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2019-20 Annual Report and Audited Financial Statements

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2019-20 Annual Report and Audited Financial Statements KANGAROO ISLAND COUNCIL annual report 2019-2020 Kangaroo Island Council Annual Report 2019-20 I KANGAROO ISLAND COUNCIL annual report 2019-2020 ISSN: 1835-484X (Print) ISSN: 1835-4858 (Online) II KANGAROO ISLAND COUNCIL annual report 2019-2020 Table of Contents Welcome 1 Island Profile and Fast Facts 2 Message from the Mayor 3 Your Elected Members 5 Message from the CEO 6 The Summer Bushfires – a report 9 Infrastructure 11 Community 14 Collaboration 17 Our Island 19 Supporting our Economy 21 Our Organisation 24 Governance 26 Finance Report 36 General Purpose Financial Statement 44 Appendices FRWA Annual Report Southern and Hills LGA Annual Report III KANGAROO ISLAND COUNCIL annual report 2019-2020 Welcome Kangaroo Island Council presents the 2019-20 Annual Report and Audited Financial Statements. The first section of this Report reflects Council’s performance as set by its Annual Business Plan 2019-20 and its Strategic Plan 2014-2018, which was still in effect for the reporting period. This report presents a review the highlights of key work undertaken in our priority areas of Infrastructure, Community, Collaboration, Economy, Our Island, and Our Organisation. In Section 2 Council reports Governance matters and in Section 3 Finance. In this reporting period Council presents its cumulative performance against the three Strategic Imperatives which underpin the relevant Strategic Plan. Over the life of the Plan, we are pleased to report that we have completed almost all of our planned actions, despite the significant disruptions to ‘business as usual’ in this reporting period. They are Cost Reduction, Revenue and Stimulus/Service. The 2020-2024 Strategic Plan will be endorsed by November 2020 following extensive consultation with residents and ratepayers, Elected Members, key stakeholders and Council staff. As we move forward with our new Strategic Plan, we will be guided by our Vision to be a ‘confident and cohesive Community supported to rebuild our unique Island environment, with a strengthening economy led by primary production and tourism’. We also remain steadfast in our Mission ‘to provide our community with leadership and support, and to deliver key council services efficiently and effectively’. We sincerely thank the community, our Elected Members, all key stakeholders, and the many, many volunteers who give of themselves to support this community each and every year and particularly as we faced the devastating bushfires, and move forward with our recovery. Michael Pengilly Greg Georgopoulos Mayor Chief Executive Officer 1 KANGAROO ISLAND COUNCIL annual report 2019-2020 Island Profile 81% unsealed roads 4,702 4,405km2 1,362 third largest island population km of roads in Australia 8% 4th residential, most recoginised 65% 27% businesses tourism destination primary production parks/rural land and Council in Australia Fast Facts 46,156 1,458/240 216 dogs/cats 1731 library annual boat customer service borrowings ramp permits registered requests 6,049 number of 146 $1,245 12,605 rateable development average residential email and fax properties applications rates levied inquiries 2 KANGAROO ISLAND COUNCIL annual report 2019-2020 Message from the Mayor The 2019-2020 reporting period for Council has seen fires was invaluable as was the arrival of volunteer a financial year marred by two challenging events that groups such as BlazeAid to replace and repair fences. The have had a considerable adverse impact on Council: Island will be forever in debt to the thousands of people last Summer’s bushfires and COVID-19. These events who crossed from the mainland to support our clean-up have added unplanned pressure on Council’s budget and and rebuilding. ‘business as usual’ operations across the Island. The spirit of giving to those directly impacted by the As Council approached the Christmas break, the Island bushfires was humbling and it was brought home to us witnessed the beginnings of horrific bushfires during a particularly after we established the Kangaroo Island period of extreme weather conditions. Mayoral Relief and Recovery Bushfire Fund on 4 January. Donations came in from all over the world – over $5.5M The fires raged for four weeks until 21 January 2020 by 30 June 2020. All money in the Fund is for people when the CFS declared them officially contained, even whose homes, properties, businesses or community though the fire zone was not declared safe until 6 assets were directly impacted by the bushfires. We thank February 2020. The fires devastated almost half the all those who generously donated. I also acknowledge the Island, impacting many peoples’ lives, livelihoods and work of everyone involved in setting up and administering livestock, and destroying the environment and wildlife. the Fund as Council agreed to absorb the entire cost of We received tremendous support from our local Country the Fund’s administration. Fire Service and farm fighting units, other State CFS Just as Council and the State and Federal Governments brigades and firefighting volunteers, the Australian started the enormous task to support the rebuild of Defence Force Reservists, the Local Government fire impacted zones, we were faced with the global Functional Support Group, State Emergency Service, SA pandemic, COVID-19, which placed further pressures Police and our own staff. Support was also there from on the community and local economy and continues SA Health, SA Water, SA Power Networks, BlazeAid, to add another layer of complexity to the bushfire Green Industries SA, Fleurieu Regional Waste Authority recovery effort. and many others. Further, as a result of the fires, the Valuer General, in The clean-up of the bushfire zone continues and has a bad decision, devalued all properties on Kangaroo been complex, often dangerous and taxing on energy Island, which had a major impact on rate revenue and on and emotions. The work undertaken by the Australian Council’s budget. Defence Force Reservists in the early aftermath of the 3 KANGAROO ISLAND COUNCIL annual report 2019-2020 His Excellency, General the Honourable David Hurley AC DSC (Retd), Michael Pengilly, Mayor Kangaroo Island Council, Greg Georgopoulos, CEO, Kangaroo Island Council The financial year ended on a positive note with the To the many hundreds of Islanders that support their Morrison Liberal Government committing $33M to a local progress associations and community volunteer $49M water project, i.e. to build an additional desalination organisations, not-for-profits and various committees, plant at Penneshaw to help futureproof the water needs you all play an important role in the decision making and of the Island and strengthen bushfire resilience. The actions that make this island a unique and special place. remainder of the project is being funded by the State I present this overview of the 2019-2020 financial Government and SA Water. year with appreciation of everybody’s contribution Whilst the road ahead may be long, Council’s response in trying times. to extraordinary events over the past 12 months has Michael Pengilly been outstanding. Mayor I sincerely thank everyone and every organisation that has contributed to the overall wellbeing and success of Council and the Island. 4 KANGAROO ISLAND COUNCIL annual report 2019-2020 Your Elected Members Cr Bob Teasdale, Deputy Mayor Cr Peter Denholm E: [email protected] E: [email protected] M: 0448 635 009 P: 08 8553 1343 Committee Representative Committee Representative • Audit and Risk Committee • Finance Committee • Finance Committee • Awards and Grants Assessment Panel • Penneshaw Community • Fleurieu Regional Waste Authority Business Centre • Council Assessment Panel Cr Sam Mumford Cr Ken Liu E: [email protected] E [email protected] M: 0427 595 156 M 0428 322 005 Committee Representative Committee Representative • Audit and Risk Committee • Finance Committee • Finance Committee • Boating Facilities Committee Cr Rosalie Chirgwin Cr Graham Walkom E: [email protected] E: [email protected] M: 0409 485 123 M: 0452 286 238 Committee Representative Committee Representative • Finance Committee • Finance Committee • Audit and Risk Committee • Boating Facilities Committee Cr Shirley Pledge Cr Peter Tiggemann E: [email protected] [email protected] M: 0427 041 787 M: 0400 588 659 Committee Representative Committee Representative • Finance Committee • Boating Facilities Committee • Awards and Grants • KI Mayoral Bushfire Policy and • Assessment Panel Recovery Fund Committee • KI Mayoral Bushfire Policy and • Awards and Grants Assesment Panel Recovery Fund Committee • Finance Committee 5 KANGAROO ISLAND COUNCIL annual report 2019-2020 Message from the CEO This reporting period has been like no other given the magnitude of what we have been faced with in the past 6 months, namely the bushfires, bushfire recovery and COVID-19. We also had major governance matters to address was handled in an efficient and effective manner, working at the beginning of the period that stemmed from a to tight deadlines. series of Ombudsman’s investigations. We had to act Though some funding required specific responses, on the Ombudsman’s recommendations and that meant other funding streams were open to collaboration and improving our governance structures and practices with in-kind support that enabled Council to, in some cases, regard to reporting. Among other things we had to set double what was on offer to clean up, recover and up a Section 41 committee to oversee CEO performance. build back better. Complex and significant, the additional governance workload placed a burden on the administration. It has Council’s administration and the CEO’s Office received a also had an impact on the culture of the organisation, and subpoena to respond to the bushfire Royal Commission will take a couple of years to harmonise. and Keelty Review, both requiring accurate and detailed reporting on how Council administration dealt with The bushfires in December and January placed demands during the bushfires.
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