Annual Report for the Year Ending 30 June 2007

ISSN 1835‐484X

Annual Report for the year ending 30 June 2007

Kangaroo Island Council

first settlement in South Australia

1 Welcome

This Annual Report demonstrates Council’s continued commitment to open and accountable government

We present our achievements over the past year and provide a picture of our strategic and financial performance

Who is the Annual Report for?

Our Report is produced for all interested residents, ratepayers, customers, potential investors and interested stakeholders.

What does our Annual Report tell you?

We are required to produce an Annual Report in accordance with the Local Government Act 1999. More than this, the Report is presented to provide you with a summary of our performance against our Strategic Plan 2007 – 2010. It also provides an insight into our operations and our financial performance, together with an understanding of the many challenges and successes achieved by our Island community.

Kangaroo Island Council

The Council was formed in 1996 after the amalgamation of the District Council of Dudley and the District Council of Kingscote.

2 Kangaroo Island

Our place, our history, why we live here

Land, Sea and Heritage Positive Outlook Relaxing

Kangaroo Island has long been known as an idyllic setting in which to live offering a unique and relaxed lifestyle. Modern amenities and services are coupled with an appreciation and preservation of the natural environment, heritage and values characteristic of the culture of the first European settlement in South Australia.

Location

Kangaroo Island is located 15km off the tip of the southern coast of the Fleurieu Peninsula in South Australia. It is 55 kms wide, 155 kms long and has a coastline of some 457kms.

Geography and Environment

Kangaroo Island, Australia’s third largest island is renowned for its scenery, geographical features and unique flora and fauna. It was isolated from mainland Australia by post-glacial rising sea levels about 12,000 years ago. It has retained many plants and animals no longer found on mainland Australia. It has the largest remaining tracts of remnant native vegetation within the agricultural zone in South Australia.

The Island boasts a temperate climate. It has a variety of landscapes; rolling hills, grassland plains, large granite outcrops, sheer cliffs, white sandy beaches, gum lined water courses and inland sand dunes.

Settlements vary in size and facilities, from the villages of Baudin Beach, Emu Bay, Island Beach, Stokes Bay and Vivonne Bay, to the township of Kingscote, which remains the principal centre of the Island’s administrative and economic activity. Parndana provides services to the western end of the Island and Penneshaw and American River likewise in the east and on the Dudley peninsula.

3 Beginnings

The early explorers found no evidence of Aboriginal inhabitants. Recently, artefacts and campsites dating back more than 10,000 years have been discovered. Although it remains unknown why these first inhabitants left the Island, there is evidence that Aboriginal people on the mainland knew of the Island.

Exploration

The discovery and naming of Kangaroo Island is credited to Matthew Flinders, Captain of the Investigator, who came ashore on the north coast in March 1802. Soon afterwards the Frenchman Nicholas Baudin aboard the corvette Le Geographe mapped most of the southern and western coastlines of the Island, giving them French names.

Settlement

The earliest Europeans settlers were deserters from whaling ships, ex-convicts and sealers. The first official settlers arrived on 27 July 1836 disembarking at Reeves Point near Kingscote. This became the first free settlement in Australia, but due to lack of water and suitable building timber it was abandoned after four years in favour of Adelaide with the hardiest remaining.

Industry Development Historic Bates Cottage

For the next fifty years the Island’s natural resources were in high demand from the developing mainland. This led to the establishment of various industries, such as sealing, whaling and the export of salt and skins. Others attempted timber cutting, saw milling, eucalyptus distilling, yacca gum harvesting and brick making. During the 1880s and 1890s there was a slow increase in the use of land for pastoralism, mainly focussing on wool, but barley and other grain crops were also grown. By the early twentieth century active industry was attempted including coal, basalt, tin, silver lead and gold. All were unsuccessful with the exception of gypsum.

The Island developed slowly. The population was only 598 by 1891 but doubled by 1947 and after the establishment of a War Service Land Settlement Scheme it doubled again to 2,167 in 1954. The pastoral industry slowly became more productive with the Government’s support to the 174 ex-soldiers and their families who farmed the underdeveloped central plateau. The township of Parndana was the most prominent example of this new spurt in population.

Economic Prosperity

Today Kangaroo Island has a successful track record in attracting and retaining commercial and industrial enterprises that contribute to investment in infrastructure and employment.

4 The Island’s soil types and temperate climate support agricultural production. Primary industries consisting mostly of sheep, wool, grains, fishing, aquaculture and forestry continue to be a significant contributor to the Island's economy, valued at more than $100 million.

In recent times the impact of globalisation and the instability in world commodity prices has led to diversification and expansion of the economic base. For example, Kangaroo Island is Australia’s newest quality wine region with approximately 28 growers and a dozen wine labels. Simultaneously, the unique island location has stimulated a variety of high quality foods and niche products: cheeses produced from a sheep dairy, honey from the last remaining pure strain of Ligurian bees in the world, olive oil, free range eggs, eucalyptus and lavender oils, and quality seafood such as farmed marron, abalone, barramundi, trout and oysters.

The Island has been a prized tourist destination since the nineteenth century when the jaded urban classes from the Mainland came to be re-invigorated. The historic Ozone and Queenscliffe Hotels in Kingscote have long been renowned since the late 1800s for hosting travellers to the Island.

Now tourism is one of the main economic drivers as the Island is being promoted world-wide as a premier eco-tourism destination. The “clean and green” image and unique nature-based experiences available - pristine beaches, native bushland and Australian fauna and flora – make the Island the envy of others.

Natural Environment

Visitors enjoy varied, dramatic scenery and unique flora and fauna. There are over 850 native plants on Kangaroo Island with over 400 different species found within the Flinders Chase National Park. Free from rabbits and foxes, the island is a natural habitat for platypus, goanna, rare but increasing numbers of glossy black cockatoo, seals, pelicans, penguins, wallabies and the Island's own species of kangaroo. Its waters are also home to the iconic but elusive leafy-sea dragon.

At all levels, the Community is strongly committed to managing and protecting its unique natural environment. KI Community Education boasts an award-winning marine environmental education program across its three campuses (Kingscote, Parndana and Penneshaw). We are a key partner in the internationally-recognised Tourism Optimisation Management Model (TOMM). There are numerous associations and groups that focus on preservation, conservation, coast care and land management.

Recreation, Culture and Community

Kangaroo Island has a relaxed atmosphere with all the essential services and facilities of a larger regional centre. Residents are friendly and share a strong sense of community spirit. The Island offers a wide range of cultural and recreational activities to residents and visitors. Sports and social clubs cater for a range of opportunities including island wide competitive team sports, walking and gardening clubs, the annual Motor Fest and KI Racing Carnival. There is a vibrant arts

5 community offering regular events, festivals and exhibitions and many commercial outlets and galleries offering local art and crafts for sale.

Services and Community Activities

As with many remote and rural communities, Kangaroo Island boasts one of the highest rates of volunteerism in Australia, with 38.1% of people over the age of 15 participating in volunteer community activities: Rotary, Lions, Ambulance, CFS, SES, local radio, Progress Associations, and local heritage and history museums.

On the regular social calendar are the Kingscote and Parndana shows (October/November), KI Players production, Art Feast, Easter Art Show, Speed Shearing Competition, bi-annual Field Day, fishing and sailing competitions, and the Street Party and Christmas parade. Other popular activities include surfing, yachting, canoeing, diving, snorkelling, fishing and bird watching.

The Kangaroo Island Council’s Library is very well-resourced, providing access to a large collection of books, DVDs and videos, magazines, CDs, internet/email, photocopy, fax facilities and membership to a book club and Friends of the Library group.

The Kangaroo Island Health Service, a privately operated Medical clinic and visiting practitioners, provide primary and preventative health care services. There is an emergency service, a thirty-bed hospital and aged care facility, Age and Community health services and allied health and social support services.

Pre-school, day care services, primary, and secondary education is offered at campuses across the Island and further education is offered by private providers and a TAFE Learning Centre located in Kingscote.

Some facts and figures about us today

Residents: 4,259

Demography: Male 51.2%, Female 48.8%, Aged 0-14:19.6%, Aged 15-55:50.6%, Aged 55 and over 29.8%.

Citizenship: Australian Citizens 90.3%.

Place of Birth: Australia 81.7%.

Primary Language at Home: English 92.3%.

Religion: None 34.0%, Anglican 15.6%, Uniting Church 13.3%, Catholic 10.4%.

Marital Status: Married 55.1%, Never married 25.6%, Separated or Divorced 13.7%, Widowed 5.8%.

Employment: Full-time 57.3%, Part-time 37.4%

Occupation Type: Managerial 28.19%, Labouring 15.940%, Community and Personal Service Work 10.94%, Technical and Trade 10.47% and Professional 10.14%, Clerical and Administrative 9.24%, Sales 8.3%, Machinery Operators and Drivers 5.93%, Other 1.46

Industries (by employment): Agriculture, forestry and fishing 23.12%, Accommodation and food services 12.27%, Retail trade 11.37, Health care and social assistance 7.5%, Education and training 6.51%, Construction 6.28%, Public administration and safety 5.57%, Transport,

6 postal and warehousing 5.47%, Administrative and support services 4.2%, Manufacturing 3.35%, Other 14.35%

Median Weekly Individual Income: $414

Median Weekly Household Income: $749

Median Weekly Family Income: $1,002.

Family: 1,137 families of which 40.1% were couple families with children, 48.4% were couple families without children, 10.1% were one parent families and 1.4% were other families.

Dwellings: 1,814 occupied private dwellings, of which 93.3% were separate houses, 1.3% were semi-detached, row or terrace houses, townhouses etc, 3.7% were flats, units or apartments and 1.7% were other dwellings. 38.5% of occupied private dwellings were fully owned, 27.3% were being purchased and 25.5% were rented. 62.4% of occupied private dwellings were family households, 25.0% were lone person households and 2.2% were group households. Of the occupied private dwellings being rented, 25.1% were rented from a real estate agent, 13.0% were rented from a State or Territory housing authority and 53.8% were rented from other landlord type.

Median Weekly Rent: $120

Median monthly housing loan repayment: $780

Average household size: 2.3

7 Council’s Mission

To provide leadership, direction and responsible stewardship of resources and delivery of efficient cost effective key

services to our community

Vision Statement

A confident, growing and cohesive community:

Benefiting from a thriving economy based on strong tourism and primary production sectors

Preserving our unique heritage

Sustainedly managing our natural environment

These are our core values that underpin the achievement of our vision:

Creativity and Innovation To lead by initiative, innovation, and have due regard for the community’s aspirations.

Equality To treat citizens and each other with trust, honesty, tolerance and respect.

Accountability and Transparency To maintain the highest ethical standards in dealing with citizens and each other.

Sustainability To provide and manage the Island’s assets for the current needs of the community and for future generations.

Service Orientated To provide appropriate service to our citizens in a prompt and pleasant manner.

Participatory To share information, listen and consult with the community and each other.

8 Our Strategic Plan

Leadership, direction and planned provision of services to our community and environment

Towards sustainability Positive outlook

Planning for Success

Following a comprehensive review that included extensive public consultation, we have updated our Strategic Management Plan for 2007-2010.

Strategic planning is an ongoing process which identifies the goals, objectives and strategies for action which guide and inform all corporate decision making to ensure Council responds to the current and future environmental, economic and social needs of the Community. We use the Strategic Plan to develop the Annual Business Plan and Budget.

The 2007-2010 Strategic Management Plan contains goals, objectives, actions and performance indicators for the following key areas:

Governance Environment Economic Infrastructure Social/Community

A copy of the strategic plan is available at the Council offices and on our website http://www.kangarooisland.sa.gov.au

Playground at Vivonne Bay

9 Mayor’s Overview

Challenges and Leadership

I am pleased to present this Annual Report on behalf of the Kangaroo Island Council. It is the culmination of a busy and challenging year, a year of laying foundations to allow for the effective and sustainable management of the Island by this and future Councils.

These foundations have included the adoption of a new strategic plan that has been developed with our community’s involvement, the establishment of an Audit committee, and the commencement of the development of our asset management Plan and long term Financial Plans. Whilst this planning is time consuming and resource hungry for our small organisation, it will lead to a sustainable future, with sound decision making and certainty of service levels. The Council has also reached agreement with the State Government to commence the KI Study. This study will review the efficiency of the resourcing and governance on the Island, and make recommendation as to how the Council can effectively and sustainably service this Island into the future.

In June 2007, and after 20 years of debate and discussion, the long awaited upgrade of the Council offices, Town Hall and Library were completed and opened by the Hon Alexander Downer. The Hon A Downer with The careful allocation of resources to this project Mayor Jayne (l) and the originally meant that many critical areas of the building CEO Nick Brown(r) were excluded from the brief. Thanks to the persistent work of our staff, the support of the Hon Alexander Downer and the staff and members of the South Central Areas Consultative Committee, a grant of $350,000 was provided to upgrade the public toilets, including disabled toilets, a new and compliant kitchen, a new Town Hall entrance and to allow for the re- roofing of the building. We were also delighted to receive funding of $45,000 from Tourism SA for new tables and chairs for the Town Hall.

The works program for the year has been comprehensive and is detailed within this report. Our Waste management program continued to develop and has been extended to provide a service to all Island residents. The program is now being recognised Australia wide for its excellence and innovation. The design for the American River Community Wastewater Management Scheme has been completed, and construction will begin in late 2007. Funding for the upgrade of the Kingscote and

10 If you were Mayor for the Day

Parndana CWMS has been received, and planning for the Penneshaw CWMS has commenced. These programs will produce a significant benefit to both our natural environment and our ability to develop our urban areas.

Other areas of achievement include:

9 The successful funding of $330,000 for the 4 Town Centre projects. 9 The completion of stage two of the Christmas Cove Development and the finalisation of the plans and funding for the upgrade of the American River Boat ramp. 9 The celebration of 10 years of TOMM 9 The development of a Youth Advisory Committee. 9 The establishment of wireless internet services in the Council Library. 9 The development of the award winning KI Dog and Cat management Plan 9 The expenditure of $1.4 million on roads and capital works.

This list is only a snapshot, and I encourage you to read the following pages which highlight the full program for the year. I commend our Senior Managers and their staff for the successful completion of the program within tight budget constraints.

The importance of partnerships on our Island is critical to the success of our Council’s endeavours and I would like to acknowledge and thank the support and cooperation of our other Island agencies, the emergency service groups, the many hard working community committees and our residents. Your involvement and interest is critical to this Council’s ongoing achievements.

In September 2007 we farewelled Nick Brown as our CEO, who has relocated to the mainland. During the last two years we have benefited from Nick’s leadership, dedication, and sound advice. His legacy of work has left us in an excellent position to progress the many major issues facing the Island. We also sadly farewelled Michelle Maguire who lost a long and courageous battle with cancer. As Council’s Bushfire Prevention Officer, Michelle was widely recognised both at a local and state level as a leader in her field, and was a valued member of our staff. She is greatly missed.

Council elections were held in November 2006 at which time the Deputy Mayor, Cr Bill Richards and Cr Peter Brauer retired from office. As three vacancies already existed, the election saw five new Councillors elected. The members of the new Council have participated in an extensive training program since that time, have toured many of the Island’s industries and have attended many workshops. I would like to thank all members, past and present for their work and commitment to the community of Kangaroo Island.

Jayne Bates Mayor Kangaroo Island Council

11 Chief Executive Officer’s Report

Challenges and Stewardship

The last year has been very challenging for Council and we have made significant progress in a number of areas. I believe the future will be equally as challenging with a number of important matters to be resolved by the elected members and staff. I have provided a brief summary of important events over the past year.

Council Elections

Council elections were held in November 2006 and as a result of the elections, Council gained five new members and Mayor Jayne Bates became the permanent Mayor after stepping into the role in early 2006. The elected members undertook extensive training sessions in November/December 2006 to bring them up to date with the latest Local Government issues. The new Council is working extremely well and is dealing with a number of important matters and has provided excellent leadership to the community and support to all the staff.

Kingscote Library/Hall/Office Redevelopment

The long awaited redevelopment of the Kingscote library, hall and Council office commenced in March 2006 and was completed in mid 2007. Federal Minister Alexander Downer carried out the official opening on Friday 15th June 2007. Many people took the opportunity to attend the opening and view the updates premises. Council was successful in obtaining a $350,000 Regional Partnerships Program grant and these funds were used to upgrade the community hall toilets, kitchen and roof. The redevelopment has provided a much improved facility for the use of the community.

Staff

Council has experienced significant staff changes over the past year and many of the changes have occurred in senior roles. Chris Francis started with Council in May 2007 in the role of Corporate & Community Services Manager and Vaughn Clarke started in April 2007 in the role of Airport Manager. Both Chris and Vaughn have settled into their positions very quickly and made great contributions to Council in their brief time here. I would like to thank all staff for their considerable support over the past year.

Strategic Plan and Financial Sustainability

Council produced a new Strategic Plan in the past year and undertook extensive consultation with the community. The Strategic Plan sets out the future direction of Council and takes into consideration the opportunities for sensitive growth whilst developing strategies to protect our natural environment. A major objective will be to plan for the financial sustainability of Kangaroo Island Council. With this objective in mind, Council has instigated a study of the current and future roles and responsibilities of Council, the efficiency of the financial resources coming to the

12 Island and service delivery on the Island. The State Government has contributed 50% of the study costs and it is hoped that the study will deliver recommendations to enable the long term financial sustainability of Kangaroo Island Council.

Audit Committee

Council set up an Audit Committee in early 2007 and the committee will deal with the following matters: • Financial reporting • Internal financial controls & risk management systems • Internal audit Council has appointed John Comrie as the independent member on the Audit Committee, John is a qualified Accountant and has senior management experience in Local Government.

This will be my last report as CEO of Kangaroo Island Council and I would like to thank Mayor Jayne Bates, the elected members and staff for the wholehearted support they have collectively provided me over the past two years. I believe Council has made significant progress in a number of areas however there is still much work to be done particularly in asset management and long term financial sustainability.

Nick Brown Chief Executive Officer Kangaroo Island Council

A big turn-out for the opening of the redeveloped Community Hall, June 14 2007

13 Our Partnerships

Working together to achieve better outcomes for Kangaroo Island

Kangaroo Island Council has recognised that it can achieve better outcomes and maximise scarce resources with the support, input and partnership of key stakeholders and Government.

The involvement of volunteers, community members, businesses, associations, industry bodies and staff at varying levels is essential to the work we do to achieve the directions outlined in our Strategic Plan 2007– 2010.

To this end Council works in partnership with the Kangaroo Island Community and the following organisations and levels of government:

• Kangaroo Island Development Board • Kangaroo Island Natural Resource Management Board • Tourism KI • TOMM Committee • Kangaroo Island Community Education • Kangaroo Island Community Health • Advance Kingscote, American River Progress Association, Parndana Progress Association, Penneshaw Progress Association, Baudin Beach Progress Association, Vivonne Bay Progress Association, Emu Bay Progress Association, Island Beach Ratepayers Association TOMM ‘s 10th birthday! • Country Fire Service • State Emergency Service • Alexandrina Council • Southern and Hills District Local Government Association • Local Government Association of South Australia • Local Government Managers Association • South Australian Government Departments and Agencies • Australian Government Departments and Agencies • Community Service Organisations

Governance

Ensure the highest level of governance and community leadership

Democratic and Corporate Governance

The Declaration of the Role of Australian Local Government adopted at the 1997 National General Assembly includes a commitment to provide good governance, which is described as:

“ …being fully informed on local issues; by considering all aspects of environmental, social and economic well being; through effective strategic and corporate planning based on extensive community consultation; and by balancing competing claims and interests openly, fairly and sympathetically. Local Government will without fear or favour, uphold the highest standards set by legislation and public policy having regard to local community values.”

Governance is about how we govern our organisation to ensure that we deliver value to the community in an accountable and transparent way. The primary tool for external accountability is the Annual Report. This is prepared each year to demonstrate how Council has achieved the strategic goals and objectives outlined in the Strategic Plan.

Governance can be thought of as comprising two arms: democratic governance (related to the council as the elected members) and corporate governance (related to the Chief Executive Officer and the organisation).

In achieving good governance we are committed to the principles of good governance used by the Australian National Audit Office:

¾ Leadership: Clear identification and articulation of responsibility and a real understanding and appreciation of the various relationships between the organisation’s stakeholders and those who are entrusted to manage resources and deliver required outcomes.

¾ Integrity: Based on honesty and objectivity, as well as on high standards of propriety and probity in the stewardship of public funds and the management of the organisation’s affairs.

¾ Commitment: All participants are committed to implementing the Corporate Governance Framework.

¾ Accountability: Requires those involved to identify and articulate their responsibilities and their relationships; consider who is responsible for what, to whom, and by when; acknowledge the relationship that exists

15 between stakeholders and those who are entrusted to manage resources and deliver required outcomes.

¾ Integration: The real challenge for good governance is not simply to define its various elements but to ensure that they are holistically integrated into a coherent corporate approach by individual organisations and well understood and applied throughout those organisations.

¾ Transparency: Involves providing stakeholders with complete confidence regarding the decision-making processes and actions of public sector agencies in managing their activities.

16 Democratic Governance

Democratically elected by the community for the community

Role model sound democratic governance

Council as at 1 December 2006

Bates, Jayne Mayor Re-elected

Boxall, Malcolm Re-elected

Connell, Graeme Elected 2006

Davis, Rebecca (Bec) Re-elected

de Rohan, Susan Elected 2006

Draysey, Trevor Elected 2006

Morris, Mark Elected 2006

Turner, Milton Re-elected

Wickham, Craig Deputy Mayor Re-elected

Willson, Joyleen Elected 2006 Brauer, Peter May 2003 - November 2006

McDonald, Scott May 2003 - August 2006 Pengilly, Michael (Mayor) May 2003 - March 2006

Richards, Bill May 2003 - November 2006

Hobbs, Mike May 2003- April 2006

Council Election

The election processes, representation structures, boundaries and any related reviews must comply with the Local Government Act 1999 and with the principles of democratic representation. In accordance with these provisions, our elected representatives serve four-year terms. In November 2006 Kangaroo Island participated in State-wide local government elections. Four standing councillors were returned, four new councillors were elected and the acting Mayor was confirmed as the permanent Mayor.

17 Roles of the Elected Members

The Mayor and nine Councillors are the elected representatives. It is their role to focus on governance and the organisations direction at the strategic level by:

Developing Council’s policies, operational plans and goals and overseeing its performance and

Representing the overall public interest of all the stakeholders in our Council area.

The Mayor has additional responsibility to chair Council meetings and ensure:

Council meetings are conducted in an orderly manner; Council decisions are implemented; and The CEO is aware of his/her responsibilities with respect to Council decisions.

The Mayor represents Kangaroo Island at government, civic and ceremonial functions.

Representation Quota

In February 2007 the Local Government Association confirmed the representation quota for Kangaroo Island to be 498. This is determined by dividing the total number of electors 4,980 by the number of elected representatives including the Mayor (10). This compares with an average quota of 4,880 in metropolitan Adelaide and an average of 386 across ten other comparable regional councils of South Australia. Cr Morris (middle) and Cr Connell (r) Councillor Allowances

In accordance with the Local Government Act, all elected members receive annual allowances and are reimbursed expenses. The new Council elected in December 2006 set the quantum of allowances as follows for the year ending 30 June 2007: the Mayoral allowance was $14,000 Deputy Mayoral allowance was $6,000 and Councillors allowances were $5,000. Members were reimbursed expenses incurred in travelling to Council and Committee meetings and also the costs associated with attending training, conferences and seminars relating to Council activities. Council has adopted a Council Members’ Allowances and Benefits Policy (June 2007), which is available on our web-site.

Public Consultation Policy

We are committed to open, accountable and responsive decision making, which is informed by effective communication and consultation between Council and the community.

In April 2007 Council adopted a revised Public Consultation Policy, which documents the steps Council will take to establish and maintain partnerships. It sets a framework to encourage community involvement in planning and decision-making about the

18 services Council provides and the management of community resources. It details strategies to actively engage individuals and groups thereby promoting co-operative partnerships and more accountable public administration.

Council aims to ensure that appropriate and cost effective methods are used to inform and involve the local community, key stakeholders and interested parties relevant to the specific circumstances of each consultation topic. Council recognises the community expectation of good governance through greater transparency and accountability.

The Policy is available from the Council website, or from the Kingscote Office.

Informing our Community

We are committed to delivering regular quality information to the Community about what Council is planning to do and what it has done. We have an excellent relationship with the local newspaper, The Islander, which attends each public meeting of Council and reports an overview of key discussions of public interest. Of course, members of the community are welcome to attend Council meetings.

We publish the quarterly KI Matters Newsletter, as well as brochures on many topical issues. We mail directly to residents and issue press releases and advertisements to local and state based newspapers.

We have realised that our Community, Off-Island Ratepayers and Visitors are internet-savvy and so we are increasingly using our website to disseminate information, including policies, plans and reports; draft documentation for stakeholder consideration, agendas and minutes; rating, fees and charges; current issues and links to other relevant sites. All Council information is available in print form (charges apply for some publications) from either the Library or Council’s customer services centres at Kingscote and Penneshaw.

We are also committed to bringing Council to the Community in the form of regular local meetings across the Island of Kingscote. For example, the proposed Community Wastewater Management Scheme project for American River has involved extensive local consultation. We have also used the Do Drop In (Kingscote) to hold information sessions on issues such as planning and the proposed Town Centres project.

Cr Boxall (l) with Mr John Berden (r) the local builder in charge of the Community Hall redevelopment

COMMITTEE MEMBERSHIP Airport Security CEO, Airport Mgr, Assistant Airport Mgr, Reps of Regional Express, DOTARS, Royal Flying Doctor Service, Hertz KI, Budget KI, SAPOL, Air South American River Hall Mayor, Crs Morris and Willson, CFM, TSM, CCSM ASU Workplace Consultative CEO & CCSM (TWSM proxy) Committee Audit Mayor, Cr Wickham, Mr John Comrie AWU Workplace Consultative CEO, CCSM, TSM Committee Boating Facilities Mayor, Crs Connell & Turner, Reps from American River, Emu Bay, Shoal Bay, & Penneshaw, CCSM, TSM Building Fire Safety Building Officer, Environmental Services Coordinator, Rep from SA CFS & Building surveyor Camping & Day Visitor Mayor, Crs Davis, Wickham, Willson & Connell, CEO, Strategy Community Facilities Mgr, TOMM PO, Reps from DEH, TKI Community Partnership Mayor, Cr Davis with advice from CEO & CDO Grants Program Advisory Committee Community Passenger Cr Davis Network Community Wastewater Mayor, Crs Turner, Davis, Boxhall, Morris & DeRohan, Management CEO, TSM, CFM & EHO Corella Cr Boxall Development Assessment Mayor, Crs Davis & Wickham, Independent Chair & 3 Panel independent Reps Finance Mayor, Crs Wickham, Willson & Morris, CEO, CCSM, TSWM & FO KI Community Housing Cr Davis KI Development Board Cr Morris KI District Bushfire Prevention Mayor, Cr Boxall, FPO & General Inspector KI Network CCSM LGA of SA Mayor [ Proxy Deputy Mayor] Penneshaw Community Mayor Business Centre Roadside Vegetation Mayor, Crs Boxall & Willson, Community Facilities Manager, Management Consultative Reps of NRMB, TKI, Botanist, Eco Action, AGKI, Forestry Committee KI, KI Transport Operators, DEH & Transport Committee Southern & Hills LGA Mayor & CEO [Proxy first Deputy Mayor & second CCSM] [Executive & General meetings] TOMM Mayor, CEO, TOMM Officer, Reps from Industry (1), KIDB (1), Tourism KI (2), NRMB (1), SATC(1), DEH (1), & Community (2) Tourism KI Mayor (Proxy Cr Turner) Town Centres Mayor, Crs Davis, DeRohan &Connell, Reps from Progress Associations - Penneshaw, Advance Kingscote, Parndana, American River, and advice from Planning Officer & CDO

20 Corporate Governance

Strong leadership with accountable management

As mentioned earlier, Governance has two arms, that of the Democratic and that of the Corporate, equally important in order to provide balance to the organisation.

Corporate Governance includes the way an organisation is structured, operated and controlled in order to achieve long term strategic goals, and good customer and employee relations. It is how its business is supported by effective policies, procedures and systems.

Our Council has had to do a lot of work in this area and led by the CEO, Nick Brown, we are gradually improving in all these critical areas.

Performance Monitoring and Management

The primary tool for external accountability is the Annual Report. This is prepared to demonstrate how we are performing financially (in the form of the annual audited financial statements) and how we are performing in achieving against the goals and objectives outlined in the Strategic Plan.

The Annual Report is required to be prepared in accordance with Schedule 4 of the Local Government Act. Below is the material required, whether we have provided it and where it can be found in this Report.

REQUIREMENT COMPLIANCE a copy of the audited financial statements of the council for the relevant Yes financial year a list of the registers that are required to be kept under this Act or the Yes Local Government (Elections) Act 1999 a list of the codes of conduct or practice required under this Act or the Yes Local Government (Elections) Act 1999 a copy of its most recent information statement under the Freedom of Yes Information Act 1991 information on allowances paid to members of the council or a council Yes committee information on the number of senior executive officers and information Yes on the kinds of allowances, bonuses and benefits that are made available to those officers as part of a salary package a report on the use of sections 90(2) and 91(7) by the council and its Yes council committees containing the information required by the regulations a report on the applications made to the council under the Freedom of Yes Information Act 1991 during the relevant financial year containing the information required by the regulations a statement of— Yes the council's representation quota; and the average representation quota for councils of a similar size and type Yes (taking into account various factors prescribed by the regulations); and

21 when the council next intends to conduct a review under Chapter 3 Yes the procedures that are available under Chapter 3 for electors to make Yes submissions on representation under this Act the annual report of any subsidiary received by the council under Yes Schedule 2 for the relevant financial year other information to be included in the annual report under this or Yes another Act the council's performance in implementing its strategic management N/A plans during the relevant financial year, and the council's projections and targets under its plans for the next financial year the council's performance against its annual business plan for the N/A relevant financial year the extent to which activities of the council have been subjected to Yes competitive tender or other measures to ensure services are delivered cost effectively, and the extent (if any) to which the council has pursued policies for purchasing local goods and services the decision-making structure of the council Yes the training and development activities for members of the council Yes during the relevant financial year the implementation of equal employment opportunity programs, and Yes other human resource management or development programs, during the relevant financial year the progress of the council in preparing or finalising any management Yes plans for community land required under the Chapter 11

Audit Committee

One of the key mechanisms to ensure that the Council is operating to the highest standard of governance is the Audit Committee. We set up an Audit Committee in early 2007 to deal with:

Financial reporting; Internal financial controls and risk management systems; and Internal audit.

Council has appointed Mr John Comrie as the independent member on this Committee. Mr Comrie is a qualified Accountant and has senior management experience in Local Government.

External Audit

We have engaged the respected firm of Dean Newbery and Partners of Melbourne Street, North Adelaide, to assist us in ensuring that we comply with all requirements of State and Commonwealth legislation applicable to local government, and with the Australian Accounting Standards. The firm regularly visits Council to undertake auditing tasks and has an active and positive relationship with key staff.

External Legal Advice

We do not have an in-house solicitor and as such we engage solicitors to provide advice on a range of legal matters and to represent Council, including in court. Over the past year we engaged the firms of Norman Waterhouse, Wallmans Lawyers and Griffin Hilditch (all based in Adelaide).

22 Ethical Framework – Codes of Conduct

At its most basic a Code of Conduct is about “how we do things around here”, the expectations that the Community, Councillors and Staff have for their behaviour and decision-making.

The Codes of Conduct adopted by Council for both Councillors and Staff provide a framework for behaviour, actions and decisions of Councillors and staff. They promote five ethical principles that are common to all codes applicable to the public sector, namely:

Respect for persons; Respect for the law and system of government; Integrity; Diligence; and Economy and efficiency.

Additionally, with respect to the operations of the Development Assessment Panel, as this is a forum that is responsible for making critical planning decisions and is under constant scrutiny, a Code of Conduct provides an additional safeguard to ensure the highest level of probity.

The Codes apply to all Councillors, employees, contractors, volunteers and consultants. These are reviewed annually and were last updated in January 2007.

Risk Management

A sub-set of Governance is Risk Management, which can be defined as actively seeking to eliminate, reduce and generally control risks (safety, fire, major hazards, security lapses, environmental hazards) and to enhance the benefits and avoid detriment from speculative risks (investment, marketing, human resources, IT strategy, commercial and business).

There are several mechanisms commonly used to implement effective risk management, including insurance (insurable risks), occupational health and safety management systems, internal and external audit, effective policies, procedures and systems, effective training and development, quality expert advice and effective decision-making processes.

We are committed to proactive risk management in all these areas and have the following mechanisms in place to achieve this:

9 Audit Committee 9 OHS Committee 9 Insurances Portfolio with Local Government Risk Services 9 Commitment to continuous improvement in policies, processes and systems 9 Commitment to ensuring Councillors and Staff are trained and able to perform their jobs to an expected standard 9 Access to professional expertise through the Local Government Finance Authority and the Local Government Association 9 Regular OHS and financial audits to identify risks and assist in pro-active management

23 Summary of Insurances

As at 10 July 2006 Council had the following insurances:

Type Limit of Liability

Local Government Special Risks $4,000,000 General and Products Liability $10,000,000 Personal Accident $20,000,000 Journey Injury $100,000

The Role of the Chief Executive Officer

It is the role of the Chief Executive Officer, management and staff of Council to deliver, monitor and implement the day to day services to facilitate the implementation of Councils decision making. Staff provides advice to the elected Council but it is the Councillors who as the democratic body elect make the strategic decisions in all the areas of Council’s core business.

The Local Government Act 1993 prescribes the legal framework which gives councils the power to make local laws and also determines the roles and responsibilities of the elected representatives.

24 Our Organisation

Our people, management structure and leadership team

Managing with propriety and probity

Our People

As at 30 June 2007 Council had a staff of 75 people, of which 50 were male and 25 were female. We had 61 people working Full-time and 14 working as either Part-time or Casual.

As the result of a review of the Infrastructure Services Team, as of July 2007 there will be a new structure with new roles within the Community Facilities Team:

A works Coordinator Community Facilities (ASU Level 3) devolved from Team Leader Parks and Recreation (AWU ME9).

Re-allocation to a 1FTE Penneshaw, 1FTE Parndana and 2.5 FTE Kingscote multi skilled Gardner, Facility Cleaner and minor Maintenance workers.

Creation of a new CWMS position to focus entirely on CWM Schemes on Kangaroo Island. Jeff Starr receives a long service award from Mayor Jayne and John Fernandez These changes reflect work commitments and will result in a better service delivery to the community to enable the provision of ongoing maintenance and deliver significant efficiency and cost benefits to Council. Minor modifications to roles and responsibilities have brought improvements to the cost effectiveness of the external operations and better user of personnel and resources.

The departure of Ms Jayne Berden as Airport Manager in December 2006 was the beginning of a lengthy period in which David West was the Acting Manager until the recruitment of Vaughn Clarke in April 2007. It is a testimony to David’s skills and professionalism that he was able to manage both the day-to-day operations and regulatory responsibilities of the Airport as well as taking an active role in the recruitment of the new Manager.

As with any organisation, our Environmental Services (Planning and Building) Department’s most important asset is its people. Over the past year the Department continued to adapt to the constant pressures inherent in the planning and building

25 assessment function. Integration and diversification of staff roles allowed greater variety of tasks. Throughout these changes valuable support and dedication has been demonstrated by the staff (Aaron Wilksch, Holger Welz, Melissa Grimes, Wolf Norkowski), enabling them to work in unity with a common goal of achieving higher levels of productivity, customer service and job satisfaction. In a fast changing, high pressure environment these people have embraced increasing levels of responsibility, demonstrating their abilities to develop new skills, adopt and implement new strategies and focus on being up to date with legislative change.

Industrial Relations

Our staff are employed under two types of employment arrangement, contract or through an Enterprise Bargaining Agreement between the Council and the Australian Services Union (ASU) or the Australian Workers Union (AWU). The ASU EBA is due for expiry as of 31 December 2008 and the AWU EBA is due for expiry as of 30 June 2008. During the year there was no time lost due to industrial action.

We are pleased that we have two vibrant workplace committees, one between Council and the ASU and one between Council the AWU. Chaired by the Chief Executive Officer and with representation from management, staff and unions, these committees provide an established and trusted forum to discuss workplace issues. The committees meet quarterly, or more regularly as required.

Occupational Health and Safety Committee and Performance

We are committed to ensuring that the health, safety and welfare of all our employees and persons in our place of work is a paramount corporate concern. To this end we have an active OHS Committee, headed by the Chief Executive Officer and with safety representatives from each work area. The Committee meets quarterly and its agenda is structured around the work performed by the Local Government Association’s Regional Risk Co-ordinator.

An Occupational Health, Safety and Welfare Gap Analysis was conducted on 20 and 21 May 2007, the result of which was that Council is continuing to improve, as shown by:

¾ The operation and conduct of the OHS Committee ¾ The Policy and Procedures Manual ¾ Having a dedicated resource to assist the Committee ¾ The way in which Council managed all the risks associated with the extensive redevelopment of the Office and Hall ¾ The ongoing training of Staff at the Depot.

Nevertheless, we know that our performance is not as good as others within our industry, but we are committed to improvement. Whilst there were only 8 claims with 80 days lost to injury during the year our overall performance is well below that of the group of councils against which we are benchmarked.

Staff Training and Development

We have recognised how important continuous learning is for the organisation by it being included in our EBAs and in the Staff Training and Development Policy, which was adopted in July 2006.

One of the challenges for us is that, being an Island, our access to training and development is difficult. Nevertheless, we are ably supported by the Local Government Association, which provides training courses each month on a range of topics relevant to our staff.

One of the priorities for next year is to conduct a Training and Development Skills Audit of all staff which will enable us to develop a Training and Development Plan. This will identify training and development needs and be submitted as part of the Budget process.

In the meantime we are pleased that our staff continue to access professional training through the Local Government Association and its special interest groups, the Local Government Managers’ Association (SA/NT) and through professional bodies such as the Planning Institute of Australia.

In particular, we are proud of the nine outdoor Staff undertaking the Certificate III in Civil Construction and the four Staff undertaking the Certificate IV in Civil Construction.

Senior Executives

Chief Executive Officer

Incumbent Nick Brown Remuneration Contract of $97,000 plus superannuation Benefits Unrestricted private use of a motor vehicle Mobile telephone

Corporate & Community Services Manager Incumbent Tony Jarvis 20 May 2003 to 13 May 2007 Remuneration Contract Benefits Unrestricted private use of a motor vehicle Mobile telephone Two return trips to mainland per annum, self and family Responsibilities Manager Corporate Support, Business Services, Financial Services, Library Services, Community Development, Community Passenger Transport Network and Coordinator of Council’s Budget and Public Liability Risk Management

27 Incumbent Christopher Francis May 14 2007 - Remuneration Contract Benefits NIL Responsibilities Manager Corporate Support, Business Services, Financial Services, Library Services, Community Development, Community Passenger Transport Network and Coordinator of Council’s Budget and Public Liability Risk Management

Planning Manager

Incumbent Paul Emes Remuneration MOA Award Senior Officers Level 5 plus superannuation Benefits Weekly travel to and from Adelaide Mobile telephone Responsibilities Manager of Planning and Environmental Services

Lynne Hodder

28 Environmental Services

Sustainably managing our natural environment and preserving our unique heritage

Implementing the Integrated Waste Management Plan and Recycling

Now in its second year, our Integrated Waste Management program has been increasingly recognised throughout Australia as both innovative and best practice. Requests have been regularly made to present the program to other Councils, Regional Bodies and conferences across Australia.

Over the past year the focus was on managing ongoing initiatives, including:

Commencing kerbside Garbage and Recycling Collection service by Solo Resource Recovery, including the provision of new mobile bins from July 2006

Commencing the Bulky Waste Program in Parndana, Penneshaw, American River, and Vivonne Bay which will expand to monthly next year

Developing a mulch composting facility at Island Resource Recovery Centre

Constructing a Biosolid receival area to enable this material to be mulched

Lease of the Salvage Reuse shop at Island Resource Recovery Centre

We also commenced revising the Council’s Environmental Management Plan.

Roadside Vegetation

Roadside vegetation management continued with approximately 180km of roadside cleared. A different contractor was engaged to undertake works which whilst not as aggressive as previous years achieved greater distance which in the long term will be more sustainable.

The Kangaroo Island Council Roadside Vegetation Management Plan was finally endorsed by the Native Vegetation Council after numerous discussions and a deputation to the Minister.

Council is struggling with the Native Vegetation Act in relation to clearance for Borrow Pits and is negotiating with the Native Vegetation Council on this matter.

Dog and Cat Management Plan

Our Dog and Cat Management Plan (KI DCMP) was developed between Kangaroo Island Council, its residents, community groups and key stake holders in animal management, including (but not limited to), the Department of Environment and Heritage (National Parks), the Kangaroo Island Natural Resources Board, Primary Industries and Resources of South Australia, Kangaroo Island Cat Control Committee, Kangaroo Island Veterinary Clinic and Agriculture Kangaroo Island.

The goal was to develop a balanced pet animal management plan that specifically meets the needs of Kangaroo Island as a whole by creating an environment which encourages responsible dog and cat ownership and minimises the negative environmental, social and economic impact of owned and un-owned dogs and cats.

A key objective is the preservation and protection of native species of bird and wildlife. This will enable us to serve the Community, preserve the environment and meet our responsibilities under the Dog and Cat Management Act 1995, which provides a comprehensive basis for all dog management, but provides very little in terms of direction for overall domestic cat management.

We have implemented By-Laws to cover cat identification by microchip, cat containment and cat control in public places, particularly in the foreshore areas under Council control where much of the bird and wildlife cohabitate. By-Laws also include Bio Security protection where any cat imported to Kangaroo Island must be declared to Council within 24 hours of its arrival.

On 1 July 2006, the five-year Kangaroo Island Dog and Cat Management Plan was fully implemented and more than 1,300 dogs and 300 cats had been microchip identified by this date in a win/win outcome for the residents of Kangaroo Island and the Island’s unique fauna.

In October 2006 the Council’s Plan was recognised with a commendation in the Civic Trust awards for its “excellence example of tackling a threat to the native species of birds and wildlife on the Island”. We were commended for our efforts to protect and improve the natural features of the Island, educate the residents and owners and promote an ethic of care and community spirit. Ray Louth (General Inspector) and Toni Duka (TOMM Project Officer) attended Parliament House Adelaide to accept the award on behalf of Council.

Fire Prevention

When people think about Kangaroo Island, they do not necessarily think of fires. However, the combination of more than a third of the Island covered in native vegetation, sparsely-populated areas, drought and numerous lightning strikes creates a significant fire risk.

30 During the year the Assistant Fire Prevention Officer and General Inspector Les Gullickson provided executive support to the Kangaroo Island District Bushfire Prevention Committee. He also undertook compliance activities for the annual inspection program with the support of the Country Fire Service volunteers from each brigade who are members of the Bushfire Prevention Committee. Properties across the Island are inspected for fire hazards and Council and landowners together take active steps to mitigate the risk of fire through block clearing.

In June 2007 Ms Anthea Howard was appointed to the role of Fire Prevention Officer. We acknowledge also the exceptional contribution to fire prevention on the Island made by the previous officer, Ms Michelle Maguire, who contributed to State-wide initiatives for more than 15 years prior to departure from Council due to ill-health.

The Bushfire Prevention Committee has committed to review the District Plan for the Island, and this will form a major focus for the Committee's activities in 2007/2008, together with implementation of further communications initiatives with the support of the Country Fire Service Community Education Unit.

Tourism Optimisation Management Model – TOMM

TOMM is a collaborative project between the Kangaroo Island Council, Tourism Kangaroo Island, South Australian Tourism Commission, Kangaroo Island Natural Resources Management Board, Department for Environment and Heritage, Kangaroo Island Development Board, the Local Tourism Industry and the Community. These stakeholders form the TOMM Management Committee.

TOMM aims to measure the impact of tourism on Kangaroo Island from a variety of dimensions: social, environmental, economic and visitor. The TOMM Project Officer, Ms Toni Duka, collates this information so that it can be utilised by all stakeholders to assist in decision-making. TOMM now has six years of data it can access.

Endorsement and participation in the Kangaroo Island Strategic Tourism Plan and resultant funding annually for two years of $12,585 to monitor and report on implementation of the plan. During the year the The vulnerable Hooded Plover TOMM website was Changing population numbers revamped to make it comprise a TOMM indicator more user-friendly, with a new look consistent with TOMM’s “brand”.

We completed the 2005-2006 Visitor Exit Survey and the 2006-2007 Island Resident Survey, the results of which are available at www.tomm.info in the “Quick Links” box on the front page.

We developed five “TOMM Fact Sheets”: What is an Indicator, Visitation to Beaches, Leave Only Footprints, Hooded Plovers, Resident perceptions of Environmental Issues and Wildlife Viewing Guidelines.

We developed and reported on new Environmental Indicators, including Waste Management.

31 We developed an Indicator Report Card template to allow an “overview at a glance of the Indicator, Optimal Condition, Acceptable range, trend data, Management Action and progress on Management Action. All indicators have been reported in this format and loaded onto the TOMM website www.tomm.info

We ensured that TOMM visitor numbers data is now updated quarterly and available at www.tomm.info in the “Quick Links” box on the front page.

Supporting the development of the Sea-lion Research Fund, a partnership between Nature Foundation SA, South Australian Tourism Commission and the Department for Environment and Heritage

Input into the development of Council’s Camping and Day Visitor Strategy for Kangaroo Island

TOMM Brochure included in Kangaroo Island Council’s New Resident’s Kit

Liaison with Library Staff to develop a Kangaroo Island Resource Collection

Hosted a visit from the Australian Regional Tourism Research Centre, to be included as a case study in their project “Sustainable Regional Tourism Destinations”

South Coast road Clean-Up day was organized by TOMM and Tourism Kangaroo Island, hosting over 70 volunteers cleaning over 55 kilometers of the South Coast Road, Mayor Jayne on Clean-Up collecting over 1,700 kilograms of rubbish! Day with Mr Chris Schumann

Publicity and Presentations

TOMM was also active in producing the following:

“Caring for our Island” page and TOMM article included in Kangaroo Island Visitor Guide; More than 30 media opportunities regarding TOMM and leave Only Footprints outcomes; Over 15 presentations given to a variety of agencies, regarding Survey results, Strategic Tourism Planning and Leave Only Footprints; Four displays developed and displayed at the Airport and Kingscote Community Displays regarding TOMM and the leave Only Footprints Program and Liaison with students including a multitude of enquiries answered and meetings held with University of South Australia and Flinders regarding Student projects. . The Future

TOMM has written a submission for funding through the KI NRM Board for the State Government Strategic Reserve Funds “Towards Better Development”. Opportunities to provide fee for service activities with a view to for sustainable funding will be pursued.

32 Infrastructure

Managing the development, maintenance and replacement of Council’s assets

Our Performance

Local government is closely involved in the funding, planning, construction and maintenance of infrastructure of all kinds, such as roads, bridges, kerbing, marinas, footpaths, ovals, community facilities. In fact, we are responsible for a diverse portfolio of assets and as it grows because of our desire to meet community needs the impact on our long-term capacity to fund and maintain this asset base grows greater.

Today, more than ever, we hear about the impact of depreciation on local government – the need to set aside funds to maintain and ultimately replace our assets. Over the past year we have begun the long process of Strategic Asset Management, in which we identify all of our assets, assess their condition, value them and then sit down with users and the community to lay out a practical and achievable plan to fund their renewal. Of course this doesn’t mean that we will stop building new assets, but we must be mindful of matching needs and expectations to the reality of funding and the capacity to maintain new assets.

Christmas Cove

Located in the heart of historic Penneshaw, the Christmas Cove Marina is not only a world-class boating facility, it is an outstanding example of co-operation between the Council and the State Government.

Identified in the late 1990s as a prime site for the development of a marina, the Council and the Kangaroo Island Development Board jointly obtained funding through SA Tourism and the SA Boating Facility Advisory Committee.

Work began in late 2003 and by June 2007 the Marina was ready to go, with some minor works such as an upgrade of the car park and the installation of an “iron ranger” self-payment system scheduled for late 2007.

33 Christmas Cove offers twenty berths, ten of which have been approved by the State Government for commercial leasing. To date six of the berths have provisional leases and once all the necessary legal work has been completed, the final payments will be obtained from the Underlessees. Together with the annual maintenance fee, the lump sump obtained through the leasing will provide funds to maintain Christmas Cove. This is in line with Council’s policy of creating self-sustainable public boating facilities across the Island by using the funds obtained from fees to be kept in separate reserves for the future maintenance and development of the facilities.

We are not stopping at Christmas Cove. With the establishment of the Boating Facilities Committee, we are committed to a progressive upgrade of all public boating facilities across the Island, with the facilities at American River, Bay of Shoals and Emu Bay a priority over the next year. In the case of American River, this is a joint project with the American River Progress Association, the SA Boating Facility Advisory Committee and the Regional Partnership Program of the Australian Government.

Kingscote Aerodrome

Being an Island Kangaroo Island relies on air transportation and we have a regional aerodrome located near Kingscote. With two regional airlines, REX and Air South, providing daily passenger services from Adelaide to the Island, we are pleased that this means of travelling to and from the Island continues to grow.

June 2006 saw the withdrawal of Qantas Link services from Kangaroo Island leaving Regional Express as the sole regular passenger transport (RPT) airline operating between Adelaide and Kingscote. In February 2007 Air South commenced operations, which reintroduced competition to the local market. The result has been reduced fares and increased choice in travel times for Island residents and visitors.

Passenger numbers for 2006/2007 have shown a marked increase. This appears to reflect the increase in the overseas awareness of Kangaroo Island as a tourism destination. Total passengers numbers for the year reached 59,198, which is an increase of 7.78% over the previous year’s figure of 54,928. This is a considerable achievement given the length of time only one carrier was operating.

Security is always high on the Aerodrome agenda and this year was no exception. The introduction of the security fence, 24hour surveillance equipment and regular patrols by the South Australian Police has led to the total elimination of theft, vandalism and graffiti. The year also saw the successful deployment of the Australian Federal Police Rapid Regional Response Team which conducted security patrols and inspections to familiarise itself with the area and facilities.

Successful completion of a mandatory Airport Emergency Exercise, annual safety inspections and ongoing maintenance has ensured that Kingscote Airport continues to hold it’s status as a Certified Aerodrome. The annual CASA audit and electrical inspections, although not completed during 2006/2007, are not expected to raise any significant issues.

During the year we introduced a user pays car-parking system, which was not well- received initially, as fees were not previously charged to Airport users. However, we have promoted the benefits of this and now regular patrons are happy to pay for safe and secure parking. Indeed, we have seen an increase in the number of patrons who

34 have taken advantage of the discounted pre-paid permit system for those who pay a year in advance.

Our Strategic Plan lists a key Council objective as the sustainable management of Council’s infrastructure. We aim to meet this objective with respect to the Aerodrome through a combination of careful spending and the maximisation of potential income by investigating further development and investment opportunities. Of course this strategy will not affect our commitment to complying with the regulatory requirements of a Certified Aerodrome.

Although there are no major infrastructure improvements planned for 2007/2008, ageing buildings and infrastructure necessitate increased maintenance or asset replacement. Council’s planned asset review will provide more information and direction in relation to this matter.

Kangaroo Island Town Centres Project

A product of the 2004, Section 30 Review (which requires that a review of the content and function of the Development Plan be undertaken in order to contemplate planning policy changes and stay abreast of social economic and environmental change), the ‘Kangaroo Island Town Centres Project’, gained momentum with significant community consultation and collaborative design and development taking place.

In late June 2007 we were delighted to receive funding under the State Government’s Places for People program to the value of $332,575 (ex GST) for this project. The funds will be spent in Kingscote, Penneshaw, American River and Parndana.

The ‘Town Centres’ Project seeks to enhance the selected town and district centres and reinforce a future vision for the strategic development of these focal points.

The ‘Town Centres’ Project is approaching the stage of final design and construction. It has engaged a number of local artists, craftspersons and tradespersons to design and construct several features for each town centre, including entry statements to some towns, providing designs focused on elements of cultural and heritage significance and embracing iconic features of their respective townships.

The ‘Project’ has been a collaborative initiative between local communities and the Council, with funding support from Planning SA’s ‘Places for People’ program.

Special thanks must also go to the Projects Steering Committee for donating their time, relentless efforts and resolve in order to see the project through to its successful completion.

35 Community Land Management

Under the Local Government Act, Council is responsible for the care, control and management of community land. This can be either land and assets owned by Council or, in some cases, by another party such as the State or Commonwealth Governments.

During the 2005-2006 Council completed its Community Land Management Plan, which is available to the Public.

The Camping and Day Visitor strategy progressed slowly and the 2007/08 Landscape and Facility Design plans will be prepared based on this strategy. Council has been advised that $10,000 from the Tourism Development Fund has been allocated to install camping self-registration stations.

Under Council’s capital program the following were installed or upgraded:

Baudin Beach Toilet – installed Kingscote Oval Toilet – installed Kingscote Cemetery - upgraded, not yet complete

The Department of Environment and Heritage resumed management of Antechamber Bay, which has resulted in Council undertaking a major review of its Community Land. The first stage of this review will be completed in 2007/08.

Community Facilities

Many community organisations are involved in the management of Council land. Technical Services Staff continued to become actively involved with community organisations to assist with projects and ensure they can be maintained by Council sustainably. Assistance was provided to:

Reeves Point Upgrade Baudin Beach Toilet American River Playground – preliminary stages Pennington Bay funding application for coastal protection Vivonne Bay Coast Protection

Community Projects

We continued to assist in establishing facilities that meet community needs, as identified in the KI Regional Recreation Sport and Open Space Strategy. Based on the principle of sustainability, the Strategy outlines an approach to planning for sports facilities, supporting and involving community groups and broadening participation particularly in the isolated and smaller townships. Staff from Technical Services and Community Development consult and support the community on potential future projects such as:

Penneshaw Youth and Community Park Parndana BMX Facility Kingscote Oval upgrade (including the Kingscote Oval Upgrade Committee) Indoor Swimming pool committee

36 Community Wastewater Management Schemes (CWMS)

This past year we continued the ground-work for some exciting projects to be undertaken over the next three to five years, such as:

The proposed American River CWMS including a call for tenders to construct the scheme and consideration of the provision of potable water

Preliminary work for the Kingscote CWMS including updating maps, developing operational plans required by the Environment Protection Authority, assessing the future of the lagoon system, upgrading the rising main and pump systems

The design phase for a Penneshaw CWMS

Prioritised other settlements for CWMS

Considered including storm water management with CWMS

We are pleased that the Local Government Association advised us that the Water Smart Australia Funding was successful. This will assist us in upgrading the Kingscote and Parndana schemes next year.

Roads Infrastructure

Kangaroo Island has 1,460kms of roads with 1,359kms being the responsibility of the Council. Of this, more than 1,000 kms are unsealed. It is therefore a daunting task for us to maintain the road network to a level that both the community and visitors expect and to which we are able to achieve within the budget and funding we have.

Our goal is to develop a strategic approach to our roads using road usage data and condition assessments to identify priority areas and fund accordingly. Of course we will always be responding to community requests for local road works.

Project Location Comments Sealed Road Resealing Birchmore Hwy Roads to Recovery funding South Coast Rd Karatta- 600m patch Emu Bay Rd R2R2 – 3.5 km North Coast Rd R2R2 Tangara Drive, American River R2R2 Telegraph Rd, Kingscote R2R2 Osmond St, Kingscote R2R2 Wedgewood Rd, Parndana 2.5 km Sealing works(Private) DEH Carparks, Flinders Chase Remarkable Rocks, Lighthouse, Rocky River, Admirals Arch Dover Farm Subdivision Capital Construction Rapide Street, Penneshaw Street construction 132m Campbell St, Kingscote Street construction 320m Marsden Crescent, Kingscote Street construction195m Borda Court, Kingscote Street construction60m Hawthorne Ave, Emu Bay Street construction 450m Stage 1 Bridges Seagers Rd at Timber Creek Reconstruct after collapse

37 Linemarking Birchmore Rd/South Coast Rd 11 km Kingscote streets -various Playford Highway 6 km Penneshaw Streets Parndana Streets Emu Bay streets Unsealed Roads Stokes Bay Rd, Springs Rd, Others to Total of 18.2Km. Resheeting North Coast Rd, Cape Borda This program was altered in Rd, Starrs Rd,Cape accordance with restrictions brought Willoughby Rd about by drought weather conditions Stormwater Parndana Stormwater Plan Stage 1 works Emu Bay Stormwater Plan Stage 2 works Hawthorne Ave, Emu Bay Stormwater construction

38 Planning and Regulatory Services

Ensuring that our Island is planned for the future and managed effectively today

As everybody knows, planning is at the very heart of our relationship with the Community and our stakeholders. This involves administering and providing technical advice on Council’s various responsibilities under numerous Acts, Regulations, Council Policies, Standards and Codes, such as strategic planning, development plan assessment, development of new buildings and alterations to buildings of commercial, domestic, rural and other ancillary nature (land uses), land division in its various forms, compliance, and the provision of professional advice to a range of stakeholders including Council, State Government Agencies, allied professionals, tradespeople and the Community.

There are several distinct but inter-related services – planning (statutory and strategic), building and health.

Aaron Wilksch It has been a challenged year, meeting and implementing a number of legislative requirements including the new legislation regarding Development Regulations 1993 – Development Assessment Panels Amendment, Ministerial Bushfire Plan Amendment, and Regulations amended regarding assessment of crown land, and procedural matters regarding system indicators reporting.

We have recognised the need to improve our performance steadily, but we have also achieved efficiency gains in the area of administrative processes.

We implemented initiatives such as increasing availability of information and making forms and documents more prominent through our website and the internet, designing and distributing leaflets and handouts that address frequently asked questions and guide brochures for specific planning and development matters including:

• Home Activity • Home Business • Signage • ‘What can I do on my block’ FAQ • Development Application Process • Land Division • General Farming Zone Land Division • Non-Complying Development

39 This has assisted proponents in relation to the type and standard of application required and led to more thoroughly-prepared and well-thought out applications. Further work is intended in this area as there is still a way to go.

Continuing high levels of activity within the building industry and development pressure steadied during the past year with the number of development applications lodged with Council during the twelve months to 30th June 2007 totalling 335, being 266 land use and 69 land division applications. Development value amounted to $24,989,523.52, indicating significant investment in Kangaroo Island’s built environment and development.

Development Assessment Panel

The Development Assessment Panel (DAP) is established under Section 56A of the Development Act 1993. During the year the functions of the Panel were altered by a revision of the Development Act and the Panel was re-constituted from the previous composition of four elected and two independent members to a balanced composition of independent and elected members. The Panel has also reviewed the significance of such practices as conferring ‘in-camera’ (in confidence) and the pros and cons of doing so for the purpose of transparency in procedure and the benefit of stakeholders.

The Panel has three elected members of Council, three independent members and an independent Chairperson. The membership is as follows:

Chair – Mr P Gregor Council Members – Mayor J Bates, Councillor C Wickham, Councillor B Davis Independent Members – Mrs J Kelly OAM, Mr R Hartley, Mr P Dungey

The Panel convenes on a monthly basis to deliberate and determine applications of significance and/or where delegated authority does not extend to individual officers of the Environmental Services Department. The Panel has administrative support from Council Officers.

The DAP meets at 1.30pm on the first Monday of each month in the Council’s Chambers, 43 Dauncey Street, Kingscote unless a change of date is advertised in The Islander newspaper. Meetings are open to the public and everyone is welcome to attend and observe proceedings. Minutes of Meetings are available on Council’s web-site.

Strategic Planning

The Kangaroo Island Council Development Plan is the principal document used to control development across the Island. Development Plan Amendments initiated under Section 30 of the Development Act 1993 during 2004 will be completed by early 2008.

Heritage and General Development Plan Amendments (DPAs - formerly referred to as PARs) have been prepared for Ministerial endorsement prior to a final public review, which is scheduled for November 2007. The final notification process will again engage public and communities, and accommodates further comment prior to consolidation.

40 Building Section

There were 204 Development Applications requiring building rules consent with 69 done by private certification. A total of 76 inspections were conducted and of these 58 were residential and 18 were commercial. Four Certificates of Occupancy were issued.

There were four meetings of the Building Fire Safety Committee and the Committee inspected 25 premises, of which some were multiple inspections.

Six notices pursuant to Section 84 of the Development Act were issued and all have been complied to.

The Building Inspector attended four meetings of the Southern and Hills branch of the Australian Institute of Building Surveyors, one national conference for Environmental Health Officers and one state conference for the Australian Institute of Building Surveyors. All venues were within South Australia.

Legislative changes to the Building Code of Australia include:

Provisions for bushfire prone areas are now in force; Requirement to lodge roof truss calculations at point of application; In built overflow of fixtures negates the requirement for a floor trap (showers not included); Mandatory plumbed rainwater tanks required for dwellings connected to main water supplies and Heated water services (gas) must comply to green house emission standards.

A major problem experienced by the Building Section is that notifications of building work at various stages, supplying the required statement of compliance or certificates of occupancy are still not being attended to by builders/owners. In order to improve compliance, consideration is being given to the possibility of issuing expiation notices for non-compliance.

Environmental Health

Monitoring of public-access pools and spas to minimize the incidence of water borne illness

Pools and spas are regularly monitored to ensure compliance with the relevant standards. This is generally done in the warmer months.

Monitoring and investigation to minimise the incidence of Legionnaires Disease

There are no cooling towers currently in operation on Kangaroo Island. Public spa pools are checked as part of the usual inspections of pools and spas. There are no warm water systems on Kangaroo Island to the best of our knowledge.

Monitoring and Control of Waste Control Systems (eg Septic Tanks, CWMS)

There were a total of 107 applications to install wastewater control systems during the past 12 months. This figure included 44 connections to CWMS (Community Wastewater Management Schemes), 27 standard septic tanks with soakage trenches/beds, 21 Aerobic Wastewater Treatment Systems (AWTS), 2 Aerobic Sand

41 Filter Systems, 11 Biolytix systems and 2 applications for Temporary Containment systems. There would also have been several other Biolytix systems approved by the Department of Health before that body handed over responsibility for approval to Council.

Approval was given by Council and confirmed by Public consultation to allow a development above Christmas Cove to dispose of treated wastewater from several Biolytix systems, onto the Council land bordering the Penneshaw Golf Course, via an access pipeline under the highway. It is envisaged that this would eventually cease upon completion of the Penneshaw CWMS.

Council continued with its program of installing CWMS connection points throughout Kingscote to those allotments not formerly serviced. In lieu of applying for easements through existing properties to service low-lying allotments, Council has proposed the installation of a pump and pump sump to each subject allotment.

Work on the new American River sewerage scheme is scheduled to commence in the second week of October 2007.

Meanwhile funding for the design & planning stage for the proposed Penneshaw CWMS has been approved and this work should also commence in late 2007.

The demand for reclaimed water from the Kingscote CWMS has again been high and was compounded by the Australia-wide drought. No reclaimed water will be available for either the Golf Club or the Racing Club until Council’s contractual agreement with Rodney Bell is satisfied.

Immunisation Programs

The Kangaroo Island Immunisation Service is a joint partnership between the Community Health Service and Council. It provides a free immunisation service through a childhood clinic at the Cook Community Health Centre, Kingscote, on the 1st Thursday of each month, between 2.00pm and 4.00pm. School age children and adults are also welcome to avail themselves of this service by appointment. Charges apply to some adult immunisations.

The Kangaroo Island Immunisation Service also conducts a school-based immunisation program for Kangaroo Island.

42 Communicable/ Notifiable Diseases

The following communicable diseases for people living on Kangaroo Island were notified to the Department of Health for the year 2006/2007.

Disease No of Cases No of Cases 05/06 06/07 Barmah Forest virus infection (mosquito-borne disease) 6 3 Ross River virus infection (mosquito-borne disease) 3 4 Campylobacter infection (gastroenteritis) 7 7 Pertussis (whooping cough) 13 4 Salmonella infection (food-borne disease) 1 3 Mumps 0 1 Shiga toxin-producing E.coli 1 0 Pneumococcal infection 0 1 Varicella virus (chicken pox) 18 6

Monitoring and Control of Animal-Keeping Premises

There are two such facilities on Kangaroo Island, including Council’s own animal pound. Both facilities are well maintained with very little or no odour or nuisance. No complaints have been received.

Preparation Work Done for Pandemic Influenza

There has been no specific training of Council personnel for Pandemic Flu to date. However, the Environmental Health Officer attended a 4-5 day Emergency management course late in 2006 at which the matter received a considerable amount of attention. The EHO is also kept up to date on the matter both by the Department of Health and the Local Government Association. Council has copies of the Australian Government publication “A Business Continuity Guide for Australian Businesses” for any residents that require them. There have been no takers to date.

Other

Council provides sharps containers to the Cook Community Health Centre so that they can provide free replacements when full sharps containers are brought in by diabetics and others who use them. Advice on asbestos and other environmental health matters is freely given by the Environmental Health Officer.

Food Safety

Food Businesses on Kangaroo Island are inspected periodically to ensure their compliance with the requirements of the Food Act 2001 and related Regulations and the Food Safety Standards. The Environmental Health Officer also receives Food Business Notifications for new businesses, businesses changing hands and those changing address as required by the legislation.

During 2006/2007, there was one complaint received about a possible food poisoning. A subsequent investigation indicated that the affected persons were more likely to have been suffering from a common case of flu. Bacterial food poisoning can take days to make its effects felt and people often blame food when suffering from this complaint.

We offer advice and assistance in planning and establishing or changing a food business’ premises. One of the most difficult jobs is convincing proprietors that they must provide a handwash basin (complete with warm running water) in the kitchen as required by law.

Environmental Management and Sustainability

Monitoring to ensure Potable Water (eg. rainwater tanks, bores)

SA Water provides a reticulated service to Parndana and Kingscote from the Middle River Dam. Penneshaw is provided with a reticulated service via a desalination plant. SA Water is responsible for the monitoring and safety of this water. The remainder of the Island relies upon rainwater almost without exception. In dry periods the rainwater supply is augmented with carted water from the reticulated supply. Council does not test rainwater, but does provide information to those seeking testing. These people are generally advised to go straight to treating the suspect water with chlorine. Advice is also offered regarding the use of first flush devices.

Monitoring to ensure Water Quality / Protection of Waterways and Catchments

Whilst there is no specific program for monitoring waterways and catchments, this is done as part of the normal daily routine of the Environmental Health Officer when out on inspection work or merely travelling around the island. A complaint about a possible case of water pollution was referred to Vacswim early in 2007 following the annual learn to swim campaign.

Monitoring of Contaminated Land

Council does not maintain a Contaminated Sites Register, but the Environmental Health Officer maintains a record of all possible contaminated sites of which he is aware. In some circumstances, filenotes have been placed in Development Application folders so as to alert interested parties, and if necessary, a memo is placed on the Council’s property records. The Environment Protection (Site Protection) Amendment Bill 2007 has been enacted to provide both guidance and clear lines of responsibility for cleanup.

44 Monitoring and Control of Hazardous Substances (eg. asbestos, medical waste)

All medical waste is removed from the Island by contractors arranged by the Kangaroo Island Health Service.

Council is licensed by the EPA to accept asbestos waste and this is still disposed of to landfill at present. The Environmental Health Officer advises residents regarding the removal of asbestos and to its safety/danger. Council’s own asbestos register is updated regularly following an annual inspection by a competent person.

Monitoring of Air Quality including Noise

There were no noise complaints received by Council during the year, other than those generally associated with the keeping of a rooster.

However, over the past year backyard burning was the major air quality problem on the Island. The Environmental Health Officer, General Inspectors and the Fire Prevention Officer have been involved in the policing of this issue. Notices have been placed in the local paper in a bid to educate the public to do the right thing. Council did not receive any complaints about smoke from wood heaters this year.

Rural and Urban Planning Activities

Almost 50% of all development applications are assessed by the Environmental Health Officer to determine suitability for on-site waste disposal or connection to the Community Wastewater Management System (formerly STEDS). Furthermore, premises that involve food preparation for sale, and other similar applications are also assessed.

Monitoring and Control of Vectors and Other Pests

Council advises residents on such issues as mosquitoes, rodents, Head lice, flies, pigeons, scabies, cockroaches, bees, midges, mites, bed bugs.

45 Community Services

Fostering and facilitating a cohesive, resilient

and positive community

Library Services

Our Library continues to offer a wide range of library and information services with more than 18,000 items available for loan to 2,427 registered borrowers. Led by Sharon Gullickson BA (Lib St), Tanya Tweeden, Elena Walton and a dedicated team of volunteers provide a quality professional and customer focused service.

Library Usage

Over the past year there were 40,101 loans, an increase over the previous year. The largest increase has been in the Adult fiction, Children’s Picture Book and Video and DVD collections. These collections are now well-presented, especially the children’s area which is colourful, inviting and easier for parents and children to access.

More than 2,790 items were added to the collection last year and 3,396 items were withdrawn from the collection in preparation for the implementation of the new Library Management System, Spydus.

Interlibrary loans continue to be vital to meeting the needs of users with 2,321 interlibrary loans organised last year. Interlibrary loans from interstate public libraries and University libraries have increased as more borrowers seek specific or technical information.

Preparing the Library for opening Renovations

Undoubtedly a major reason for the increased usage of the Library has been that it has been renovated. In October 2006 the Library Collection was moved into the newly-renovated Library, which is now light and airy and, while not spacious, it can cater for a wider variety of users and the Collection is easier to access.

Council and staff sincerely thank all the volunteers who spent so much time moving the Library and ensuring it was ready for opening.

The Investigator Room (Local History Room)

A very special “thank you” goes out to:

• The Friends of the Library for donating the shelving for the Local History Room and the furniture for the Children’s area;

• Mr Garth and Mr Ida Jackson for donating funds to purchase the new book stand

• Mr Reg Renwick for donating the model of the HMS Investigator

• Mr Phil Wood and Mr Phillip Purbrick for donating the cabinet to house the model.

The Local History Room has been named the Investigator Room. It is available for private study.

These generous donations have brought warmth and enhanced the attractiveness of our new library. Sharon and her team (Elena, Nell and Tanya) truly appreciate the generosity of these gifts.

Beyond Loans

In early 2007 a review began of the Penneshaw Annex, which continues to provide a public library service to the Dudley Peninsula residents. The review is expected to be completed by late 2007 and a new agreement will be signed by the Council and Kangaroo Island Community Education (Penneshaw Campus). The Penneshaw readers group continued to meet, discussing a variety of titles supplied through the Public Libraries inter-library loan system.

Story telling and school holiday programs attracted parents and children to the Library, with Tanya Tweden delights in watching the children respond to her songs, rhymes and stories and working with parents to promote reading and learning.

Wireless Internet services were introduced in March 2007 thanks to an innovative Wireless Internet Access Project, developed in association with the State Government's Public Library Services. This service enables residents and visitors to access the Internet from their own laptops. The service has proved very popular with both visitors and residents especially those on working holidays or returning to tertiary studies.

The Friends of the Library continue to be a vital part of the Library and again conducted the Short Story Competition. This year there was no Open Section and children in Reception – Year 1 were asked to draw a picture based on one of two stories read to them by Mrs Jean Woolley. A high standard of entries were received revealing some very talented young writers and illustrators. Thank you to the sponsors, The Islander newspaper, Century 21, Restaurant Bella, Parndana IGA and The Ozone Seafront Hotel for their support of this worthwhile event.

Due to the renovations and moving of the library the Friends held only one literary event during the 2006/2007 financial year. Naomi Wallace-Mitchell was the guest

47 speaker for the Friends Literary Luncheon in May 2007. Naomi spoke of her trials in having her book published and the joy of finally having her work published.

For four years Council has allocated resources to a dedicated 0.6 FTE Community Development officer. The role of this position is to support community and cultural development across the island. In April we welcomed Cathie Tydeman into an expanded full time position. Council acknowledges the contribution and commitment of previous officer Kerry Kaye .

Encouraging and Supporting our Volunteers

Kangaroo Island has one of the highest levels of volunteerism in Australia and Council continued to celebrate and support volunteers through:

9 Nominations to local and State awards (eg SA Great Awards) 9 Providing training to volunteers and young Winner of KI Young Achiever – Young Australian of the Year, Peter Tremaine people in event management, grant writing, with May Jayne and project management 9 Ongoing support to Progressing KI (leaders of key volunteer groups), who meet to share information, projects, network and support 9 Facilitating innovation such as group insurance for Progress Associations and group Entry Statements through Planning SA funding “Places for People” and 9 Making connections to state volunteer programs that celebrate and raise awareness of the contribution of volunteers in our community.

Community Partnerships Grant Program

We committed allocating up to $10,000 in the Annual Budget to supporting volunteer, and not-for-profit incorporated groups. Organisations whose work provides improved community outcomes were funded and included:

9 Interchurch council for KICE Kingscote and Parndana Campuses 9 SA Ambulance Service 9 Parndana Sports Club 9 National Trust SA KI Branch 9 Advance Kingscote 9 American River Progress Association 9 Penneshaw Progress Association 9 Vivonne Bay & Districts Progress Association 9 Baudin Beach Progress Association 9 Dudley United Netball Club 9 American River Community Aid Service

48 Improving Consultation with Youth

This year we undertook two major projects in consultation with Kangaroo Island youth through the establishment of the:

Youth Advisory Committee (YAC) - funded through the Office for Youth Eastside Incorporated through the Foundation for Young Australians

The YAC averages a steady membership of about 23 participants of middle to secondary school age with an equal mix from both genders. This has been particularly gratifying, as previously young males have not been engaged.

Students from all backgrounds are encouraged to be involved to provide a voice to and to be broadly representative of youth issues and needs.

Our partners KI Community Education staff are to be congratulated on the support and facilitation role that they provide to this group particularly in overcoming the potential barrier of travelling great distances to be able to meet regularly as one group. Staff, students and the CDO are commended for their efforts to make this occur successfully throughout the year. A sister city relationship with Prospect Council enables YAC participants of both councils to visit each other and share experiences between the city and country members.

YAC members at the Yacht Club

We supported and encouraged the establishment of Eastside IncorpArated. They received funding of $10,000 from the Foundation for Young Australians, which enabled them to consult with other young KI people and then produce an audiovisual project collecting their voices and views. They have now secured funding of $30,000 to address the need for social and entertainment opportunities during 2007/2008. This ongoing project has the additional benefit of connecting young people to the Councillors through the interview process, thereby establishing new linkages and communication channels.

Supporting Youth Services

We continued to support peak youth service bodies and meeting forums such as:

Kangaroo Island youth Employment, Education and Training

49 Kangaroo Island Drug and Alcohol Network Local Government Youth Services Forum Kangaroo Island Youth Services Forum Youth Advisory Committee

We supported funding applications, including the CORES community suicide prevention and other mental health projects.

Youth Week 2007

Youth Week was huge because of the planning for four priority projects commencing early and lead up workshops in arts, dance and photography. The themes chosen by the young people included celebrating sporting heroes and a larger than life artistic statement about mixing alcohol, drugs, sport and cars. Key events were KIHS youth project skate ramp events around the Island with the Launch pad event in Penneshaw.

Casey Nottwith the painted Launch Pad car – ‘Drive High, people Die’

Planning for Recreation and Sport

During the year residents including young people have been supported by the CDO’s participation in planning for various facilities which are all elements of the KI Regional Recreation, Sport and Open Space strategy. They include the Penneshaw Youth and Community Park, Parndana BMX facility, and the Kingscote Oval Upgrade Project. Community Development staff have a passion and commitment to projects raised by youth for youth and this has resulted in strong collaboration and partnerships across Council and community.

50 Corporate Services

Value for money services that support the Council’s front-line staff

Our Performance

Corporate Services is the backbone of all organisations. It should neither be seen nor heard, providing efficient, effective and reliable services across the organisation and supporting the front-line staff.

During the past year, along with the other “inhabitants” of the Kingscote Office, Corporate Services Staff showed great resilience and patience during the substantial redevelopment of the Kingscote Hall, Library and Offices. At the same time the upgrade of Council’s Information Technology infrastructure added another level of complexity to the proceedings. In all, it was a great effort.

Information Technology Management

This year heralded a quantum leap in Council’s IT capacity through an innovative collaborative agreement with Alexandrina Council on the Fleurieu Peninsula. Led by Tony Jarvis (Kangaroo Island) and Colin Shackleford (Alexandrina), the upgrade of all Kangaroo Island’s IT infrastructure by Alexandrina has provided us with the capacity to do more than was possible before. The agreement is more of a partnership than a commercial arrangement because of the close working relationship between Alexandrina (as the provider) and Kangaroo Island (as the purchaser). This arrangement will lead to a stable and cost-effective IT service which is critical as ITM costs continue to place great pressure on local government.

Records Management

Council introduced an Electronic Document & Records Management System (EDRMS) on the 1st of July 2006. This means that all correspondence coming in to Kangaroo Island Council is scanned and entered onto the EDRMS, given a unique identifying number and subsequently assigned to the relevant staff member. This means that all correspondence (if captured by records) can be followed through without the loss of a hardcopy which is filed directly in the records room after receipt. Since the introduction of this new system, there have been over 7500 pieces of correspondence received by Kangaroo Island Council, with 5500 pieces of correspondence being received since the 1st of January 2007 and 4000 of those were received since May 2007. The introduction of this new system means that Council can track a document electronically and reduces significantly, the possibility for misplacement of correspondence.

51 Incoming Mail (Items)

Total 4731 Letters 3222 Faxes 431 Forms 201 Development Applications 327 Emails 392

Outgoing Mail (items)

Total 1515 Letters 1326 Faxes 43 Forms 21 Emails 122

Western River Bridge

52 Legislative Information

Requirements under the Local Government Act, information and disclosures

Schedule 5—Documents to be made available by councils

Reviews of council constitution, wards and boundaries

Representation options papers and reports on reviews of council composition or ward structure (Chapter 3 Part 1 Division 2)

Reports to the Minister under Chapter 3 Part 2 Division 4 or 5 provided to the council by the Boundary Adjustment Facilitation Panel

Summary of issues surrounding a proposal to be submitted to a poll under Chapter 3 Part 2 Division 5

Registers and Returns

Registers required under this Act or the Local Government (Elections) Act 1999, other than the Register of Interests kept for the purposes of Chapter 7 Part 4 Division 2

Campaign donations returns under the Local Government (Elections) Act 1999

Codes

Codes of conduct or codes of practice under this Act or the Local Government (Elections) Act 1999

Meeting papers

• Notice and agenda for meetings of the council, council committees and electors • Minutes of meetings • Documents and reports to the council or a council committee that are able to be • supplied to members of the public • Recommendations adopted by resolution of the council

Policy and administrative documents

Record of delegations under this Act (other than delegations made by the Minister) Contract and tenders policies Policy for the reimbursement of members' expenses Strategic management plans

53 Annual business plan (after adoption by council) and the summary required under this Act Annual budget (after adoption by council) Audited financial statements Annual report Extracts from the council's assessment record List of fees and charges Public consultation policies Management plans for community land Policy on the making of orders Procedures for the review of council decisions (Chapter 13 Part 2) and any report under section 270(8) Charter for subsidiaries established by the council or for which the council is a constituent council The most recent information statement of the council under the Freedom of Information Act 1991 Any policy document of the council within the meaning of the Freedom of Information Act 1991 (if not already referred to above)

By-laws

By-laws made by the council

Registers and Codes available for inspection

The following documents are available for public inspection at the Council’s Kingscote and Penneshaw Offices at no charge. Members of the public can purchase copies of these documents and the charges are shown below.

Document Fee

Annual Report $10.00 Council and Committee Agendas $8.00 Council and Committee Minutes 30 cents per page Council Budget 30 cents per page Annual Financial Statements 30 cents per page Corporate Plan $5.00 Strategic Plan $5.00 Policy Manual 30 cents per page Rating Policy $5.00 Public Consultation Policy 30 cents per page Code of Conduct – Council Members 30 cents per page Code of Conduct - Employees 30 cents per page Code of Practice Access to Council and Council Committee Meetings and to Council Documents $5.00 Internal Review of Council Decision Procedures $5.00 Contracts and Tenders Policy 30 cents per page Order Making Policy 30 cents per page Council By-laws 30 cents per page Council Committees -Reporting and Accountability Requirements Register 30 cents per page Supplementary Development Plans 30 cents per page

54 Register of Community land (available on CD) $5.00 per CD Register of By-Laws 30 cents per page

Available only at Kingscote offices

Register of Roads Members Register of Interest (Upon written application) 30 cents per page Staff Register of Interest (Upon written application) 30 cents per page Planning Applications (by consent) Planning Application Register 30 cents per page Building Application Register 30 cents per page Register of Elected Members Allowances and Benefits 30 cents per page Register of Employees Salaries/Wages/Benefits 30 cents per page Assessment Book 40 cents per page Kangaroo Island Waste Management Plan $5.00 Roadside Vegetation Management Plan $5.00 Airport Master Plan $5.00

Council also maintains an Officer’s Register of Interest however this is only accessible to Members of Council pursuant to Section 118 of the Local Government Act, 1999.

Delegations

• Development Act 1993 & Development Regulations 1993 • Fire and Emergency Services Act 2005 & Fire and Emergency Services Regulations 2005 • Freedom of Information Act 1991 & Freedom of Information (Fees and Charges) Regulations 2003 • Local Government Act 1934 • Local Government Act 1999 • Occupational Health, Safety & Welfare Act 1986 • Liquor Licensing Act 1997 • Community Titles Act 1996 • Dog & Cat Management Act 1995 • Expiation of Offences Act 1996 • Fences Act 1975 • Environment Protection (Waste Management) Policy 1994 • Housing Improvement Act 1940 • Supported Residential Facilities Act 1992 • Public & Environmental Health Act 1987 • Food Act 2001 • NRM (General) Regulations 2005 • Road Traffic (Miscellaneous) Regulations 1999 • Roads (Opening & Closing) Act 1991

55 Council Policies

• Food Vending Vehicles • By-Laws • Code of Practice – Access to Council Meetings & Documents • Community Wastewater Management Scheme Policy • Boat Ramp Policy • Waste Management Policy • Elected Members Training & Development Policy • Records Management Policy • Records Management Procedure • Staff Training & Development Policy • Rating Policy 2007/2008 • Rate Rebate Policy 2007/2008 • Authorised Officers • Code of Conduct - Elected Members • Code of Conduct - Employees • Code of Practice - Meeting Procedure • Development Assessment Panel & Staff Delegations Policy • Public Consultation Policy • Outdoor Dining Policy • Council Members’ Allowances & Benefits Policy

By-Laws

• By-Law No. 1 – Permits and Penalties • By-Law No. 2 – Moveable Signs • By-Law No. 3 – Local Government Land • By-Law No. 4 – Roads • By-Law No. 5 – Dogs • By Law No. 6 – Bird Scaring Devices • By-Law No. 8 - Cats

Freedom of Information

Information Statement 2006-2007

The Local Government Act, 1934, Section 65r, requires the Council to produce an Information Statement annually, which shall contain specific information about the Council.

During 2006-2007 there were no applications under the Freedom of Information provisions for access to Council documents.

This information is contained within this Annual Report and as such it should also be considered as Council’s 2006-2007 Information Statement.

Information requests

Requests for other information not included in the preceding section, will be considered in accordance with the Freedom of Information provisions of the Local Government Act, 1934. Under this legislation, an application fee and search fee must

56 be forwarded with the completed request form, as provided for in Reg. 275 of 1991 unless the applicant is granted an exemption.

If Council refuses access to a document it must issue a Certificate under Section 65zy of the Local Government Act, 1934 stating why the document is a restricted document. Kangaroo Island Council has not issued any Section 65zy Certificates during 2006-2007.

Freedom of Information Request Forms should be addressed to:

Freedom of Information Officer Kangaroo Island Council PO Box 121 KINGSCOTE SA 5223

Applicants will be responded to as soon as possible within the statutory forty-five days of Council receiving the properly completed, Freedom of Information Request Form, together with the applicable fees.

Amendment to Council Records

A member of the public may gain access to Council documents to make amendments covering their personal affairs by making a request under the Local Government Act. A member of the public may then request a correction to any information about themselves that is incomplete, incorrect, misleading or out of date.

To gain access to these Council records a member of the public must complete a Freedom of Information Request Form as indicated outlining the records he/she wishes to inspect.

All meetings of the Council are open to the public and anyone is welcome to attend a Council meeting and observe proceedings. At the ordinary meeting of Council provision is made for “questions from the gallery” during which members of the public may ask questions of the Council. Guidelines for this opportunity exist and must be observed. Members of the public may also seek a deputation to a Council meeting by making an application in writing to the Chief Executive Officer. Approval for such deputations rests with the Mayor.

Council has also adopted a Public Consultation Policy, copies of which are available for perusal and/or purchase. This Policy outlines the steps that Council will take to inform its community in certain circumstances and it outlines the process available for the communities involvement in the decision making processes of the Council.

In certain circumstances Council may find it necessary to discuss some matters “in- confidence”. The Local Government Act, 1999 makes provision for this and in addition Council has adopted a Code of Practice for access to Council and Council Committee meetings and Council documents. Copies of this Code of Practice are available for public perusal and/or purchase.

During the twelve months to 30th June 2007 the Council used the confidentiality provisions of the Act and its Code of Practice as follows:-

57 1. Number of occasions each of the provisions of section 90(3) and section 91(7) were utilised: 16 (including one Airport Committee Meeting)

2. Number of occasions each of the provisions of section 90(3) and section 91(7) were utilised, expressed as a percentage of total agenda items considered: 4.6%

3. An indication of any particular issues that contributed to the use of confidentiality provisions on more than one occasion –

Personnel Matters 6 Legal Issues 3 Commercial Matters 6 Tenders 1 Financial Matters 0

4. An indication of the categories of section 90(3) that were used most frequently. Subsection (a) - Subsection (b) - Subsection (d) - Subsection (g) - Subsection (k) -

5. Number of occasions that information originally declared confidential has subsequently been made publicly available – NIL

6. Number of occasions that information declared confidential has still not subsequently been made publicly available and the reason for this in each case - NIL

Council has also adopted procedures for the internal review of its decisions and any person aggrieved by a decision of the Council may seek a review of that decision by following these procedures. They are also available for public perusal and/or purchase.

Subsidiaries

The Kangaroo Island Council does not have any Subsidiaries established under Section 42 of the Local Government Act, 1999.

The Kangaroo Island Council is party to the Southern & Hills Local Government Association, a regional subsidiary established under Section 43 of the Local Government Act, 1999. Other Council’s involved are the Adelaide Hills Council, Alexandrina Council, District Council of Mount Barker, Rural City of Murray Bridge, City of Victor Harbor, Barossa Council and District Council of Yankalilla.

Adoption and Distribution

Pursuant to the requirements of the Local Government Act, 1999 this Annual Report was adopted by the Kangaroo Island Council at a Special Council meeting held on the 29th day of November 2007.

A full copy of this report will be provided to each member of the Council, the Presiding Member of both Houses of Parliament, the SA Local Government Grants Commission, Parliamentary Library and the State Library. Copies are made available for public perusal at the Kingscote and Penneshaw Council Offices and at the Kingscote Public Library. Copies can also be purchased at either of the Council Offices.

59 Financial Statements

Health, performance, sustainability and key factors

Report for the year ending 30 June 2007

60 Acknowledgements

Assistance with the production of this report

Information Credits

The information in this report was drawn from a number of sources, publications and Council documents including:

Australian Bureau of Statistics South Australia – Kangaroo Island Visitor Guide 2007; South Australian Tourism Commission, Adelaide Kangaroo Island Council Strategic Plan(s) 2007- 2010, 2002 KIDB Annual Report 2006/2007; Kangaroo Island Development Board, 2007 Kangaroo Island Council Annual Report 2005/2006, Kangaroo Island Council, 2006 Kangaroo Island - a great place to invest; Kangaroo Island Development Board, March 2004 Kangaroo Island - a regional summary; Kangaroo Island Development Board, 2003 This Southern Land – A Social History of Kangaroo Island 1800 -1890; Jean Nunn, Investigator Press, 1989 Kangaroo Island 184 Great Years - A History in Photographs 1802 – 1986; Neville Cordes, The Island Press,1986 Soldier Settlers, War Service Land Settlement - Kangaroo Island; Jean Nunn, Investigator Press, 1981

Photo Credits

Our appreciation to The Islander for permission to use their images.

Thank you to Doug Willson for his photograph of Christmas Cove.

Thank you to Georgia Tydeman for use of her photographs.

61 Contact Us

Main Office, 43 Dauncey Street, Kingscote PO Box 121 Kingscote SA 5223 Tel: 08-8553-4500 Fax: 08-8553-2885 [email protected] www.kangarooisland.sa.gov.au ABN: 93 741 277 391

Jayne Bates T: 8553 1087 M: 0427 530 080 PO Box 245 Penneshaw 5222 F: 8553 1087 E: [email protected] Craig Wickham T: 8553 9170 M: 0409 282 748 PO Box 169 Kingscote 5223 F: 8553 9122 E: [email protected] Malcolm Boxall T: 8553 9016 M: 0427 616 200 PO Box 217 Kingscote 5223 F: N/A E: [email protected] Graeme Connell T: 8553 2369 M: 0408 806272 16 Telegraph Rd Kingscote 5223 F: 8553 2129 E: [email protected] Bec Davis T: 8559 4263 M: 0428 108 968 RSD315 Newland Kingscote 5223 F: N/A E: [email protected] Susan de Rohan T: 8553 2401 M: 0419 847 022 PO Box 196 Kingscote 5223 F: N/A E: [email protected] Trevor Draysey T: 8375 3600 M: 0408 331 554 PO Box 3656 Norwood 5067 F: 8293 4354 E: [email protected] Mark Morris T: 8553 0024 M: 0427 530 024 PO Box 266 Kingscote 5223 F: N/A E: [email protected] Milton Turner T: 8553 3240 M: 0419 860 360 35 Centenary Av Kingscote 5223 F: N/A E: N/A Joyleen Willson T: 8553 1065 M: 0408 969 447 PO Box 557 Penneshaw 5222 F: N/A E: [email protected]

62 Kangaroo Island Organisational Chart 2006/07 Council

Chief Executive

Officer

PA to CEO

Community & Planning Community Environmental Technical Community Airport TOMM Bushfire Corporate General Manager/ Building Development Prevention Health Services Facilities Manager Officer Services Inspectors ES Office Surveyor Officer Officer Manager Manager Officer Manager Manager

Assistant Environmental Customer Customer Airport Services Service Officer Service Manager Coordinator Building Planning Officer

Team Leaders Team Leader

(3) Library Budget/ Finance Officer Services Audit Officer Manager

Construction Construction Financial Ser- Customer Library Officers Records Maintenance Maintenance

Rates Officer vice Officers Service Officers Officers Services Staff Services Staff (2) (2) (2) (2) (19) (7)

63 Kangaroo Island Council

General Purpose Financial Reports for the year ended 30 June 2007

TABLE OF CONTENTS Page

Principal Financial Statements

Income Statement 1 Balance Sheet 2 Statement of Changes in Equity 3 Cash Flow Statement 4

Notes to, and forming part of, the Principal Financial Statements

Note 1 - Significant Accounting Policies N1 Note 2 - Functions N2 Note 3 - Revenues N3 Note 4 - Expenses N4 Note 5 - Gain or Loss on Disposal of Assets N5 Note 6 - Current Assets N6 Note 7 - Non-Current Assets N7 Note 8 - Investment Property & Property, Plant & Equipment N8 Note 9 - Liabilities N9 Note 10 - Reserves N10 Note 11 - Assets Subject to Restrictions N11 Note 12 - Statement of Cash Flows Reconciliation N12 Note 13 - Financial Instruments N13 Note 14 - Expenditure Commitments N14 Note 15 - Financial Indicators N15 Note 16 - Uniform Presentation of Finances N16 Note 17 - Superannuation N17 Note 18 - Assets & Liabilities not Recognised N18

Statement by Chief Executive Officer and Adoption Statement Independent Auditor's Report Statements of Audit Independence Auditor's Independence Declaration

Contents Kangaroo Island Council

INCOME STATEMENT for the year ended 30 June 2007

2007 2006 Notes $$ INCOME Rates 3 5,274,252 5,011,997 Statutory charges 3 176,459 131,724 User charges 3 880,390 757,832 Grants, subsidies and contributions 3 2,566,940 2,527,767 Investment income 3 181,367 181,603 Reimbursements 3 398,475 605,536 Other revenues 3 260,490 163,321 Total Revenues 9,738,373 9,379,780

EXPENSES Employee costs 4 2,724,659 3,007,688 Materials, contracts & other expenses 4 3,871,019 3,516,999 Finance costs 4 268,178 268,125 Depreciation, amortisation & impairment 4 3,486,538 3,219,182 Share of loss - joint ventures & associates 21 Total Expenses 10,350,394 10,011,994

OPERATING SURPLUS / (DEFICIT) BEFORE (612,021) (632,214) CAPITAL AMOUNTS

Net gain (loss) on disposal or revaluation of assets 5 (13,441) (123,444) Amounts specifically for new or upgraded assets 3 273,257 467,192 Physical resources received free of charge 3 160,400 3,143,400 NET SURPLUS (DEFICIT) (191,805) 2,854,934

This Statement is to be read in conjunction with the attached Notes.

Page 1 Kangaroo Island Council

BALANCE SHEET as at 30 June 2007

2007 2006 ASSETS Notes $ $ Current Assets Cash and cash equivalents 6 4,815,677 3,436,115 Trade & other receivables 6 810,888 777,621 Other financial assets 6 - - Inventories 6 120,256 137,813 5,746,821 4,351,549

Total Current Assets 5,746,821 4,351,549

Non-current Assets Financial Assets 7 - - Equity accounted investments in Council businesses 7 - - Investment Property 8 - - Infrastructure, Property, Plant & Equipment 8 51,579,579 50,912,277 Other Non-current Assets 7 162,791 712,443 Total Non-current Assets 51,742,370 51,624,720 Total Assets 57,489,191 55,976,269

LIABILITIES Current Liabilities Trade & Other Payables 9 3,118,406 696,162 Borrowings 9 523,491 725,136 Short-term Provisions 9 215,197 184,955 Other Current Liabilities 9 3,857,094 1,606,253 Liabilities relating to Non-current Assets held for Sale Total Current Liabilities 3,857,094 1,606,253

Non-current Liabilities Trade & Other Payables 9 - - Long-term Borrowings 9 3,414,081 3,870,003 Long-term Provisions 9 89,152 179,343 Other Non-current Liabilities 9 Total Non-current Liabilities 3,503,233 4,049,346 Total Liabilities 7,360,327 5,655,599 NET ASSETS 50,128,864 50,320,670

EQUITY Accumulated Surplus 7,685,390 9,618,771 Asset Revaluation Reserve 10 37,499,404 37,499,404 Other Reserves 10 4,944,069 3,202,493 TOTAL EQUITY 50,128,863 50,320,668

This Statement is to be read in conjunction with the attached Notes.

Page 2 Kangaroo Island Council

STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2007

2007 2006 $ $ Notes ACCUMULATED SURPLUS Balance at end of previous reporting period 9,618,771 9,966,330 Net Result for Year (191,805) 2,854,934 Transfers to Other Reserves (3,061,239) (3,288,676) Transfers from Other Reserves 1,319,663 86,183 Balance at end of period 7,685,390 9,618,771

ASSET REVALUATION RESERVE 10 Balance at end of previous reporting period 37,499,404 37,499,404 Gain on revaluation of infrastructure, property, plant & - - equipment Transfer to Accumulated Surplus on sale of infrastructure, - - property, plant & equipment Balance at end of period 37,499,404 37,499,404

OTHER RESERVES 10 Balance at end of previous reporting period 3,202,493 - Transfers from Accumulated Surplus 3,061,239 3,288,676 Transfers to Accumulated Surplus (1,319,663) (86,183) Balance at end of period 4,944,069 3,202,493 TOTAL EQUITY AT END OF REPORTING 50,128,863 50,320,668 PERIOD

Total of all revenues recognised directly in Equity - - Total of all expenses recognised directly in Equity - - NET CHANGE IN EQUITY - -

This Statement is to be read in conjunction with the attached Notes

Page 3 Kangaroo Island Council

CASH FLOW STATEMENT for the year ended 30 June 2007

2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES Notes $ $ Receipts Operating receipts 9,523,740 9,081,552 Investment receipts 181,367 181,603

Operating payments to suppliers & employees (6,615,826) (6,373,421) Finance payments (268,178) (268,125) Net Cash provided by (or used in) Operating Activities 12 2,821,103 2,621,609

CASH FLOWS FROM INVESTING ACTIVITIES Receipts Grants specifically for new or upgraded assets 2,673,257 467,192 Sale of replaced assets 761,932 123,444 Payments Expenditure on renewal/replacement of assets (4,219,161) (2,563,819) Net Cash provided by (or used in) Investing Activities (783,972) (1,973,183)

CASH FLOWS FROM FINANCING ACTIVITIES Receipts Proceeds from Borrowings 67,569 1,576,891 Payments Repayments of Borrowings (725,136) (464,272) Net Cash provided by (or used in) Financing Activities (657,567) 1,112,619 Net Increase (Decrease) in cash held 1,379,564 1,761,045

Cash & cash equivalents at beginning of period 3,436,115 1,675,070 Cash & cash equivalents at end of period 4,815,679 3,436,115

This Statement is to be read in conjunction with the attached Notes

Page 4 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 2 - FUNCTIONS

REVENUES, EXPENSES AND ASSETS HAVE BEEN DIRECTLY ATTRIBUTED TO THE FOLLOWING FUNCTIONS & ACTIVITIES TOTAL REVENUES EXPENSES OPERATING RESULT GRANTS ASSETS HELD INCLUDED (CURRENT & ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL IN REVENUES NON-CURRENT) 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 $$$ $ $ $ $ $ $ $ Business Undertakings 1,059,454 1,227,718 930,266 891,033 129,188 336,685 3,426 - 3,708,222 3,801,009 Community Services 78,769 140,818 480,830 421,276 (402,061) (280,458) 35,682 97,491 587,299 597,313 Culture 45,945 38,722 383,528 354,037 (337,583) (315,315) 35,747 29,094 573,415 969,253 Economic Development 87,873 80,866 203,258 174,234 (115,385) (93,368) 71,755 57,350 388,384 398,695 Environment 4,742,087 338,419 1,956,665 1,084,476 2,785,422 (746,057) 2,531,218 177,145 5,151,203 4,641,275 Recreation 18,289 13,016 664,405 656,659 (646,116) (643,643) 6,400 - 4,278,630 4,590,327 Regulatory Services 488,329 165,060 852,671 633,484 (364,342) (468,424) 342,575 25,000 14,196 10,323 Transport 404,603 515,109 3,254,575 2,513,743 (2,849,972) (1,998,634) 120,000 507,156 25,814,293 28,869,518 Depot 9,575 89 489,875 1,769,381 (480,300) (1,769,292) 8,182 - 2,640,039 2,276,550 Governance 1,835,729 1,623,849 996,781 725,268 838,948 898,581 2,085,212 1,613,658 1,960,100 176,457 Support Services 1,446 - 150,981 514,283 (149,535) (514,283) - - - - Other Revenue/Expenditure 3,799,931 5,760,046 - 798,052 3,799,931 4,961,994 - - 12,373,410 9,606,980 TOTALS 12,572,030 9,903,712 10,363,835 10,535,926 2,208,195 (632,214) 5,240,197 2,506,894 57,489,191 55,937,700

N2 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 3 - REVENUES

2007 2006 Notes $ $ RATES REVENUES General Rates 3,390,778 3,772,931 Less: Discretionary rebates, remissions & (44,297) (523,932) write offs 3,346,481 3,248,999 Other Rates (including service charges) Natural Resource Management levy 43,892 42,808 Waste collection 1,266,694 1,159,540 Water supply Community wastewater management schemes 575,464 515,902 1,886,050 1,718,250 Other Charges Penalties for late payment 40,439 25,852 Legal & other costs recovered 1,282 18,896 41,721 44,748 Less: Discretionary rebates, remissions & write offs 5,274,252 5,011,997

STATUTORY CHARGES Development Act fees 79,014 42,287 Building Application Fees 10,374 33,025 Animal registration fees & fines 20,831 21,980 Parking fines / expiation fees 13,426 - Septic Tank Fees 30,529 23,738 Other Statutory Charges 22,285 10,694 Sundry 176,459 131,724

USER CHARGES Aerodrome Fees 382,101 361,191 Lease Fees 184,955 155,860 Garbage/Effluent Collection 14,922 70,750 Property Rents 84,937 89,883 Cemetery Fees 10,274 11,350 Rates Searches 13,560 13,070 Caravan Park Fees 14,610 12,672 Other User Charges 175,031 43,056 880,390 757,832

INVESTMENT INCOME Interest on investments Local Government Finance Authority 181,367 181,603 181,367 181,603

N3 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

NOTE 3 - REVENUES (continued) 2007 2006 Notes $ $ REIMBURSEMENTS - for roadworks - - - for private works 319,314 566,072 - other 79,161 39,464 398,475 605,536

OTHER REVENUES Insurance & other recoupments - infrastructure, property, plant & equipment Rebates received - - Sundry 260,490 163,321 260,490 163,321

GRANTS, SUBSIDIES, CONTRIBUTIONS Amounts specifically for new or upgraded assets 273,257 467,192 Other grants, subsidies and contributions 2,566,940 2,527,767 2,840,197 2,994,959

The functions to which these grants relate are shown in Note 2.

Sources of grants Commonwealth government 327,004 2,120,813 State government 2,513,193 853,273 Other - 20,873 2,840,197 2,994,959

N3 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

NOTE 3 - REVENUES (continued) 2007 2006 Notes $ $ Conditions over grants & contributions Grants and contributions which were obtained on the condition that they be expended for specified purposes or in a future period, but which are not yet expended in accordance with those conditions, are as follows: $ $

Unexpended at the close of the previous reporting period 464,638 156,067 Less: expended during the current period from revenues recognised in previous reporting periods Economic Development 31,248 38,500 Coastal Protection 9,333 18,000 Community Services 1,364 11,404 Regulatory Services 13,486 60,000 Youth Services - 4,766 Recreation - 23,397 Roads Infrastructure 216,392 - CWMS Infrastructure 46,081 - Subtotal 317,904 156,067 Plus: amounts recognised as revenues in this reporting period but not yet expended in accordance with the conditions Roads Infrastructure - 344,340 CWMS Infrastructure 2,380,000 46,081 Economic Development 19,000 31,248 Regulatory Services 395,371 32,272 Coastal Protection 30,000 9,333 Community Services 1400 1,364 Governance 10,000 -

Subtotal 2,835,771 464,638 Unexpended at the close of this reporting period and 2,982,505 464,638

Net increase (decrease) in restricted assets in the 2,517,867 308,571 current reporting period

PHYSICAL RESOURCES RECEIVED FREE OF CHARGE Stormwater Drainage 39,200 62,280 Roads 108,200 1,992,370 Reserve Furniture - 102,750 Land 13,000 426,000 Structures - 560,000 TOTAL PHYSICAL RESOURCES RECEIVED 160,400 3,143,400

N3 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 4 - EXPENSES

2007 2006 Notes $ $ EMPLOYEE COSTS Salaries and Wages 2,257,252 2,276,001 Employee leave expense 335,699 551,115 Superannuation 20 253,423 243,576 Workers' Compensation Insurance 107,945 145,599 Other 45,815 48,907 Less: Capitalised and distributed costs (275,475) (257,510) Total Operating Employee Costs 2,724,659 3,007,688

Total Number of Employees (Full time equivalent at end of reporting period)

MATERIALS, CONTRACTS & OTHER EXPENSES Prescribed Expenses Auditor's Remuneration - Auditing the financial reports 8,560 5,170 - Other Services - 7,720 Elected members' expenses 88,917 70,935 Election expenses 23,217 - Subtotal - Prescribed Expenses 120,694 83,825

Other Materials, Contracts & Expenses Contractors 1,271,616 825,663 Energy 97,225 95,069 Council Grants Expense 209,022 183,365 Insurance 178,170 167,968 Legal Expenses 55,554 63,661 Levies paid to government - NRM levy 43,892 42,808 - Other Levies -- Parts, accessories & consumables 855,585 978,255 Professional services 298,133 429,193 Sundry 741,128 647,192 Subtotal - Other Materials, Contracts & Expenses 3,750,325 3,433,174 3,871,019 3,516,999

N4 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 4 - EXPENSES (cont) 2007 2006 Notes $ $ FINANCE COSTS Interest on Overdraft 66 12 Interest on Loans 268,112 268,113 268,178 268,125

DEPRECIATION, AMORTISATION & IMPAIRMENT Depreciation Buildings 298,097 291,273 Infrastructure 2,665,571 2,468,879 Plant & Equipment 405,945 372,399 Furniture, Fittings & Office Equipment 97,111 67,551 Library Books 19,814 19,080 3,486,538 3,219,182

N4 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 5 - ASSET DISPOSAL & FAIR VALUE ADJUSTMENTS

2007 2006 Notes $ $

INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT Proceeds from disposal 761,932 154,519 Less: Carrying amount of assets sold 775,373 277,963 Gain (Loss) on disposal (13,441) (123,444)

NET GAIN (LOSS) ON DISPOSAL OR REVALUATION (13,441) (123,444) OF ASSETS

N5 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 6 - CURRENT ASSETS 2007 2006 CASH & EQUIVALENT ASSETS Notes $ $ Cash on Hand and at Bank 1,130 1,210 Deposits at Call 4,814,547 3,434,905 4,815,677 3,436,115

TRADE & OTHER RECEIVABLES Rates - General & Other 500,888 304,990 Accrued Revenues 53,954 55,967 Debtors - general 141,407 295,454 GST Recoupment 87,604 100,317 Prepayments 27,035 20,893 Total 810,888 777,621 810,888 777,621

INVENTORIES Stores & Materials 120,256 137,813 120,256 137,813

N6 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 7 - NON-CURRENT ASSETS 2007 2006 FINANCIAL ASSETS Notes $ $

OTHER NON-CURRENT ASSETS Capital Works-in-Progress 162,791 712,443 162,791 712,443

N7 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007 Note 8 - INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

2006 2007 $ $ AT FAIR ACCUM CARRYING AT FAIR ACCUM CARRYING AT COST AT COST VALUE DEP'N AMOUNT VALUE DEP'N AMOUNT Land 6,644,532 434,942 - 7,079,474 6,423,160 453,314 - 6,876,474 Buildings 5,657,776 747,656 (870,120) 5,535,312 5,208,900 2,745,773 (1,056,718) 6,897,955 Infrastructure 36,260,226 6,941,186 (7,192,634) 36,008,778 36,249,938 8,685,564 (9,854,180) 35,081,322 Plant & Equipment 1,183,293 1,541,157 (815,257) 1,909,193 802,837 2,617,801 (1,048,306) 2,372,332 Furniture, Fittings & Office Equipment 193,303 278,988 (197,308) 274,983 144,759 367,588 (248,677) 263,670 Library Books 154,230 7,529 (57,222) 104,537 154,230 10,632 (77,036) 87,826

TOTAL PROPERTY, PLANT & 50,093,360 9,951,458 (9,132,541) 50,912,277 48,983,824 14,880,672 (12,284,917) 51,579,579 EQUIPMENT 2006 Totals 50,280,640 5,058,962 (5,956,030) 49,383,572 50,093,360 9,951,458 (9,132,541) 50,912,277

2006 CARRYING AMOUNT MOVEMENTS DURING YEAR 2007 $ $ $ CARRYING Net CARRYING Additions Disposals Depreciation Impairment AMOUNT Revaluation AMOUNT Land 7,079,474 18,372 (221,372) - - - 6,876,474 Buildings 5,535,312 1,998,117 (337,377) (298,097) - - 6,897,955 Infrastructure 36,008,778 1,744,378 (6,263) (2,665,571) - - 35,081,322 Plant & Equipment 1,909,193 1,076,644 (207,560) (405,945) - - 2,372,332 Furniture, Fittings & Office Equipment 274,983 88,600 (2,802) (97,111) - - 263,670 Library Books 104,537 3,103 - (19,814) - - 87,826

TOTAL PROPERTY, PLANT & 50,912,277 4,929,214 (775,374) (3,486,538) - - 51,579,579 EQUIPMENT 2006 Totals 49,383,572 5,025,850 (277,963) (3,219,182) - - 50,912,277

N8 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 9 - LIABILITIES 2007 2006 $ $ TRADE & OTHER PAYABLES Notes Current Non-current Current Non-current Goods & Services 360,896 - 247,418 - Accrued expenses - employee entitlements 298,337 - 345,342 - Accrued expenses - other 49,214 - 62,072 - GST Payable 9,959 - 38,567 - Payments received in advance 2,400,000 - 2,763 - 3,118,406 - 696,162 -

BORROWINGS Bank Overdraft 67,569 - 207,488 - Loans 455,922 3,414,081 517,648 3,870,003 523,491 3,414,081 725,136 3,870,003

PROVISIONS Employee entitlements (including oncosts) 215,197 89,152 184,955 179,343 215,197 89,152 184,955 179,343

N9 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 10 - RESERVES

Net Increments Transfers on ASSET REVALUATION RESERVE 1/07/2006 30/06/2007 (Decrements) Sale

Notes $ $ $ $ Land 1,982,066 - - 1,982,066 Buildings 2,803,950 - - 2,803,950 Infrastructure 32,198,544 - - 32,198,544 Plant & Equipment 243,752 - - 243,752 Furniture, Fittings & Office Equipment 118,948 - - 118,948 Library Books 152,144 - - 152,144 Total Infrastructure, Property, 37,499,404 37,499,404 Plant & Equipment - - Available for Sale Investments TOTAL 37,499,404 37,499,404

2006 Totals 37,499,404 - - 37,499,404

Transfers to Transfers from 1/07/2006 30/06/2007 OTHER RESERVES Reserve Reserve

Office Redevelopment Project 250,000 - (250,000 ) - American River CWMS 36,581 2,362,955 - 2,399,536 Special Projects Reserve 736,000 - (736,000 ) - Marina Berths Reserve 9,121 10,046 - 19,167 Airport Reserve 781,933 254,100 - 1,036,033 Roads to Recovery Reserve 253,578 - (104,198 ) 149,380 Rates Reserve 91,963 - (91,963 ) - CWMS Reserve 220,098 2,593 - 222,691 Waste Management Reserve 112,178 21,668 - 133,846 Committed Funds Reserve 711,041 - (71,798 ) 639,243 Linnetts Subdivision Reserve - 95,000 (65,704 ) 29,296 Penneshaw CWMS - 79,667 - 79,667 General Reserve - 112,215 - 112,215 Kingscote CBD Carpark - 19,963 - 19,963 KIN Reserve - 103,032 - 103,032 TOTAL OTHER RESERVES 3,202,493 3,061,239 (1,319,663 ) 4,944,069

2006 Totals - 3,288,676 (86,183 ) 3,202,493

N10 PURPOSES OF RESERVES Asset Revaluation Reserve The asset revaluation reserve is used to record increments and decrements arising from changes in fair value of non- current assets and available-for-sale financial assets.

Office Redevelopment Reserve Sets aside federal community partnerships funds towards the Council office redevelopment.

American River CWMS Funds provided by the LGA for the potential extension of CWMS to the American River township.

Special Projects Reserve Council contributed funds towards the Council office redevelopment.

Marina Berths Reserve Holds contributions from lessees for the marina berths at Christmas Cove Penneshaw.

Airport Reserve The Airport is a self servicing entity within the Council and any surplus or deficit for the year is accumulated in the reserve.

Roads to Recovery Reserve R2R supplementary funding which has not been spent during the year.

Rates Reserve Excess rates collected in prior years, that will be used to offset future rates collected.

CWMS Reserve CWMS is a self servicing entity within the Council and any surplus or deficit for the year is accumulated in this reserve.

Waste Management Reserve The waste management function is a self servicing entity within the Council and any surplus or deficit for the year is accumulated in this reserve.

Committed Funds Reserve Unspent funds at the end of the financial year that are to be carried forward for use in the following financial year.

Linnetts Subdivision Reserve Bond funds received from developer of sub division as provision for future works

Penneshaw CWMS Funds provided by the LGA for the potential extension of CWMS to the Penneshaw township.

General Reserve The general funds of council that have no specific purpose.

Kingscote CBD Carpark Car Park contributions for future CBD Carparking in Kingscote

KIN Reserve Kangaroo Island Network funds held in trust for committee discretion

N10 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 11 - ASSETS SUBJECT TO RESTRICTIONS

The uses of the following assets are restricted, wholly or partially, by legislation or other externally imposed requirements. The assets are required to be utilised for the purposes for which control was transferred to Council, or for which the revenues were originally obtained.

2007 2006 CASH & FINANCIAL ASSETS Notes $ $ Unexpended Loans 670,000 - Developers Contributions 19,963 - Other unexpended amounts from other levels of Government 149,380 253,578 CWMS / STEDs scheme 2,728,496 49,054 Other 141,976 259,121 3,709,815 561,753 INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT Land assets utilised for recreation or other community purposes are subject to the provisions of Chapter 11, Part 1 of the Local Government Act, 1999 relating to 'Local Government Land'. Such assets are indentified on Council's Community Land Register in accordance with the provisions in the Act. 21,320,480 21,320,480 TOTAL ASSETS SUBJECT TO EXTERNALLY 25,030,295 21,882,233 IMPOSED RESTRICTIONS

N11 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 12 - RECONCILIATION TO CASH FLOW STATEMENT

(a) Reconciliation of Cash Cash Assets comprise highly liquid investments with short periods to maturity subject to insignificant risk of changes of value. Cash at the end of the reporting period as shown in the Cash Flow Statement is reconciled to the related items in the Statement of Financial Position as follows:

2007 2006 Notes $ $ Total cash & equivalent assets 6 4,815,677 3,436,115 Less: Short-term borrowings BS (67,569) (207,488) Balances per Cash Flow Statement 4,748,108 3,228,627

(b) Reconciliation of Change in Net Assets to Cash from Operating Activities Net Surplus (Deficit) (191,805) 2,854,934 Non-cash items in Income Statement Depreciation, amortisation & impairment 3,486,538 3,219,182 Non-cash asset acquisitions (160,400) (3,143,400) Grants for capital acquisitions treated as Investing Activity (273,257) (467,192) Net (Gain) Loss on Disposals 13,441 123,444 2,874,517 2,586,968 Add (Less): Changes in Net Current Assets Net (increase) decrease in receivables (33,267) (122,157) Net (increase) decrease in inventories 17,557 (31,518) Net increase (decrease) in trade & other payables 22,245 100,557 Net increase (decrease) in provisions (59,949) 87,759 Net Cash provided by (or used in) operations 2,821,103 2,621,609

Acquisition of assets by means of: - Physical resources received free of charge 3 160,400 3,143,400 - Non-cash grants & contributions Amounts recognised in Income Statement 160,400 3,143,400 - Finance Leases - - - Land taken over for non-payment of Rates - - 160,400 3,143,400

(d) Financing Arrangements

Unrestricted access was available at balance date to the following lines of credit: Bank Overdrafts 100,000 100,000 Corporate Credit Cards 11,000 11,000

N12 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 13 - FINANCIAL INSTRUMENTS

Recognised Financial Instruments Bank, Deposits at Call, Short Term Accounting Policy: Carried at lower of cost and net realiseable value; Interest is recognised Deposits when earned. Terms & conditions: Deposits are returning fixed interest rates between a% and b% (2006: c% and d%). Short term deposits have an average maturity of e days and an average interest rates of f% (2006: g days, h%). Carrying amount: approximates fair value due to the short term to maturity. Receivables - Rates & Associated Accounting Policy: Carried at nominal values less any allowance for doubtful debts. An Charges (including legals & penalties allowance for doubtful debts is recognised (and re-assessed annually) when collection in full is no for late payment) longer probable.

Terms & conditions: Secured over the subject land, arrears attract interest of j% (2006: k%) Although Council is not materially exposed to any individual debtor, credit risk exposure is concentrated within the Council's boundaries in the State. Carrying amount: approximates fair value (after deduction of any allowance). Receivables - Fees & other charges Accounting Policy: Carried at nominal values less any allowance for doubtful debts. An allowance for doubtful debts is recognised (and re-assessed annually) when collection in full is no longer probable. Terms & conditions: Unsecured, and do not bear interest. Although Council is not materially exposed to any individual debtor, credit risk exposure is concentrated within the Council's boundaries. Carrying amount: approximates fair value (after deduction of any allowance). Receivables - other levels of Accounting Policy: Carried at nominal value. government Terms & conditions: Amounts due have been calculated in accordance with the terms and conditions of the respective programs following advice of approvals, and do not bear interest. All amounts are due by Departments and Agencies of the Governments of the Commonwealth & State. Carrying amount: approximates fair value. Receivables - Retirement Home Accounting Policy: Carried at nominal values less any allowance for doubtful debts. An Contributions allowance for doubtful debts is recognised (and re-assessed annually) when collection in full is no longer probable. Terms & conditions: Amounts due have been calculated in accordance with the terms and conditions of the respective legislation. Carrying amount: approximates fair value (after deduction of any allowance). Liabilities - Creditors and Accruals Accounting Policy: Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Council. Terms & conditions: Liabilities are normally settled on 30 day terms. Carrying amount: approximates fair value. Liabilities - Retirement Home Accounting Policy: To avoid inconvenience when complying with the separate audit Contributions requirements imposed by the relevant legislation, amounts are carried at nominal values. Terms & conditions: Pursuant to Commonwealth legislation certain intending residents are required to contribute amounts on an interest free basis. The amounts are subject to certain deductions as prescribed by the legislation, the balance being repaid on termination of tenancy.

Carrying amount: approximates fair value for short tenancies; may be non-materially over- stated for longer tenancies. Liabilities - Interest Bearing Loans Accounting Policy: Carried at the principal amounts. Interest is charged as an expense as it accrues. Terms & conditions: secured over future revenues, loans are repayable by equal 6 monthly instalments of principal & interest; interest is charged at fixed rates between l% and m% (2006: n% and p%) Carrying amount: approximates fair value. Liabilities - Finance Leases Accounting Policy: accounted for in accordance with AASB 117.

N13 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 13 (cont) - FINANCIAL INSTRUMENTS Liquity Analysis Floating Fixed interest maturing in Non- 2007 Interest < 1 year > 1 year > 5 years interest Total Rate > 5 years bearing Financial Assets $$$$$$ Fair Value through P&L Cash Assets 4,814,547 - - - 1,130 4,815,677 Other Financial Assets ------Loans & Receivables Receivables - - - - 729,899 729,899 Other Financial Assets ------Held to Maturity Investments Other Financial Assets ------Available for Sale Cash Assets ------Other Financial Assets ------Total 4,814,547 - - - 731,029 5,545,576 Weighted Average Interest Rate 6.25% Financial Liabilities Payables - - - - 2,770,855 2,770,855 Short-term Borrowings 67,569 - - - - 67,569 Borrowings - 68,085 673,303 3,128,615 - 3,870,003 Total 67,569 68,085 673,303 3,128,615 2,770,855 6,708,427 Weighted Average Interest Rate 6.30%

NET FINANCIAL ASSETS 4,746,978 (68,085) (673,303) (3,128,615) (2,039,826) (1,162,851) (LIABILITIES)

Floating Fixed interest maturing in Non- 2006 Interest < 1 year > 1 year > 5 years interest Total Rate > 5 years bearing Financial Assets $$$$$$ Fair Value through P&L Cash Assets 3,434,905 - - - 1,210 3,436,115 Other Financial Assets ------Loans & Receivables Receivables - - - - 700,761 700,761 Other Financial Assets ------Held to Maturity Investments Other Financial Assets ------Available for Sale Cash Assets ------Other Financial Assets ------Total 3,434,905 - - - 701,971 4,136,876 Weighted Average Interest Rate 5.25% Financial Liabilities Payables - - - - 288,748 288,748 Short-term Borrowings 207,488 - - - - 207,488 Borrowings - 517,648 1,502,985 2,367,018 - 4,387,651 Total 207,488 517,648 1,502,985 2,367,018 288,748 4,883,887 Weighted Average Interest Rate 6.47%

NET FINANCIAL ASSETS 3,227,417 (517,648) (1,502,985) (2,367,018) 413,223 (747,011) (LIABILITIES)

N13 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 13 (cont) - FINANCIAL INSTRUMENTS

Credit Risk Exposures Credit risk represents the loss that would be recognised if counterparties fail to perform as contracted. The maximum credit risk on financial assets of the Council is the carrying amount, net of any provision for doubtful debts. Except as detailed in Notes 6 & 7 in relation to individual classes of financial assets, exposure is concentrated within the Council's boundaries, and there is no material exposure to any individual debtor.

Reconciliation of Financial Assets & Liabilities 2007 2006 $ $ Net financial assets from above Financial Assets 5,545,576 4,136,876 Financial Liabilities 6,708,427 4,883,887 (1,162,851) (747,011) Non-financial assets and liabilities Accrued Revenues 53,954 55,967 Prepayments 27,035 20,893 Inventories 120,256 137,813 Investments in Associates - - Investment Property - - Property, Plant & Equipment 51,579,579 50,912,277 Other Assets 162,791 712,443 Accrued Expenses (347,551) (407,414) Provisions (304,349) (364,298) Other liabilities - - 51,291,715 51,067,681 Net Assets per Balance Sheet 50,128,864 50,320,670

Net Fair Value All carrying values approximate fair value for all recognised financial instruments. With the exception of investments, there is no recognised market for the financial assets of the Council.

N13 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 14 - COMMITMENTS FOR EXPENDITURE

2007 2006 Notes $ $ Capital Commitments Capital expenditure committed for at the reporting date but not recognised in the financial statements as liabilities:

Buildings 85,000 1,521,000 Plant & Equipment CWMS 380,000 36,581 465,000 1,557,581 These expenditures are payable: Not later than one year 465,000 1,557,581 Later than one year and not later than 5 years Later than 5 years 465,000 1,557,581

N14 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 15 - FINANCIAL INDICATORS

2007 2006 2005 These Financial Indicators have been calculated in accordance with Information Paper 9 - Local Government Financial Indicators prepared as part of the LGA Financial Sustainability Program for the Local Government Association of South Australia. Detailed methods of calculation are set out in the SA Model Statements.

Operating Surplus (612,021) (632,214) (1,418,480) Being the operating surplus (deficit) before capital amounts .

Operating Surplus Ratio Operating Surplus (12%) (13%) (34%) Rates - general & other less NRM levy

This ratio expresses the operating surplus as a percentage of general and other rates, net of NRM levy.

Net Financial Liabilities 1,733,762 1,441,863 2,024,132 Net Financial Liabilities are defined as total liabilities less financial assets (excluding equity accounted investments in Council businesses.

Net Financial Liabilities Ratio Net Financial Liabilities 18% 15% 26% Total Operating Revenue less NRM levy

Interest Cover Ratio Net Interest Expense 0.9% 0.9% 1.3% Total Operating Revenue less NRM levy less Investment Income

Asset Sustainability Ratio Net Asset Renewals 99% 76% 60% Depreciation Expense Net asset renewals expenditure is defined as net capital expenditure on the renewal and replacement of existing assets, and excludes new capital expenditure on the acquisition of additional assets.

Asset Consumption Ratio Carrying value of depreciable assets 78% 83% 102% Gross value of depreciable assets Total carrying value of depreciable assets divided by total reported value of depreciable assets before accumulated depreciation.

N15 Kangaroo Island Council

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 16 - UNIFORM PRESENTATION OF FINANCES

The Local Government Association’s General Meeting in March 2006 resolved that a high level summary of both operating and capital investment activities of each council be prepared on a uniform and consistent basis, thereby enabling more meaningful comparisons between councils.

It also is intended that annual budgets and long-term financial plans be summarised on the same basis.

A feature of the arrangement is that it facilitates the reporting of a standard set of key financial indicators of the Council’s financial sustainability – all of which are shown in Note 15 above.

2007 2006 $ $

Operating Revenues 9,738,373 9,379,780 less Operating Expenses (10,350,394) (10,011,994) Operating Surplus / (Deficit) before Capital Amounts (612,021) (632,214) less Net Outlays on Existing Assets Capital Expenditure on renewal and replacement of Existing 4,219,161 2,563,819 Assets less Depreciation, Amortisation and Impairment (3,486,538) (3,219,182) less Proceeds from Sale of Replaced Assets (761,932) (123,444) (29,309) (778,807) less Net Outlays on New and Upgraded Assets Capital Expenditure on New and Upgraded Assets - - (including investment property & real estate developments) less Amounts received specifically for New and Upgraded (2,673,257) (467,192) Assets less Proceeds from Sale of Surplus Assets - - (including investment property and real estate developments) (2,673,257) (467,192)

Net Lending / (Borrowing) for Financial Year 2,090,545 613,785

N16

KANGAROO ISLAND COUNCIL

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007

Note 1 - SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

1 Basis of Preparation 1.1 Compliance with Australian equivalents to International Financial Reporting Standards This general purpose financial report has been prepared in accordance with Accounting Standards as they apply to not-for-profit entities, and relevant South Australian legislation. Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS).

The AIFRS include certain specific provisions relating to not-for-profit entities that are not included in the International Financial Reporting Standards. In addition, Australian Accounting Standard AAS 27 Financial Reporting by Local Government also applies. Except to the extent that these special provisions require, these financial statements comply with International Financial Reporting Standards.

The principal areas of non-compliance relate to the recognition of non-reciprocal revenues, the definition, of value in use for the purposes of AASB 116 Impairments and the offsetting of revaluation increments and decrements within classes of assets, and are detailed more particularly below.

The financial report was authorised for issue by the Council by certificate under clause 11 of the Local Government (Financial Management) Regulation 1999 dated 30th November 2007.

1.2 Historical Cost Convention Except where stated below, these financial statements have been prepared in accordance with the historical cost convention.

1.3 Critical Accounting Estimates The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates, and requires management to exercise its judgement in applying Council’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are specifically referred to in the relevant sections of this Note.

1.4 Rounding All amounts in the financial statements have been rounded to the nearest thousand dollars ($’000).

N1 2 The Local Government Reporting Entity Kangaroo Island Council is incorporated under the SA Local Government Act 1999 and has its principal place of business at 43 Dauncey Street, Kingscote SA 5223. These financial statements include the consolidated fund and all entities through which Council controls resources to carry on its functions. In the process of reporting on the Council as a single unit, all transactions and balances between activity areas and controlled entities have been eliminated.

Trust monies and property held by Council but subject to the control of other persons have been excluded from these reports. A separate statement of moneys held in the Trust Fund is available for inspection at the Council Office by any person free of charge.

3 Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised when the Council obtains control over the assets comprising the revenue, or when the amount due constitutes an enforceable debt, whichever first occurs. Where grants, contributions and donations recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the amounts subject to those undischarged conditions are disclosed in these notes. Also disclosed is the amount of grants, contributions and receivables recognised as revenues in a previous reporting period which were obtained in respect of the Council's operations for the current reporting period.

4 Cash, Cash Equivalents and other Financial Instruments Cash Assets include all amounts readily convertible to cash on hand at Council’s option with an insignificant risk of changes in value with a maturity of three months or less from the date of acquisition.

Receivables for rates and annual charges are secured over the subject land, and bear interest at rates determined in accordance with the Local Government Act 1999 (as amended). Other receivables are generally unsecured and do not bear interest.

All receivables are reviewed as at the reporting date and adequate allowance made for amounts the receipt of which is considered doubtful.

All financial instruments are recognised at fair value at the date of recognition. A detailed statement of the accounting policies applied to financial instruments forms part of Note 13.

5 Inventories Inventories held in respect of stores have been valued by using the weighted average cost on a continual basis, after adjustment for loss of service potential. Inventories held in respect of business undertakings have been valued at the lower of cost and net realisable value.

5.1 Real Estate Assets Developments Real Estate Assets developments have been classified as Inventory in accordance with AASB 102 and are valued at the lower of cost or net realisable value. Cost includes the costs of acquisition, development, borrowing and other costs incurred on financing of that acquisition and up to the time of sale. Any amount by which cost exceeds the net realisable value has been recognised as an expense.

Revenues arising from the sale of property are recognised in the operating statement when settlement is completed.

5.2 Other Real Estate held for resale Properties not acquired for development, but which Council has decided to sell as surplus to requirements, are recognised at the carrying value at the time of that decision.

N1 Certain properties, auctioned for non-payment of rates in accordance with the Local Government Act but which failed to meet the reserve set by Council and are available for sale by private treaty, are recorded at the lower of the unpaid rates and charges at the time of auction or the reserve set by Council. Holding costs in relation to these properties are recognised as an expense when incurred.

6 Infrastructure, Property, Plant & Equipment 6.1 Transitional Provisions Council has elected not to recognise land under roads in accordance with the deferral arrangements available under AASB 1045.

All non-current assets purchased or constructed are capitalised as the expenditure is incurred and depreciated as soon as the asset is held “ready for use”.

6.2 Initial Recognition All assets are initially recognised at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including architects' fees and engineering design fees and all other costs incurred. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed by the Council includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overhead.

Capital works still in progress at balance date are recognised as other non-current assets and transferred to infrastructure, property, plant & equipment when completed ready for use.

6.3 Materiality Assets with an economic life in excess of one year are only capitalised where the cost of acquisition exceeds materiality thresholds established by Council for each type of asset. In determining (and in annually reviewing) such thresholds, regard is had to the nature of the asset and its estimated service life. Examples of capitalisation thresholds applied during the year are as follows. No capitalisation threshold is applied to the acquisition of land or interests in land. Office Furniture & Equipment $1,000 Other Plant & Equipment $1,000 Buildings - new construction/extensions $1,000 Park & Playground Furniture & Equipment $1,000 Road construction & reconstruction $1,000 Paving & footpaths, Kerb & Gutter $1,000 Drains & Culverts $1,000 Reticulation extensions $1,000 Sidelines & household connections $1,000 Artworks $1,000

6.4 Subsequent Recognition Certain asset classes are revalued on a regular basis such that the carrying values are not materially different from fair value. For infrastructure and other asset classes where no active market exists, fair value is determined to be the current replacement cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. Further detail of existing valuations, methods and valuers are provided at Note 8.

6.5 Depreciation of Non-Current Assets Other than land, all infrastructure, property, plant and equipment assets recognised are systematically depreciated over their useful lives in a manner which reflects the consumption of the service potential embodied in those assets.

N1 Depreciation is recognised on a straight-line basis. Major depreciation periods for each class of asset are shown below. Depreciation periods for infrastructure assets have been estimated based on the best information available to Council, but appropriate records covering the entire life cycle of these assets are not available, and extreme care should be used in interpreting financial information based on these estimates.

Plant, Furniture & Equipment Furniture & Fittings 1 to 7 years Vehicles and Road-making Equip 4 to 10 years Other Plant & Equipment 4 to 10 years Building & Other Structures 14 to 20 years Buildings – masonry 30 to 50 years Buildings – other construction 20 to 40 years Reserve Furniture 12 to 15 years

Infrastructure Sealed Roads – Surface 5 to 10 years Sealed Roads – Structure 20 to 50 years Unsealed Roads 10 to 50 years Bridges – Concrete 20 to 50 years Paving & Footpaths, Kerb & Gutter 10 to 50 years Stormwater Drains 40 to 50 years CWMS 40 to 50 years Waste Management 30 to 50 years

Other Assets Library Books 6 to 10 years

6.6 Impairment Assets that have an indefinite useful life are not subject to depreciation and are reviewed annually for impairment. Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount (which is the higher of the present value of future cash outflows or value in use).

For assets whose future economic benefits are not dependent on the ability to generate cash flows, and where the future economic benefits would be replaced if Council were deprived thereof, the value in use is the depreciated replacement cost. In assessing impairment for these assets, a rebuttable assumption is made that the current replacement cost exceeds the original cost of acquisition.

7 Payables 7.1 Goods & Services Creditors are amounts due to external parties for the supply of goods and services and are recognised as liabilities when the goods and services are received. Creditors are normally paid 30 days after the month of invoice. No interest is payable on these amounts.

7.2 Payments Received in Advance & Deposits Amounts received from external parties in advance of service delivery, and security deposits held against possible damage to Council assets, are recognised as liabilities until the service is delivered or damage reinstated, or the amount is refunded as the case may be.

8 Borrowings Loans are carried at their principal amounts which represent the present value of future cash flows associated with servicing the debt. Interest is accrued over the period to which it relates, and is recorded as part of “Payables”.

N1 9 Employee Benefits 9.1 Salaries, Wages & Compensated Absences Liabilities for employees’ entitlements to salaries, wages and compensated absences expected to be paid or settled within 12 months of reporting date are accrued at nominal amounts (including payroll based oncosts) measured in accordance with AASB 119.

Liabilities for employee benefits not expected to be paid or settled within 12 months are measured as the present value of the estimated future cash outflows (including payroll based oncosts) to be made in respect of services provided by employees up to the reporting date. Present values are calculated using government guaranteed securities rates with similar maturity terms.

No accrual is made for sick leave as Council experience indicates that, on average, sick leave taken in each reporting period is less than the entitlement accruing in that period, and this experience is expected to recur in future reporting periods. Council does make payment for untaken sick leave if the employee has been in council’s employment for more than 10 years under AWU EB agreement & 7 years under ASU EB Agreement.

9.2 Superannuation The Council makes employer superannuation contributions in respect of its employees to the Local Government Superannuation Scheme. The Scheme has two types of membership, each of which is funded differently.

Accumulation Fund Members The accumulation fund receives both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings in accordance with Superannuation Guarantee Legislation (9% in 2006/07; 9% in 2005/06). No further liability accrues to the employer as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund.

Defined Benefit Members Council makes employer contributions to the defined benefits categories of the Scheme at rates determined by the Scheme's Trustee. The rate is currently a% (b% in 2005/2006) of superannuation salary. Employees also make member contributions to the Fund. As such, assets accumulate in the Fund to meet the member's benefits, as defined in the Trust Deed, as they accrue.

The Fund's Defined Benefit Plan is a multi-employer sponsored plan. As the Fund's assets and liabilities are pooled and are not allocated by employer, the Actuary is unable allocate benefit liabilities, assets and costs between employers. As provided by AASB 119.32(b), Council does not use defined benefit accounting for these contributions.

10 Construction Contracts Construction works undertaken by Council for third parties are generally on an agency basis where the third party reimburses Council for actual costs incurred, and usually do not extend beyond the reporting period. As there is no profit component, such works are treated as 100% completed. Reimbursements not received are recognised as receivables and reimbursements received in advance are recognised as “payments received in advance”.

11 Joint Ventures and Associated Entities Council participates in cooperative arrangements with other Councils for the provision of services and facilities.

12 Leases Where applicable lease arrangements have been accounted for in accordance with Australian Accounting Standard AASB 117.

N1 In respect of finance leases, where Council substantially carries all of the risks incident to ownership, the leased items are initially recognised as assets and liabilities equal in amount to the present value of the minimum lease payments. The assets are disclosed as assets under lease, and are amortised to expense over the period during which the Council is expected to benefit from the use of the leased assets. Lease payments are allocated between interest expense and reduction of the lease liability, according to the interest rate implicit in the lease.

In respect of operating leases, where the lessor substantially retains all of the risks and benefits incident to ownership of the leased items, lease payments are charged to expense over the lease term.

13 GST Implications In accordance with UIG Abstract 1031 “Accounting for the Goods & Services Tax” ¾ Receivables and Creditors include GST receivable and payable. ¾ Except in relation to input taxed activities, revenues and operating expenditures exclude GST receivable and payable. ¾ Non-current assets and capital expenditures include GST net of any recoupment. ¾ Amounts included in the Statement of Cash Flows are disclosed on a gross basis.

14 Comparative Information Comparative information has been reclassified to be consistent with the current year disclosure of equivalent information in accordance with AIFRS.

15 New Accounting Standards Certain new accounting standards and UIG interpretations have been published that are not mandatory for the 30 June 2007 reporting period. ¾ AASB 7 Financial Instruments: Disclosures and AASB 2005-10 Amendments to AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB1, AASB4 AASB 1023 & AASB 1038 ¾ AASB 2006-1 Amendments to AASB 121 ¾ AASB 2006-3 Amendments to AASB 1045 ¾ AASB 2006-4 Amendments to AASB 134 ¾ AASB 2007-1 Amendments to AASB 2 arising from AASB Interpretation 11 ¾ AASB 2007-2 Amendments to AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127, AASB 131 & AASB 139 arising from AASB Interpretation 12 ¾ AASB 8 Operating Segments and AASB 2007-3 Amendments to AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038 arising from AASB 8 ¾ AASB 2007-4 Amendments to AASB 1, 2, 3, 4, 5, 6, 7, 102, 107, 108, 110, 112, 114, 116, 117, 118, 119, 120, 121, 127, 128, 129, 130, 131, 132, 133, 134, 136, 137, 138, 139, 141, 1023 & 1038 arising from ED 151 and Other Amendments ¾ Interpretation 10 Interim Financial Reporting and Impairment ¾ Interpretation 11 AASB 2 – Group and Treasury Share Transactions ¾ Interpretation 12 Service Concession Arrangements ¾ Interpretation 129 Disclosure – Service Concession Arrangements

Council is of the view that none of the above new standards or interpretations will affect any of the amounts recognised in the financial statements, but that they may impact certain information otherwise disclosed.