting $ $ centres, parks and gardens, other sport and Health Current assets 9,597,208 9,675,865 recreation. Non-current assets 194,378,156 194,522,975 Administration and inspection, immunisations, food Mining, manufacturing and construction 203,975,364 04,198,840 control, insect/vermin control, noxious plants, other. Building control, quarries and pits. Community services and education Transport and communication c) Details of the functions or activities Administration, family day care, child care, youth reported in Note 2 (a) are as follows: services, other family and children, aged and Urban roads, sealed and unsealed rural roads, disable services. bridges, footpaths, parking areas, bus shelters, water transport, street lighting. Governance Housing and community amenities Economic affairs Costs relating to the Council’s role as a component Housing, town planning, domestic waste of democratic government, including elections, management services, other waste management Camping areas, caravan parks, tourism and are member’s fees and expenses, subscriptions to services, street other sanitation and garbage, promotion, industrial development promotion, real local authority associations, meetings of council urban stormwater drainage, public conveniences, estate development, other business undertakings. and policy making committees, area representation cemeteries other community amenities. and public disclosure and compliance, together Water supplies with related administration costs. Construction and maintenance of all water infrastructure assets, which includes reservoirs, pipes.

Sorell Council Financial Report 2009-10 60 Actual Budget Actual 2010 2010 2009 $ $ $ Note 3 rates and annual charge Sorell Council uses the Adjusted Annual Assessed Value (AAAV) as the basis of valuation of all properties within the municipal district. In 2009-2010 the AAAV of all properties in our municipality totalled $61,631,938 (2008-2009 $60,853,532). The 2009-2010 rate cent in the dollar was $0.1140 which is multiplied with the AAAV to obtain the general rate.

Residential 5,747,015 5,576,798 5,219,948 Commercial 418,204 405,817 395,172 Industrial 86,492 83,930 80,653 Community purpose 88,886 86,253 76,162 Primary Production 418,805 406,402 393,776 Pensioner rebate 401,928 398,268 466,467 Less pensioner remissions (412,369) (412,236) (478,174) Total ordinary rates 6,748,961 6,545,232 6,154,004

Annual charges Waste management services 1,349,272 1,391,652 1,386,457 Waste water treatment systems 262,442 209,928 182,660 Water supply 60 - 628,955 Sewerage services - - 1,234,861 Total annual charges 1,611,774 1,601,580 3,432,933

Levies Fire levy 311,922 317,703 302,300 Pensioner rebate - - 10,230 Total annual levies 311,922 317,703 312,530 Total rates and annual charges 8,672,657 8,464,515 9,899,467

Note 4 User charges and fees

Animal 90,752 86,007 85,185

Building services 347,019 308,280 377,351

Caravan 10,546 28,980 21,086

Certificates 132 and 337's 143,958 167,196 125,819

Child care 313,846 314,729 302,537

Environmental - - 30,214

Fire abatement 37,411 11,784 19,452

Health 15,803 13,996 20,071

Other 18,080 3,408 11,317

Private works 17,956 - 60,660

Town planning 43,088 51,600 5,295

Water - - 655,001

Total user charges and fees 1,038,459 985,980 1,713,988

Sorell Council Financial Report 2009-10 61 Note 5 Interest and investment income

Overdue rates and annual charges 102,564 82,496 93,502

Cash, cash equivalents and investments

- Interest on investments 611,775 510,000 643,593

- income tax equivalents Hobart Water - - 13,475

- interest Midway Point Improvement Act Scheme 6,018 8,004 7,493

Total interest and investment income 720,357 600,500 758,063

Note 6 Other income

Diesel fuel rebates 11,092 8,244 8,327

Investment property rental 60,523 61,056 59,221

Rental income from leased properties 22,283 2,004 26,904

Rental income land Copping Refuse 66,833 41,000 66,636

Fines 6,942 - 720

Other 310,342 25,943 84,595

Total other income 478,015 138,247 246,403

Note 7 (a) Investment income from water corporation

Dividend 273,067 - -

Tax equivalent 217,271 - -

Guarantee fee 30,643 - -

Total investment income from water corporation 520,981 -

Sorell Council Financial Report 2009-10 62 Note 7 (b) Cash and cash equivalents 478,938 Investment in water corporation Land 840,026 In February of 2008 State and Local Water infrastructure 14,363,933 Government reached agreement to establish Sewerage infrastructure 13,620,023 three Local Government owned, vertically integrated businesses providing bulk, Other property, plant and equipment 196,242 distribution and retail water and sewerage Work in Progress 531,350 services, and a common service provider Investment in Hobart Water 5,370,001 subsidiary company. The Water and Sewerage Payables (224,235) Corporations Act 2008 (Corporations Act) was subsequently enacted and received Royal Financial Liabilities (2,769,507) Assent on 13 June 2008. Employee provisions (122,381) Full transfer of water and sewerage assets, Net assets transferred 32,284,390 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 the 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 (trading as Onstream). Council will in future derive returns from the new corporations, mainly in the form of dividends. The following assets and liabilities relating to water and sewerage were transferred to Southern Water from 1 July 2009. Council’s opening ownership interest in the new corporation will be represented by the net assets transferred.

Sorell Council Financial Report 2009-10 63 Operating Capital Actual Budget Actual Actual Budget Actual 2010 2010 2009 2010 2010 2009 $ $ $ $ $ $

Note 8 (a) Grants General purpose Financial assistance 1,774,522 1,641,780 2,041,394 - - -

Special purpose Community health - 3,000 68,768 411,808 227,000 665,805 Family and children 273,600 249,970 226,823 - - - Immunisation - 1,380 764 - - - Training 10,839 9,000 1,500 - - - Transport 45,761 22,750 36,221 264,235 283,000 215,258 Total grants 2,104,722 1,927,880 2,375,470 676,043 510,000 881,063

Comprising: Federally funded 2,058,961 1,905,130 2,273,460 556,043 510,000 881,063 State funded 45,761 22,750 102,010 120,000 - - 2,104,722 1,927,880 2,375,470 676,043 510,000 881,063

Note 8 (b) Contributions - cash Donations 3,943 - 2,950 - - - Parks and public open spaces ------Public open space - - - 15,145 - 90,977 Roads - - 9,500 - - - Total cash contributions 3,943 - 12,450 15,145 - 90,977

Note 8 (c) Contributions - non-monetary Land under roads - - - 323,767 - - Water and sewerage - - - - - 617,281 Car Park - - - 80,600 - - Drainage - - - 249,831 50,000 395,971 Roads - - - 755,920 250,000 733,836 Total non monetary contributions - - - 1,410,118 300,000 1,747,088

Total grants and contributions 2,108,665 1,927,880 2,387,920 2,101,306 810,000 2,719,128

Sorell Council Financial Report 2009-10 64 Note 8 (d) Conditions 2010 2009 Grants and donations which were recognised as revenues during the reporting period and which were obtained 28,351 255,513 on the condition that they be expended in a particular manner but had yet to be applied in that manner as at the reporting date: Grants and donations which were recognised as revenues in a previous reporting period and were expended during (255,513) - the current reporting period in the manner specified by the contributor: Net increase/(decrease) in assets subject to conditions (227,162) 255,513 Assets subject to conditions at the beginning of the period 255,513 - Assets subject to conditions at the end of the period 28,351 255,513

Sorell Council Financial Report 2009-10 65 Actual Budget Actual 2010 2010 2009 $ $ $

Note 9 Employee benefits

Salaries and wages 3,183,921 3,656,166 3,479,931

Salaries and wages external 140,261 16,108 119,072

Employee leave entitlements 412,198 283,354 558,043

Superannuation 500,978 385,067 473,697

Payroll tax 188,990 176,908 204,285

Workers compensation 52,414 58,001 45,738

Fringe benefits tax 26,578 15,456 26,131

Recruitment costs 20,522 6,996 7,277

Training costs 56,793 63,588 49,606

Other 52,159 36,888 46,609

Total employee costs expensed 4,634,814 4,698,532 5,010,389

Note 10 Finance costs

Interest on loans 247,672 242,077 511,062

Interest on Midway Point Improvement Act 6,613 6,888 7,939 Scheme

Total finance cost 254,285 248,965 519,001

Note 11 Materials and contracts

Raw materials and consumables 609,229 652,359 1,260,601

Contracts

Fire 11,012 16,884 10,880

Fuel 133,968 168,720 164,503

Maintenance 686,486 468,840 130,513

Waste 896,109 833,472 817,975

Water - 10,296 555,379

Water Waste Systems 168,198 139,005 163,471

Consultancy 84,953 129,920 138,000

Audit fees 29,095 25,620 25,874

Legal fees 97,628 100,512 161,276

Operating leases 88,216 77,784 59,334

Total materials and contracts 2,804,894 2,623,412 3,487,806

Sorell Council Financial Report 2009-10 66 Actual Budget Actual 2010 2010 2009 $ $ $

Note 12 Depreciation and amortisation

Amortisation of intangibles 14,000 - -

Plant and Equipment 340,732 328,867 348,039

Office equipment 184,272 212,037 117,318

Land improvements 101,028 59,005 58,666

Buildings 58,400 91,893 67,168

Infrastructure:

Roads, bridges and footpaths 2,589,376 3,138,792 2,641,020

Stormwater drainage 274,769 275,666 260,841

Water supply network - - 238,927

Sewerage network - - 302,754

Waste 55,260 56,828 54,323

Total depreciation and amortisation 3,617,837 4,163,088 4,089,056

Note 13 Impairment expenses

Impairment expense - - 203,587

Total impairment expenses - - 203,587

Note 14 Other expenses

Impaired debts - sundry and water 955 540 114

Children services expenses 22,431 19,296 30,986

Community Development 40,935 50,820 70,238

Councillor allowances 144,906 128,664 127,606

Councillor expenses 3,909 4,740 4,455

Donations section 77 42,300 35,004 40,605

Election 37,639 6,552 4,581

Energy 196,679 187,068 232,075

Fire levy 302,437 294,588 288,899

Governance 11,597 7,080 10,553

Insurance 177,047 169,752 181,178

Land tax 114,635 133,917 153,477

Other 233,014 234,516 243,752

Utilities 75,116 70,920 94,208

Valuation 47,486 36,504 30,680

Total other expenses 1,451,086 1,379,961 1,513,407

Sorell Council Financial Report 2009-10 67 Actual Budget Actual Actual 2010 Actual 2009 2010 2010 2009 Current Current $ $ $ $ $

Note 15 Gain or loss from the disposal Note 16 Cash and cash equilavents of assets Cash at bank and on hand 60,109 28,608

Gain (loss) on disposal of Land and Building Deposits at call 3,260,883 3,148,261

Proceeds from disposal - - 150,000 Total cash and cash equilavents 3,320,992 3,176,869

Less: Carrying amount of assets sold - - (94,500)

Gain on disposal land and buildings - - 55,500

Note 17 (a) Investments Gain (loss) on disposal of Plant and Equipment

Proceeds from disposal 180,713 148,100 210,312 Financial Assets at fair value through Less: Carrying amount of assets sold (209,586) (150,100) (262,659) Comprehensive Income Statement 5,270,940 5,307,510 Loss on disposal of plant and equipment (28,873) (2,000) (52,347) Total 5,270,940 5,307,510

Gain (loss) on disposal of financial assets Financial Assets at fair value through Proceeds from disposal - - 1,966,587 Comprehensive Income Statement

Less: Carrying amount of assets sold - - (2,000,000) At beginning of year 5,307,510 6,203,587 Loss on disposal of financial assets - - (33,413) Additions - 3,261,780

Disposals (sale/Redemption) - (4,000,000) Net loss from disposal of assets (28,873) (2,000) (30,260) Add revaluation to fair value (36,570) 45,730

Less impairment expense - (203,587)

Total Investments at fair value 5,270,940 5,307,510

Held for trading:

- Fixed rate bond 3,208,500 3,179,070

- Floating/fixed rate notes 2,062,440 2,128,440

5,270,940 5,307,510

Sorell Council Financial Report 2009-10 68 Actual Actual 2010 2009

Current Non-current Current Non-current $ $ $ $

Note 18 Trade and other receivables

Rates and annual charges 592,199 - 374,853 -

User charges and fees 151,335 - 467,720 -

Accrued Revenue 154,016 - 188,201 -

Midway Improvement loan receivable 15,404 89,386 620 103,614

Other 68,415 - 26,781 -

Total trade and other receivables 981,369 89,386 1,058,175 103,614

Note 19 Inventories

Stores and Materials 2,010 - 2,355 -

Total inventories 2,010 - 2,355 -

Note 20 Other assets

Prepayments 21,897 4,143 130,956 4,419

Total other assets 21,897 4,143 130,956 4,419

Note 21 Intangible assets

Revaluation Fees - 70,000 - 175,118

Less amortisation of fees - (14,000) - (110,118)

Total intangibles - 56,000 - 65,000

Sorell Council Financial Report 2009-10 69 Note 22 (a) Property, infrastructure, plant and equipment

As at 1 July 2009 Movements during year As at: 30 June 2010

Accumu- Accumu- Revaluation Accumu- lated Depre- Fair Value of WDV of lated Depre- Fair value WDV Trans- Increments lated Depre- Fair Value ciation WDV Additions Disposals Disposals ciation Transfers fers decrements Fair Value ciation WDV $ $ $ $ $ $ $ $ $ $ $ $ $

Capital WIP 683,414 - 683,414 233,040 - - - (49,921) 49,921 - 866,533 - 866,533

Plant and equipment 2,958,202 1,116,798 1,841,404 395,147 (659,920) 343,832 340,732 - - - 2,693,429 1,141,442 1,551,987

Office equipment, furnishing and fittings 1,559,188 578,197 980,991 363,319 (171,036) 7,066 184,272 - - - 1,751,471 598,499 1,152,972

Land:

Operational 7,421,643 - 7,421,642 129,077 (838,774) 838,774 - (288,099) 288,099 205,192 6,629,039 - 6,629,038

Community 638,419 - 638,419 - (1,252) 1,252 - - - 20,389 657,556 - 657,556

Land under roads 323,767 - - - - - 10,361 334,128 - 334,128

Land improvements (Leased from other parties) 297,740 28,625 269,115 10,216 - - 12,453 - - 6,395 315,362 42,090 273,273

Land improvements (Council Owned) 1,743,981 147,136 1,596,845 304,418 - - 88,575 - - 37,317 2,091,512 241,507 1,850,005

Building Improvements (Leased from other parties) 213,240 15,604 197,636 - - - 4,225 - - 4,811 218,544 20,322 198,222

Buildings (Council Owned) 5,330,351 2,020,096 3,310,255 180,655 (53,887) 18,909 54,175 - - 67,370 5,562,302 2,077,106 3,485,196

Infrastructure:

Roads 106,636,185 13,907,168 92,729,018 2,601,456 - - 2,360,668 - - 2,343,636 111,991,363 16,677,928 95,313,435

Footpaths 2,520,534 715,173 1,805,361 233,349 - - 70,186 - - 50,650 2,823,304 804,131 2,019,173

Bulk earthworks (non depreciable) 26,206,401 - 26,206,401 90,843 ------26,297,244 - 26,297,244

Bridges 10,172,079 5,215,269 4,956,810 185,238 (148,005) 20,505 158,522 - - 99,851 10,418,087 5,355,215 5,062,872

Waste 2,290,689 414,757 1,875,932 - - - 55,260 - - 58,261 2,363,991 485,058 1,878,933

Water supply network 19,613,244 5,249,311 14,363,933 - (19,613,244) 14,363,933 ------

Sewerage network 20,486,297 6,866,273 13,620,024 - (20,486,297) 13,620,024 ------1

Stormwater drainage 22,297,243 6,904,222 15,393,021 408,276 - - 274,769 - - 301,794 23,150,622 7,322,299 15,828,322

Totals 231,068,850 43,178,629 187,890,221 5,458,801 (41,972,415) 29,214,295 3,603,837 (338,020) 338,020 3,206,027 198,164,487 34,765,597 163,398,890

Sorell Council Financial Report 2009-10 70 Note 22 (b) Property, infrastructure, plant and equipment

As at 1 July 2009 As at 30th June 2010

Disposals/ Closing Deprecia- Closing B/Fwd Revaluation Additions Retirements Transfers Depr. WDV B/Fwd Revaluation Additions Disposals Transfers tion WDV $ $ $ $ $ $ $ $ $ $ $ $ $ $

Capital WIP 773,925 - - - (90,511) - 683,414 683,414 - 233,040 - (49,921) - 866,533

Plant and equipment 1,829,730 - 568,168 (208,455) - (348,039) 1,841,404 1,841,404 - 395,147 (343,832) - (340,732) 1,551,987

Office equipment, furnishing and fittings 629,322 - 504,125 (35,138) - (117,318) 980,991 980,991 - 363,319 (7,066) - (184,272) 1,152,972

Land: ------

Operational 7,292,108 125,217 47,767 (94,500) 51,050 - 7,421,642 7,421,642 205,192 129,077 (838,774) (288,099) - 6,629,038

Community 678,681 10,788 - - (51,050) - 638,419 638,419 20,389 - (1,252) - - 657,556

Land under roads ------10,361 323,767 - - - 334,128

Land improvements (Leased from other parties) 310,700 3,976 42,287 - (77,166) (10,682) 269,115 269,115 6,395 10,216 - - (12,453) 273,273

Land improvements (Council Owned) 743,802 14,307 873,350 - 13,370 (47,984) 1,596,845 1,596,845 37,317 304,418 - - (88,575) 1,850,005

Building Improvements (Leased from other parties) 21,693 1,801 99,372 - 77,166 (2,396) 197,636 197,636 4,811 - - - (4,225) 198,222

Buildings (Council Owned) 3,244,604 54,338 108,522 (19,067) (13,370) (64,772) 3,310,255 3,310,255 67,370 180,655 (18,909) - (54,175) 3,485,196

Infrastructure: ------

Roads 42,083,226 50,661,239 2,417,699 - - (2,433,146) 92,729,018 92,729,018 2,343,636 2,601,449 - - (2,360,667) 95,313,436

Footpaths 1,161,945 623,131 91,658 - - (71,373) 1,805,361 1,805,361 50,650 233,349 - - (70,187) 2,019,173

Bulk earthworks (non depreciable) 10,962,170 15,186,887 57,344 - - - 26,206,401 26,206,401 - 90,843 - - - 26,297,244

Bridges 3,718,410 971,274 403,627 - - (136,501) 4,956,810 4,956,810 99,851 185,238 (20,505) - (158,522) 5,062,872

Waste 1,898,549 31,706 - - - (54,323) 1,875,932 1,875,932 58,261 - - - (55,260) 1,878,933

Water supply network 14,208,169 66,503 328,188 - - (238,927) 14,363,933 14,363,933 - - (14,363,933) - - -

Sewerage network 13,338,791 (76,904) 660,891 - - (302,754) 13,620,024 13,620,024 - - (13,620,024) - - -

Stormwater drainage 14,951,194 253,255 449,414 - - (260,842) 15,393,021 15,393,021 301,794 408,276 - - (274,769) 15,828,322

Totals 117,847,019 67,927,518 6,652,412 (357,160) (90,511) (4,089,057) 187,890,221 187,890,221 3,206,027 5,458,794 (29,214,295) (338,020) (3,603,837) 163,398,890

Sorell Council Financial Report 2009-10 71 Actual Actual Actual Actual 2010 2009 2010 2009 $ $ $ $

Note 25 Interests in associates

Note 23 Investment properties Investments in associates accounted for by the equity method are;

At fair value Water Authority - Hobart Water - 5,370,000

Balance at beginning of financial year 864,635 835,442 Waste - Southern Waste Solutions 150,325 225,086

Acquisitions 288,099 - Total 150,325 5,595,086

Fair value adjustment 36,888 29,193

Balance at end of financial year 1,189,622 864,635 Water Authority - Hobart Water

Background: Sorell Council maintained an ownership share in Hobart Water until 01 July 2009 which was 2.19% as that point in time. This ownership interest Valuation of investment property has been determined in accordance with was almagamated in the transfer of water and sewerage assets from Sorell an independent valuation undertaken during the six yearly municipal valua- Council to Southern Water. tion cycle by the Department of the Valuer-General Tasmania and indexed to fair value during this cycle using the annual Australian Consumer Price Index. Council's share of accumulated surplus

Balance at beginning of financial year 2,250,042 2,523,705 Amounts recognised in profit and loss for investment property Reported surplus for year - 52,814

Rental income 60,523 59,221 Transfers (to) from reserves 3,119,958 (652,954)

Fair value adjustment 36,888 29,193 Distributions received - 326,477

97,411 88,414 Transfer to Southern Water (5,370,000) - Balance at end of financial year - 2,250,042

Note 24 Investment in Southern Water

Carrying amount Council's share of reserves

Assets transferred as at 1 July 2009 32,284,390 - Balance at beginning of financial year 3,119,958 2,422,742

Land Boomer Bay excess to requirements (241,000) - Transfers to (from) reserves (3,119,958) 697,216

Fair value adjustment (2,553,600) - Balance at end of financial year - 3,119,958

Balance at end of financial year 29,489,790 - Movement in carrying value of specific investment

Background Balance at beginning of financial year 5,370,000 4,946,447

The fair value of the investment in Water Corporation was based on advice Share of surplus for year - 52,814 from Southern Water of Sorell Council's ownership share of 3.22% on the Share of asset revaluation - 697,216 net assets of the Water Corporation. Distributions received - (326,477)

Transfer to Southern Water (5,370,000) -

Balance at end of financial year - 5,370,000

Council's share of expenditure commitments

Operating commitments - 3,000

Capital commitments - 57,000

Sorell Council Financial Report 2009-10 72 Actual Actual 2010 2009 $ $

Waste - Southern Waste Solutions

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

Council's share of accumulated surplus

Balance at beginning of financial year 206,814 193,620

Reported surplus (deficit) for year (29,743) 13,194

Net reduction in equity via buyout (45,018) -

Transfers (to) from reserves (37,182) -

Balance at end of financial year 94,871 206,814

Council's share of reserves

Balance at beginning of financial year 18,272 18,272

Transfers to (from) reserves 37,182 -

Balance at end of financial year 55,454 18,272

Movement in carrying value of specific investment

Balance at beginning of financial year 225,086 211,892

Share of surplus (deficit) for year (29,743) 13,194

Net reduction in equity via buyout (45,018) -

Balance at end of financial year 150,325 225,086

Council's share of expenditure commitments

Operating commitments - -

Capital commitments - -

Sorell Council Financial Report 2009-10 73 Actual Actual 2010 2009

Current Non-current Current Non-current $ $ $ $

Note 26 Trade and other payables

Goods and services 1,105,795 - 191,920 -

Net GST payable (87,606) - (25,010) -

Accrued expenses 158,143 - 793,730 -

Revenue in advance 31,122 - 799,892 -

Other workers compensation on leave prov. 11,556 - 6,057 -

Other payroll tax on leave provisions 54,667 - 34,697 -

Total trade and other payables 1,273,677 - 1,801,286 -

Note 27 Trust funds and deposits

Refundable building deposits 4,500 - 4,500 -

Refundable contract deposits 129,656 - 90,855 -

Retention amounts 12,663 - 3,461 -

Other refundable deposits 14,243 - 13,061 -

Total trade and other payables 161,062 - 111,877 -

NOTE 28 INTEREST BEARING LIABILITIES

Loans:

Unsecured 396,853 3,082,008 557,973 6,063,059

Total interest bearing liabilities 396,853 3,082,008 557,973 6,063,059

The maturity profile for Council borrowings is:

Not later than one year 396,853 - 557,973 -

later than one year and not later than five years - 1,866,739 - 4,592,079

Later than five years - 1,215,269 - 1,470,980

396,853 3,082,008 557,973 6,063,059

NOTE 29 PROVISIONS

Annual leave 449,976 - 469,511 -

Rostered days off 20,478 - 23,262 -

Long service leave 379,725 66,453 364,572 171,003

Total provisions 850,179 66,453 857,345 171,003

Sorell Council Financial Report 2009-10 74 The following assumptions were adopted in measuring the present value of employee benefits:

Weighted average increase in employee costs 4.50% 3.50%

Weighted average settlement period 12 12

Current annual leave measured at nominal value and current long service leave which represents continuous service less than 10 years is measured at present value. Non-current long service represents 10 years of more continuous service and is measured at present value.

Detailed movements in provisions

Annual leave Long service RDO's leave

$ $ $

Balance at the beginning of the financial year 469,511 535,575 23,262

Additions to provisions 303,937 90,416 105,934

Transfer to Southern Water (12,214) (110,167) -

Amounts taken (311,258) (69,646) (108,718)

Balance at the end of the financial year 449,976 446,178 20,478

Sorell Council Financial Report 2009-10 75 Balance at Transfer to Balance at end beginning of accumulated Increment of reporting reporting period surplus (decrement) period $ $ $ $ Note 30 Reserves (a) Asset revaluation

2010 Property Land 4,572,676 225,581 4,798,257 Land under roads - 10,361 10,361 Buildings 892,982 115,893 1,008,875 Investment property 580,831 - - 580,831 PPE 508,971 - - 508,971 6,555,460 - 351,835 6,907,295

Infrastructure Roads 115,157,212 2,394,286 117,551,498 Bridges 3,132,346 99,851 3,232,197 Drainage 9,942,494 301,794 10,244,288 Waste 710,652 58,261 768,913 Sewerage 7,567,747 (7,567,747) - Water 11,223,243 (11,223,243) - 147,733,694 (18,790,990) 2,854,192 131,796,896

Council equity interest Hobart Water 3,111,958 (3,111,958) - - Southern Waste Solutions 18,272 37,182 55,454 3,130,230 (3,111,958) 37,182 55,454

Total asset revaluation 157,419,384 (21,902,948) 3,243,209 138,759,645

2009 Property Land 4,436,674 136,002 4,572,676 Buildings 818,561 74,421 892,982 Investment property 580,831 - - 580,831 PPE 508,971 - - 508,971 6,345,037 - 210,423 6,555,460 Infrastructure Roads 48,685,960 66,471,252 115,157,212 Bridges 2,161,077 971,269 3,132,346

Sorell Council Financial Report 2009-10 76 Infrastructure

Roads 48,685,960 66,471,252 115,157,212

Bridges 2,161,077 971,269 3,132,346

Drainage 9,689,239 253,255 9,942,494

Waste 678,946 31,706 710,652

Sewerage 7,644,651 (76,904) 7,567,747

Water 11,156,740 66,503 11,223,243

80,016,613 - 67,717,081 147,733,694

Council equity interest

Hobart Water 2,414,742 697,216 3,111,958

Southern Waste Solutions 18,272 - - 18,272

2,433,014 - 697,216 3,130,230

Total asset revaluation 88,794,664 - 68,624,720 157,419,384

The asset revaluation reserve represents the indexing and/or revaluation of Council's property, infrastructure and equity interests to fair value.

Balance at Transfer from Transfer to Balance at end beginning of accumulated accumulated of reporting reporting period surplus surplus period $ $ $ $ (b) Other reserves Capital works reserves 2010 Pioneer Park and Dodges Ferry Recreational Park 133,431 89,462 - 222,893 Road 50,703 - - 50,703 Plant replacement 4,534 - - 4,534 Children services 56,117 - - 56,117 Tracks and trails 161,999 15,124 177,123 Sewerage 342,203 - (342,203) - Stormwater Southern Beaches - 450,000 - 450,000 Land 246,775 - - 246,775 995,762 554,586 (342,203) 1,208,145 2009 Pioneer Park and Dodges Ferry Recreational Park 156,244 (22,813) 133,431 Road 111,907 (61,204) 50,703 Plant replacement 4,534 4,534 Children services 56,117 56,117 Tracks and trails 71,023 90,976 161,999 Sewerage 664,597 (322,394) 342,203 Land - 291,000 (44,225) 246,775 1,064,422 381,976 (450,636) 995,762

Other reserves represents the appropriation of surplus to reserves for the near future Council capital works projects.

Sorell Council Financial Report 2009-10 77 NOTE 31 In the opinion of the Actuary, the Quadrant Actual Actual SUPERANNUATION Defined Benefit Fund was adequately funded in 2010 2009 $ $ that assets were sufficient to cover the vested The Sorell Council makes superannuation benefits of all members at the review date and Fund contributions for some of its employees to the actuarial value of the accrued past service Defined benefits fund the Quadrant Defined Benefits Fund, which is benefits. Employer contributions 70,701 62,207 a sub fund of the Quadrant Superannuation Quadrant Defined Benefits Fund

Scheme. The Defined Benefits Fund has been The next triennial review will be undertaken 70,701 62,207 classified as a multi-employee sponsored plan. after 31 October for June 2011. As the Fund’s assets and liabilities are pooled At 30 June 2009, the net market value of and are not allocated by employer, the Actuary Accumulation funds assets available for funding members benefits is unable to allocate benefit liabilities, assets Employer contributions to 352,826 398,510 had fallen to $58,450,000 lagely due to poor Quadrant Superannuation and costs between employers. As provided investment returns that were experienced Scheme under paragraph 32(b) of AASB 119, Council during the 2009 financial year. The value of Employer contributions to 64,790 57,575 does not use defined benefit accounting for the Tasplan vested benefits at that date was $64,350,000 contributions. resulting in a shortfall of $5,900,000. When Employer contributions to Other 83,361 75,986 At the present time Council contributes 9.5% the Fund’s assets are below the vested 500,977 532,071 of employees’ gross income to the Fund. benefits, superannuation law defines this as an Assets accumulate in the fund to meet member “unsatisfactory financial position”. As a result of benefits as they accrue, and if assets within the the Fund moving into an unsatisfactory financial fund are insufficient to satisfy benefits payable, position, the Quadrant Trustee prepared a Note 32 the Council is required to meet its share of the plan to restore the financial position within a Operating Leases deficiency. reasonable time frame. This plan note the Operating Lease Commitments improved investment returns since 30 June Bendzulla Actuarial Pty Ltd undertook the last 2009 and confirmed that the 9.5% contribution At the reporting date, the Council had the actuarial review of the Fund at 30 June 2008. rate remained appropriate. following obligations under non-cancellable The review disclosed that at the time the net operating leases for the lease of computer market value of assets available for funding Council also contributes to other accumulation and communication equipment for use within member benefits was $84,786,241 the value of schemes on behalf of a number of employees, Council’s activities (these obligations are not vested benefits was $77,075,401, the surplus however the Council has no ongoing recognised as liabilities): was $7,707,840 and the value of total accrued responsibility to make good any deficiencies benefits was $81,398,000. These amounts that may occur in those schemes. relate to all members of the fund at the date of During the year Council made the required valuation and no asset or liability is recorded Actual Actual superannuation contributions for all eligible 2010 2009 in the Quadrant Superannuation Scheme’s $ $ employees to an appropriate complying financial statements for Council employees. superannuation fund as required by the Not later than one year - 48,762 The financial assumptions used to calculate the Superannuation Guarantee (Administration) Act Later than one year and not - - later than five years AccruedNet Investment Benefits Return for the Fund were: 7.1% pa 1992. - 48,762 Salary Inflation 5.3% pa During the reporting period Council made the Price Inflation n/a required superannuation contributions for all employees. The amount of contributions paid to Quadrant during the reporting period was $423,527 ($460,717 in 2008).

Sorell Council Financial Report 2009-10 78 Actual Actual 2010 2009 $ $

Note 33 Reconciliation of cash and cash equivalents

Cash and cash equivalents 3,320,992 3,176,869

Investments 5,270,940 5,307,510

8,591,932 8,484,379

Note 34 Reconciliation of cash flows from operating activities to surplus

Comprehensive result 3,508,835 71,635,423

Depreciation/amortisation 3,617,837 4,089,056

Contributions - Non-monetary (1,410,118) (1,747,088)

Net asset revaluation increment (3,243,209) (68,624,720)

Fair value adjustments for investment in Southern Water 2,553,600

Valuation of investment property at fair value (36,888) (28,343)

Valuation of financial investments at fair value 36,570 (45,730)

(Profit)/loss on interest in associate 29,743 (66,008)

Investment income Southern Water (427,170) -

Capital grants (259,732) (1,429,285)

(Profit)/loss on disposal of property, plant and equipment, infrastructure 28,873 (3,153)

(Profit)/loss on disposal of financial asset - 33,413

Impairment expense - 203,587

Lease on land from interest in associate - (66,636)

Dividend received - (26,254)

Change in assets and liabilities:

(Increase) decrease in Receivables current 76,806 (453,551)

(Increase) decrease in Other assets current 109,405 (1,327)

(Increase) decrease in Receivables non-current 14,229 16,850

(Increase) decrease in Other non-current 276 (19,107)

(Decrease) increase in trade payables and other payables (214,272) 102,962

(Decrease) increase in Provisions current 109,168 104,699

(Decrease) increase in Provisions non-current (73,033) 84,424

Net cash provided by operating activities 4,420,920 3,759,212

Sorell Council Financial Report 2009-10 79 Later than 1 year Later than 2 year Not later than and not later and not later Later than 5 1 year than 2 years than 5 years years Total $ $ $ $ $

Note 35 Commitments

The Council has entered into the following commitments

2010

Operating

Audit services 23,740 - - - 23,740

Recycling and Garbage Collection 477,000 477,000 1,431,000 - 2,385,000

Information system 50,000 52,000 54,080 - 156,080

550,740 529,000 1,485,080 - 2,564,820

Capital

Niel Davis Car Park 300,000 - - - 300,000

Reserve upgrades 365,000 - - - 365,000

Roads network 90,000 - - - 90,000

Information system 75,800 78,830 82,170 - 236,800

830,800 78,830 82,170 - 991,800

2009

Operating

Audit services 23,800 - - - 23,800

Recycling and Garbage Collection 477,000 477,000 1,908,000 - 2,862,000

Information system 48,000 50,000 106,080 - 204,080

548,800 527,000 2,014,080 - 3,089,880

Capital

Reserve upgrades 227,000 - - - 227,000

Information system 72,000 75,800 161,000 - 308,800

299,000 75,800 161,000 - 535,800

There are no contigent liabilities and assets recorded at balance date

Sorell Council Financial Report 2009-10 80 Note 36 (a)

Accounting Policy, terms and conditions

Recognised financial instruments Note Accounting Policy Terms and Conditions

Financial assets Cash and cash equivalents 16 Cash on hand and at bank and money market call On call deposits returned a floating interest rate of 4% account are valued at face value. (4% in 2008/2009). The Reserve Bank Cash Rate at balance date was 4.5% '(3% as at 30 June 2009). Interest is recognised as it accrues. Investments Investments are valued at market value. Investments returned fixed interest rate of between 8.5% (8.5% in 2008/2009) net of fees. Investments are held to maximise interest returns of surplus cash. Interest revenues are recognised as they accrue. Trade and other receivables Other debtors 18 "Receivables are carried at amortised cost using the General debtors are unsecured and arrears attract an effective interest method. A provision for doubtful interest rate of 6.45% (6.45% in 2008/2009). Credit debts is recognised when there is objective evidence terms are based on 30 days. that an impairment loss has occurred. Financial Liabilities Trade and other payables 26 Liabilities are recognised for amounts to be paid in General Creditors are unsecured, not subject to inter- the future for goods and services provided to Council est charges and are normally settled within <> days as at balance date whether or not invoices have been of invoice receipt. received. Interest-bearing loans and bor- 28 Loans are carried at their principal amounts, which "Borrowings are secured by way of mortgages over rowings represent the present value of future cash flows as- the general rates of the Council. sociated with servicing the debt. Interest is accrued over the period it becomes due and recognised as part of payables. Bank overdraft 28 Overdrafts are recognised at the principal amount. "The overdraft is subject to annual review. Interest is charged as an expense as it accrues.

Sorell Council Financial Report 2009-10 81 Note 36 (b) INTEREST RATE RISK

The exposure to interest rate risk and the Fixed interest effective interest rates of financial assets Floating maturing in: over 1 to 5 More than 5 Non-interest and financial liabilities, both recognise and interest rate 1 year or less years years bearing Total $ $ $ $ $ $ unrecognised, at balance date are as follows: 2010 Financial assets Cash and cash equilavents 3,318,942 - - - 2,050 3,320,992 Investments - 2,062,440 3,208,500 - - 5,270,940 Southern Water - - - - 29,489,790 29,489,790 Trade and other receivables - 743,534 - - 222,431 965,965 Midway Improvement loan receivable - 15,404 33,361 - 56,025 104,790 Total financial assets 3,318,942 2,821,378 3,241,861 - 29,770,296 39,152,477

Cash weighted average interest rate 4.0% Investment weighted average interest rate 8.5% 8.5% Trade receivables weighted average interest rate 6.5% Loan receivables weighted average interest rate 9.5% 9.5%

Financial liabilities Trade and other payables - - - - 1,273,677 1,273,677 Trust funds and deposits - - - - 161,062 161,062 Interest bearing liabilities - 396,853 1,859,239 1,213,769 9,000 3,478,861 Total financial liabilities - 396,853 1,859,239 1,213,769 1,443,739 4,913,600

Weighted average interest rate 6.9% 7.2% 7.5%

Net financial assets (liabilities) 3,318,942 3,218,231 5,101,100 1,213,769 31,214,035 44,066,077

2009 Financial assets Cash and cash equilavents 3,174,819 - - - 2,050 3,176,869 Investments - - 5,307,510 - - 5,307,510 Trade and other receivables - 842,572 - - 214,982 1,057,554 Midway Improvement loan receivable 620 29,729 11,524 62,362 104,235 Total financial assets 3,174,819 843,192 5,337,239 11,524 279,394 9,646,168

Cash weighted average interest rate 4.0% Investment weighted average interest rate 8.5% 8.5% Trade receivables weighted average interest rate 6.5% Loan receivables weighted average interest rate 9.5% 9.5%

Financial liabilities

Sorell Council Financial Report 2009-10 82 Note 36 Financial Instruments (cont.)

(c) Net Fair Values Total carrying amount as per Aggregate net fair value The aggregate net fair values of financial assets balance sheet and financial liabilities, both recognised and 2010 2009 2010 2009 $ $ $ $ unrecognised, at balance date are as follows: Financial assets

Cash and cash equilavents 3,320,992 3,176,869 3,320,992 3,176,869

Investments 5,270,940 5,307,510 5,270,940 5,307,510

Southern Water 29,489,790 - 29,489,790

Trade and other receivables 965,965 1,057,555 965,965 1,057,555

Receivable loans 104,790 104,234 104,790 104,234

Total financial assets 39,152,477 9,646,168 39,152,477 9,646,168

Financial liabilities

Trade and other payables 1,273,677 1,801,286 1,273,677 1,801,286

Trust funds and deposits 161,062 111,877 161,062 111,877

Interest bearing liabilities 3,478,861 6,621,032 3,251,880 4,682,436

Total financial liabilities 4,913,600 8,534,195 4,686,619 6,595,599

(d) Categories of Financial Instruments Fair value

2010 2009 $ $

Financial assets

Cash and cash receivables 3,320,992 3,176,869

Financial assets at fair value through profit and loss 5,270,940 5,307,510 - held for trading

Available for sale financial assets 29,489,790 -

Loans and receivables 1,070,755 1,161,789

Total financial assets 39,152,477 9,646,168

Financial liabilities

Financial liabilities at fair value through profit and 4,686,619 6,595,599 loss

Total financial liabilities 4,686,619 6,595,599

Sorell Council Financial Report 2009-10 83 (e) Credit Risk Our loan borrowings are sourced from major Credit risk Liquidity risk Australian banks by a tender process and The maximum exposure to credit risk at balance Credit risk is the risk that a contracting entity will Liquidity risk includes the risk that, as a result of our through Tascorp. Overdrafts are arranged with date in relation to each class of recognised not complete its obligations under a financial operational liquidity requirements: major Australian banks. We manage interest rate financial asset is represented by the carrying instrument and cause Council to make a financial risk on our net debt portfolio by: - we will not have sufficient funds to settle a amount of those assets as indicated in the loss. Council have exposure to credit risk on transaction on the date; Statement of Financial Position. some financial assets included in our balance - ensuring access to diverse sources of funds; sheet. To help manage this risk: - we will be forced to sell financial assets at a (f) Risks and mitigation value which is less than what they are worth; or - reducing risks of refinancing by managing in - we have a policy for establishing credit limits The risks associated with our main financial accordance with target maturity profiles; and for the entities we deal with; - we may be unable to settle or recover a instruments and our policies for minimising these financial assets at all. risks are detailed below. - setting prudential limits on interest - we may require collateral where appropriate; repayments as a percentage of rate revenue. and To help reduce these risks we: Market risk

- we only invest surplus funds with financial - have a liquidity policy which targets a minimum

institutions which have a recognised credit and average level of cash and cash equivalents Market risk is the risk that the fair value or future We manage the interest rate exposure on our rating specified in our Investment policy. to be maintained; cash flows of our financial instruments will debt portfolio by appropriate budgeting strategies fluctuate because of changes in market prices. Credit risk arises from Council’s financial assets, - have readily accessible standby facilities and and obtaining approval for borrowings from the Council's exposures to market risk are primarily which comprise cash and cash equivalents, and other funding arrangements in place; Department of Treasury and Finance each year. through interest rate risk with only insignificant trade and other receivables. Council’s exposure - have a liquidity portfolio structure that requires exposure to other price risks and no exposure to nvestment of surplus funds is made with to credit risk arises from potential default of the surplus funds to be invested within various foreign currency risk. Components of market risk approved financial institutions under the Local counterparty, with a maximum exposure equal bands of liquid instruments; to which we are exposed are discussed below. Government Act 1993. We manage interest to the carrying amount of these instruments. rate risk by adopting an investment policy that Exposure at balance date is addressedin each - monitor budget to actual performance on a Interest rate risk ensures: applicable note. Council generally trades with regular basis; and Interest rate risk refers to the risk that the value of recognised, creditworthy third parties, and as - conformity with State and Federal regulations - set limits on borrowings relating to the a financial instrument or cash flows associated such collateral is generally not requested, nor and standards, percentage of loans to rate revenue and with the instrument will fluctuate due to changes is it Council’s policy to securtise its trade and percentage of loan principal repayments to rate in market interest rates. Interest rate risk arises - capital protection, other receivables. It is Council’s policy that some revenue. from interest bearing financial assets and liabilities customers who wish to trade on credit terms are - appropriate liquidity, that we use. Non derivative interest bearing subject to credit verification procedures including The Councils exposure to liquidity risk is deemed assets are predominantly short term liquid assets. - diversification by credit rating, financial an assessment of their credit rating, financial insignificant based on prior periods’ data and Our interest rate liability risk arises primarily from institution and investment product, position, past experience and industry reputation. current assessment of risk. long term interest bearing liabilities at fixed rates In addition, receivable balance are montiored on - monitoring of return on investment, which exposes us to fair value interest rate risk. an ongoing basis with the result that Council’s - benchmarking of returns and comparison exposure to bad debts is not significant.

with budget. We may also be subject to credit risk for Maturity will be staggered to provide for interest transactions which are not included in the rate variations and to minimise interest rate risk. balance sheet, such as when we provide a guarantee for another party.

Sorell Council Financial Report 2009-10 84 The table at right lists the contractual maturities for Financial Liabilities 6 mths 6-12 1-2 2-5 >5 Contracted Carrying These amounts represent undiscounted gross 2010 or less months years years years Cash Flow Amount payments including both principal and interest $ $ $ $ $ $ $ amounts. Trade and other payables 1,273,677 - - - - 1,273,677 1,273,677 Trust funds and deposits 54,000 107,062 - - - 161,062 161,062 Interest bearing liabilities 311,117 311,117 619,940 1,640,524 - 2,882,698 2,882,698 Total financial liabilities 1,638,794 418,179 619,940 1,640,524 - 4,317,437 4,317,437

6 mths 6-12 1-2 2-5 >5 Contracted Carrying 2009 or less months years years years Cash Flow Amount $ $ $ $ $ $ $ Trade and other payables 1,801,286 - - - - 1,801,286 1,801,286 Trust funds and deposits 27,000 84,877 - - - 111,877 111,877 Interest bearing liabilities 310,881 310,881 622,234 1,795,521 - 3,039,517 3,039,517 Total financial liabilities 2,139,167 395,758 622,234 1,795,521 - 4,952,680 4,952,680

(g) Sensitivity disclosure analysis Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the financial markets, the Council believes the following movements are ‘reasonably possible’ Interest rate risk over the next 12 months (Base rates are sourced -1 % +2 from Reserve Bank of Australia): -100 basis points +200 basis points - A parallel shift of + 2% and -1% in market 2010 Profit Equity Profit Equity interest rates (AUD) from year-end rates of $ $ $ $ $ 4.5%. Financial assets: Cash and cash equivalents The table below discloses the impact on net 3,318,942 (43,500) 43,500 85,000 (85,000) operating result and equity for each category of financial instruments held by Council at year-end, if the above movements were to occur.

Sorell Council Financial Report 2009-10 85 (h) Fair Value Hierarchy 30-Jun-10 Level 1 Level 2 Level 3 Total The table below analyses financial instruments Available for sale financial assets - - carried at fair value by valuation method. 29,489,790 29,489,790 Financial assets at fair value through the 5,270,940 - - 5,270,940 The different levels have been defined as follows: comprehensive income statement Level 1 Total 5,270,940 - 29,489,790 34,760,730 quoted prices (unadjusted) in active markets for identical assets or liabilities 30-Jun-09 Level 1 Level 2 Level 3 Total Level 2 Available for sale financial assets - - - - inputs other than quoted prices included within Financial assets at fair value through the 5,307,510 - - 5,307,510 level one that are observable for the asset or comprehensive income statement liability, either directly (i.e. prices) or indirectly (i.e. Total 5,307,510 - - 5,307,510 derived from prices) Level 3 inputs for the asset or liability that are not based on observable market data

Note 37 2010 2009 $ $ Auditors Remuneration Audit fee to conduct external audit - Tasmanian Audit 23,800 25,194 Office Other audit fees 5,295 680 29,095 25,874

Sorell Council Financial Report 2009-10 86 Note 38 Related party transactions (i) Responsible Persons Names of persons holding the position of a Responsible Person at the Council at any time during the year are: Councillors Councillor Carmel Torenius Mayor Oct 2009 to 2013 Councillor Graham Evans Deputy Mayor Oct 2009 to 2011 Councillor Bryan Dean Oct 2009 to 2011 Councillor Judy Young Oct 2009 to 2011 Councillor Mike Purdon Oct 2009 to 2013 Councillor Brett McDonald Oct 2009 to 2011 Councillor Kerry Vincent Oct 2009 to 2013 Councillor Kerry Degrassi Oct 2009 to 2013 Councillor James Dunbabin Oct 2009 to 2011 Chief Executive Officer

Bill Costin

(ii) Remuneration Total Remuneration for the reporting year for Councillors' Emoluments and reimbursements included above amounted to: 2010 148,815 2009 133,404 Total Remuneration (inc. wages, superannuation and motor vehicle) for the reporting year for senior management positions included above amounted to: 2010 607,000 2009 584,000

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

Sorell Council Financial Report 2009-10 87 Note Actual Actual (a) Renewal and replacement 2010 2009 Note 39 Capital expenditure $ $ Expenditure on an existing asset which returns Capital expenditure area the service potential or the life of the asset up to

Roads, footpaths and bridges 2,439,238 1,954,117 that which it had originally. It is periodically required expenditure, relatively large (material) in value Car Park 309,556 340,882 compared with the value of the components or Drainage 296,776 43,394 sub-components of the asset being renewed. Parks, open space and streetscapes 504,918 677,936 As it reinstates existing service potential, it has Buildings 219,882 352,160 no impact on revenue, but may reduce future

Plant and equipment 218,833 529,243 operating and maintenance expenditure if completed at the optimum time. Water and sewerage - 735,558

Other 430,077 384,159 (b) Upgrade Total capital works 4,419,280 5,017,449 Expenditure which enhances an existing asset to provide a higher level of service or expenditure Represented by: that will increase the life of the asset beyond that

Renewal and replacement of (a) 3,174,042 3,440,061 which it had originally. Upgrade expenditure is infrastructure discretional and often does not result in additional Upgrade of infrastructure (b) 235,287 - revenue unless direct user charges apply. It will

New plant and equipment (d) 219,176 296,211 increase operating and maintenance expenditure in the future because of the increase in the council’s New car park (d) 228,391 315,139 asset base. New roads, footpaths, bridges (d) 369,909 41,780

New underground power (d) - 482,330 (c) Expansion New reserves (d) - 42,704 Expenditure which extends an existing asset, New Other (d) 192,475 399,224 at the same standard as is currently enjoyed by

Total financial liabilities 4,419,280 5,017,449 residents, to a new group of users. It is discretional expenditure which increases future operating and maintenance costs, because it increases council’s Property, plant and equipment, infrastructure movement asset base, but may be associated with additional revenue from the new user group. Total capital works 4,419,280 5,017,449

Contributions - non-monetary 8 (c) 1,410,118 1,747,088 (d) New Asset revaluation movement 30 3,206,027 67,927,504 Expenditure which adds a new asset providing Depreciation/amortisation 12 (3,617,837) (4,089,056) greater service levels to the community. This will Transfer to Southern Water 22 (b) (27,983,957) - increase future maintenance expenditure however

Written down value of assets sold 15 (209,586) (262,659) there may have been saving realised due to improved technology, increased labour efficiency Net movement in property, plant and (22,775,955) 70,340,326 equipment, infrastructure and/or additional revenue.

Sorell Council Financial Report 2009-10 88 Note 40 Significant business activity Water Sewerage 2010 2009 2010 2009 The operating capital and competitive neutrality $ $ $ $

costs of the Council's significant business Revenue activities. Rates and annual charges - 628,955 - 1,234,861

User charges and fees - 683,510 - 2,040

Interest and investment revenue - 13,591 - -

Other revenues - 182 - -

Grants and contributions provided for - 139,870 - 477,329 capital purposes

Share of interests in joint ventures and - 52,814 - - associates using the equity method

Total revenue - 1,518,922 - 1,714,230

Expenses

Employee Benefits and on-costs - 221,752 - 332,001

Borrowing costs - 12,070 - 57,542

Materials and contracts - 627,215 - 237,311

Depreciation and amortisation - 238,927 - 302,754

Net gain from the disposal of assets - - - -

Other expenses - 10,190 - 79,758

Total expenses - 1,110,154 - 1,009,366

Net operating result for the year - 408,768 - 704,864

Neutrality Costs

Council Rates - 832 - 2,277

Land Tax - 4,590 - 12,565

Superannuation Difference 3% - (5,085) - (10,582)

- 337 - 4,260

SUB TOTAL NOTIONAL INCOME 408,431 700,604 BEFORE TAX

Less Income from non cash 139,870 477,411 contributions

NOTIONAL INCOME BEFORE TAX 268,561 223,193

Income Tax on Notion Income (30%) 80,568 66,958

NOTIONAL INCOME AFTER TAX 327,863 633,646

Net Value of Assets 19,991,893 15,030,220

Neutrality cost 8.74% (1,747,291) (1,313,641)

Total Competitive Neutrality Cost (1,338,860) (613,037)

* disaggreagted to note level to show affected asset/liability classes ** write back of ARR and general reserves relating to water and sewerage.

Sorell Council Financial Report 2009-10 89 Sorell Council Financial Report 2009-10 90 Appendix A Income Statement Council Owned Halls Period Ended 30th June, 2010 Revenue

Bank Interest 0.91 4.88 Bream Creek Hall & Grants Sorell Council 1,000.00 1,000.00

Reserves Committee Hall Hire 991.82

Donations 1,524.00 1,000.00

Ground Hire 1,195.45 800.00

Meeting Hire (Bream Creek Show Society) 304.55

Total Revenue 4,712.18 3,109.43

less Expenses

Electricity 821.50 615.51

Maintenance 746.49 115.00

Sundries

Total Expenses 1,567.99 730.51

Net Surplus / (Deficit) 3,144.19 2,378.92

Bank Reconciliation as at 30th June, 2010

Balance per bank statement 7,065.55 3,849.71

Less unpresented cheques (126.50)

Add deposits not credited

Balance per cashbook 7,065.55 3,723.21

Notes to the accountant

NOTES 1: Outstanding Creditors for 2009/10 to be paid to Sorell Council

Aurora Account Inv No 8585 303.80

303.80

Sorell Council Financial Report 2009-10 91 Appendix A Balance Sheet 2010 2009 Council Owned Halls (cont.) Equity $ $ Equity brought forward 10,134.07 7,646.39 Current Surplus / (Deficit) 2,485.34 2,487.68 Copping Hall Committee Equity carried forward 12,619.41 10,134.07

Represented by: Bank Account 13,371.53 10,518.27 Petty Cash Float 100.00 100.00 Total Assets 13,471.53 10,618.27

less Liabilities GST Collected 1 917.81 530.55 GST Paid 1 (397.40) (189.65) Creditors 1 331.71 143.30 Total Liabilities 852.12 484.20

Net Assets 12,619.41 10,134.07

Income Statement Revenue

Bank Interest 0.93 7.46 Donations 44.00 1,229.80 Grants 1,000.00 1,000.00 Functions 493.95 258.45 Camping Fees 95.45 Hall Hire 1,885.18 1,811.84 Copping Public Cemetery Trust Net Income 920.25 818.44 Other 200.00 Total Revenue 4,344.31 5,421.44

Less Expenses Cleaning Materials 59.62 Electricity 661.19 642.05 Equipment Purchases 1,038.30 1,465.58 Maintenance 240.74 250.06 Stationery 2 (81.26) Insurance Sundries 516.45 Total Expenses 1,858.97 2,933.76 Notes to the accountant Net Surplus / (Deficit) 2,485.34 2,487.68 NOTES 1: Bank Reconciliation Sorell Council Inv. 8575 - Aurora Account 171.25 Balance per bank statement 6,713.02 4,807.04 Sorell Council Inv. 8469 - Aurora Account 160.46 Add Copping Public Cemetry Trust 6,392.51 5,480.51 GST for 07/08 Year to be paid to Sorell Council (Nett) 340.90 Less unpresented cheques (100.00) (183.63) GST for 09/10 Year to be paid to Sorell Council (Nett) 179.51 Add deposits not credited 366.00 414.35 Balance per cashbook 13,371.53 10,518.27 852.12

Note 2:

Write Back of unpresented cheque previous period

Sorell Council Financial Report 2009-10 92 Appendix A Balance Sheet 2010 2009 Council Owned Halls (cont.) Equity $ $ Equity brought forward 6,490.35 8,269.07 Current Surplus / (Deficit) (6,983.72) (1,778.72) Dodges Ferry Community Equity carried forward (493.37) 6,490.35

Recreation Centre Represented by: Bank Account 1 1,242.49 8,759.82 GST Paid (Receivable) 2 7,794.28 6,720.26 Debtors Total Assets 9,036.77 15,480.08

less Liabilities GST Collected (Payable) 2 9,530.14 8,370.67 Creditors 619.06 Total Liabilities 9,530.14 8,989.73

Net Assets (493.37) 6,490.35

Income Statement Revenue Gym Hire 9,595.47 9,533.60 Room Hire 2,256.43 2,429.82 Kiosk Hire 2,380.00 Telephone Fees Electricity Reimbursements Drink Machine Commissions 42.10 Other 660.00 Bank Interest 2.28 23.57 Grants 11,182.05 10,902.60 Department of Education Contribution Donations 50.00 Total Revenue 23,746.23 25,311.69

less Expenses Maintenance 8,797.16 6,463.46 Electricity 4,772.56 4,497.98 Telephone 1,407.76 962.72 Waste Disposal 382.02 464.74 Equipment Purchases 2,103.73 Stationery 107.00 192.12 Cleaning Supplies 85.18 671.20 Cleaning Wages 11,250.00 11,250.00 Sundries 328.27 484.46 Loan Repayment 3,600.00 Bank Fees NOTE 2: Total Expenses 30,729.95 27,090.41

Net GST Payable prior to June 08 310.86 Net Surplus / (Deficit) (6,983.72) (1,778.72) Net GST Payable Y/E 30/06/2009 1,339.55 Net GST Payable Y/E 30/06/2010 85.45 Bank Reconciliation Total GST Payable 1,735.86 Balance per bank statement 1 1,692.49 9,415.84 1,735.86 Less unpresented cheques (450.00) (656.02) Add deposits not credited Balance per cashbook 1,242.49 8,759.82 N.B. Council advance to Recreation Centre $23,103.54

Sorell Council Financial Report 2009-10 93 Appendix A Balance Sheet 2010 2009 Council Owned Halls (cont.) Equity $ $ Equity brought forward 12,039.20 7,641.34 Current Surplus / (Deficit) (5,102.82) 4,397.86 Dunalley Hall Committee Equity carried forward 6,936.38 12,039.20

Represented by: Bank Account 7,184.21 12,052.83 Debtors Total Assets 7,184.21 12,052.83

less Liabilities GST Collected 2 488.10 331.10 GST Paid 2 (562.10) (552.83) Creditors 1 321.83 235.36 Total Liabilities 247.83 13.63

Net Assets 6,936.38 12,039.20

Income Statement

Revenue Bank Interest 3.93 19.56 Grant 1,000.00 1,000.00 Hall Hire 1,764.25 1,255.00 Equipment Hire 95.00 44.40 Functions 183.91 Library/Kitchen Hire 80.00 30.00 Donations 120.00 766.35 Sale of Assets 4,363.64 Grave Site Sales 320.00 130.00 Total Revenue 3,567.09 7,608.95

less Expenses Insurance (10.00) Cleaning Materials 244.97 Electricity 1,105.39 1,040.04 Equipment Purchases 7,533.16 664.67 Maintenance 26.81 734.86 Stationery Sundries 4.55 536.55 Water Total Expenses 8,669.91 3,211.09

Net Surplus / (Deficit) (5,102.82) 4,397.86 Notes to the accountant

NOTES 1: Bank Reconciliation Inv. 8574 Aurora Charges 262.74

Inv. 8576 Aurora Charges 59.09 Balance per bank statement 7,184.21 12,295.83

321.83 Less unpresented cheques 243.00

Add deposits not credited

Balance per cashbook 7,184.21 12,052.83

Sorell Council Financial Report 2009-10 94 Appendix A Balance Sheet 2010 2009 Council Owned Halls (cont.) $ $ Equity brought forward 9,665.76 7,213.86 Midway Point Hall Committee Current Surplus / (Deficit) 2,782.47 2,451.90

Bank Account 12,448.23 9,665.76 Debtors 12,448.23 9,665.76

GST Collected 762.30 747.65 GST Paid (to Council) (762.30) (747.65) Creditors 0.00 0.00 Income Statement Revenue Bank Interest 43.12 39.14 Hall Hire 4,259.60 5,133.85 Electricity Reimbursements 364.00 265.00 Op Shop 2,797.00 2,040.00 Library & Kitchen Hire Grants 1,100.00 1,500.00 Chair Hire 30.00 Donations 395.00 Total Revenue 8,958.72 9,007.99

less Expenses Bank Charges Cleaning Materials 91.45 207.14 Electricity 1,852.53 1,724.26 Equipment Purchases 1,481.82 3,015.44 Grant Expenses 1,000.00 500.00 Maintenance 740.45 Stationery Cleaning Wages 910.00 910.00 Sundries 100.00 29.25 Waste 170.00 Total Expenses 6,176.25 6,556.09

Net Surplus / (Deficit) 2,782.47 2,451.90

Bank Reconciliation

Balance per bank statement 12,448.23 9665.76

Less unpresented cheques

Add deposits not credited -

Balance per cashbook 12,448.23 9,665.76

Sorell Council Financial Report 2009-10 95 Appendix A Balance Sheet 2010 2009 Council Owned Halls (cont.) Equity $ $ Equity brought forward 1,896.75 4,437.11 Current Surplus / (Deficit) 901.81 (2,540.36) Primrose Sands Hall Committee Equity carried forward 2,798.56 1,896.75

Represented by: Bank Account 1,720.43 3,527.44 Stock On Hand 1,427.35 1,767.55 Petty Cash Float 200.00 200.00 Total Assets 3,347.78 5,494.99

less Liabilities GST Collected 2 698.12 1,802.15 GST Paid (to Council) (148.90) (510.59) Creditors 2,306.68 Total Liabilities 549.22 3,598.24

Net Assets 2,798.56 1,896.75 Income Statement Revenue Bank Interest 11.93 20.45 Canteen Sales 5,065.50 2,773.23 Donations 1,512.00 Grants 3,300.00 1,200.00 Hall Hire 2,041.81 1,259.02 Other Revenue 140.91 178.64 Youth Group Grant Total Revenue 12,072.15 5,431.34

less Expenses Bank Charges 457.00 Canteen Stock 1 2,814.82 1,955.67 Cleaning Materials 360.92 514.63 Cleaning Wages 1,295.00 900.00 Electricity 626.42 590.00 Equipment Purchases 4,954.46 716.67 Maintenance 2,000.00 Secretarial 185.33 145.25 Notes to the accountant Sundries 476.39 223.98 Youth Group 925.50 NOTES 1: Total Expenses 11,170.34 7,971.70

Canteen stock expense represents cost of goods sold that i.e. the Net Surplus / (Deficit) 901.81 2,700.21 Revenue now matches the expenditure with a gross margin for F10 at 44%. Bank Reconciliation

NOTES 2: Balance per bank statement 1,720.43 3,527.44

Amounts owing to Sorell Council Less unpresented cheques

GST 2008/09 (26.71) Add deposits not credited

GST 2009/10 575.93 Balance per cashbook 1,720.43 3,527.44 549.22

Sorell Council Financial Report 2009-10 96 Sorell Council Financial Report 2009-10 97 12 Somerville Street, Sorell TAS 7172 PO Box 126, Sorell TAS 7172 Phone 6269 0000 Fax 6269 0014 Email [email protected] www.sorell.tas.gov.au