Adopted 24th November 2008
2007-2008 ANNUAL REPORT
Cowra Council Cowra Council
Cowra: Your Shire ...... 5 The Region ...... 5 The Cowra Shire ...... 5 Population Growth ...... 6 Cowra: Your Council ...... 7 Council’s Vision, Mission, Motto & Values...... 7 Cowra: Your Representatives ...... 8 Elected Representatives: Councillors ...... 8 Organisation Structure ...... 9 Contacting Your Council...... 10 A Word from the Mayor...... 11 A Word from the General Manager...... 14 Principal Activities ...... 16 Health & Well-Being...... 16 Education, Training & Research...... 18 Lifestyle ...... 19 Governance...... 23 Business & Industry...... 28 Transport & Infrastructure ...... 29 Natural Resource Management ...... 36 Expenses & Payments ...... 38 Legal Proceedings ...... 38 Rate and Charge Write-offs ...... 38 Section 356 Donations...... 38 Contracts over $150,000...... 39 Mayor and Councillors...... 39 Environmental Activities ...... 59 Bushfire Reduction Activities...... 59 State of Environment Report ...... 74 Companion Animals Clause 217 (1)(f)...... 85 Cultural Awareness...... 86 Diverse Culture Programs...... 86 Migrant Support...... 87 Cowra Cultural Council ...... 87 Cowra Festival of International Understanding...... 88
2007-2008 ANNUAL REPORT Cowra Social Plan 2005-2009 ...... 89 Cowra’s Sakura Avenue ...... 90 Council Works...... 91 Private Works...... 91 Public Works...... 91 Business Activities & Competitive Neutrality...... 91 Council Employment...... 92 Senior Staff Remuneration...... 92 Human Resources Activities ...... 92 Equal Employment Opportunity...... 93 Associated Organisations & Companies ...... 94 External Bodies – Delegation...... 94 Controlling Interests in Companies ...... 94 Co-Operatives, Partnerships, Joint Ventures...... 94 General Regulation Requirements...... 95 Overseas Visits Funded by Council ...... 95 Activities for Children ...... 95 Access & Equity of Services to All...... 96 Information...... 97 Privacy and Personal Information ...... 97 Freedom of Information...... 97 Financial Reports...... 98
2007-2008 ANNUAL REPORT Cowra: Your Shire
The Region Cowra Shire is located in central New South Wales, only two hours from Canberra, the nation’s capital, four hours from central Sydney and eight hours from Melbourne. Bathurst and Orange are the major cities of the region. The shire forms part of a larger Western NSW region,
Covering more than half of the state, which extends from the Great Dividing Range in the east across to the South Australian border. The Lachlan River runs through the shire with Wyangala Dam at its headwaters. The river provides town water supplies along its length as well as irrigation to river properties within the shire and to the adjacent local government authorities of Forbes and Lachlan Shire (Condobolin).
The Cowra Shire The Cowra Shire is located in the fertile Lachlan Valley and covers an area of approximately 2,810 km² and accommodates a resident population of 12,924 as at 2007.
The major urban centre in the shire is the Cowra township which is the heart of the region; having a long established centre since its early settlement as a river crossing in 1849 to facilitate cattle-grazing and gold mining activity in the area. There are also a number of small villages in the shire, including Billimari, Darbys Falls, Gooloogong, Morongla, Noonbinna, Wattamondara, Woodstock and Wyangala. The history of these settlements is varied but originates from early mining and agricultural activities of the late 1800s.
A count of business by industry type as at June 2007 shows the following:
Cowra No of Businesses % of Total Businesses Agriculture, Forestry and 600 45% Fishing Retail Trade 147 11% Construction 129 10% Property and Business Services 102 8% Manufacturing 75 6% Others 291 20% Total Businesses 1,344 100%
2007-2008 ANNUAL REPORT Page 5 The top seven areas of Employment by Industry sector are:
Industry % of Employment Agriculture, Forestry and Fishing 17.39% Retail Trade 15.89% Manufacturing 12.73% Health and Community Services 10.01% Education 7.12% Wholesale Trade 5.98% Construction 5.26%
Tourism is also a key industry for Cowra in terms of investment, economic development and opportunity however its activities range over a number of industry sectors.
Population Growth
Shire Population 12,924 Cowra Town Population 9,200
Cowra shire’s population has had an average annual growth rate over the last 30 years of just under 1%. Traditionally, Cowra has exhibited moderate but positive population growth over the last 30 years, however, six years of drought has impacted on employment and resulted in a loss of 170 persons from 2006 to 2007. The population growth for Cowra, based on past trends, is illustrated below. With two major housing developments and a new supermarket the population is expected to fully recover and return to its normal growth pattern.
COWRA SHIRE
13500
13000
12500
12000
11500 COWRA SHIRE
11000
10500
10000
9500 1971 1976 1981 1986 1991 1996 2001 2006 2007
2007-2008 ANNUAL REPORT Page 6 Cowra: Your Council Council’s Vision, Mission, Motto & Values
Vision For Cowra to be the most attractive and rewarding area in all aspects of life in rural NSW
Mission Foster community relations, actively lead, facilitate and ensure sustainable development and provide, maintain and extend Council services to improve the quality of life for residents throughout the shire
Motto “Cowra Shire Council – Creating a Better Future”
Values
We value:
Sustainability Financially viable and environmentally sustainable outcomes Local solutions to local problems A long term vision Honest, open, objective and accountable decision making Community involvement in decision making Continuous improvement Cost effective & commercially competitive service delivery
2007-2008 ANNUAL REPORT Page 7 Cowra: Your Representatives Elected Representatives: Councillors
An ordinary Local Government election was conducted on 27th March 2004 and the following eleven (11) Councillors were elected to office:-
Cr Bruce Miller Cr Alan Thompson MAYOR DEPUTY MAYOR
Cr Timothy Bush Cr Ian Brown Cr Lisa Evans Cr Christine Norton Cr Garry Starr
Cr Jack Mallon Cr Ruth Fagan Cr Robert Watt Cr Bill West
About the Councillors
Every year the elected members elect a Mayor and Deputy Mayor. The following Councillors were elected to these positions in September 2007 and held these positions during the term of this report:-
Mayor - Councillor Bruce Miller Deputy Mayor - Councillor Allan Thompson
Cr Lisa Evans resigned as an elected Councillor with Cowra Council effective from 31 March 2008.
Councillors are residents and ratepayers and share the community’s concerns about the quality of life in the shire. They determine Council policy and are responsible for planning its future directions.
2007-2008 ANNUAL REPORT Page 8
Whilst all Councillors attempt to make themselves available whenever possible, the Mayor has set aside time on Monday afternoons to discuss particular matters with individuals. Should you desire an appointment with the Mayor, please contact Council on (02) 6340 2013 to arrange an appointment.
Further, should you wish to raise an issue with all elected members, Council conducts an open forum at 5.00 pm prior to each Corporate Committee, Operations Committee and Council Meetings to give members of the community the opportunity to address Council. Organisation Structure
Council Eleven Councillors including Mayor
Mayor
General Manager’s Office Governance Liaison with Mayor & Councillors Corporate Communication Tourism Citizenship Business Development Corporate Relationships (Japan, Kogarah Council)
Environmental Corporate Services Cowra Operations Services Department Department Department • Development Control • Records Management • Parks, gardens & • Land-Use Planning • Rates & Water Billing village beautification • Compliance • Insurance • Noxious Weeds Inspections • Accounts payable & • Water & Wastewater • Companion Animals receivable • Council Facilities Regulation • Customer Service including Cemeteries, • Plumbing & Drainage • Financial Plans & Airport, Aquatic Regulation & On-site Budget Centre, Materials Sewage Management • Human Resources Recycling Facility • Zoning & Building • Community Projects (MRF), Saleyards & Certificates • Cultural & Special Council buildings • Health Regulation & Events • RTA roadworks Food Safety • Civic Centre, Library • Engineering design Inspections & Art Gallery • Construction & • Environmental • Strategy & Growth maintenance of roads Protection & • Information Services & footpaths Regulation • Depot Operations • Public Entertainment Licensing • State of the Environment Reporting • Subdivision certification • Rural Addressing
2007-2008 ANNUAL REPORT Page 9
Contacting Your Council
General Enquiries
Cowra Shire Council Administration Centre 116 Kendal Street Private Bag 342 Cowra NSW 2794
Ph: (02) 6340 2000 Email: [email protected] www.cowraregion.nsw.gov.au
After hours phone service
Council’s phone lines are open from 8.30am - 4.30pm Monday to Friday, after which a 24-hour emergency service is available by phoning 0419 219 231.
2007-2008 ANNUAL REPORT Page 10
A Word from the Mayor
I am very pleased to present to you the Cowra Shire Council 2007/08 Annual Report.
This report outlines the performance of Council throughout the year, however it could never encompass all of the projects, activities and undertakings which are completed over the period. For that, we would need a much longer report!
Council’s contribution to Cowra is evident in everything residents do, from the roads we drive on, to the footpaths we walk on, the water we drink and the community events and activities we enjoy.
Council is responsible for maintaining these things that the rest of us often take for granted, and for ensuring the sustainability of Cowra for our children and our children’s children.
It would be impossible to please everyone in the community with every decision Council makes, however at the conclusion of the 2007/08 Financial Year, residents can be pleased with the progress made over the period and can look ahead to more progress in the coming year.
The attached financial report fully documents the equitable distribution of Council’s funds; where they were raised and where they were spent. Some of the major expenditures this year were the continued work to replace the aged water infrastructure, the construction of an emergency water pipeline to hook into the central tablelands system, the commencement of the new sewerage treatment plant construction, the maintenance and upgrade of Council’s road network, notwithstanding the drought and the difficulties that presents, the continued beautification and maintenance of our wonderful parks and gardens which we all take for granted and the refurbishment of the Civic Centre, a much needed major upgrade.
The continuation of drought conditions in our town has not helped the economic development of our community, yet new businesses are still identifying Cowra as a solid investment. New developments such as Aldi, Pridham Street, Yarrabilly and the possibility of Race Dental opening in Cowra are good examples of a growing industry and increasing consumer and business confidence in our town.
Council employed a Cowra Business Officer this year, a position aimed at liaising with and assisting local business to grow their operations and value-add. The commencement of the Cowra Entrepreneur Program next year will be extremely beneficial to our business community and I encourage those interested to take advantage of the opportunity.
I am pleased to announce that plans for emergency water supplies for Cowra and Woodstock are fully underway. The Centroc Water Feasibility Study will be undertaken in the coming months with the support of the State Government and a commitment from all Centroc Councils.
2007-2008 ANNUAL REPORT Page 11
Council continues to actively pursue private works and RTA contracts which allow us to maintain our workforce and continue to improve Cowra’s 1290km road network for which Council is responsible.
The completion of the Cowra Skate Park project was particularly pleasing and the facility is now a popular feature of youth culture in Cowra. Congratulations and thank you to all the individuals and groups involved in seeing this project through to fruition.
Council and community events have been numerous this year, including sporting, social and cultural activities. I found the following to be the major highlights:
The continued success of the Cowra Better Business Awards which encourage excellence among Cowra’s business and industry. Congratulations to all the winners and the businesses awarded Distinction in their various categories. Also thanks and congratulations to the dedicated organisers of these Awards who give much of their own time and effort to ensure the Awards’ success.
I look forward to Australia Day celebrations each year, as we celebrate all things Australian. Cowra’s Australia Day ambassador this year was Norman May, well-known radio and TV personality. Marie Jean Harding was named Cowra Citizen of the Year with Amy-Leigh Walker the deserving Cowra Young Citizen of the Year. It was wonderful to see Cowra Tidy Towns and Urban Landcare Committee win the Community Group Category for the important work they do to preserve and protect our environment. Gwen Clark was the worthy recipient of the Dr Warren Whiley Memorial Award and Sally Thompson and William (Bill) Peterson were awarded the Cowra Community Service Medal. Congratulations and thank you to each of you for your valued contribution to our community.
The continuation of Council’s City/Country Partnership with Kogarah Council in Sydney. This is undertaken through various staff exchanges, a combined team in the Local Government Touch Football Carnival in Parkes and through the sharing of experience and expertise. Howard Orr, Council’s Senior Environmental Health and Building Surveyor gained great experience from his exchange to Kogarah in February. In addition, Cowra is still enjoying the numerous environmental benefits of the tree planting program designed to offset Kogarah Council’s carbon emissions.
2008 marks the 10 year anniversary of St Raphael’s association with schools in Joetsu City, an association which led to Council signing a Memorandum of Understanding with Joetsu City Council in 2003. I am proud of our continued relationship with this Japanese City. Not only does it provide a modern day link between areas with significant history, but it also allows students and Council employees alike to gain a greater understanding of their own surroundings in comparison with those in another culture.
The celebration of the culture of Chile during the Festival of International Understanding in March. This vibrant, bright and colourful culture provided a wonderful focus for this year’s Festival as we enjoyed their dance, music, food and much more. A special mention to Cr Alan Thompson for his contribution as the Chairman of both the Festival and Australia Day committees.
It was great to see Todd Kurtz win Cowra Sportsperson of the Year (SOTY) for excellence in motorcycle racing. In a SOTY first, Todd was repeating the success of his father who won the same Award in 1987 / 1988.
2007-2008 ANNUAL REPORT Page 12
This brief summary illustrates what a busy and successful year we have had. We have faced many challenges and are prepared for those we will meet in the future. The 2007/08 Financial Year is indicative of the many positive things that have and will continue to come Cowra’s way through the sustained effort of Councillors, Council staff and various individuals. Once again, I’m encouraged by the increased interest and involvement of our community and hope this continues in years to come. Finally, to my Deputy Alan Thompson, my fellow Councillors and all of Council’s staff, thank you for your support and hard work this year and congratulations on your many achievements.
Cr Bruce Miller Mayor
2007-2008 ANNUAL REPORT Page 13
A Word from the General Manager
I am pleased to present to you my fifth full report as General Manager of the Cowra Council, this year being the 2007/2008 financial year.
Council’s corporate goal of becoming the most effective and efficient local government authority in NSW continues in earnest. The implementation of a new website for Council was a positive step towards becoming more accessible to the community as well as improving our corporate brand recognition. The new site is simpler to navigate through and more user friendly for ratepayers, particularly when they are searching for specific information. The site is easier for staff to maintain and adaptable to Council’s changing needs. In addition, the old website was the only aspect of Council’s suite of communication that did not comply with our corporate branding.
The Cowra Shire Council continues to grow from strength to strength with development applications lodged in the 2007/2008 financial year exceeding the $20 million mark. Council processed 139 development applications (excluding exempt and complying development) over the past 12 months, many of which were developments of substantial size that will significantly benefit the local economy when they come to fruition. One such development is the Aldi supermarket expected to open within months and the refurbishment of the Civic Centre which will benefit the community for many years to come.
Work on the Local Environmental Plan (LEP) is also continuing with the completion this year of the Cowra Shire Issues Paper identifying and analysing the relevant and emerging issues for the shire. The next step is the undertaking of a Cowra Shire Land-use Strategy which will act as an integrated planning framework for the next 25 years and beyond. Finally, an LEP will be developed including planning and environmental policies and controls for the use and development of land in the Cowra Shire. I am pleased with the level of community consultation Council has requested and received throughout this process and look forward to continued input from the community.
The Community Meeting program developed to improve communication with village residents is still going strong at the end of the 2007/2008 financial year. In the interim between the 07/08 meetings and those for 08/09, we are aiming to provide attendees with updated copies of the minutes from their meeting to further improve the effectiveness and efficiency of this process. The meeting program for 08/09 will commence later than usual, due to the Local Government Elections to be held in September.
Work on Cowra’s road network has also continued over the past 12 months with the Roads to Recovery 2 program and various RTA contracts which continue to bring money in. The Roads Asset Management Plan (RAMP) is an excellent resource allowing Council to examine any road in the shire and the maintenance plan for that road with the click of a button.
I am pleased with the progress on the Cowra Water Management Plan aimed at improving Cowra’s water across the board. Council has recently completed the mains replacement program and commenced the replacement of the cast iron valves and hydrants. This removal of old water infrastructure has resulted in a reduction of discoloured water issues. Over the next 12 months Council will be undertaking a water testing program to examine the levels of iron and manganese in the water and investigate a system to remove these
2007-2008 ANNUAL REPORT Page 14 elements. In addition, a water mains scouring program will be implemented in areas experiencing repeated discoloured water incidences and should reduce the problem further.
Council’s Cowra Business Officer commenced in February 2008 to liaise with and assist the development of the business community. The Business Officer has been strongly involved in assisting local business to upgrade their websites at low cost and in providing a first web presence for others. The Cowra economic gardening and business development program will commence early next financial year and I urge those businesses keen to grow their operations and value add to participate. The Business Officer has also been involved in working with the newly formed Cowra Business Chamber in what is proving to be a very useful partnership for Cowra business.
This past 12 months has seen a number of exciting developments for Cowra indicating growing business and consumer confidence in our town. Council’s continuing efforts to secure business prospects for the town are paying off with Aldi, Yarrabilly, Pridham Street and the potential Race Dental development all extremely positive projects for a regional town in the midst of a drought.
Council has a keen focus on giving something back to the community and providing assistance where we can. To that effect, Council staff have continued their involvement in the wonderful Meals on Wheels program over the past 12 months. Staff are rostered on in pairs approximately once a month to deliver meals to those in our community that need them the most. The project is a positive one for the disadvantaged members of our community and I encourage anyone who can, to get involved and help the dedicated volunteers that run the Meals on Wheels program.
As we begin the 2008/2009 financial year we look forward to a number of exciting projects commencing and continuing with the aim of maintaining current success and encouraging future achievements:
The Race Dental project as discussed above; The Cowra Entrepreneur Program Continuation of the 30 year visionary plan designed to outline the future of Cowra; Continuation of the process to develop the LEP which will set the tone for ‘where’ Cowra can grow; The Guarantees of Service continue to set a service benchmark in regards to service, and in conjunction with the Style Guide, create a consistent image for Council.
All of this is just a taste of what’s to come over the next 12 months. We will achieve our goals and in the process provide the best level of service to the community that we can.
However, if Council is not meeting your expectations or providing the levels of service that you expect, please tell us – it is only through community feedback that we can address shortcomings and maintain those activities that we do well. We view mistakes as opportunities to improve, but we cannot identify these opportunities without your help. If you have a bad experience with Council, please ensure you tell us about it so that we can fix the problem.
I thank Council staff and the community for their hard work and participation over the past 12 months and look forward to an exciting and fulfilling 08/09.
James Roncon General Manager
2007-2008 ANNUAL REPORT Page 15
Principal Activities Health & Well-Being
General Manager’s Office Operational Objective Outcomes Explore opportunities through Cowra’s social Opportunities explored through Community plan to ensure ongoing health and well being Projects Officer as below. programs throughout the LGA.
Corporate Services Operational Objective Outcomes Co-ordinate 2008 Youth week activities. 2008 Youth Week was held from 5-13 April with Council supporting a full week of events in partnership with 6 other community service groups. Highlights included the opening of the Skate Park, Battle of the Bands and an Indigenous Youth celebration at Brougham Park. Co-ordinate 2008 Seniors’ Week activities. 2008 Seniors Week was held from 6-13 April with Council supporting a full week of events in partnership with 9 other community service groups. Grant funding was sourced from DADHC to enable a variety of activities. Over 350 seniors estimated to have taken part in the weeks events. Review and implement adopted Community 2.3 Construction of the Cowra Skate Park Social Plan objectives for 2007/2008. has been completed and the facility was officially opened on 12 April. Management of the facility remains an ongoing objective.
2.4 Council’s objective to work with stakeholders to improve safety options for people in the hours after midnight has been achieved given the formalisation of a secure taxi rank in March, and Council’s ongoing involvement in the Liquor Accord.
2.14 Council provided support to the Greater Western Area Health Service (GWAHS) to investigate options for hosting a youth health forum in Cowra. The forum could not proceed at this time due to withdrawal of funding from GWAHS.
4.8 2008 Seniors Week program implemented in partnership with service providers.
2007-2008 ANNUAL REPORT Page 16
Operational Objective Outcomes
5.1 Support provided to Central-West Aboriginal Dance development initiative with Yarringan and Wagambirra dance groups
5.4 Investigations commence for Indigenous Cultural Park in Valley View Estate. Grant funding to be sourced for Scar Tree enclosures. A Keeping Place for Indigenous heritage forms part of the investigations by Cowra’s Museums Adviser.
6.1 The Multicultural Welcome Kit was finalised through consultation with the Multicultural Reference Group. Council will take primary carriage for promotion and preparation of the kits. Distribution of the kits will be the joint responsibility of Council and the Cowra Neighbourhood Centre.
6.5 SBS Radio 95.9FM launched in Cowra in May with good attendance by the multicultural community. Full subsidy ($18,000) received from SBS Corporation.
7.2 Discussion commenced between Council and Cowra Special Needs Services to establish a permanent employment arrangement for clients at the MRF.
7.4 Council assists Cowra Special Needs Services to promote their ‘supported
accommodation’ project by including information in its July – October Cowra Community Newsletter, and taking part in a public meeting Through careful land-use planning and On-going assessment of development proposals assessment of new development proposals, against established policies and procedures and in ensure that environmental impacts are accordance with delegations of authority. avoided/minimised. Respond to pollution incidents to minimise harm All known pollution incidents are properly on the environment. investigated by Environmental Services staff and appropriate action taken to prevent further pollution or to clean-up pollution. Work closely with the NSW Food Authority and The annual Food Safety Audit was completed in local food-shop businesses to ensure that high June 2008 standards of food hygiene are maintained.
2007-2008 ANNUAL REPORT Page 17
Education, Training & Research General Manager’s Office Operational Objective Outcomes Work with TAFE NSW and other tertiary Have been in discussions with TAFE NSW and institutions to develop/bring to Cowra industry Central West Community College with regards based courses of study aimed at further to aviation based industry courses and dental developing commerce and industry in Cowra and technician course programs to be provided in the region. Cowra or the region, these continue. Work with TAFE NSW and CSU to develop Have been in discussions with TAFE NSW and courses of study aimed to develop skills in Central West Community College with regard Cowra and the region. aviation based industry courses and dental technician course programs to be provided in Cowra or the region. Further discussions will be held with TAFE in relation to the continuation of the Pre Apprenticeship Courses. Council renewing its involvement in apprenticeship options for developing staff. Continue to represent council and the Cowra General Manager remains an active member on community by being an active member of Centroc Board and Centroc Executive and also regional organisations and activities. the Board of Central West Community College.
Environmental Services Department Operational Objective Outcomes Through its State of the Environment Reporting, The Cowra Shire State of the Environment provide social, environmental and economic data Report has undergone periodic update. The final relating to the Cowra Shire and Central NSW. draft of the Cowra Shire Local Profile has been placed on public exhibition from 3 March 2008 to 28 April 2008. Cowra Council is currently participating in a regionally focused State of the Environment Report. Participate in regional planning and Environmental Services is currently participating environmental planning forums to further in the development of a regionally focused State enhance the Council’s understanding of of the Environment Report, being coordinated by important issues relating to Cowra Shire and the Local Government and Central West Central NSW. Catchment Management Authority. Environmental Services staff have worked with CENTROC to prepare a joint submission on Improving the DOP Discussion Paper on Improving the NSW Planning System. Staff have also worked collaboratively with other Council’s in sharing their findings of the Draft Environmental Planning and Assessment Bill 2008 and Draft Building Professionals Bill 2008. Environmental Services staff have attended a number of Central West Planners and EDAP workshops/ onferences. Environmental Services is providing assistance to the NRM Group Climate for Change Conference to be held on 12 and 19 August 2008.
Participate in local building industry forums to Environmental Services are in the process of keep the building industry sector informed on organising a workshop with local builders and legislative changes and new policy. trades to present the draft Local Environmental Plan (Amendment 15) – Exempt and Complying Development. Draft LEP 15 – Exempt and Complying Development.
2007-2008 ANNUAL REPORT Page 18
Lifestyle General Manager’s Office Operational Objective Outcomes Council maintain its commitment to the ongoing Heritage grants have been sought from both development of the Cowra POW Camp Site and state and federal bodies. Confirmation received that all heritage grant opportunities are explored. that the POW camp is not listed on the federal heritage list so all future dealings will be with the state heritage office. Work is underway to investigate possibilities for federal heritage listing. That any future redevelopment of Yarrabilly be All such issues have been considered and remain considered in conjunction with the heritage at the forefront of all dealings, looking to develop conditions associated with the Cowra POW site as Cowra Peace Precinct. Camp Site. Continue to explore community leadership Exploration continues, and activity will be opportunities for Cowra. increased in the fourth quarters and early next financial year Courses for prospective Councillors will be conducted in early July/August. Council maintain its commitment to the ongoing Council’s commitment recognised through development of the peace pathway. 2007/08 budget allocation and repatriation works on existing bricks to commenced. Continue to grow the C-Change brand along C-Change brand continues to grow and is now with new resident and business resources. well entrenched as a marketing tool predominantly for council but also the wider community. Branding templates have been developed across the whole of the organisation to ensure consistent branding. A style guide has been developed in house which includes all organisation templates and branding.
Corporate Services Department Operational Objective Outcomes Construct Cowra Skatepark in accordance with Construction of the Cowra Skate Park was plans and within budgetary constraints. completed within budgetary constraints with an official launch of the new facility conducted in April during Youth Week. The Skate park is being well-utilised by the community. Cowra High School also has a regular weekly booking to run skateboarding classes as part of the school sports curriculum. Co-ordinate annual Festival of International The annual Festival was held in March with Chile Understanding in 2008. as the guest nation. The week of celebrations and events went smoothly and was well received by the community. Plans have commenced for 2009 Festival with Portugal as Guest Nation. Co-ordinate 2008 Australia Day activities. Plans have commenced for 2009 Australia Day celebrations, with the Community Projects Office to attend workshops with the Australia Day Council in August.
2007-2008 ANNUAL REPORT Page 19
Operational Objective Outcomes Review and implement adopted Cultural Plan 1.3 Council has renewed its Memorandum of objectives for 2007/2008. Understanding with Arts OutWest for the next 4 years and continue to work in cooperation to achieve mutually beneficial outcomes. Council continues to have representation on the AOW board of management.
4.1 Cultural activities feature in April-May 2008 and July-October 2008 editions of Cowra Community Newsletter Museum’s Adviser commences work in June and begins investigations into the feasibility of the Cowra Museum project.
5.6 Works commenced on Civic Centre Redevelopment in June. Project expected to take 26 weeks.
6.1 Cowra Artz Fest held 20 April, showcasing the range of community, arts and cultural activities in Cowra.
7.1 Support provided to Central-West Aboriginal Dance development initiative with Yarringan and Wagambirra dance groups.
9.1 Council works with the Multicultural Reference Group to launch SBS Radio 95.9FM.
10.1 & 10.3.3 Work has commenced on the development of the new Cowra Cultural Plan and Action Program 2008-2013
10.2 Quarterly Cultural Council meeting held in May 2008.
Review and implement adopted Sport and 1.3.i Building works at the Holman Oval Recreation Plan objectives for 2007/2008. Amenities Block have been completed through a joint effort of the Cowra Rugby League club and Council.
1.3.l Construction of the Cowra Skate Park was completed with an official launch of the new facility conducted in April during Youth Week. The Skate Park is being well-utilised by the community. Cowra High School also has a regular weekly booking to run skateboarding classes as part of the school sports curriculum.
1.3.q A draft Signage Policy was presented to the Sport and Recreation Council for consideration. Policy is currently undergoing minor formatting changes and will be distributed to sporting clubs for final comments before presentation to Council in September.
2007-2008 ANNUAL REPORT Page 20
Operational Objective Outcomes 1.3.u Refurbishment of Mulyan Oval facilities was completed in accordance with identified works Plan
Redevelopment of the West Cowra Recreation Ground was completed in accordance with identified works plan.
Consultation with user-groups and the Sport & Recreation Council was undertaken in relation to rebuilding the Storage Shed at Twigg Oval.
Further consultations are underway in relation to re-allocation of surplus funds from the Mulyan Oval and WCRG works to other priority sport and recreation development needs.
Sports Fields Ground allocations for the winter season were approved.
A review of Sports Field Fees and Charges for the 2008/09 season was completed and Sport & Recreation Council recommendations were approved by Council.
The Aquatic Centre Survey Report for the 2007/08 season was completed.
Sport and Recreation Council Executive Committee members for 2008/09 were elected in May 2008. Undertake the refurbishment of the Civic Centre Site handed over to contractor on 23 June 2008. within budgetary constraints.
Cowra Operations Department Operational Objective Outcomes To upgrade the WCRG Grandstand to a The first stage of the refurbishment has been standard acceptable to Council and user groups. completed. This includes the replacement of the (carry over). main supporting floor beams, part of the flooring and water proofing the change rooms. Painting and all plumbing works has been completed. Sports Council has recommended to Council to carry out extra works as Identified by user groups ie. Upgrade of toilets on Lyall St side of ground, install P.A. system to ground, new bench tops and cupboards in canteen. These works are yet to be approved. 23/7/08 To complete the upgrade of the change rooms All exterior refurbishment has now been and kiosk located at Mulyan Oval. (carry over). completed. Sports Council has recommended to Council to extend the kiosk as requested by AFL club. These works are yet to be approved. 23/7/08 To have a new boundary (part) erected at the The new boundary fence has been erected and Cowra Van Park to Council specifications and the job is now complete. that best services the needs of park users.
2007-2008 ANNUAL REPORT Page 21
Environmental Services Department Operational Objective Outcomes Through the development of the Land-use The draft Cowra Shire Local Profile and draft Strategy, investigate the important issues Cowra Shire Issues Paper were placed on public underpinning the quality lifestyle afforded to its exhibition from 3 March 2008 to 28 April 2008. residents in Cowra Shire and determine ways of A number of workshops were held with various sustaining/enhancing the important attributes of interest groups at the beginning of April 2008 to the shire. explore the planning issues. A report is being tabled at the July 2008 Operations Committee Meeting to present the findings of the exhibition of the draft documents. Provide a heritage advisory service and incentive Environmental Services currently employs scheme to provide opportunities for the Comber Consulting in the role of Cowra Shire preservation of our cultural heritage. Heritage Advisor. A qualified heritage advisor is available for appointments, meetings and site visits one day of each month. Environmental Services continues to offer heritage funding for worthy restoration projects under its Local Heritage Fund.
Provide a ranger service that is proactive in Cranky Rock Road area completed. Ribbands resolving complaints and conflicts. Way area completed. The audit of Stoney Hill Road area has commenced with completion of all field inspections and evaluation of audit findings. No further action has been taken on completing the Stoney Hill Road audit process due to a lack of funds for the department as a result of the expected increase in legal fees associated with Council’s defence of Land and Environment Court proceedings and difficulty in the Council obtaining its costs in relation to the Cranky Rock Road Land and Environment and High Court legal proceedings.
2007-2008 ANNUAL REPORT Page 22
Governance
General Manager’s Office Operational Objective Outcomes Ensure elected representatives have access to Elected representatives are provided with appropriate professional development training as professional development training at least twice and when required. per year, most recent training held April 2008 re Work Cover and work place safety. Ensure that Council and Councillors are at all Continued research ongoing and the best advice times aware of their legal obligations and that provided to Councillors as it is known. It is often staff provide full, frank and uncompromised difficult to pre-empt what may arise from advice. meeting to meeting so advice may not always be readily available, but it will be sought and delivered as soon as practicable. Ensure that the operations of Council and its Operations and meeting practices at all times are decision making are conducted openly and conducted in an open and transparent manner transparently at all times. and with probity and good governance adhered to at all times with no adverse comment received.
Corporate Services Department Operational Objective Outcomes Maintain and improve Council’s Information • Council adopted tender for the installation of Services processes, systems and infrastructure to the Dataworks EDMS. Contracts have been maximise service delivery. signed and financing arranged through Equitech Finance. • Final conversions of the Workshop PCs were brought onto the wireless network connection. There was a delay as the Ausfleet Server located at the depot had to be demoted from the “Depot” domain prior to it being able to be joined to the “Cowra” domain which is the current domain for Council’s network. Information Services had to consult with Ausfleet to make sure that the SQL database would not be killed in anyway prior to this work being carried out. All IT services at the Depot, Saleyards, MRF and Aquatic Centre have now been moved across to the new wireless system. Decommissioning of the existing ADSL services will commence with the stated savings on ISP & Telstra charges to start being realised.
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Operational Objective Outcomes • Information Services Manager attended the first LGMA I.T. Professionals SIG Meeting in Wagga. This has been the first of these meetings staff have been able to attend and found the information gained very valuable. • Two work placement students were taken on for a week each over the course of the quarter. • New Canon Photocopiers have been purchased and installed. • Ordered new PCs and laptops under Council’s regular replacement schedule. These PCs were purchased through Lenovo which manufactures the IBM brand of desktops. • Setup Sewer Treatment Plant office with their ADSL connection, laptops, printers, phones and fax machine. • End of Financial Year processing within Authority was completed on the evening of Monday 30th June. Only a few issues were encountered which were resolved by additional program patches being downloaded from Civica’s Website and installed. • All issues with the wireless network installation have been resolved. At the moment Council has connectivity for all the sites and staff are now just running the system in a LIVE mode to see if there are any issues that might arise. To date Council is still holding $3,500 as a final payment which will be released when Information Services are happy that there are no outstanding issues. Only issues have been Council network security issues with specialised software (eg Cattle Scanning software at the saleyards). These issues are being worked on as they arise, although these situations have been the exception rather than the rule.
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Operational Objective Outcomes • The Exponaire GIS system is still being monitored by Information Services. Some server reliability issues have randomly occurred which has required a reset of an Exponaire service occasionally to restore service. This process is very quick, however can be inconvenient to users when this occurs. Staff are in contact with Lagen Spatial over this matter and are keeping the situation under review. • Council is now operating on the new Authority server. The cut over to the new server commenced on the afternoon of Monday 7th April and had been completed by Civica by 8.30pm that evening. Some minor issues have arisen out of this server change over with one piece of server software utilising a trial license key. The expiration of this key stopped all staff access on the afternoon of Thursday 24th April for around 30 minutes while Civica resolved the issue. Excellent server speeds are being achieved with some quite complex database queries completing much more quickly. Full payroll, receipting and accounts payable have been completed on this new hardware with no issues being experienced. • Information Services has partly completed the installation of Council’s new Exchange email server. This server is currently performing backups of Authority data. The role of this server will be expanded to include Exchange 2007 to replace this role from older server infrastructure. This software upgrade will then allow Council to install an additional server to allow email and certain network resource access from outside the Council network. Progress on this aspect of the network upgrade has been progressing slowly as major resources have been put into other infrastructure projects. • Information Services upgraded Council’s main ADSL Internet Connection from 1.5Mb speed to a maximum 20Mb speed. The change of internet access plan has actually saved Council in monthly access charges however improved the response speed up to 12 times the speed and an increase in monthly download quota by a factor of 4.
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Operational Objective Outcomes Responsibly monitor and manage the financial • Council expended considerable energy in position of Council to ensure a continued developing a comprehensive 5 year Financial satisfactory level of service and facilities is provided Plan which was adopted in June. This was a to the residents of the shire. significant step in establishing the broad financial constraints within which Council can operate over the next 5 years. A centrepiece of the Plan is the strategic sale of assets to establish an ongoing Built Asset Replacement Reserve. The proceeds of this fund will be utilised to provide for the refurbishment and/or construction of much needed community facilities and infrastructure. • Revised debt Recovery Plan was endorsed by council. It is expected that this new streamlined procedure will provide greater control over the debt collection process and hopefully a more timely and efficient collection of debts. Assist Community Groups in sourcing funding Council staff continue to assist organisations as opportunities. opportunities arise. With a more settled staffing structure now in place, council will seek to be
more proactive in this regard. Review and implement risk management policies Risk Assessments have been carried out on: and procedures that minimise incidents of • The new paper and cardboard baler at the personal injury and ill health to employees and MRF. members of the public and improve Council’s • The TV transmission tower at Darby’s Falls result in the Statecover & Statewide Insurance following the transfer of ownership from the Audits. Darby’s Falls Progress Association to Council. • The MRF recycle truck. This became evident following a number of minor reported injuries occurring during normal operation of this truck. • Access doorway between the portable office and meals room building and the original office at the Saleyards. This was necessary due to the need to cut through cement blocks. • The quick detach 10cu/mt tipping body and support framework at the Depot
Further to this there has been involvement with:
• Environmental Services ensuring a Risk Management approach was included in their planning for the deer cull.
• Writing Standard Operating Procedures for:
HIAB crane Pipe cutting and bevelling machine Quick detach tipping body Paper and cardboard press at the MRF Mulch loading MRF
An audit was carried out on the RTA contract on the Sydney Rd/Walli Rd turnoff roadworks. This is normal procedure under the terms of the contract.
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Operational Objective Outcomes The annual Centroc peer audits were conducted with Cowra, Cabonne and Young cross auditing each other. Cabonne/Cowra audits have been carried out, Young is still outstanding. The audit sections this year were:
• Asbestos Management • Manual Handling compliance
The annual Statecover audit has been released with some minor changes to content and scoring. This is due for completion by 14 July 2008.
The annual Excellence awards for Statecover and Statewide are now open. Council has entered in the following:
• Statecover: Lone Worker Communication and Reducing Minor Head Injuries in the Workshop
• Statewide: Councillor Inductions.
The Risk Management Officer has been nominated to sit on the Committee of Workcover’s Central West Safety Management Group. There were two nominations for the position. It is now up to the Workcover executive to make a final decision
At the request of Operations staff Disciplinary Pocket Books have been implemented.
Currently reviewing the Mine Safety Management Plan for the quarries prior to its review by the Department of Mineral Resources in September.
The OHS Committee carried out an inspection
of the Cowra cemetery as part of the quarterly inspection program.
The UV review has been finalised and signed off by the General Manager.
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Environmental Services Department
Operational Objective Outcomes Create a new comprehensive local The new LEP will be drafted after completion of environmental plan to apply to the whole of the the Cowra Shire Local Profile, Issues Paper and Cowra Shire. Land-use Strategy. The draft Cowra Shire Local Profile and draft of the Cowra Shire Issues Paper have been placed on public exhibition from 3 March 2008 to 28 April 2008. A report is being tabled at the July 2008 Operations Committee Meeting to present the findings of the exhibition of the draft documents. Create a new comprehensive development Not yet commenced. This project will be control plan that combines all planning and commenced following completion of the Cowra development controls into the one document. Shire Land-use Strategy. Review and implement Council’s advertising and Not yet commenced. This project will be notification procedures/policies to ensure the commenced later in the year. level of community consultation and referrals to other government authorities meet community expectations. Take proactive steps to deliver clear, concise, On-going. The draft Local Environmental Plan and easily understood procedures/ (Amendment 15) – Exempt and Complying policies/guidelines to reflect the Council’s aims Development. Draft LEP 15 – Exempt and and objectives in relation to growth and Complying Development has been forwarded to development in Cowra Shire. the Minister for the signing of the plan. Review and implement Council’s Code of DA The review has commenced and a report will be Practice to reflect the council position in relation tabled at a future committee meeting. to development control and land-use planning matters. Review and implement Council’s Ranger Services Internal review completed. The Ranger Services Procedures Manual to reflect the council Procedures Manual has been updated and a new position on compliance, regulation and Enforcement Policy has been drafted and will be enforcement matters. tabled at a future committee meeting.
Business & Industry General Manager’s Office
Operational Objective Outcomes Employ a Cowra Business Officer under the Position has been adopted by council as part of auspices of the General Manager’s department, the 2007/08 Management Plan. Position recruited and establish a business unit titled Cowra and occupant having commenced duties in Business. The position will be established as a 3 February 2008. year contract position and will be part funded from council’s current allocation of $20k to CTC for the existing BLO role and a $20k grant from DSRD for 3 years. $60k would be allocated as an employee cost (inclusive of overheads) and a $20k promotional budget for the three year period. Assist the Cowra Tourism Corporation (CTC) Council continues its support to CTC in its in its goal of becoming self sufficient by ongoing goals for self sufficiency. Positive investigating opportunities. meetings held with the hierarchy of CTC to
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Operational Objective Outcomes refine reporting requirements with CTC to provide quarterly financial reports to council comprising balance sheets, cash flows and operating statements for all CTC operations. As received this information will be presented to council. Council maintain its 3 years sponsorship support Adopted as part of the 2007/2008 Management to the Sports Aviation Association of Australia Plan. 2007/08 represents year 1 of the (SAAA) conference and continue to seek out sponsorship arrangement. Other airport other like opportunities for the Cowra Airport. business opportunities are continuing to be explored. Work with businesses to help them grow and This process continues under the current develop new and innovative products. working arrangements and is a primary goal. The engagement of the CBO will further facilitate this process. Continue to develop Cowra as an ideal location This process continues under the current for new businesses. working arrangements and is a primary goal. The engagement of the CBO will further facilitate this process.
Environmental Services Department
Corporate Services Department Corporate Services Department Provide clear and concise land-use planning and Draft LEP 15 – Exempt and Complying development control policy advice and direction Development is in the process of being finalised to various industry sectors through the for the making of the LEP by the Minister. Other preparation of a new comprehensive local land-use planning and development control work environmental plan and development control is on-going. Environmental Service staff continue plan. to discuss future land-use and development control issues with various industry groups. The draft Cowra Shire Issues Paper (publicly exhibited 3 March 2008 to 28 April 2008) aims to address the major/important issues put forward by industry sectors. Provide pro-active professional advice to On-going. Environmental Services continues to persons contemplating new development provide Pre-DA advice in accordance with proposals through Council’s Pre-DA Advisory Council’s Guarantees of Service. Service. Provide pro-active professional advice to the On-going. Environmental Services continues to General Manager’s department on a priority provide timely/accurate advice to General basis. Manager’s department. Continue to explore, assist, encourage and On-going. Environmental Services staff are cultivate new business to Cowra as available for meetings to assist with business opportunities present. development.
Transport & Infrastructure General Manager’s Office Operational Objective Outcomes As part of year 2 of the 5 year budget, develop a The BARP was discussed and adopted as part of
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Operational Objective Outcomes Built Asset Replacement Program (BARP) to the 2008/09 management plan with the first run assist with the required asset maintenance of of this process having occurred in September Councils built assets. 2007 in a meeting between Councillors and senior staff. Recommence councils Valley View subdivision Waiting on the finalization of the application to works with the completion of stage 3 in DEC with regard the trees looking to heritage 2007/2008, then complete the final 2 stages over advisor to devise the strategy for removal and the next 3 financial years. relocation. Continue to liaise and work with federal and Relationships with state federal bodies have state governments and Centroc, to maximise improved exponentially over the past few years grant opportunities to Cowra. with solid partnerships having been forged and funding sought. Examples of this are the myriad of small business workshops held, the CBO grant funding and current negotiations re new enterprises. Centroc exec work seeking grant funding is also beginning to pay dividends for not only the region but also Cowra.
Cowra Operations Department Operational Objective Outcomes Finalise Councils Roads & Associated Infrastructure Councils Road Asset’s Management Plan (RAMP) Management Plan(Continued program). is complete and has been adopted by Council. Commence installing all the Roads and Sourced an asset management system from the associated Infrastructure into Councils Asset market and procured same. Next phase is to Data Management System. (Continued implement system and populate databases. program). Continuing programme Finalise Councils Potable Water Supply 2002-03 SBP’s are currently being reviewed by Infrastructure Business Plan. (Continued consultants (The Middle Way P/L). Reviewed Program). 2002-03 SBP’s are 90% complete. Commence construction of Cowra’s new Sewer Commencement of Contract A. Work on hold Treatment Plant. pending heritage issues (DECC). Effluent Stormwater Line completed. Rising Main Diversion installed and commissioned. Access Road Earthworks completed; gravelling completed. Earthworks associated with contract A stopped: awaiting final design of sludge lagoons to be completed. Augmentation of Sewerage system in West Not yet commenced. Current work Cowra. commitments have placed this project on hold at this point in time. It is not expected to be completed this financial year. Commence and complete Stage (1) of the Delivery of pipes commenced in December, Potable Water Supply to the Northern Zone of waiting on Factory to reopen for further Council’s 1c1 Zone and as part of Councils deliveries. Access gates have been installed along Emergency Water supply. the route. Pipe fittings are on schedule for delivery in late February. Works are expected to be completed by June 2008. Works have recommenced with the project currently on schedule for June 08. Work commenced 1st April 2008; in progress. Pipe installation completed, delays have occurred as the magflow meter has not been available to allow the completion of the connection. It is proposed to complete the connection in July 2008 and commission the line. Assessment of the
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Operational Objective Outcomes remainder of the pipeline route is complete. Tenders were called for the remainder of the pipeline form Eloeura Rd to Woodstock. The prices tendered have exceeded cost estimates and consultants have been engaged to assess the suitability of alternate plastic pipe. Report due by end of July 2008. Tenders called for a trencher on 29th July. Continue with Stage (3) of Councils Water • Works are nearing completion. Works have Mains Replacement Program. (carry over from temporarily stopped due to resealing 2006/2007). program. Works will start up again early in 2008. Three sections remain:-
Fitzroy St between Brougham and Carleton Mulyan St between Redfern and Watt Market Lane.
• Works have recommenced on works with the majority of works now completed. All works will be completed by June 2008. • Work almost complete on Mulyan Street replacement between Redfern & Watt Streets. • Work in progress in Fitzroy Street between Brougham and Carleton Streets. • Mulyan St complete and operational, additional cast iron main found in Mulyan St between Watt and Victor Streets and also replaced. • Fitzroy St: Liverpool – Carleton operational. • Fitzroy St: Liverpool – Kendal installed, services to be changed onto new main. • Fitzroy St: Kendal – Vaux pipes installed, awaiting ALDI new driveway construction to be completed prior to commissioning as the new fire and water services are located within the existing ALDI site entrance. • Market Lane yet to be completed. Design and construct a Water Filtration System • Design is complete. Council is waiting for final for Darby’s Falls village. approval from DWE. Once approval and the level of funding determined by DWE a report will go to Council for funding and approval. • A Grant application has been submitted. DWE requires further information and modification of the concept report and some proposed operational aspects of the system. Council has purchased additional land to incorporate drying lagoons. Finalising concept and estimates of cost for formal lodgement of application for financial support from the Government. Manage the treatment and disposal of sludge • Sedimentation tank operation has been from the Water Filtration Plant in Cowra. (carry assessed and a submersible vacuum cleaner over). has been trialled. An order was placed in December and delivery of the unit is expected in March 2008.
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Operational Objective Outcomes • Submersible vacuum cleaner arrived on 7th April. Operation of cleaner within sedimentation tank will require some minor works to be completed, requirements to be assessed. • Lifting frames for the cleaner being investigated, access to both sides of the sedimentation tank has been improved. Replace the existing Fluoride Dosing facility at • Not yet commenced. This has been placed on the WFP. hold pending the outcome of the WTP audit. • Contact has been made with the Health Department and also with specialist equipment suppliers. • One quote has been received, waiting on second quote. Develop Best Practice Management Plans for • Strategic Business Plan is well underway. Water and Sewerage functions:- • IWCM yet to commence • Strategic Business plans are currently being • IWCM plan reviewed by consultant. Expect SBP’s to be • Strategic Business Plans submitted to Council in August 2008. • Drought Management • Drought Management Plan Completed • Pricing & DSP’s (inc. Trade Waste) • Pricing and draft DSP and Trade Waste has • Demand Management been completed. • Performance Monitoring • Demand Management is currently underway and is expected to be completed by September 2008. • Performance Monitoring yet to be done. Waiting on DWE to send documentation. Continue with stage (1) (carry over) and Works have commenced and will continue over commence stage (2) of the Water Valve and the 2007/2008 financial year. Hydrant replacement program. Water Mains Replacement Program Carry Over: • Fitzroy Street – Kendal to Brougham Streets • In progress/part completed (see comments above) • Darling Street – Kendal to Vaux Streets • Completed • Mulyan Street – Redfern to Watt Streets • Mains installed, cut-in in progress. Completed, see comments above. • Kendal Street • Completed Village Watermains Carry Over: Woodstock • Waugoola Street A section of main replaced at Noonbinna. • Stuart Street Further work to be completed in other areas by • Carrington Street July 2008. • Loftus Street To continue with the road widening of Darby’s Completed. Falls Road As part of Councils R2R program rehabilitate Completed. Macquarie Street – Liverpool to Kendal Streets. As part of Councils R2R program resurface the Completed. round about Darling and Vaux Streets. As part of Councils R2R program Reids Flat Completed. Road Widening 2.5klm – O’Dwyers to Badgery Roads. As part of Councils R2R program to upgrade Completed.
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Operational Objective Outcomes Scrubby Rush Road curve at Goodacre Drive. As part of Councils R2R program widen Completed. Glenlogan Road – North Logan Road 1100m North. Clements Road Construction as part of Capital Completed. Contribution Works. Kentucky Road Construction as part of Capital Not yet commenced. Works Construction. Kangarooby Road Construction as part of Completed. Capital Works Construction Works. As part of R2R funding Culvert Upgrade – Completed. George Russell Drive 10.76klm. As part of R2R funding Culvert Upgrade – Completed. George Russell Drive 10.96klm. As part of R2R funding Culvert Upgrade – Completed. George Russell Drive 12klm. As part of R2R funding Rivers Road Culvert Completed. Upgrade at 2.5klm. As part of R2R funding Rivers Road Culvert Completed. Upgrade at 3klm. As part of R2R funding Porters Mount Road Completed. Culvert Upgrade. To arrange and erect new boundary fence as to Works have been completed. comply with CASA regulations and Airport Certification. Replace Council’s Communication Tower – In progress but not expected to be completed until Bellevue Hill (carry over). June 2008. Finalising a revenue policy for users. Cowra Urban Area Reseals: Completed. • Brisbane Street - Argoon to Vaux Streets: 7371 m2. • Campbell Street - End Kerb & Gutter to Main Completed Street East: 6362 m2. • Brisbane Street - Argoon to Vaux Streets: Completed 7371m2. • Campbell Street - End Kerb & Gutter to Main Completed Street East: 6362 m2. • • Chardonnay Road - Dawson Drive to End of Completed seal: 2844 m2. • Cooyal Street - Mulyan to Bourke Streets: Completed. 2611 m2. • Cowra Road - Hartley Street to Completed. Showground Lane: 3040 m2. • Eulo Street - Taragala Street to Brisbane Completed. Avenue: 1816 m2. • Karinya Street - Binni Creek Road to Cul- Completed. de-sac: 2457 m2. • Kite Street - Mulyan to Belmore Streets: Completed. 3025 m2. • Lentara Street - Berowra Street to Cul-de- Completed. sac: 3468 m2. • Logan Street - Cooyal to Victor Streets: 2700 Completed.
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Operational Objective Outcomes m2. • Low Level Bridge Road - Redfern Street to Completed. Redfern Street: 4315 m2. • Macquarie Street - Vaux to Kendal Streets: On hold until water main trench is repaired. Part 4020 m2 of road requires heavy patching. • Nangar Street - Mulyan to Pridham Streets: Completed. 4500 m2 • North Logan Road - Nangar Street to Glen Completed. Logan Road: 5875 m2 • Smith Street - Redfern to Daly Streets: 2820 Completed. m2 • Watt Street - Mulyan to Bourke Streets: 4481 Completed. m2 • Bligh Lane - Macassar to Pitt Streets: 1176 m2 Completed. • Bramall Lane - William to Shelley Streets: 660 Not done, replaced by Saje Court as it was m2 missed and needed resealing • Coota Lane - Redfern to Lachlan Streets: Completed. 1360 m2 • Dungaleer Lane - Taragala Street to Fitzroy Completed. Avenue: 3068 m2 • Keswick Lane - Redfern to Lachlan Streets: Completed. 2000 m2 • North Cowra Park Upper Lane - Pitt Street Completed. to End Road: 912 m2. • Shelley Lane - Shelley Street to Young Road: Completed. 1089 m2 • Unnamed Lane - Lachlan Street to Dead End: On hold pending budget review. 270 m2. Carry Over Reseals: • Railway Lane - Brisbane to Darling Streets On hold pending Council decision on Railway Lane reconstruction. • Carleton Street - Darling to Fitzroy Streets On hold pending watermain replacement • Fitzroy Street shoulders - Vaux to Brougham On hold pending watermain replacement Streets. • Fitzroy Street - Kendal to Carleton Streets: On hold pending watermain replacement Length 330m.
• Railway Street - Darling to Fitzroy On hold pending budget review. Streets:Length 215m. Rural Reseals: • Bangaroo Road: 13563 m2. Completed • Binni Creek Road: 15186 m2. Completed • Cucumgilliga Road: 7780 m2. Deferred, seal is in good condition • Merriganowry Road: 15049 m2. Completed • Morongla Road: 38685 m2. Deferred, seal is in good condition • Morrisons Bridge Road: 11855 m2 Deferred • Pine Mount Road: 29160 m2. Completed • Reg Hailstone Way: 4860 m2. Completed • Walli Road: 3397.5 m2. Completed Regional Road Reseals: • Belubula Way: 21.18km-22.66km 1,480 Completed
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Operational Objective Outcomes 8,482. • Darbys Falls Road: 1.36km- 5.14km 3,785 Completed 29,014. Gravel Roads Resheeting: • Back Creek Road: 3.06 km, 153 Chains Not required 2006/7. • Francis Road: 0.23 km, 5 Chains 2006/7 Not required • Gertys Road: 3.77 km, 189 Chains 2006/7 Completed • Kangarooby Road: 17.80 km, 885 Chains Completed 2007/8 • Langfields Road: 0.80 km, 40 Chains 2006/7 Completed • Lawarra Road: 5.68 km, 284 Chains 2006/7 Not required; heavy graded • Quondong Road: 4.83 km, 241 Chains Not required, heavy graded instead 2006/7 • Tallarook Road: 9.50 km, 475 Chains 2006/7 Not required, heavy graded instead • Watervale Road: 1.60 km, 80 Chains 2006/7 Incomplete; insufficient funding Gravel resheeting carried over from 2006/2007 • Lawarra Road Not done, insufficient funding • Gerty Road - from Quartpot to end Completed • Rocky Bridge Road - Blayney Shire boundary Not done, insufficient funding to Abercrombie (Shire boundary) • Watervale Road Not done, insufficient funding • Francis Road - Quandong Road to end Not done, insufficient funding • Crowther Rd Completed • Island Dam Rd Completed • Pattersons Rd Completed • Barryennie Rd Completed / Pulverised • Stoney Hill Rd Pulverised / Completed • Woodlands Rd Pulverised / Completed • Quandong Road - Morongla to Noonbinna Not required; heavy graded Roads • Warrawong Road Not done, insufficient funding • Badgery Road - Reids Flat to Neila Roads: Not done, insufficient funding Length 10.65km • Olivers Road - Pine Mount Road to End: Not done, insufficient funding Length 805m • Tallarook Road: Length 9.493km Not done, insufficient funding • Walker Road: Length 922m. Not done, insufficient funding Village Reseals: Woodstock • Woodstock Swimming Pool - Carrington Completed. Street to Carpark: 580m2. • Waugoola Street - Carrington to Noyeau Completed. Streets: 1557m2 • Belmore Street - West to Loftus Streets: Completed. 1435m2. • Belmore Street: Loftus to Stuart Streets: Completed. 1540m2 • Carrington Street - West to Stuart Streets: Completed.
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Operational Objective Outcomes 3000m2. • Belmore Street - Waugoola to East Streets: Completed. 1560m2.
Wyangala • First Avenue - Wyangala Road to End seal: Not done, insufficient funding 4280m2. • Sixth Avenue - First Avenue to Trout Farm Not done, insufficient funding Road: 2695m2 • Wurabinda Road - Wirong Road to Dead Not done, insufficient funding End: 545m2 • Wurabinda Road - Wyangala to Wirong Not done, insufficient funding Roads: 1185m2. Carry Over: • Darbys Falls Road Widening Repair Grant: Completed $80,000 • Anamar Developments - Kangarooby Road: $40,360 Completed • CPC Land Developments - Kentucky Road: Will be a carry over. $21,990 • Kingfield Partnership- Clements Road: Completed. $33,788. • CPC Land Developments - Horton Drive: Completed $29,700. Carry Over Roads to Recovery 2: • Rivers Road widening: $44,000. Completed. Carry Over DA Capital Contributions: • Calare Street: $2,500. Scheduled for the third quarter. In works • Calare Street: $2,501. programme. • Duffey Avenue: $8,222. Not yet commenced will be a carry over • Young Road: $3,038.
Environmental Services Department Corporate Services Department Corporate Services Department Review and implement Council’s Parking Code. Completed. Review and implement Council’s Section 94 and Completed. 94A plans and Planning Agreements to ensure that new developments provide adequate transport facilities to service the needs of the development.
Natural Resource Management General Manager’s Office Corporate Services Department Corporate Services Department Continue to be part of activities that make Cowra’s participation continues with Centroc Cowra an environmental leader in the region environmental change management program. (i.e. plastic bag replacement). Cowra General Manager is sponsoring General Manager for this program. Council has resolved to be part of the LGETS program and has joined the carbon footprint program aimed at reducing
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greenhouse gas emissions across councils operations and therefore its carbon footprint.
Cowra Operations Department Corporate Services Department Corporate Services Department To complete the development of a landscape First Draft Landscape has been completed. The concept and master landscape plan for Council’s next stage will be to discuss the draft plan with Valley View Estate that meets the recreational residents and Council. Concept Plan is currently and amenity needs of the local community and on public display after a public meeting was held Council. (carry over). where no-one turned up. This is due to be bought off display at the end of July. 23/7/08
Environmental Services Department Corporate Services Department Corporate Services Department Prepare the Cowra Shire Local Profile, Issues Completed Paper and Land-use Strategy to explore the issues that are important to natural resource management. Progress with the Cowra Shire Dwelling-house Cranky Rock Road area completed. Ribbands Way Audit. area completed. The audit of Stoney Hill Road area has commenced with completion of all field inspections and evaluation of audit findings. Prepare a comprehensive Cowra Shire State of The Cowra Shire State of the Environment Report the Environment Report. has undergone periodic update. The final draft of the Cowra Shire Local Profile and is being used as the basis for a new comprehensive Cowra Shire State of the Environment Report. Environmental Services is currently participating in the development of a regionally focused State of the Environment Report, being coordinated by the Local Government Central West Catchment Management Authority. Review and implement Council’s DA On-going. Environmental Services has recently procedures/policies to ensure that natural completed a Standard Conditions Manual, that is resource issues are properly integrated into used as reference guide for assessment officers. Council’s assessment and compliance systems. The Standard Conditions Manual includes a section listing conditions relating to natural resource management.
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Expenses & Payments
Legal Proceedings Section 428(2)(e)
A summary of Council incurred legal expenses amount to $163,870.08 including $23,933.80 for minor traffic and animal litigation disputes during 2007/2008. Details of the larger matters are detailed below:-
Proceeding Current Status Costs to Date (as at 30/6/07) General - $19,118.75 NRS Finalised 97,103.75 Cranky Rock Road Finalised 10,037.92 Broula Mine Costs associated with land owner 13,675.86 N. Smith lodging a 3rd party application in the NSW Land & Environment Court. Matter was withdrawn and required no further action from Council TOTAL 139,936.28
Rate and Charge Write-offs Section 428(2)(r)
In accordance with Clause 12 of the 1993 Rates & Charges Regulation, Council wrote-off the following rates or charges in the period 1 July 2007 to 30 June 2008.
Rates or Charges $ Pensioner rates abandoned – General Fund $186,681.00 Pensioner rates abandoned – Domestic Waste 111,896.00 Pensioner rates abandoned – Water Fund 104,732.00 Pensioner rates abandoned – Sewer Fund 74,794.00 TOTAL WRITE-OFFS 2007/2008 $478,103.00
Section 356 Donations Section 428(2)(l)
Under Section 356 of the 1993 Local Government Act, Council contributed money or in kind to the value of $31,680.31.
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Contracts over $150,000 Section 428(2)(h)
A summary of Contracts awarded by the Council during the 2007/2008 year as a result of tender or other wise as set out below. These contracts exclude employments contracts of service and contracts less than $150,000.
Name of Nature of Goods/Services Amount Paid Contractor Downer EDI Sprayed Bituminous $ 861,265.28 exc GST Tyco Water Pty Ltd Supply of Pipe For 1(c)1 Zone Watermain $ 395,950.50 TechnologyOne Electronic Document Management System $ 244,609.20 inc GST Paintrite Refurbishment (Stages 1 and 2) of the $ 1,573,429.00 inc GST Constructions Cowra Civic Centre. Bernie Wilkinson construction of the STP amenities building $ 269,800.00 inc GST Builder complex
Mayor and Councillors Section 428(2)(f)
In accordance with Council’s policy on payment of expenses and the provision of facilities to the Mayor and Councillors, access and use of a room suitably furnished with appropriate office equipment is provided for use by all Councillors. In relation to expenses, Council incurred the following expenses during the 2007/2008 financial year:-
Item Money Expended Councillor Fees $93,550.00 Mayoral Allowance 19,035.00 Mayoral Expenses 5,500.00 Telephone & Facsimile 1,275.00 Conferences 15,535.00 Training 3,459.00 Interstate Nil Overseas Visits Nil Spousal Expenses 1,078.00 Carears Leave Nil Mayoral Vehicle 14,149.00 Travelling Expenses 7,449.00 Sustenance 12,153.00
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Council’s Policy
Council’s Councillors – Payment of Fees & Expenses & Provision of Facilities to Councillors provides as follows:-
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Environmental Activities
Bushfire Reduction Activities Section 428(2)(i)(1)
NSW Rural Fire Service - Canobolas Zone
OUR VISION
The Canobolas Zone of the NSW Rural Fire Service will be a leader in support and innovation to our volunteers who will provide the highest standard of excellence in the protection of our community from fires and other emergencies.
Our leadership and management systems will equip our volunteers and brigades to be a leading and respected resource within the NSW Rural Fire Service.
OUR MISSION
To provide a cohesive, enthusiastic Volunteer Rural Fire Service trained and equipped to meet the needs of the community in an efficient, effective and professional manner.
Executive Overview
The 2007-08 year proved to be very busy for the Canobolas Zone despite the fact that we had a quiet fire season. A record budget allocation of some $7.2M which was the highest in the State was combined with the highest amount of hazard reduction in the State with a figure of 11,408 was hectares completed.
This year also saw the final planning and construction of the first Standard Design Fire Control Centre to be built for the NSW Rural Fire Service.
Significant inroads were made into the continued upgrading of our tanker fleet as well as a major water tank project, further development of the aviation infrastructure and the continuation of our very successful “Gum Tree Meeting” engagement program.
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Completed Canobolas Zone Projects for 2007/08
Construction of the new FCC and Training Centre. Accept delivery of eight new and eight refurbished Tankers. Aviation / Support Truck. Development and rollout Aerial Fire Fighting Infrastructure. Installation of water tanks for Fire Stations. Full implementation of preventative maintenance for Fleet. Full implementation of preventative maintenance for Radio System / Paging Communications. Five additional Group vehicles. Canobolas Staff contributions to State and Regional Hazard Mitigation Projects. Hazard Reduction target of 9471 hectares surpassed with 11,408 hectares completed. Funding for trails and HR preparation work on private property. “Gum Tree” consultation meetings successfully completed. Canobolas Zone hosted Region West Exercise at Neville in September 2007.. Commencement of the RPL process for Crew Leader for our Captains and Deputies. Successfully completed our Risk Management Plan audit with the highest result (91.68%) ever achieved. Received record funding of $7.2M from the Rural Fire Fighting Fund.
Management
Staff
Significant challenges were provided to our staff this year. The Zone Manager, David Hoadley, was seconded to Head Office to manage the State Hazard Mitigation Project and our Community Safety Officer, Arthur Sharp was seconded to Region West to manage the Regional contribution to the State Project.
Permanent staffing levels remained steady at eight, incorporating The Zone Manager, Administration Officer, two Operations Officers, a Learning and Development Officer, two Community Safety Officers and a GIS support officer based at the Orange Zone Office.
During the year we gained the support of several temporary Operations Support Officers and a temporary Administration Officer to support the Zone in the absence of our seconded staff.
In addition to the direct Canobolas Zone employees, Head Office has based a Community Safety staff member at the Canobolas Office to work in Region West on specific projects including the development of the RFS Cadet program.
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Financial
The Canobolas Zone received a total allocation from the Rural Fire Fighting Fund of $7,188,749 for the 2007/208 year which was an increase of $2,221,465 on the previous year.
Each Council received the following allocation:
Council $ Blayney $1,860,401 Cabonne $2,587,115 Cowra $1,449,495 Orange $1,291,739
Total $7,188,749
Our Councils are responsible for contributing 13.3% to the total budget. All of our Councils agreed to extend their contributions above their budgets to take up additional tankers and significant funding for hazard reduction activities..
The actual Council contribution for the year was $769,305 and was split between the Councils on the following basis:
Council Estimated 13.3% Actual Contribution October 2007 Blayney $204,470 $201,660.62 Cabonne $278,707 $280,737.91 Cowra $149,438 $150,481.89 Orange $136,310 $136,424.33
Fire Control Centre
The Rural Fire Service embarked upon a standard design model for all new Fire Control Centres and Brigade Fire Stations that will maintain a standard across the State for the administration, coordination housing for resources. The Fire Control Centre planning alternatives allow for small, medium and large facilities depending upon the needs of individual District/Team/Zones.
During 2007/08 the Canobolas Zone, through our constituent Councils, commenced construction of the first standard design Fire Control Centre in NSW. This followed a rigorous period of involvement by Canobolas Zone Region West and Council staff into the design format of the standard plans.
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Forest Rd Site preparation Dec 2007 The site at Cadia and Forest Roads south of Orange was leased by Orange City Council from the Department of Lands and the relevant Development Application for the “Large” Fire Control Centre was approved by Orange City Council. The successful tender, Bilas Knight, from Camden, was appointed in late November 2007 and construction began early January 2008.
Framing Stage April 2008
The Management of the construction has been overseen by Orange City Council Technical Services Staff and their efforts in ensuring the maintenance of timeframes has been a hallmark in the efficiency of the project.
Completed in early August 2008, the facility provides the most innovative capabilities for training, operations and administration for local volunteers and staff along with a capability of providing services to the wider community.
The Fire Control Centre will be capable of providing a range of services to the Brigades, Councils and communities of Canobolas Zone and the facility includes the following list of capabilities:-
Operational capability for all classes of incidents 24 hour back up power generation 60KVA Uninterruptible Power Supply Full suite of agency communications equipment
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Training facilities for all types of events Conference facilities for RFS and its constituent Councils and agencies Multiple breakout areas for training and meetings Large storage facility for equipment 500,000L water storage plus dam storage Serviceable helipad
On behalf of the Canobolas Zone staff and volunteers I would like to pass on to our Councils our sincere thanks for your support for this project. Special mention must also be made for the contribution by Orange City Council for their construction funding and project management that has ensured such a successful outcome.
Brigade Consultation.
The program of Brigade (“Gum Tree”) Consultation meetings was initiated across the Zone in the previous year. This concept is proving very successful and “Gum Tree” meeting brand is being picked up by other districts across the State and has been incorporated into the Region West Business Plan for use across the Region.
The objectives of these meetings are:
To improve communication and understanding between our volunteers and staff. To build lasting and long term relationships and alliances with our volunteers. To really engage with our volunteers by listening to their needs or concerns. The promotion of mutually beneficial results. Identify and build upon our common ground within the RFS.
The progress made from this strategy of actively communicating with our volunteers on a regular basis is working to build a strong rapport between our staff and volunteers. The continual message at each meeting from the volunteers is to keep these meeting going as they productive, enjoyable and a great thing.
During 2008 these meetings identified many opportunities for hazard reduction on private land as well as on Forest NSW and NPWS tenure.
Operations
Fire Season 2007/08 proved a welcome relief for volunteers and staff with a significant reduction in the number of incidents reported and responded to across the Zone. Milder conditions and light pre summer rain assisted in the provision of relatively benign fire danger for the majority of the Bush Fire Danger Period.
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Generally warm temperatures and dry conditions presented during late August and early October, this necessitated in the Canobolas Zone Bush Fire Management Committee altering the commencement of the local Bush Fire Danger Period from November 1 forward one week to October 26.
The largest cause of fire during the period was lightning activity from a number of storm fronts that passed through the area. Generally these storm events caused multiple ignitions across many brigade areas over a period of hours.
Out of Area assistance requests were limited in the 2007/08 year to one Strike Team deployment for three days to the Blacktown area during December 2007. This Strike Team consisted of 2 tankers, 1 Command Vehicle and 10 personnel.
Incidents
Across the Zone our Brigades responded to a total of 342 Incidents during the 2007/08 reporting period. The table below details the type of responses by Council area.
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Others Council Fires MVA’s Good intent & Totals 2007/08 2006/07 2005/06 False Alarms Blayney 22 11 13 46 78 56
Cabonne 90 36 13 139 230 196
Cowra 69 13 17 99 98 101
Orange 33 9 16 58 122 88
Totals 395 66 70 342 528 441
Total incidents are down by 186 on the previous year and down 101 on the 2005/06 year indicating the moderate season that was experienced.
The major intrusion during 2007/2008 for incident response was the regular occurrence of either hayshed or haystack fires. Brigades across Canobolas Zone were responded to in excess of 40 separate hayshed and haystack fires from the period October through to February, and almost 600 similar instances across the state.
Whilst there is still some research ongoing into the cause of these fires, there is strong evidence that many of the responses were to cereal hay cut and baled as the result of failed grain crops.
The number of responses to Motor Vehicle Accidents (MVA’s) and “Other Incidents” have remained consistent with the previous year, however when compared over a three year period these numbers generally seen a decline by around one third historically.
Maintenance
The maintenance project continued during 2007/08 across the Fire Fighting tanker fleet, thanks to additional maintenance funding provided by Region West.
All tankers were afforded a “Service” and at the same time received a roadworthy inspection and an inspection of the fire fighting apparatus, as required by the Rural Fires Act.
The Service centres for these works are decentralised to limit the amount of travelling required by volunteers, as well as constrain the fuel expenditure. These centres have all been selected for their capability and expertise in providing the required maintenance for heavy vehicles and have all gained the certification required to perform the RTA HVIS (Heavy Vehicle Inspection Scheme).
The approved service centres are:-
Orange City Council Depot Blayney Council Depot
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Tracserv Trucks – Orange Tracserv Trucks – Cowra (Waugoola Station) Tracserv Trucks – Yeoval (Kerin Engineering) Cowra Truck Wreckers Cabonne Council Depot - Cudal
Tanker Upgrading
Funding of $1,334,692 was allocated for tankers during 2007/2008.
A total of 33 Fire Fighting Tanker resources and support vehicle movements have been made across the Zone as a result of this funding during the year.
The major focus has been on the removal of all petrol powered vehicles from service and with the finalisation of the movements tabled below there will be a total of seven petrol vehicles remaining in service, with an expectation that all petrol heavy tankers will be redundant during 2008/09.
The allocation of 2nd hand tanker funding has allowed the purchase of an additional 5 vehicles for Group Officer and volunteer use. These units have been fitted with the equipment necessary to enable our senior group personnel to perform the operational role of Divisional Commanders and fire ground coordinators at major events. The vehicles also allow scope for travel capability to the meeting schedule pertinent to our Group personnel.
Council Brigade Tanker Cabonne Cargo New Cat 7 Yeoval New Cat 7 March New Cat 7 Molong Cat 7 Washpen Cat 7 Lockwood New Cat 2 Washpen or Panuara Cat 1 Mt Pleasant Cat 1 Eulimore Cat 1 Murga Cat 2 Mogong Cat 1 Mullion Creek Cat 7 Yeoval Cat 1 Boomey Cat 2 Gamboola Cat 1 Blayney Neville Cat 1 Blayney New Cat 1 Carcoar New Cat 1 Barry-Hobbys Yards Cat 1 Cowra Torrington Cat 1 Warwick - Glenlogan Cat 1 Koorawatha Cat 7 Walli - Islands Cat 7 Gooloogong New Cat 2
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Council Brigade Tanker Porters Mount Cat 7 Mount McDonald Cat 7 Woodstock Cat 1 Orange Orange New Cat 17 Zone Resource Cowra Group Land Rover Cowra Group Land Rover Tablelands Group Land Rover Goobang Group Land Rover Nangar Group Land Rover
Aviation
Aviation resources were also benefited by the inflow of grant funding during 2007/08 and together with the RFS water tank project the Zone has been able to boost the level of on site infrastructure at our strategic airbase and airstrip locations as well as add to the logistical support through additional fast fill trailers to support the aviation operations.
The following strategies have been achieved in 2007/08
Installation of 2 x 20,000L tanks for retardant at Canobolas Airbase at Orange. Installation of 2 x 20,000L tanks for retardant at Cowra Airbase. Installation of a 245,000L water tank at Cowra Airbase. Installation of an additional 245,000L tank at Canobolas Airbase at Orange.. Installation of a water supply bore at Cowra Airbase. Installation of a 245,000L water tank at Trajere (Eugowra) airstrip. Installation of underground supply plumbing at Obley (Yeoval) airstrip. Training provided to personnel from Waugoola and Orange Brigades in Air Base Support and Aviation Basic Knowledge. Delivery of a specialist aviation support truck for Zone operations. Commissioning of 4 fast fill trailer units supplied by RFSA funding for:
Byng Emu Swamp Trajere Cudal Waugoola
Community Safety Hazard Reduction
The hazard reduction component of Rural Fire Service activities in now undertaken expressly by the Canobolas Zone on behalf of the Councils and entails four separate areas
Issue of Fire Permits Issue of Hazard Reduction Certificates Management of Hazard Complaints Advice on Compliance to “Planning for Bushfire Protection” in regard to Development Applications.
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Since 1 July 2007 and up to 30 June 2008 the Community Safety Staff of Canobolas Zone carried out the following works.
Blayney Cabonne Cowra Orange Development Applications 1 23 0 0 79BA / 100B Permits Section 87 & 88 28 222 170 31 Hazard Reduction Complaints 57 39 56 293
Hazard Reduction Activities
The Canobolas Zone Risk Management Plan seeks to treat 9,471 hectares annually across all land tenures. During this year the Canobolas Zone had access to significant funding which allowed us to complete additional works on private property.
Our Councils also received $140,500 which has allowed for a significant increase in the area that has been completed.
The Canobolas Zone Bush Fire Management Committee that covers the four Council areas has plans to increase the works program to 22,299 hectares in 2008/2009 to ensure the targets that are set in the Risk Management Plan are achieved.
Canobolas Zone Hazard Reduction Rolling Reconciliation 2004 - 2009 Annual Completed Completed Completed Completed 4 Year Completed Benchmark 2004/2005 2005/2006 2006/2007 2007/2008 Target Private 4,709 3,859 9 3,494 5,040 18,836 12,402 Crown 1,227 2,385 2,273 2,273 5,199 4,908 12,130 NPWS 2,278 2,485 20 711 822 9,112 4,038 FNSW 1,257 2,204 300 422 347 5,028 3,273 Totals 9,471 10,933 2,602 6,900 11,408 37,884 31,843
Risk Management Plan Benchmarks
The total target at the end of year four was – 37,884 hectares. Works completed for this period – 31,843 hectares. Prepared and ready to burn in 2007/2008 delayed by weather – 5,329 hectares Weather permitting total would have been – 37,172 hectares Works Program for 2008/2009 – 22,299 hectares. Five year target – 47,355 hectares. Estimated five year result – 54,142 hectares – SURPLUS 6,787 hectares.
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Risk Management Plan Audit
During the year Canobolas Zone participated in an audit of our Risk Management Plan. Data was collected from all participating Agencies within our Zone for the Section 62A Commissioners audit.
Canobolas Zone achieved a 91.63% compliance in the draft Audit Report. This represents the highest result ever achieved by a BFMC and will be reported in the RFS Annual Report.
Markams Hazard Reduction 2008.
Cadets
Canobolas Zone has undertaken Cadet courses during the year at Orange Christian School (18 students), James Sheahan Catholic High School (22 students) and Cowra High School (15 students).
A number of students have indicated that following this Cadet training they are interested in continuing and involvement and will look to join a Rural Fire Brigade.
A keen group of staff have been supported by a team of enthusiastic volunteers from Orange, North West, Springside and Waugoola brigades. Without doubt it is the dedication of these volunteers that have made this program so successful.
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Learning and Development
Another successful year of training was conducted within the Zone, by our staff and volunteers.
The Canobolas Zone also hosted the Region West Exercise at Neville in September 2007. This provided an excellent training and assessment event and contained many practical exercises to sharpen the skills of those who participated. A feature of the weekend was the introduction of real fire into the hazard reduction scenario in the Neville State Forest.
During 2007 a total of 304 members nominated for the following courses.
The following training has been attended by the Zone’s volunteers or staff:
Aviation Operations Air Attack Supervisor Rural Fire Driving Bush Firefighter Village Firefighter Advanced Firefighter Crew Leader Senior First Aid Business Management Breathing Apparatus Operator Incident Management Workshop Incident Management Exercise Rural Fire Instructor Combined Agency Exercises (NSWFB, NSW Police) Bush Fire Awareness Chainsaw Operations Compartment Fire Behaviour Hot Fire Pad Instruction Group Leader Permit Officer Workshop
The Zone is working towards meeting Service Standard 6.1.2 which provides details on the required qualifications for all levels of the organisation, volunteer or staff.
Canobolas has been instrumental in developed an assessment process for our Captains and Deputies to be assessed by RPL and RCC for their Crew Leader qualifications. This was tested on 11 volunteers during this year and it is planned to extend this opportunity to many more volunteers in the next year.
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Region West – Canobolas Zone
This report is prepared in accordance with policy P7.1.5, SOP P7.1.7-2 and SOP P7.1.7- 3 in regard to the annual reporting on performance of regions and the exception report of districts.
This report contains the following elements;
Summary of achievements, Region West Highlights.
In accordance with the new policy Region West can report on the performance of DTZ’s by a summary report, based on a generic set of target performances.
High quality and consistent reporting has been something the Region has been striving for since its formation. This has now been achieved, with the use of the eSDM across all Region West for the last three reporting years.
The dedication of the staff to collect data and report consistently is outstanding and very much appreciated.
Team / Zone Performance
Canobolas Zone achieved a reported average compliance of 86% (96% last year) against fifty-seven target actions. They have also achieved a reported completion rate of 82% for Management (last year 97%); 94% for Operations (last year 100%); 74% for L&D (last year 78%) and 98% for Community Safety (last year 100%).
CANOBOLAS ZONE - EOY- 2007/08
Canobolas Regional Avg
100%
90%
80%
70%
60%
50%
% Achieved 40%
30%
20%
10%
0% MGT % OPS % LD % CS % Functional area / Reg Avg
Canobolas Zone was well above the Region average (84%) on reported completion rates for the 2007/08 year.
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Achievements within the Zone
Canobolas Zone achieved the joint highest HR results in the State for 2007/2008; First new Standard Design FCC being constructed; Canobolas Zone has developed an RPL process for all Crew Leader courses; The Canobolas Zone SWS Project is installing 40 large tanks comprising 4,920,000 litres, equivalent to 1,640 Cat 1 loads; Aviation infrastructure completed at 5 of the first 6 identified sites (water / mixing and loading equipment); Eight additional Group Officers vehicles bought into service; Staff contributions to State hazard reduction project; Three volunteers provided with Operational Support opportunities for personal development; Gum Tree meetings continue - 2 weeks across 12 sites up to 30 brigades contacting 200 volunteers; Four Cadet programs rolled out across three campuses.
Regional Overall Performance
The Region has achieved 84% completion (down from 89% last year) of the fifty-seven programs/actions within the Business Plan. The majority of DTZ’s had 80% or above reported achievement.
The Community Safety KRA had six of eleven actions 100% complete, with four at a level of 89% and above. The Management KRA ended with one of twenty-four actions 100% complete, however seventeen other actions fell into the 80-99% category. Learning & Development finished with three of eleven actions at 100%, with four actions in the 80% and above category. Finally Operations finished one action achieving 100%, and nine actions achieving 80% and above. REGION WEST - OVERALL 2007/08 1 JULY 07 - 30 JUNE 08 100%
90%
80%
70%
% Achieved60%
50%
40%
30%
20%
10%
0% Barwon Bland Canobolas Cudgegong Far West Mid Lachlan Mid West North West Orana South West Regional Darling Temora Valley Slopes Avg Team / Zone
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Final Summary
Region West can not produce or maintain the highest standards of professionalism without the outstanding work of the dedicated volunteers and staff. It is through these dedicated people that the Region has achieved such significant achievements, even with the ever increasing expectations and demands, sometimes brought about by our own previous successes.
It should also be noted that the Region has once again achieved remarkable success in a whole range of programs and actions. This success is reflected in operational achievement, volunteer relations, community engagement and valued stakeholder relationships.
I thank all staff of Canobolas Zone for their efforts in achieving so much during 2007/08.
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State of Environment Report Section 428(2) (c)
Overview
In 2004 Cowra Shire Council prepared a comprehensive State of the Environment (SoE) Report for the whole of the Cowra Shire. The SoE Report has been reviewed and updated annually. Cowra Shire Council intends to prepare a new comprehensive State of the Environment Report relating to Cowra Shire in 2009.
Based on the latest annual review of the State of the Environment Report, the following provides a “snapshot” of Cowra Shire as well as the eight environment sectors of land, air, water, biodiversity, waste, noise, Aboriginal heritage and non-Aboriginal heritage.
For more detailed reporting, refer to Cowra Shire State of the Environment Report (as amended November 2008).
Cowra Shire Council is also currently preparing a Shire Wide Land-use Strategy that will also investigate regional and local environmental planning issues considered important to the future planning and development of the shire for the next 30 years.
Introduction
Cowra Shire Profile
Cowra Shire is located in Central New South Wales. It forms part of a larger ‘Western NSW’ region, which extends from the Great Dividing Range in the east across to the South Australian border and covers more than half of the state. The shire is located in the fertile Lachlan Valley and covers an area of approximately 2,810 square kilometres and accommodates a growing resident population in excess of 13,000 people. Cowra Shire is valued for its rich and varied heritage. The history of the shire is interwoven with the happenings of local Aborigines, European exploration and settlement, and the development of towns and villages.
The major urban centre in the shire is the Cowra township, which has a long established history since its European settlement as a river crossing in 1849. Cowra is famous for its role in WW2 history as the site of a Prisoner of War (POW) camp, where in 1944, 231 Japanese POWs and 4 Australian soldiers were killed during a mass “break out” attempt. Today Cowra is internationally recognised for its role in promoting understanding, tolerance and world peace, which is celebrated through annual festivals, a Japanese gardens cultural centre and Australia’s only UN Peace Bell.
There are also a number of smaller villages in the shire, including Billimari, Darbys Falls, Gooloogong; Morongla, Noonbinna, Wattamondara,, Woodstock, and Wyangala. The history of these settlements is varied but originates from early mining and agricultural activity of the late 1800s.
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Agriculture is an important part of the local economy and is spread over a diverse base including irrigation cropping and fodder production, mixed farming enterprises and intensive agricultural pursuits. Manufacturing and agriculture form the backbone of the region's economy. Other major industries are mining, food processing, tourism and retail.
As of the 2006 Census, major employment industries in Cowra shire include agriculture, retail trade; manufacturing, transport and storage (MTS); and community services and government. Tourism is also a key industry for Cowra in terms of investment, economic development and opportunity.
Heritage
The Cowra Local Government Area is Wiradjuri country. Prior to European occupation Wiradjuri activities focussed on the various creeks, rivers and ridgelines within the shire. Evidence of this pre-contact occupation still exists within the shire in the form of artefact scatters and scarred trees.
In 1815 Surveyor George Evans was the first non-Aboriginal explorer to enter the Lachlan Valley. A Military Depot was established not long after at Soldiers Flat near present day Billimari.
Settlers moved into the Lachlan Valley around 1830, with large pastoral holdings (Bangaroo, Glen Logan, North Logan, Cliefden, Jerula, Mufflon Park, Merriganowry, Milton, Sheet o’ Bark, Waugoola, Farleigh, The Islands, Wyangala Station) supporting well built homesteads, workers quarters, sheds and other outbuildings.
The township of Cowra was proclaimed in 1840. The first local government was proclaimed in 1888. Cowra Courthouse consists of a 1880s building overlaid with substantial additions dating from 1909. Cowra was reached by rail in the late 1880s, after the rail bridge south of Cowra was tested on 27 August 1887. The bridge is one of the original iron lattice Whitton bridges.
As agriculture grew in the region, so too the township of Cowra prospered with many commercial and administration buildings and houses being built in the area.
Several small towns and villages have been established within the shire to service the rural economy. The discovery of gold in the 1880s at Woods Flat brought many people to the area, with the settlement being officially renamed Woodstock in 1886.
The construction of Wyangala Dam in the late 1920's and early 1930's, establishment of the Cowra Agricultural Research Station, Cowra Steam Mill, Military Training Camp, the POW Camp, the migrant camp and construction of the second Wyangala Dam have all contributed to the prosperity of Cowra.
Non-Aboriginal Heritage includes significant buildings, homesteads, historic views and cultural landscapes. Threats to such places include rural and residential development; land use practices and changing population demographics.
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Topography
The shire consists of large distinctive low-lying areas adjacent to the Lachlan River, which merge into rolling hill country and then to steeper areas in the east. Cowra township is built around Belleview Hill where the gradient averages around 7-15%, peaking at 40% and dropping to 3-6% further away from the hill.
Climate
Cowra experiences a temperate climate with hot conditions in the summer months when the average daily maximum is around 31oC. The winter months are cool with average daily minimums of about 3.1oC and a susceptibility to frosts across the Lachlan Valley. The average annual rainfall across the three recording stations in the Cowra Shire is 619.47mm, fairly well distributed throughout the year. Cowra Shire generally exists in a water deficit, where the amount of evaporation exceeds the amount of rainfall. In winter months the two figures are approximately similar. Currently Cowra Shire is experiencing drought conditions, similar to around 93% of NSW.
Upstream of Cowra temperatures vary from an average winter temperature of 0o to an average summer maximum of 35 o. Frost occurs over the entire Lachlan valley during the cooler months of the year and in the higher reaches of the catchment severe frosts occur from April through to October. In the lower areas frosts occur between May and September. Average temperature in July is 8 o, and in February 23 o. Winter temperatures can drop to –3 o, while temperatures in the mid 30s are not uncommon in summer.
There are on average 1.3 hail days per year.
Cowra is fortunate to have good air quality, with the three regulated sites across the shire returning consistently low rankings on air-borne emissions.
River Systems
Cowra is included in the Lachlan Catchment. The Lachlan catchment covers an area of 84,700 square kilometres, extending from the western boundary of the Great Dividing Range west to the Riverine Plains. The area produces approximately 14% of NSW agricultural production.
There are three waterways that merge and flow through and around Cowra: Binni Creek, Waugoola Creek and the Lachlan River. On the western and southern sides of the township is the Lachlan River and on the eastern side is Binni Creek. There are three catchments yielding a total area of 1,158 hectares. The town catchment is approximately 729 hectares, and the slope is enough to cause rapid drainage into either the Lachlan River or Waugoola Creek. This rapid drainage has a detrimental effect on water quality immediately downstream of the town.
Surface water drains in a north-westerly direction to the town of Gooloogong. The Lachlan and Belubula Rivers join near Gooloogong before entering the Forbes Shire.
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Geology and Soils
The east of the shire is characterised by rich volcanic soils of shallow stony loams with granite outcrops. The topography of the area makes irrigation unsuitable and the land is mostly used for grazing and some fodder crops. The topography around Cowra itself is typified by low-lying areas adjacent to the Lachlan River which merge into rolling hills, with steeper areas in the east. The ranges of the Conimbla National Park are approximately 470m above the surrounding plain and are conspicuous landmarks from surrounding areas.
Ancient fractured crystalline rocks formed from sedimentary deposition, volcanic activity and movement of the earth’s crust underlie the Lachlan catchment. Silurian and Devonian1 sediments run north south through the district. The main rock types are slate, tiffs, cherts, limestones, occasional quartsites and conglomerates. On the eastern boundary are sedimentary rocks from the Ordovician period, mostly fine-grained sandstone and quartzites. The eastern half of the shire is characterised by rich volcanic soils with granite outcrops.
In the east of the shire the soils are shallow stony loams and well structured red brown soils on the steeper slopes, and yellow and red texture contrast on flatter areas. Red clay loams occur on volcanic rocks.
Along the Lachlan River and Koorawatha Creek are large areas of alluvium and high quality silica deposits. It is in these areas that major crop and vegetable growing is carried out.
Tourism
Cowra’s primary appeal to tourists is as a country area which provides a good balance between rural living and the “larger town” services most people enjoy.
Tourism strengths are the themes that link the major attractions in the shire. Furthermore, a high level of creativity and pride is evident in Cowra’s many attractions. Key themes are Cowra’s unique role in war history; international understanding and peace; local produce and wine tasting; and outdoor recreation.
Cowra has a rich and diverse history with links to national and international events to an extent that few other rural districts can match. The history of the World War II Prisoner of War (P.O.W.) Camp on the northern outskirts of Cowra is the basis of several attractions and events which have broad appeal. Cowra’s wider history is explored in various museums and in the Cowra Heritage Walk.
Linked to Cowra’s historic P.O.W. role and its subsequent role in the introduction of migrants to Australia are the inter-cultural collaborations displayed most prominently in the Japanese Garden & Cultural Centre. Cowra’s unique contribution to world peace and understanding was recognised internationally by the awarding of Australia’s World Peace Bell to the town. Cowra celebrates its Japanese connections with the annual Cherry Blossom Festival.
1 From the Palaeozoic era – one of the four main divisions of geological time, from about 570 million to 245 million years ago. The era includes the Cambrian, Ordovician, Silurian, Devonian, Carboniferous, and Permian periods.
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Viticulture has emerged as a major industry in Cowra and the tourism potential of these wine producers has been enthusiastically harnessed, with over a dozen cellar doors selling direct to tourists.
Cowra township provides attractive natural parks in Bellevue Hill Fauna Reserve and the Japanese Garden and has access appeal to the adjoining Lachlan River. Beyond the main township, Wyangala Waters State Park is the setting for water-based activities and associated camping and holidaying. Conimbla National Park is suitable for bushwalking, picnicking and other recreation.
Cowra Shire Council
The Cowra Shire Council came into existence on 1 January 1981 following the amalgamation of the Cowra Municipal Council and the Waugoola Shire Council. The former Municipal Council had been created in 1888 at the Cowra Court House, while the Waugoola Shire had been created in 1906.
Cowra Shire consists of nine Councillors headed by the Mayor Bill West and Deputy Mayor Ian Brown. Council meets on the fourth Monday of every month.
Supporting the Council are around 165 (FTE) permanent staff under the direction of the General Manager, Mr James Roncon. Council also occasionally engages a small number of contractors, temporary staff and volunteer workers.
The Cowra Community
Cowra is a growing shire of over 13,262 persons. Cowra’s overall population growth is one of the few in inland NSW that is experiencing positive growth. In the context of the 109 inland NSW Shires, Cowra Shire is not one of the 63% of the shires that are forecast to experience marginal to significant population decline.
In summary, the Cowra Shire: -
Experienced steady positive growth for the period 1991 to 2006, which is expected to continue to 2031. Has an ageing population reflecting national trends. At the 2006 Census, the dominant age groups that resided in the shire were the middle-aged (40-59 years), and elderly (60 years and over). The elderly are anticipated to increase for the 30- year-period of 2001 to 2031. Has a generally even ratio of females to males, which is in contrast to 1991 data, when females outnumbered males significantly. Has a very low proportion of residents born outside Australia; averaging about 6% for the last three census years. This is consistent with trends for regional areas of NSW. Has a significantly high Indigenous population growth rate, particularly when compared to the shire’s total population growth rate. This trend is also experienced at the state and national level. The lowest age group represented within this group are the elderly, which is reflective of the fact that in general, Indigenous people have a shorter life expectancy than non-Indigenous people. Comprises mostly couples with children. This group has been the dominant types of family in the shire for the last three census periods.
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Is forecast to have continued growth in total dwelling stock and occupied private dwellings to the year 2031.
In absolute terms, the overall shire population is estimated to significantly increase by 3,129 persons for the period 2001 to 2031 (refer table below). The estimated resident population (ERP) is anticipated to increase steadily in the range of 3.4 to 3.8% over each projected 5- year period to 2031.
Cowra Shire : Historic & Projected Estimated Resident Population (Erp)
Census Year No. Persons Historic 1991 12,377 1996 12,430 2001 13,081 Projected 2006 13,530 2011 13,980 2016 14,500 2021 15,040 2026 15,620 2031 16,210
Source: Derived from ABS, Census of Population and Housing, 2001, 1996 & 1991.
Ecologically Sustainable Development
Cowra Shire has a climate-sensitive economy that is largely dependent upon agriculture as a major source of income and employment.
By far the greatest issue currently facing the sustainability of our local economy is the continuance of a severe drought. These conditions have lead to reductions in crop yields and meat production as well as reductions in average stream flows and dam levels – the effects of which are being felt throughout the community.
The cause of drought has been attributed to many things, including the El Niño, global warming and climate change, a dryer weather cycle or just bad luck with the weather. Whether it can be put down to one phenomenon or an inter-play of factors, the continuing drought serves as a reminder that we are dependent on the Earth for ongoing social, economic and environmental well being.
Central to maintaining the right balance between development and the natural environment is the concept of Ecologically Sustainable Development (ESD). For Cowra Council, the concept of ESD defines “a pattern of development that improves the total quality of life, both now and in the future, in a way that maintains the ecological processes on which life depends”. In other words, growth and development must take place within the limits of ecological systems without major social and cultural disruption, and use technology that can be maintained locally. Ideally, the social, cultural, environmental and technological factors should be in balance.
The Councillors and staff of the Cowra Shire Council have a statutory obligation and role in the promotion of ESD throughout all Council activities. The Local Government Act 1993 requires Council to be well informed about the environmental circumstances of its area and
2007-2008 ANNUAL REPORT Page 79 to apply the principles of ESD in a fully integrated way through the Councils strategic management cycle of direction, action and accountability.
This means that wherever possible ESD principles should feature in the planning process, should become part of the everyday activities of staff, and should be part of the assessment process for managers. ESD principles should be stated in specific policies, and not just those related to environmental issues. For example Council’s housing strategy should explicitly state a position in relation to ESD principles and explain how a particular development is consistent with sustainability.
Six Principles For Physical Sustainability
After over a decade of introduction and implementation of ESD into nationwide legislation the use of the concept has evolved. There appears to be a community focus on “sustainability” rather than on ESD which is explored below:
Stabilise human population, number and age structure
This recognises that the increasing human population is the major obstruction to the creation of sustainable communities, and that large population surges such as “baby boomers” or “Generation Xers” work against a stable and sustainable population.
Constrain the flows of grand elements
This recognises that human now have the ability to cause major shifts in the storage of major elements such as carbon, nitrogen, phosphorus, and sulphur. In Australia we could also add salt and water as substances that we have caused the movement of, in some cases to our detriment. This principle suggests that reducing the flow of these movements would be consistent with a sustainable community. Base Society & the Economy on “Flows” Rather Than “Stocks”
An example that illustrated this principle would be a move towards renewable energy supplies, such as wind farming or solar power, and away from non-renewable energy such as coal and oil. The emphasis is on not “using up” a supply of fuel, but of tapping in to an existing and virtually inexhaustible supply.
Shorten supply chains
This principle recognises the loss of energy involved in long supply chains. For example most of the fruit and vegetables grown in rural NSW are transported to Sydney for sale and subsequent distribution. While much of this produce is then consumed in Sydney, a substantial portion is then transported back to rural NSW for consumption.
Engineer Society for Durability and Resilience
This principle suggests that we should focus planning on products that last rather than on products with some built in obsolescence. It argues against products that change with fashion and which require an update that is mostly cosmetic.
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A New Economics Where Taxes “Tell The Truth”
This principle recognises that our present way of measuring the economy is flawed and that more appropriate methods should be explored. For example our society measures and compares gross domestic product (GDP) on the assumption that the higher this is the better. This suggests that more economic activity is better for the community, an assumption that has significant drawbacks. For example a significant loss of time and energy occurs when cars crash and people are injured, and by most measures this is regarded as detrimental. However under our system, the accompanying hospitalisation, crash repair, or funerals represent expenditure and therefore an increase in GDP.
Eight Environmental Sectors
Section 428(2)(c) of the Local Government Act 1993 requires that the SoE Report gives consideration to the environment sectors of land, air, water, biodiversity, waste, noise, Aboriginal heritage and non-Aboriginal heritage. The following provides a ‘snapshot’ of how these environmental sectors relate to the Cowra Shire context. For more detailed investigation, refer to Cowra Shire State of the Environment Report 2008.
Land
The majority of the landscape surrounding Cowra is non-calcic brown soils with alluvial soils along the Lachlan and a strip of red podsolic soil from the north.
Salinity impacts on the natural and built environment through the accumulation of salt in soil and groundwater. Dryland salinity it is often exacerbated by human activities that alter the natural balance of the water cycle in the landscape (known as ‘induced’ salinity). Salinity of all types has a widespread impact on farming and decreased agricultural production, irrigation, landscape degradation, decline in ecosystem and wetlands health, rivers, drinking water supplies and infrastructure.
Over the last decade there have been a number of programs for the management of acidity, dryland salinity and erosion, which are now an integral part of normal farm management processes. Soil test data collected over the past decade indicate improved soil health.
Air
Cowra is also fortunate to have good air quality, with the three regulated sites across the shire returning consistently low rankings on air-borne emissions.
Water
Water quality is defined as the condition of the water in the rivers and aquifers of the LGA. It is discussed in terms of physical characteristics of the water such as pH, turbidity and biological oxygen demand.
An audit by the Murray Darling Basin Ministerial Council (MDBMC) has predicted future river salinities in the basin. The audit estimated salinities for the years 2020, 2050 and 2100 for each river valley supplying water to the Murray or Darling Rivers. The results in the Table show that the Lachlan River is one of many rivers facing sharp increases in salinity
2007-2008 ANNUAL REPORT Page 81 with a three-fold increase expected in the next 100 years. While the salinity levels in Cowra are lower than across the Lachlan as a whole, there is still a significant increase predicted in the next 100 years. As salinity levels increase in rivers across the state, many water uses are likely to be compromised. Table – River Salinity
The World Health Organisation (WHO) has recommended a desirable upper salinity limit for drinking water of 800EC. Pipes, fittings and appliances such as hot water systems and evaporative cooling systems will be significantly affected (eg life span halved) as EC levels rise above 600EC.
Groundwater is another important and vital resource in New South Wales and sustains a variety of ecosystems and is an important resource for agriculture and domestic use. Careful management of the quality and quantity of this resource is needed to allow sustainable use. The main impacts on groundwater quality in NSW are increased salinity and contamination by pollutants.
The groundwater along the lengths of the Lachlan River system is classified as ‘moderate’ to ‘fresh’ and is suitable for domestic, stock and some irrigation purposes. The groundwater in the surrounding areas of the region are more saline and classified as ‘brackish’ and have more limited uses, being suitable for dairy and beef cattle, horses and sheep.
Demand for groundwater resources in NSW has increased substantially with some resources being used beyond their sustainable yield.
The fundamental concept of groundwater vulnerability is that some land areas are more vulnerable to groundwater contamination than others. Mapping of vulnerable aquifer systems is currently being prepared as part of the Cowra Shire Land-use Strategy.
Biodiversity
Biological diversity (biodiversity) is the variety of all life forms – the different plants, animals and micro-organisms, the genes they contain and the ecosystems of which they form a part.
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Protecting biodiversity and maintaining essential ecological processes and life support systems is a core objective of the National Strategy for Ecologically Sustainable Development (ESD). This means maintaining the natural resources and environmental capital so that the needs of future generations are not compromised.
Cowra is home to the Conimbla National Park, which covers an area of 7,590 ha (NPWS, 1997) and supports a variety of low forest, open woodland and dry heath communities. Wyangala Waters State Recreation Area is a significant environmental feature of the Cowra Shire. It covers an area over 2,000 hectares, making it the third-largest state recreation area in NSW.
The loss and decline of native vegetation can lead to a substantial reduction in terrestrial habitats and is a major threat to biodiversity. The clearing of native vegetation is also strongly linked to soil degradation, such as erosion and salinity, a decline in aquatic ecosystem health and water quality, and climate change. It is estimated that around 40% of the Lachlan CMA is currently vegetated to some degree and 60% has been cleared.
Riparian vegetation is vegetation on land that adjoins, directly influences or is influenced by, a body of water. A major cause of degradation is the introduction of, or invasion by, non- native species such as willows which can affect channel structure due to their root systems. Changes in flow regimes can also affect riparian vegetation through erosion and altered flooding regimes. On a local scale, riparian vegetation can be degraded as a direct consequence of clearing or activities such as cropping or unlimited stock access.
Total native vegetation cover in the Lachlan Catchment is estimated to be about 76% although the extent of landscape modification is variable across the catchment, with the eastern parts of the catchment more modified than the west. The vegetation communities in the central and eastern parts of the catchment tend to be highly fragmented and highly modified by grazing, cropping, irrigated agriculture and forestry activities.
Once an ecological community is listed as threatened under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), their recovery is promoted using Recovery and Threat Abatement Plans. A report generated by an EPBC Act Protected Matters search (13 April 2006) listed the ‘Grassy White Box Woodlands’ as an endangered threatened ecological community within the Cowra LGA. A classification of ‘endangered’ is defined as an ecological community that is facing a very high risk of extinction in the wild in the near future.
Waste
Cowra Shire Council is involved in the collaborative waste management project coordinated by NetWaste and is included in the Eastern Subregional Waste Management Plan. The aim of the waste management plan is to ‘provide direction for the ongoing management of waste services’.
Currently 3 landfill sites operate in the Cowra LGA – Cowra Material Recycling Facility (MRF), Woodstock Waste Site and Gooloogong Waste Site. The Cowra site has an estimated life span of 30 years and embraces best practice principles to manage waste via waste landfill and recycling.
In addition, village recycling stations are located in Billimari, Gooloogong, Woodstock, Wyangala Park and Wyangala village, Darbys Falls, Wattamondara, Morongla and in the Cowra Woolworths car park.
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Domestic waste generated per capita per annum has varied greatly over the last three reporting periods. Even allowing for this, the domestic waste generated per capita in the Cowra Shire was below the State average.
There are a number of land-uses that exist in Cowra Shire, or that have operated in the past, that by the nature of their operations have caused some level of contamination. State Environmental Planning Policy No. 55 – Remediation of Land lists a number of land-uses that can cause contamination.
Noise
Noise pollution can be defined as unwanted offensive noise that unreasonably intrudes on daily activities (NSW SoE 2003). As a rural environment, Cowra Shire generally has no significant noise issues. Urban and rural noise may result from agricultural activities, transport and traffic noise, and neighbourhood noise such as air conditioners or barking dogs. The Protection of the Operations Act 1997 (POEO Act) is the key piece of environment protection legislation administered by the EPA.
Aboriginal Heritage
Prior to European occupation Wiradjuri activities focussed on the various creeks, rivers and ridgelines within the shire. Evidence of this pre-contact occupation still exists within the shire in the form of artefact scatters and scarred trees. The 2008 Cowra Shire State of the Environment Report lists 398 recorded sites of Aboriginal heritage with 408 features within these sites. There are also a number of items listed on both state and national heritage registers. Threats to pre-contact Aboriginal Heritage (artefact scatters, scarred trees, possible middens and possible rock art in caves or within escarpments) include rural development, residential, industrial, mining, uncontrolled tourism and leisure activities such as bush walking, caving, abseiling and so forth.
After European settlement Aboriginal people participated (and continue to participate) in all aspects of non-traditional activities. Aboriginal people worked on pastoral properties and assisted in the development of the various pastoral industries. Aboriginal people actively participated in all rural activities including working in the towns and villages, fighting in the First and Second World Wars, playing sport and attending school. Aboriginal people today are very active in the protection of their pre-contact history and sites whilst playing a valuable role in the ongoing development of the shire.
Non-Aboriginal Heritage
Non-Aboriginal Heritage includes significant buildings, homesteads, historic views and cultural landscapes. Threats to such places include rural and residential development; land use practices and changing population demographics.
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Companion Animals Clause 217 (1)(f)
Council is required to publish a Statement on activities relating to enforcing and ensuring compliance with the Companion Animal Act and Regulation and accordingly provides the following information:
Lodgement of pound data collection returns Council lodged its Survey of Council Seizure of Cats and Dogs 2007/2008 with the Department of Local Government on 3 July 2008.
Lodgement of data relating to dog attacks Council lodged 19 dog attack notification during 2007/2008 financial year that required notification to the Department of Local Government.
Companion Animal Management and Activities Council’s budgeted expenditure on Companion Animals management and activities for 2007/2008 was $148,000. This included all activities related to Companion Animals, impounding and regulatory control, maintenance and running of the animal pound, desexing of companion animals, assistance in microhipping and the provision of off leash areas.
Community Education Programs A program of community education is run periodically in local newspapers throughout the year. Council makes available information on desexing of Companion Animals and general information on care of animals at its Administration Centre.
Strategies to promote and assist the desexing of dogs and cats Council makes available information on desexing of Companion Animals periodically in local newspapers throughout the year and at its Administration Centre. Council takes action to ensure that all dangerous and restricted breed dogs are desexed.
Alternative to Euthanasia for Unclaimed Animals Council has in place a community education program to reduce the need for euthanasia of impounded animals. Council is currently trialling an Online Dogs Forums (www.dogzonline.com.au).
Off leash areas Council currently has two off leash dog exercise area located at Sakura Reserve and Bill Robinson Park Cowra.
Companion Animals Fund Money for management and control of companion animals in the area Council received approximately $7,000 from the Companion Animals fund. Activities where these funds were expended include:
Dog registration clerk salary Dog pound expenses Dog microhipping expenses Cat impounding expenses Inspector’s salaries
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Cultural Awareness Diverse Culture Programs Section 428(2)(j)
Cowra Council’s commitment to Cultural Diversity and actively embracing the cultural differences that make our community unique is managed by Council’s Corporate Services Department under the guidance of the Cowra Shire Social Plan 2005-2009. Cowra boasts a healthy diversity of cultures, and our community prides itself on the rich qualities that residents from culturally and linguistically diverse backgrounds (CALD), be they second or third generation migrants or new arrivals, bring to our shire.
The numbers of residents from other countries making their home in Cowra in recent periods of immigration is quite significant. In fact, community surveying in 2002 identified over 45 nationalities represented in Cowra Shire, a finding which has led us to proudly claim Cowra to be one of the most culturally diverse communities west of the Blue Mountains!
As at the 2006 Census the total population born overseas was 5.6%. The main countries of birth (other than Australia) in 2006 were United Kingdom, New Zealand, and Scotland. Germany and the Netherlands also rated highly.
The people of Cowra have continued to strengthen their links with our culturally diverse community through their support of the annual Festival of International Understanding, the Cowra Multicultural Reference Group and a wide range of other cultural organisations operating in the shire. Similarly, the community is proud to promote the significant cultural sites and attractions of Cowra that reflect our unique history and progressive future.
Despite this cultural diversity, only a very small minority of Cowra residents (less than 1%) speak a language other than English at home. Greek, Arabic and Italian were the most commonly spoken “other” languages with Croatian and Mandarin also rating. Students from Sudanese, Vietnamese and Thai backgrounds regularly attend ‘English as a Second Language’ classes at Cowra TAFE and are very active in Cowra’s multicultural activities.
The Census figures advise that of those persons who do speak another language, there are only 30 who speak English ‘Not Well’ and none who ‘do not speak English at all’. To meet this need, Council’s customer services staff have undertaken Translating and Interpreting Service Training and are able to access telephone translation services should clients or staff require it.
Given these statistics, and the resources and support provided by other local organisations and those servicing Cowra on an out-reach basis, Council has not determined it necessary to produce any of its publications in a second language.
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Migrant Support
The Cowra Multicultural Reference Group is supported by the Cowra Information and Neighbourhood Centre, and works on a volunteer basis to showcase the significant contribution that Cowra’s multicultural community makes to our town. The group works to share information and help with communications for new arrivals in town, and is a great social network, encouraging genuine friendships with people of diverse cultures. Importantly, the group is also a key player in working with Council to ensure that we are responsive to the needs of people from diverse cultural backgrounds in our community. The group meets formally once every second month, and also holds regular social gatherings where everyone is welcome.
A key contributor to the Multicultural Reference Group is Cowra’s Multicultural Worker. This position was created in 2006 under the auspice of the Cowra Information and Neighbourhood Centre with funding from the Community Relations Commission. The position is currently funded for 5 hours per week, generally undertaken on Thursdays and Fridays. A funding submission has been made for a further grant from the Community Relations Commission, however this is for an aged care focused multicultural worker. The Neighbourhood centre is yet to be notified whether the application has been successful.
The Regional Migrant Support Worker based at the Bathurst Information and Neighbourhood Centre continues to visit Cowra on the 4th Friday of each month as part of a Community Settlement Scheme Service, funded by the Department of Immigration and Multicultural Affairs. This is a free service providing support and information to migrants from countries where English is a second language.
Also servicing Cowra on an “as required” basis, and regularly contributing to the Cowra Multicultural Reference Group, is the regional Centrelink Multicultural Service Officer. Based in Orange, this position works as the link between Centrelink and refugee and migrant communities.
Cowra Cultural Council
The Cowra Cultural Council is a Section 355 Committee, established in 1999 to advise Cowra Council on cultural matters, facilitate communication between community organisations, identify and prioritise cultural needs within the community and to support the strategic approach to cultural development in Cowra through the implementation of a cultural plan. Over time, the Cultural Council has established itself as a nucleus around which arts, cultural and community organisations can network, and a centralised voice from which to advocate the community’s cultural needs. The Cultural Council is made up of volunteer representatives from various community organisations who meet regularly and report to Council through the Community Projects Officer and Corporate Committee.
The Cultural Plan identifies as a strategy the Cultural Council’s desire to consult with people of non-English speaking backgrounds in Cowra and their representative organisations and work in partnership with these people to implement cultural programs. The Cultural Council maintains strong links with the Cowra Multicultural Reference Group and has
2007-2008 ANNUAL REPORT Page 87 representation from this group at its meetings. The groups continue to work together in presenting key community activities including the Cowra Festival of International Understanding and Artz Fest (a annual celebration of arts, culture and community that was initiated in 2007).
The Cultural Council is currently in the processes of providing input into Council’s new Cultural Plan (2008-2013) and has identified a number of strategies required to guide Cowra’s cultural planning over the next 5 years. Key strategies include:
To promote Cowra’s cultural assets to maximise their potential; Maintain equitable access to Cowra’s cultural activities; Promote and raise awareness of the cultural life of the community; Develop effective communication systems to facilitate cooperation between Council and all cultural stakeholders.
Cowra Festival of International Understanding
The Cowra Festival of International Understanding remains the key community event coordinated by Cowra Council and celebrates our cultural diversity, stemming back to our history of being home to a POW Camp in World War II and a Migrant Camp post World War II. The Festival has been celebrated annually since 1965 and is continually evolving to meet community need and expectations. Originally called the Cowra Festival of the Lachlan Valley, the Festival has always focused on Cowra’s relationship with international communities. Cowra Shire is proud that over 45 different nationalities live within its community and in 1992 Cowra was internationally recognised as a centre of world peace and international understanding, through the awarding to the town of Australia’s World Peace Bell.
Each year the Festival features a different Guest Nation with the aim of facilitating cultural exchange between the people of Cowra and the rest of the world. The Festival provides the Guest Nation with the opportunity to showcase their cultures and customs, and share in a time of celebration and goodwill with the people of Cowra. It also aims to expose the people of Cowra to the customs and cultures of the Guest Nation.
Recent Festivals have experienced a major resurgence of community spirit, thanks in part to the active involvement of residents from culturally and linguistically diverse backgrounds who contribute to the volunteer organising committee. The Festival Harmony Day Reception for Cowra’s culturally diverse community continues to be a highlight of the Festival Program with many residents choosing to become involved by providing tasting plates of food from their homeland. The Festival traditionally closes with an Inter-Faith church service for Cowra’s multicultural and multidenominational community.
The 2008 Festival focused on the Guest Nation of Chile, a country of startling contrasts and extreme beauty. With the assistance of the Embassy of Chile in Canberra, and a strong vounteer committee, a full program of events was put togther, some of the highlights being:
Festival Peace Ceremony hosted by the Australian Chapter of the World Peace Bell Association. The afternoon featured the singing of the Chilean National Anthem by local school students;
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Rotary International Dinner featuring His Excellency the Ambassador of Chile as Guest Speaker; Mainstreet Festival Parade; Festival Carnival featuring folkloric dancing performances from visiting groups Manquehue and BailaChile; The chance to sample Chilean cuisine and fine wine, view cooking demonstrations and learn traditional dances from our Chilean visitors.
We look forward to celebrating Portugal as the 2009 Festival Guest Nation.
Cowra Social Plan 2005-2009
Council consulted with Cowra’s culturally and linguistically diverse population during the development of the 2005-2009 Cowra Shire Social Plan (adopted by Council on 19 December 2005). The Social Plan identifies a number of strategies to encourage and embrace cultural diversity in the shire, and in particular to support new residents access services, education and employment opportunities.
The Plan also recommends that Council develop policies and procedures to train staff and Councillors in cultural awareness issues and work with the range of cultural groups to improve communication. This will ultimately benefit the community’s knowledge of cultural events and groups. The need for clear marketing of the cultural features of Cowra (through signage) is also identified.
Since the adoption of the plan, Council has made significant achievements in implementing strategies for people from CALD backgrounds. In the past year, the following significant projects have been implemented:
Multicultural Welcome Kit The Cowra Social Plan 2005-2009 identified the need to develop a structure which increased the availability for support for new residents and enhances the opportunity to embrace and support people from other cultures. In consultation with the Multicultural Reference Group and Migrant Support Worker in Bathurst, Council developed a ‘Welcome Kit’. This kit provides people of diverse cultures with a new residents’ kit including information on key services to meet their particular needs.
The ‘Welcome Kit’ was launched in August 2008, with promotion directed to those community organisations most likely to be a first point of contact for new arrivals in Cowra. Council continues to maintain the information contained in the kit, with responsibility for distribution shared between Council and the Cowra Information & Neighbourhood Centre.
Launch of SBS Radio Cowra Council and the Cowra Multicultural Reference Group were pleased to launch SBS Radio (95.9FM) in Cowra in May 2008. Made possible thanks to the SBS Self Help Transmissions Subsidy Scheme, the Cowra Community can now access SBS Radio’s National Program 7 days a week, 52 weeks a year. The project was instigated by the Cowra
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Multicultural Reference Group, who approached Council in June 2006 about securing SBS radio for the people of Cowra.
SBS Radio is Australia’s national multilingual radio network broadcasting across the continent in 68 languages, more than any other broadcaster in the world. In installing SBS Radio, Cowra joins 48 other locations around Australia who are on the SBS National Network.
Since its inception in 1975, SBS Radio has been helping to inform, educate and entertain Australians, especially those of non-English speaking backgrounds, through a mixture of news, current affairs, social welfare issues, community information and music. SBS Radio reaches up to a million listeners every week.
In bringing SBS Radio to Cowra, Council has secured an essential service for the multicultural community of Cowra, as well as for English speaking residents interested in other languages and cultures. Cowra’s Sakura Avenue Cowra’s five kilometre Sakura Avenue links the Australian War Cemetery, the Japanese War Cemetery, the Cowra Prisoner of War Campsite and the Japanese Garden and Cultural Centre.
The concept for and development of the Avenue occurred in 1988 as a bi-Centennial project. It was aimed at not only beautifying the town but also highlighting the cultural connections between Cowra and Japan and is still a sign of Cowra’s commitment to and belief in the importance of peace and reconciliation. The Avenue symbolises the importance of the past in building the friendship of the future. Since 1988 hundreds of trees, chosen for their beautiful flowers, have been donated by individuals, schools, special interest groups and both Australian and Japanese organisations.
Donations for Sakura Avenue have been received from each of these parties with assistance from both Australian and Japanese associations.
Each tree donation is linked with the name of a Cowra child. A plaque is placed under each tree bearing the name of the donor and that of the Cowra child who links the donor with the town. Donors are always welcome to visit their tree and are able to get in touch with the local child if they wish. Both the donor and the Cowra child receive Citations and the donor also receives a letter of appreciation from the Mayor of Cowra.
Sakura Avenue is a focal point during Cowra’s annual Sakura Matsuri Festival. This spring festival not only celebrates the beauty of the trees but also reminds us of the reason such an Avenue exists – to foster international understanding and tolerance. Donors to the Avenue are encouraged to return to Cowra for Sakura Matsuri to see how their tree has grown over the year.
Sakura Avenue is a key symbol of the Cowra-Japan relationship and of the community’s commitment to a peaceful future of international understanding, despite its history of wartime loss.
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Council Works Private Works Section 428(2)(k)
No resolution was passed during the 2007/2008 with regards to Section 67 works carried out on private land where costs were either full or partially subsidised by Council. Council did however undertake work on private land to the value of $732,000.
Council applies the following policies with regard to charging for these private works:
Plant Hire Rates - Reviewed annually. Internal plant hire rates plus 20%. Labour - Actual costs including 36.9% for on-costs plus 20%. Materials - Actual costs plus 20%
Public Works Section 428(d)
A summary of Council’s Public works for the 2007/2008 year are as set out in Special Schedule 7 of the Annual Financial Statements.
Business Activities & Competitive Neutrality Clauses 31 (1) (d) & 217(1)(d)(iii)
Council has categorised the following business activities:-
Category 1: Water Supply Category 2: Sewer Operations
Council has complied with the principals of competitive neutrality in relation to pricing structures, taxation equivalents, Council rates and charges, loan debt guarantees fees and corporate taxation equivalents. Council had not received any competitive neutrality complaints. Council has adopted a complaints handling policy that incorporates a mechanism for dealing with competitive neutrality complaints. The attached table of financial performance by business activity indicates the income and expenses for the Category 1 and Category 2 businesses that Council operates:-
Council has distributed to both the Category 1 and 2 business functions direct and indirect costs according to Council’s predetermined overhead allocation guidelines.
Revenues ($’000) Expenses ($’000) Assets Held ($’000) Water Supply $4,206 $4,304 $43,620 Sewer Operations $2,598 $1,529 $24,698
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Council Employment Senior Staff Remuneration Section 428(2)(g)
During the year, one senior staff member was employed by Council as follows:-
General Manager
The total expenditure for the 2007/2008 period in respect of employment of senior staff including money payable for salary, for the provision of fringe benefits and for all other on- costs connected with their employment in accordance with Section 217(1)(b), salary, bonus, performance payments, employer’s superannuation contribution non-cash benefits, fringe benefits tax for non-cash benefits, motor vehicle, expenses, package benefits, fringe benefits tax, superannuating and provision for leave entitlements was $166,155.13.
No new designated senior staff were employed by Council during the 2007/2008 year.
Human Resources Activities Section 428(2)(m)
Cowra Shire Council recognises that one of its major assets is a well trained multi-skilled workforce. Council expended $129,000 on training throughout 2007/2008.
Training in the following areas was undertaken in 2007/2008:-
OH & S Vocational qualifications Computer operations Workplace effectiveness Traffic control Various TAFE courses
Priority is given to those courses required by legislation or regulating authorities e.g. Workcover and RTA.
In addition training needs are discussed with all employees, at least six monthly, with their supervisors as part of Council’s Performance Assessment program. Mutual agreement is reached on the training requirements, if any, of the employee.
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Equal Employment Opportunity Section 28(2)(n)
During 2007/2008 Council continued its commitment to the principles of EEO through its established management plan.
It is the policy of Cowra Shire Council to ensure that the talents and resources of all employees are utilised fully and that no job applicant or employee receive less than favourable treatment on the grounds of sex, marital status, pregnancy, race, religious or political conviction, or disadvantaged by conditions or requirements which cannot be shown to be relevant to performance. In addition Council is committed to promoting equal employment opportunity for all of its employees.
Council works to achieve the following aims:-
To monitor and support the application of the above policy, relevant state and federal legislation, and Equal Employment Opportunity principles generally, to all aspects of the work environment at Cowra Shire Council.
To provide a representative staff forum, able to raise and discuss issues relevant to Equal Employment Opportunity at Cowra Shire Council, and to assist in the formation of policies to resolve such issues.
To meet the requirements of the Local Government Act, 1993.
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Associated Organisations & Companies
External Bodies – Delegation Section 428(2)(o)
During the period 1 July 2007 to 30 June 2008 no external bodies exercised functions delegated by the Council.
Controlling Interests in Companies Section 28(2)(p)
During 2007/2008 Council held no controlling interest in any companies.
Co-Operatives, Partnerships, Joint Ventures Section 428(2)q)
During the year, Council continued its joint venture arrangements with the Councils of Orange, Cabonne, Blayney and Forbes for the provision of a regional library service known as Central West Libraries.
2007-2008 ANNUAL REPORT Page 94
General Regulation Requirements Overseas Visits Funded by Council Clause 31 (1) (a)
Cowra Shire and Joetsu City signed a Friendship Agreement in 2003 based primarily on their shared Prisoner of War Camp history during World War II and their desire to foster peace and reconciliation. Council had been involved in assisting St Raphaels Catholic School with visits by Joetsu School children for eight years and the introduction of a staff exchange between the two Councils was the next step in developing this relationship. In June 2007, Council’s Team Leader - Technical Services (Design) became the second staff member to participate in this exchange program, enjoying in a three week work exchange with Joetsu City Council. During his stay in Japan, the staff member was a guest in the homes of four Japanese families, giving him a deeper understanding of the culture. This also assisted in keeping accommodation and food expenses to a minimum. During the exchange, the staff member worked in the Engineering, Planning, Heritage, Tourism, Education, Health and Agricultural Divisions of Joetsu City Council. He found that while the structure and general operation of Joetsu Council was very different to our own he was keen to implement some of their procedures in Cowra.
Activities for Children Clause 31 (1) (c)
During 2007/2008 a wide range of activities for children were promoted at the Cowra Library and Cowra Art Gallery, all of which were carried out with the strong support of Council. Such activities include school holiday programs, youth art exhibitions and competitions, puppet making workshops and performances and gala reading days.
Council continues to promote and support the annual Waste to Art competition and exhibition, Australia Day School’s Literary Competition and Festival events and activities to Cowra’s young people through the schools and public media sources. Australia Day celebrations and the Festival Carnival are strongly focused towards children with jumping castles, show rides, free games, sporting activities, balloons, colouring competitions, giveaways and circus performances featuring highly.
Over the year, Council was pleased to provide sponsorship support to the local Children’s Week Family Fun Day; resilience workshops for parents, teachers and students by renowned youth psychologist Michael Carr-Gregg; and a variety of other community based youth initiatives.
Council once again joined together with a range of stakeholders to present Cowra’s Youth Week activities, including a Battle of the Bands, Official Opening of the Cowra Skate Park, movie night, youth disco and a BBQ celebrating indigenous youth. Council is currently working with other youth interagency organisations in the planning and preparation of the 2009 event.
2007-2008 ANNUAL REPORT Page 95
Council also actively supports and subsidises children’s sport in the shire by not charging schools or junior sporting associations for the use of Council’s sporting facilities.
Data available to Council indicates that the community is well served by the four private child care centres and eight primary schools in Cowra Shire. These facilities are strongly supported by youth and family support services such as early intervention, children’s counselling services, aboriginal services, toy library, family support, home-start and health professionals. Various family day care services operate in the shire and a range of play groups are available for social interaction between children and their families.
Council is currently providing support to the Cowra Children’s Services Interagency in collating a Directory of Services for Parents, Carers and Families with Young Children to provide information on the range of support services available in the community.
Access & Equity of Services to All Clause 31(1)(d)
Council undertakes a number of programs to promote access to services for residents. Activities in this area include:
Weekly Noticeboard column is placed in the Guardian, Cowra’s local newspaper; Management Plan consultation process and open forums on proposed changes were conducted; Council services are advertised in local papers and media releases regarding services and activities are distributed on a regular basis; Information tours for local school groups and other interested parties are conducted on a regular basis; Brochures on specific services are developed as required; Food handling seminars are conducted to educate local food outlets on proper food handling procedures; Open Forums are held at the commencement of all Council and Committee meetings; Mayoral Morning Teas are held on general issues; Development applications continue to be assessed to ensure new commercial premises provide acceptable disabled access; Access Committee meetings are held to raise awareness to issues within the community to make it a more inclusive society.
2007-2008 ANNUAL REPORT Page 96
Information Privacy and Personal Information
The Privacy and Personal Information Protection Act 1998 requires Council to publish details of action taken to comply with the Act and statistics of any reviews conducted.
Council adopted at its meeting on 27th August 2001 a Privacy Management Plan. There have been no reviews conducted under Part 5 of the Privacy and Personal Information Protection Act, 1998.
Freedom of Information
The Freedom of Information Act requires Council to publish in its Annual Report statistical details of Freedom of Information requests for the period 1 July 2007 to 30 June 2008.
General
Cowra Shire Council is committed to the provision of an open system of Government where every attempt is made to provide access by members of the public to the decision making process of the Council. In view of this attitude of Cowra Shire Council, the number of formal applications under the Freedom of Information Act is reduced, as wherever possible, documents are provided to an applicant without charge under Council’s normal practices.
FOI Applications Received
In the period from 1st July 2007 to 30th June 2008, Cowra Shire Council received seven (7) formal Freedom of Information applications.
Comparison with previous year
One (1) application was received in the 2006/2007 year.
Appeals Against FOI Decisions
In the determination of all FOI applications, Cowra Shire Council advised the applicants of their rights to appeal under the Freedom of Information legislation. No appeals for an internal review were received.
2007-2008 ANNUAL REPORT Page 97
Financial Reports Section 428(2)(a)
The Council’s audited Financial Statements for the year ended 30 June 2008 are presented on the following pages.
For an overview of the content of the statements readers are advised to refer to the Auditors Report in the body of the statements which isolates the salient points to be made in respect of the results.
2007-2008 ANNUAL REPORT Page 98 Financial Report 2008
Cowra Shire Council
General Purpose Financial Report for the financial year ended 30 June 2008
Contents Page
1. Statement by Councillors & Management 2
2. Primary Financial Statements:
- Income Statement 3 - Balance Sheet 4 - Statement of Changes in Equity 5 - Cash Flow Statement 6
3. Notes to the Financial Statements 7
4. Independent Auditor's Reports:
- On the Financial Report (Sect 417 [2]) 58 - On the Conduct of the Audit (Sect 417 [3]) 60
Overview
(i) This Financial Report covers the consolidated operations for Cowra Shire Council.
(ii) Cowra Shire Council is a body corporate of NSW, Australia - being constituted as a Local Government area by proclamation and is duly empowered by the Local Government Act (LGA) 1993 of NSW.
Council's Statutory Charter is specified in Section 8 of the LGA and includes;
i carrying out activities and providing goods, services & facilities appropriate to the current & future needs of the Local community and of the wider public i responsibility for administering regulatory requirements under the LGA and other applicable legislation, & i a role in the management, improvement and development of the resources of the local government area.
A description of nature of Council's operations and its principal activities are provided in Note 2(b).
(iii) All figures presented in this Financial Report represent Australian Currency.
(iv) This Financial Report was authorised for issue by the Council on 06 /11/08. Council has the power to amend and reissue the financial report.
page 1 Financial Report 2008
page 2 Financial Report 2008
Cowra Shire Council
Income Statement for the financial year ended 30 June 2008
Budget(1) Actual Actual 2008 $ '000 Notes 2008 2007
Income from Continuing Operations Revenue: 9 ,448 9,448 Rates & Annual Charges 3a 9,768 8,703 7 ,455 7,455 User Charges & Fees 3b 7,074 8,634 549 549 Interest & Investment Revenue 3c 1,007 765 734 734 Other Revenues 3d 762 862 3 ,656 3,656 Grants & Contributions provided for Operating Purposes 3e,f 3,708 3,522 1 ,247 1,247 Grants & Contributions provided for Capital Purposes 3e,f 1,654 1,689 Other Income: - - Net gains from the disposal of assets 5 - 162 Share of interests in Joint Ventures & Associated Entities - - using the Equity Method 19 - -
23 ,089 23,089 Total Income from Continuing Operations 23,973 24,337
Expenses from Continuing Operations 8 ,719 8,719 Employee Benefits & On-Costs 4a 9,225 8,350 1 ,468 1,468 Borrowing Costs 4b 601 507 8 ,474 8,474 Materials & Contracts 4c 6,351 6,862 4 ,204 4,204 Depreciation & Amortisation 4d 4,116 4,121 - - Impairment 4d - - 2 ,172 2,172 Other Expenses 4e 2,157 1,982 - - Net Losses from the Disposal of Assets 5 33 -
25 ,037 25,037 Total Expenses from Continuing Operations 22,483 21,822
(1,948) Operating Result from Continuing Operations 1,490 2,515
Discontinued Operations
- - Net Profit/(Loss) from Discontinued Operations 24 - -
(1,9 48) (1,948) Net Operating Result for the Year 1,490 2,515
(1,948) Net Operating Result attributable to Council 1,490 2,515 - Net Operating Result attributable to Minority Interests - -
Net Operating Result for the year before Grants and (3,195) Contributions provided for Capital Purposes (164) 826
(1) Original Budget as approved by Council - refer Note 16
This report should be read in conjunction with the accompanying Notes. page 3 Financial Report 2008
Cowra Shire Council
Balance Sheet as at 30 June 2008
Actual Actual $ '000 Notes 2008 2007
ASSETS Current Assets Cash & Cash Equivalents 6a 13,709 11,590 Investments 6b - - Receivables 7 2,908 3,499 Inventories 8 1,170 1,153 Other 8 95 - Non-current assets classified as "held for sale" 22 - - Total Current Assets 17,882 16,242
Non-Current Assets Investments 6b - - Receivables 7 74 106 Inventories 8 - - Infrastructure, Property, Plant & Equipment 9 195,102 149,572 Investments Accounted for using the equity method 19 - - Investment Property 14 - - Intangible Assets 25 - - Other 8 - 77 Total Non-Current Assets 195,176 149,755 TOTAL ASSETS 213,058 165,997
LIABILITIES Current Liabilities Payables 10 1,991 1,811 Borrowings 10 520 464 Provisions 10 2,485 2,127 Total Current Liabilities 4,996 4,402
Non-Current Liabilities Payables 10 8 8 Borrowings 10 8,994 7,985 Provisions 10 348 333 Total Non-Current Liabilities 9,350 8,326 TOTAL LIABILITIES 14,346 12,728 Net Assets 198,712 153,269
EQUITY Retained Earnings 20 154,759 153,269 Revaluation Reserves 20 43,953 - Council Equity Interest 198,712 153,269 Minority Equity Interest - - Total Equity 198,712 153,269
This report should be read in conjunction with the accompanying Notes. page 4 Financial Report 2008
Cowra Shire Council
Statement of Changes in Equity for the financial year ended 30 June 2008
Council Retained Reserves Equity Minority Total $ '000 Notes Earnings (Refer 20b) Interest Interest Equity
2008 Opening Balance (as per Last Year's Audited Accounts) 171,385 - 171,385 - 171,385 a. Correction of Prior Period Errors 20 (c) (18,116) - (18,116) - (18,116) b. Changes in Accounting Policies (prior year effects) 20 (d) - - - - - Revised Opening Balance (as at 1/7/07) 153,269 - 153,269 - 153,269 c. Current Year Income & Expenses Recognised direct to Equity - Transfers to/(from) Asset Revaluation Reserve 20b (ii) - 43,953 43,953 - 43,953 - Transfers to/(from) Other Reserves 20b (ii) ------Other Income/Expenses recognised 20b (ii) ------Other Adjustments 20b (ii) - - - - - Net Income Recognised Directly in Equity - 43,953 43,953 - 43,953 d. Net Operating Result for the Year 1,490 - 1,490 - 1,490
Total Recognised Income & Expenses (c&d) 1,490 43,953 45,443 - 45,443 e. Distributions to/(Contributions from) Minority Interests - - - - - f. Transfers between Equity - - - - -
Equity - Balance at end of the reporting period 154,759 43,953 198,712 - 198,712
Council Retained Reserves Equity Minority Total $ '000 Notes Earnings (Refer 20b) Interest Interest Equity
2007 Opening Balance (as per Last Year's Audited Accounts) 168,870 - 168,870 - 168,870 a. Correction of Prior Period Errors 20 (c) (18,116) - (18,116) - (18,116) b. Changes in Accounting Policies (prior year effects) 20 (d) - - - - - Revised Opening Balance (as at 1/7/06) 150,754 - 150,754 - 150,754 c. Current Year Income & Expenses Recognised direct to Equity - Transfers to/(from) Asset Revaluation Reserve 20b (ii) ------Transfers to/(from) Other Reserves 20b (ii) ------Other Income/Expenses recognised 20b (ii) ------Other Adjustments 20b (ii) - - - - - Net Income Recognised Directly in Equity - - - - - d. Net Operating Result for the Year 2,515 - 2,515 - 2,515
Total Recognised Income & Expenses (c&d) 2,515 - 2,515 - 2,515 e. Distributions to/(Contributions from) Minority Interests - - - - - f. Transfers between Equity - - - - -
Equity - Balance at end of the reporting period 153,269 - 153,269 - 153,269
This report should be read in conjunction with the accompanying Notes. page 5 Financial Report 2008
Cowra Shire Council
Cash Flow Statement for the financial year ended 30 June 2008
Budget Actual Actual 2008 $ '000 Notes 2008 2007
Cash Flows from Operating Activities Receipts: 9,400 Rates & Annual Charges 9,575 8,683 7,500 User Charges & Fees 7,495 8,026 632 Interest & Investment Revenue Received 973 700 5,200 Grants & Contributions 5,246 5,146 2,150 Other 2,282 867 Payments: (8,815) Employee Benefits & On-Costs (8,868) (8,494) (7,000) Materials & Contracts (7,454) (6,550) (1,551) Borrowing Costs (589) (504) (2,150) Other (2,175) (2,130)
5,366 Net Cash provided (or used in) Operating Activities 11b 6,485 5,744
Cash Flows from Investing Activities Receipts: 175 Sale of Infrastructure, Property, Plant & Equipment 186 537 45 Deferred Debtors Receipts 45 33 Payments: (18,000) Purchase of Infrastructure, Property, Plant & Equipment (5,667) (6,579) - Deferred Debtors & Advances Made 5 (26)
(17,780) Net Cash provided (or used in) Investing Activities (5,431) (6,035)
Cash Flows from Financing Activities Receipts: 14,337 Proceeds from Borrowings & Advances 1,541 1,422 Payments: (650) Repayment of Borrowings & Advances (476) (429)
13,687 Net Cash Flow provided (used in) Financing Activities 1,065 993
1,273 Net Increase/(Decrease) in Cash & Cash Equivalents 2,119 702
11,500 plus: Cash & Cash Equivalents - beginning of year 11a 11,590 10,888
1 2,773 12,773 Cash & Cash Equivalents - end of the year 11a 13,709 11,590
Please refer to Note 11 for information on the following: - Non Cash Financing & Investing Activities. - Financing Arrangements. - Net cash flow disclosures relating to any Discontinued Operations
This report should be read in conjunction with the accompanying Notes. page 6 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Contents of the Notes accompanying the Financial Statements
Note Details Page
1 Summary of Significant Accounting Policies 8 2(a) Council Functions / Activities - Financial Information 21 2(b) Council Functions / Activities - Component Descriptions 22 3 Income from Continuing Operations 23 4 Expenses from Continuing Operations 28 5 Gains or Losses from the Disposal of Assets 30 6(a) Cash & Cash Equivalent Assets 31 6(b) Investments 31 (n/a) 6(c) Restricted Cash, Cash Equivalents & Investments - details 32 7 Receivables 34 8 Inventories & Other Assets 35 9(a) Infrastructure, Property, Plant & Equipment 36 9(b) Restricted Infrastructure, Property, Plant & Equipment 37 9(c) Infrastructure, Property, Plant & Equipment - Current Year Impairments 37 (n/a) 10(a) Payables, Borrowings & Provisions 38 10(b) Description of (& movements in) Provisions 39 11 Reconciliation of Cash Flow movements & additional information 40 12 Commitments for Expenditure 42 13 Statement of Performance Measures 44 14 Investment Properties 45 (n/a) 15 Financial Risk Management disclosures 45 16 Material Budget Variations 49 17 Statement of Developer Contributions 50 18 Contingencies and Other Liabilities/Assets not recognised 52 19 Investments in Subsidiaries, Associated Entities & Joint Ventures 53 (n/a) 20 Equity - Retained Earnings and Revaluation Reserves 54
21 Reinstatement, Rehabilitation & Restoration Liabilities 56 22 Non Current Assets and Disposal Groups classified as "Held for Sale" 56 (n/a) 23 Events occurring after Balance Sheet date 57 24 Discontinued Operations 57 (n/a) 25 Intangible Assets 57 (n/a)
n/a - not applicable
page 7
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies
The principal accounting policies adopted by Council 36) and (b) AASB 116 (IAS 16) regarding in the preparation of this financial report are set out accounting for the Revaluation of Assets. below in order to assist in its general understanding. Accordingly in preparing this Financial Report and Under Australian Equivalents to International Accompanying Notes, Council has been unable to Financial Reporting Standards (AIFRS), accounting comply fully with International Accounting policies are defined as those specific principles, Standards, but has complied fully with Australian bases, conventions, rules and practices applied by a Accounting Standards. reporting entity (in this case Council) in preparing and presenting it’s financial reports. Under the Local Government Act, Regulations and Local Government Code of Accounting Practice & Financial Reporting, it should be noted that Councils (a) Basis of preparation in NSW only have a requirement to comply with Australian Accounting Standards. (i) Background
This financial report is a general purpose financial (iii) Application of AAS 27 report which has been prepared in accordance with; Council is required to comply with AAS 27 –“Financial applicable Australian equivalents to International Reporting by Local Government”, and where AAS 27 Financial Reporting Standards (AIFRSs), conflicts with AIFRS, the requirements of AAS 27 have been applied. other authoritative pronouncements of the Australian Accounting Standards Board, Where AAS 27 makes reference to another Australian accounting standard, the new Australian IFRS Urgent Issues Group Interpretations, equivalent standards will apply and in particular any the Local Government Act (1993) and specific “not for profit” reporting requirements. Regulations and
the Local Government Code of Accounting (iv) Basis of Accounting Practice and Financial Reporting. These financial statements have been prepared on an historical cost basis except for (i) financial assets (ii) Compliance with International Financial and liabilities at fair value through profit or loss, Reporting Standards (IFRSs) available-for-sale financial assets and investment properties which are all valued at fair value, (ii) the Australian Accounting Standards (AASB’s) include write down of any Asset on the basis of Impairment (if Australian equivalents to International Financial warranted) and (iii) certain classes of Infrastructure, Reporting Standards (IFRS’s). property, plant & equipment.
Because AASB’s are sector neutral, some standards The accrual basis of accounting has also been either (i) have local Australian content and applied in their preparation. prescription that is specific to the Not-For-Profit sector (including Local Government) which are not in compliance with IFRS’s or (ii) specifically exclude (v) Changes in Accounting Policies application by Not for Profit entities. Council’s accounting policies have been consistently Examples include; applied to all the years presented, unless otherwise stated. excluding Local Government from applying AASB 120 (IAS 20) for Grant Accounting and Unless otherwise stated, there have also been no AASB 118 (IAS 18) for Segment Reporting, & changes in accounting policies when compared with different requirements on (a) Impairment of previous financial reports. Assets relating to Not-For-Profit AASB 136 (IAS
page 8
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
(vi) Critical Accounting Estimates Note 3(g) also discloses the amount of unused grant or contribution from prior years that was expended on The preparation of this financial report (and financial Council’s operations during the current year. statements) in conformity with AIFRS requires the use of certain critical accounting estimates. The Council has obligations to provide facilities from contributions required from developers under the It also requires management to exercise its provisions of S94 of the EPA Act 1979. judgement in the process of applying the Council’s accounting policies. Whilst Council generally incorporates these amounts as part of A Development Consents Orders, such developer contributions are only recognised as (b) Revenue recognition income upon their physical receipt by Council, due to the possibility that individual Development Consents Revenue is measured at the fair value of the may not be acted upon by the applicant or payable to consideration received or receivable. Council.
Revenue is measured on major income categories Developer contributions may only be expended for the as follows: purposes for which the contributions were required but the Council may apply contributions according to the priorities established in work schedules. Rates, Annual Charges, Grants and Contributions A detailed Note relating to developer contributions can be found at Note 17. Rates, annual charges, grants and contributions (including developer contributions) are recognised as revenues when the Council obtains control over User Charges, Fees and Other Income the assets comprising these receipts. User charges, fees and other income (including Control over assets acquired from rates and annual parking fees and fines) are recognised as revenue charges is obtained at the commencement of the when the service has been provided, the payment is rating year as it is an enforceable debt linked to the received, or when the penalty has been applied, rateable property or, where earlier, upon receipt of whichever first occurs. the rates. A liability is recognised in respect of revenue that is Control over granted assets is normally obtained reciprocal in nature to the extent that the requisite upon their receipt (or acquittal) or upon earlier service has not been provided as at balance date. notification that a grant has been secured, and is valued at their fair value at the date of transfer. Sale of Infrastructure, Property, Plant and Income from Contributions is recognised when the Equipment Council either obtains control of the contribution or the right to receive it, and (i) it is probable that the The profit or loss on sale of an asset is determined economic benefits comprising the contribution will when control of the asset has irrevocably passed to flow to the Council and (ii) the amount of the the buyer. contribution can be measured reliably.
Where grants or contributions recognised as Interest and Rents revenues during the financial year were obtained on condition that they be expended in a particular Rents are recognised as revenue on a proportional manner or used over a particular period and those basis when the payment is due, the value of the conditions were undischarged at balance date, the payment is notified, or the payment is received, unused grant or contribution is disclosed in Note whichever first occurs. 3(g).
page 9
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
Interest Income from Cash & Investments is Trust monies and property held by Council but not accounted for using the Effective Interest method in subject to the control of Council, have been excluded accordance with AASB 139. from these reports.
A separate statement of monies held in the Trust (c) Principles of Consolidation Fund is available for inspection at the Council office by any person free of charge. These Financial Reports incorporate (i) the assets and liabilities of Council and any entities (or operations) that it controls (as at 30/6/08) and (ii) all (iii) Joint Ventures & Associated Entities the related operating results (for the financial year ended the 30th June 2008). Council is not involved in any Joint Ventures or Associated Entities. In the process of reporting on Council’s activities as a single unit, all inter-entity year end balances and reporting period transactions have been eliminated (iv) County Councils in full between Council and its controlled entities. Council is not a member of any County Councils.
(i) The Consolidated Fund (v) Additional Information In accordance with the provisions of Section 409(1) of the LGA 1993, all money and property received by Note 19 provides more information in relation to Joint Council is held in the Council’s Consolidated Fund Venture Entities, Associated Entities and Joint unless it is required to be held in the Council’s Trust Venture Operations where applicable. Fund.
The consolidated fund and other entities through (d) Leases which the Council controls resources to carry on its functions have been included in the financial All Leases entered into by Council are reviewed and statements forming part of this report. classified on inception date as either Finance or Operating Leases.
The following entities have been included as part of the Consolidated fund: Operating Leases
• General Purpose Operations Leases in which a significant portion of the risks and • Cowra Shire Council Water Supply Fund rewards of ownership are retained by the lessor are • Cowra Shire Council Sewerage Fund classified as operating leases. • Cowra Shire Council Waste Fund
Payments made under operating leases (net of any
(ii) The Trust Fund incentives received from the lessor) are charged to the income statement on a straight-line basis over the In accordance with the provisions of Section 411 of period of the lease. the Local Government Act 1993 (as amended), a separate and distinct Trust Fund is maintained to Lease income from operating leases is recognised in account for all money and property received by the income on a straight-line basis over the lease term.
Council in trust which must be applied only for the purposes of or in accordance with the trusts relating (e) Cash and Cash Equivalents to those monies.
Cash and cash equivalents includes; Trust monies and property subject to Council’s control have been included in these reports. cash on hand,
page 10
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
deposits held at call with financial institutions, (ii) Loans and receivables
other short-term, highly liquid investments with Loans and receivables are non derivative financial original maturities of three months or less assets with fixed or determinable payments that are that are readily convertible to known amounts of not quoted in an active market. cash and which are subject to an insignificant risk of changes in value, and They arise when the Council provides money, goods
bank overdrafts. or services directly to a debtor with no intention (or in some cases ability) of selling the resulting receivable. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non- (f) Investments and Other Financial Assets current assets.
Council (in accordance with AASB 139) classifies (iii) Held-to-maturity investments each of its investments into one of the following categories for measurement purposes: Held-to-maturity investments are non-derivative
financial assets with fixed or determinable payments financial assets at fair value through profit or and fixed maturities that the Council’s management loss, has the positive intention and ability to hold to loans and receivables, maturity.
held-to-maturity investments, and In contrast to the “Loans & Receivables” classification, these investments are generally quoted in an active available-for-sale financial assets. market.
Each classification depends on the purpose/intention Held-to-maturity financial assets are included in non- for which the investment was acquired. current assets, except for those with maturities less than 12 months from the reporting date, which are Management determines each Investment classified as current assets. classification at the time of initial recognition and re- evaluates this designation at each reporting date. (iv) Available-for-sale financial assets
(i) Financial assets at fair value through profit Available-for-sale financial assets are non-derivatives or loss that are either designated in this category or not classified in any of the other categories. Financial assets at fair value through profit or loss are financial assets held for trading. Investments are designated as available-for-sale if they do not have fixed maturities and fixed or A financial asset is classified in this category if determinable payments and management intends to acquired principally for the purpose of selling in the hold them for the medium to long term. short term. Accordingly, this classification principally comprises Derivatives are classified as held for trading unless marketable equity securities. they are designated as hedges. They are generally included in non-current assets Assets in this category are classified as current unless management intends to dispose of the assets as they are primarily held for trading &/or are investment within 12 months of the balance sheet expected to be realised within 12 months of the date or the term to maturity from the reporting date is balance sheet date. less than 12 months.
page 11
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
General Accounting & Measurement of Financial The fair value of financial instruments that are not Instruments: traded in an active market is determined using valuation techniques. (i) Initial Recognition Council uses a variety of methods and makes Investments are initially recognised (and measured) assumptions that are based on market conditions at fair value, plus in the case of investments not at existing at each balance date. “fair value through profit or loss”, directly attributable transactions costs. Purchases and sales of The fair value of financial liabilities for disclosure investments are recognised on trade-date - the date purposes is estimated by discounting the future on which the Council commits to purchase or sell the contractual cash flows at the current market interest asset. rate that is available to the Council for similar financial instruments. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Council (h) Receivables has transferred substantially all the risks and rewards of ownership. Receivables are initially recognised at fair value and subsequently measured at amortised cost, less provision for doubtful debts. (ii) Subsequent Measurement Receivables (excluding Rates & Annual Charges) are Available-for-sale financial assets and financial generally due for settlement no more than 30 days assets at fair value through profit and loss are from the date of recognition. subsequently carried at fair value. The collectibility of receivables is reviewed on an Loans and receivables and held-to-maturity ongoing basis. Debts which are known to be investments are carried at amortised cost using the uncollectible are written off in accordance with effective interest method. Councils policy.
(iii) Types of Investments A provision for doubtful receivables is established when there is objective evidence that the Council will Council has an approved Investment Policy in order not be able to collect all amounts due according to the to undertake its investment of money in accordance original terms of each receivable. with Section 625 of the Local Government Act and S212 of the LG (General) Regulations 2005. The amount of the provision is the difference between the asset’s carrying amount and the present value of Investments are placed and managed in accordance estimated future cash flows, discounted at the with the Policy and having particular regard to effective interest rate. authorised investments prescribed under the Local
Government Investment Order. (i) Inventories Council maintains its investment Policy in compliance with the Act and ensures that it or its Raw Materials and Stores, Work in Progress and representatives exercise care, diligence and skill that Finished Goods a prudent person would exercise in investing council funds. Raw materials and stores, work in progress and finished goods in respect of business undertakings are all stated at the lower of cost and net realisable (g) Fair value estimation value.
The fair value of financial assets and financial Cost comprises direct materials, direct labour and an liabilities must be estimated for recognition and appropriate proportion of variable and fixed overhead measurement or for disclosure purposes.
page 12
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
expenditure, the latter being allocated on the basis - Buildings – Specialised/Non Specialised of normal operating capacity. (External Valuation)
Costs are assigned to individual items of inventory - Plant and Equipment (as approximated by depreciated historical cost) on the basis of weighted average costs.
Net realisable value is the estimated selling price in The remaining asset classes to be revalued in future the ordinary course of business less the estimated reporting periods include; costs of completion and the estimated costs necessary to make the sale. - 2008/09: Roads, bridges, footpaths and drainage, land improvements, other structures and other assets Land Held for Resale/Capitalisation of Borrowing Costs - 2009/10: Community land
Land held for resale is stated at the lower of cost Until these designated future reporting periods, the and net realisable value. above asset classes are stated at cost (or deemed Cost is assigned by specific identification and cost) less accumulated depreciation and any includes the cost of acquisition, and development accumulated impairment losses. and borrowing costs during development.
When development is completed borrowing costs Initial Recognition and other holding charges are expensed as incurred. On initial recognition, an assets cost is measured at Borrowing costs included in the cost of land held for its fair value, plus all expenditure that is directly resale are those costs that would have been avoided attributable to the acquisition. if the expenditure on the acquisition and development of the land had not been made. Where settlement of any part of an assets cash Borrowing costs incurred while active development consideration is deferred, the amounts payable in the is interrupted for extended periods are recognised as future are discounted to their present value as at the expenses. date of recognition to arrive at fair value.
The discount rate used is the Council’s incremental (j) Infrastructure, property, plant and borrowing rate, being the rate at which a similar
Equipment (I,PP&E) borrowing could be obtained from an independent financier under comparable terms and conditions. Acquisition of assets Where infrastructure, property, plant and equipment Council’s non current assets are being progressively assets are acquired for no cost or for an amount other revalued to fair value in accordance with a staged than cost, the assets are recognised in the financial implementation as advised by the Department of report at their fair value at acquisition date - being the Local Government. amount that the asset could have been exchanged between knowledgeable willing parties in an arm’s At balance date, the following classes of I,PP&E length transaction. were stated at their Fair Value;
Subsequent costs - Water and Sewerage Networks which are carried at Fair Value (generally based upon Subsequent costs are included in the asset’s carrying Depreciated Replacement Cost). amount or recognised as a separate asset, as appropriate, only when it is probable that future - Operational Land (External Valuation) economic benefits associated with the item will flow to
page 13
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
Council and the cost of the item can be measured Water & Sewer Assets reliably. Reticulation extensions 100% Capitalised Other > $5,000
All other repairs and maintenance are charged to the income statement during the financial period in Stormwater Assets which they are incurred. Drains & Culverts > $5,000 Other > $5,000
Asset Revaluations Transport Assets
Road construction & reconstruction > $10,000 In accounting for Asset Revaluations relating to Reseal/Re-sheet & major repairs: > $10,000 Infrastructure, Property, Plant & Equipment: Bridge construction & reconstruction > $10,000 Increases in the carrying amounts arising on revaluation are credited to the asset revaluation reserve. Depreciation To the extent that the increase reverses a decrease previously recognising profit or loss, Depreciation on Councils infrastructure, property, the increase is first recognised in profit or loss. plant and equipment assets is calculated using the straight line method in order to allocate an assets cost Decreases that reverse previous increases of (net of their residual values) over its estimated useful the same asset are first charged against life. revaluation reserves directly in equity to the extent of the remaining reserve attributable to Land is not depreciated. the asset, with all other decreases charged to the Income statement. The range of estimated useful lives for Councils assets include:
Capitalisation Thresholds Plant & Equipment - Office Equipment 3 to 5 years Items of infrastructure, property, plant and - Office Furniture 10 to 20 years equipment are not capitalised unless their cost of - Computer Equipment 4 years acquisition exceeds the following; - Vehicles 5 to 8 years - Heavy Plant/Road Making equip. 5 to 8 years Land - Other plant and equipment 5 to 15 years - council land 100% Capitalised
- open space 100% Capitalised Buildings
- Buildings – Masonry 50 to 100 years Plant & Equipment - Other 20 to 40 years Office Furniture > $1,000
Office Equipment > $1,000 Stormwater Drainage Other Plant &Equipment > $1,000 - Drains 80 to 100 years
- Culverts 50 to 75 years Buildings & Land Improvements - Flood Structures 80 to 100 years Park Furniture & Equipment > $2,000
Transportation Assets Building - Sealed Roads : Surface 15 to 20 years - construction/extensions 100% Capitalised - Sealed Roads : Structure 20 to 50 years - renovations > $10,000 - Unsealed roads 10 to 20 years
Other Structures > $2,000 - Bridge : Concrete 80 to 100 years
page 14
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
Water & Sewer Assets (l) Land - Dams and reservoirs 80 to 100 years - Bores 20 to 40 years Land in accordance with Part 2 of Chapter 6 of the - Reticulation pipes : PVC 80 years Local Government Act (1993) is classified on - Reticulation pipes : Other 25 to 75 years - Pumps and telemetry 10 to 15 years purchase as either Operational or Community.
This classification of Land is disclosed in Note 9(a). Other Infrastructure Assets - Bulk earthworks Infinite
(m) Land under roads
All asset residual values and useful lives are Council has elected not to recognise land under roads reviewed, and adjusted if appropriate, at each in accordance with the deferral arrangements balance sheet date. available to it under AASB 1045.
An asset’s carrying amount is written down These deferral arrangements cease to apply as of 1 immediately to its recoverable amount if the asset’s July 2008. carrying amount is greater than its estimated recoverable amount – refer Note 1 (p) on Asset Impairment. (n) Provisions for close down, restoration and for environmental clean up costs – including Tips and Quarries Disposal and De-recognition Close down, Restoration and Remediation costs An item of property, plant and equipment is include the dismantling and demolition of derecognised upon disposal or when no further infrastructure, the removal of residual materials and future economic benefits are expected from its use the remediation of disturbed areas. or disposal. Estimated close down and restoration costs are Any gain or loss arising on derecognition of the provided for in the accounting period when the asset (calculated as the difference between the net obligation arising from the related disturbance occurs, disposal proceeds and the carrying amount of the whether this occurs during the development or during asset) is included in Council’s Income Statement in the operation phase, based on the net present value the year the asset is derecognised. of estimated future costs.
Provisions for close down and restoration costs do not (k) Rural Fire Service assets include any additional obligations which are expected to arise from future disturbance. Under section 119 of the Rural Fires Act 1997, “all fire fighting equipment purchased or constructed Costs are estimated on the basis of a closure plan. wholly or from money to the credit of the Fund is to The cost estimates are calculated annually during the be vested in the council of the area for or on behalf life of the operation to reflect known developments, eg of which the fire fighting equipment has been updated cost estimates and revisions to the estimated purchased or constructed”. lives of operations, and are subject to formal review at regular intervals. Council incorporates the assets, their values and depreciation charges within these Financial Report. Close down, Restoration and Remediation costs are a normal consequence of tip and quarry operations, and the majority of close down and restoration expenditure is incurred at the end of the life of the operations.
Although the ultimate cost to be incurred is uncertain, Council estimates the respective costs based on
page 15
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
feasibility and engineering studies using current The expected timing of expenditure can also change, restoration standards and techniques. for example in response to changes in quarry reserves or production rates. The amortisation or ‘unwinding’ of the discount applied in establishing the net present value of As a result there could be significant adjustments to provisions is charged to the income statement in the provision for close down and restoration and each accounting period. environmental clean up, which would affect future financial results. This amortisation of the discount is shown as a borrowing cost. Specific Information relating to Councils provisions relating to Close Down, Restoration and Remediation Other movements in the provisions for Close down, costs can be found at Note 21. Restoration and Remediation costs including those resulting from new disturbance, updated cost estimates, changes to the estimated lives of (o) Impairment of assets operations and revisions to discount rates are capitalised within property, plant and equipment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in These costs are then depreciated over the lives of circumstances indicate that the carrying amount may the assets to which they relate. not be recoverable. An impairment loss is recognised for the amount by Where rehabilitation is conducted systematically which the asset’s carrying amount exceeds its over the life of the operation, rather than at the time recoverable amount. of closure, provision is made for the estimated outstanding continuous rehabilitation work at each The recoverable amount is the higher of an asset’s balance sheet date and the cost is charged to the fair value less costs to sell and value in use. income statement. For non-cash generating assets of Council such as Provision is made for the estimated present value of roads, drains, public buildings etc - value in use is the costs of environmental clean up obligations represented by the “deprival value” of the asset which outstanding at the balance sheet date. is approximated as it’s written down replacement cost.
These costs are charged to the income statement. Assets that have an indefinite useful life are not subject to amortisation and are tested annually for Movements in the environmental clean up provisions impairment. are presented as an operating cost, except for the unwind of the discount which is shown as a borrowing cost. (p) Payables
Remediation procedures generally commence soon These amounts represent liabilities and include goods after the time the damage, remediation process and and services provided to the Council prior to the end estimated remediation costs become known, but of financial year which are unpaid. may continue for many years depending on the nature of the disturbance and the remediation The amounts for goods and services are unsecured techniques. and are usually paid within 30 days of recognition.
As noted above, the ultimate cost of environmental remediation is uncertain and cost estimates can vary (q) Borrowings in response to many factors including changes to the relevant legal requirements, the emergence of new Borrowings are initially recognised at fair value, net of restoration techniques or experience at other transaction costs incurred. locations.
page 16
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
Borrowings are subsequently measured at amortised A provision is recognised even if the likelihood of an cost. outflow with respect to any one item included in the same class of obligations may be small. Amortisation results in any difference between the proceeds (net of transaction costs) and the redemption amount being recognised in the Income (t) Employee benefits Statement over the period of the borrowings using the effective interest method. (i) Wages & salaries, annual leave
Borrowings are classified as current liabilities unless Liabilities for wages and salaries (including non- the Council has an unconditional right to defer monetary benefits), and annual leave, are recognised settlement of the liability for at least 12 months after in the provision for employee benefits in respect of the balance sheet date. employees’ services up to the reporting date.
These provisions are measured at the amounts (r) Borrowing costs expected to be paid when the liabilities are settled.
Borrowing costs incurred for the construction of any Calculations therefore incorporate (where the leave is qualifying asset are capitalised during the period of expected to be paid more than 12 months after the time that is required to complete and prepare the reporting date) the use of discounted cash flows. asset for its intended use or sale. Other borrowing costs are expensed. Liabilities for non vesting sick leave are recognised at the time when the leave is taken and measured at the The capitalisation rate used to determine the amount rates paid or payable, and accordingly no Liability has of borrowing costs to be capitalised is the weighted been recognised in these reports. average interest rate applicable to the Council’s outstanding borrowings during the year. Wages & salaries and annual leave are all classified as Current Liabilities.
(s) Provisions (ii) Long service leave Provisions for legal claims and service warranties are recognised when: The liability for long service leave is recognised in the provision for employee benefits in respect of services Council has a present legal or constructive provided by employees up to the reporting date. obligation as a result of past events; Long Service Leave is measured at the present value it is more likely than not that an outflow of of the expected future payments to be made using the resources will be required to settle the projected unit credit method. obligation; and Consideration is given to expected future wage and the amount has been reliably estimated. salary levels, experience of employee departures and periods of service. Provisions are not recognised for future operating losses. Expected future payments are discounted using market yields at the reporting date on national Where there are a number of similar obligations, the government bonds with terms to maturity and likelihood that an outflow will be required in currency that match as closely as possible, the settlement is determined by considering the class of estimated future cash outflows. obligations as a whole. Due to the nature of when and how Long Service Leave can be taken, all Long Service Leave for employees with 4 or more years of service has been
page 17
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
classified as Current, as it has been deemed that Accordingly, Councils contributions to the scheme for Council does not have the unconditional right to the current reporting year have been recognised as defer settlement beyond 12 months – even though it an expense and disclosed as part of Superannuation is not anticipated that all employees with more than Expenses at Note 4(a). 4 years service (as at reporting date) will apply for and take their leave entitlements in the next 12 The last valuation of the Scheme was performed by months. Mr Martin Stevenson BSc, FIA, FIAA on 19th June 2007 and covers the period ended 30 June 2006.
(iii) Retirement benefit obligations This valuation found that the Schemes assets were $3,291.1 million and its past service liabilities were All employees of the Council are entitled to benefits $2,980.3 million, giving it a Surplus of $310.8 million. on retirement, disability or death. Whilst the existence of this surplus resulted in Council Council contributes to various defined benefit plans contributing at half the normal level of contributions and defined contribution plans on behalf of its during the 06/07 year, investment market conditions employees. experienced in the last 12 months has resulted in the Board requiring all Councils to contribute at the full A liability or asset in respect of defined benefit “notional” contribution rate from 1/7/08. superannuation plans would ordinarily be recognised in the balance sheet, and measured as the present The financial position of the Scheme is monitored value of the defined benefit obligation at the annually. reporting date plus unrecognised actuarial gains (less unrecognised actuarial losses) less the fair Contributions to defined contribution plans are value of the superannuation fund’s assets at that recognised as an expense as they become payable. date and any unrecognised past service cost. Prepaid contributions are recognised as an asset to The present value of the defined benefit obligation is the extent that a cash refund or a reduction in the based on expected future payments which arise future payments is available. from membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit credit method. Consideration is (iv) Employee Benefit On-Costs given to expected future wage and salary levels, experience of employee departures and periods of Council has recognised at year end the aggregate on- service. cost liabilities arising from employee benefits, and in particular those arising from the payment of However, when this information is not reliably employee benefits in future periods – including available, Council can account for its obligations to Superannuation and Workers Compensation defined benefit plans on the same basis as its expenses which will be payable upon the future obligations to defined contribution plans. payment of some Leave Liabilities accrued as at 30/6/08. Council is party to an Industry Defined Benefit Plan under the Local Government Superannuation Scheme, named the “Local Government (u) Allocation between current and Superannuation Scheme – Pool B”. non-current This Scheme has been deemed to be a “multi employer fund” for the purposes of AASB 119. In the determination of whether an asset or liability is classified as current or non-current, consideration is Sufficient information is not available to account for given to the time when each asset or liability is the Scheme as a defined benefit plan (in accordance expected to be settled. with AASB 119) because the assets to the scheme are pooled together for all Councils.
page 18
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
The asset or liability is classified as current if it is Accordingly, the GST component of investing and expected to be settled within the next 12 months, financing activity cash flows which are recoverable being the Council’s operational cycle. from or payable to the ATO are classified as operating cash flows.
Exceptions Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, In the case of liabilities where Council does not have the taxation authority. the unconditional right to defer settlement beyond 12 months (such as vested long service leave), the liability is classified as current even if not expected (w) New accounting standards and UIG to be settled within the next 12 months. interpretations
In the case of inventories that are “held for trading”, Certain new (or amended) accounting standards and these are classified as current even if not expected interpretations have been published that are not to be realised in the next 12 months. mandatory for reporting periods ending 30 June 2008.
Council’s assessment of the impact of these new (v) Taxes standards and interpretations is set out below.
The Council is exempt from both Commonwealth Income Tax and Capital Gains Tax. Applicable to Local Government with the implications: Council does however have to comply with both Fringe Benefits Tax and Goods and Services Tax - Revised AASB 101 Presentation of Financial (GST). Statements and AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101 and AASB 2007-10 Further Goods & Services Tax (GST) Amendments to Australian Accounting Standards arising from AASB 101 Income, expenses and assets are all recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian - AASB 1051 Land Under Roads, Tax Office (ATO). AASB 1051 will allow Council to recognise or not In these circumstances the GST is recognised as recognise land under roads acquired before 30 part of the cost of acquisition of the asset or as part June 2008. of the expense. Council will be required to nominate whether to Receivables and payables within the Balance Sheet recognise Land under roads (acquired after 30 are stated inclusive of any applicable GST. June 2008) or to exclude these Assets from recognition. The net amount of GST recoverable from or payable to the ATO is included as a current asset or current This Standard could have a significant impact on liability in the Balance Sheet. the Council’s Balance Sheet depending on Council’s accounting policy choice. Operating cash flows within the Statement of Cash Flows are on a gross basis, ie. they are inclusive of GST where applicable. - AASB 1052 Disaggregated Disclosures,
Investing and Financing cash flows are treated on a AASB 1052 requires disclosure of financial net basis (where recoverable form the ATO), ie. they information by function or activity. are exclusive of GST.
page 19
Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 1. Summary of Significant Accounting Policies (continued)
Council already provides this information in Note - AASB-I 14 The Limit on a Defined Benefit Asset, 2(a) so there will be no additional impact on the Minimum Funding Requirements and their financial statements. Interaction
- AASB 1004 Contributions (revised), Not applicable to Local Government per se;
AASB 1004 requires contributions made to - AASB 8 Operating Segments and AASB 2007-3 Council to be recognised at fair value when they Amendments to Australian Accounting Standards are controlled and to be appropriately disclosed. arising from AASB 8
Council already accounts for contributions in this - AASB 1049 Whole of Government and General manner so there will be no additional impact on Government Sector Financial Reporting the financial statements. - AASB 1050 Administered Items
- AASB 2007-9 Amendments to Australian - Interpretation 1038 Contributions by Owners Accounting Standards arising from the review of Made to Wholly-Owned Public Sector Entities AAS 27, AAS 29 and AAS 31, (revised)
Council will no longer apply AAS 27 from 1 July 2008 due to its withdrawal. Council currently Council has not adopted any of these standards applies AIFRS (but with AAS 27 taking early. precedence).
The withdrawal of AAS 27 will see specific (x) Rounding of amounts paragraphs transferred to existing AIFRS, and accordingly there is little impact from its Unless otherwise indicated, amounts in the financial withdrawal. report have been rounded off to the nearest thousand dollars.
Applicable to Local Government but no implications for Council; (y) Comparative Figures
- Revised AASB 123 Borrowing Costs and AASB To ensure comparability with the current reporting 2007-6 Amendments to Australian Accounting period’s figures, some comparative period line items Standards arising from AASB 123 [AASB 1, and amounts may have been reclassified or AASB 101, AASB 107, AASB 111, AASB 116 & individually reported for the first time within this AASB 138 and Interpretations 1 & 12] Financial Report and/or the Notes.
Applicable to Local Government but not relevant (z) Disclaimer to Council at this stage;
Nothing contained within this report may be taken to - AASB-I 12 Service Concession Arrangements, be an admission of any liability to any person under AASB 2007-1 Amendments to Australian any circumstance. Accounting Standards arising from AASB Interpretation 12, revised UIG 4 Determining whether an Arrangement contains a Lease and revised UIG 129 Service Concession Arrangements: Disclosures
- ASB-I 13 Customer Loyalty Programmes
page 20
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 2(a). Functions / Activities - Financial Disclosures
$ '000 Income, Expenses and Assets have been directly attributed to the following Functions / Activities. Details of these Functions/Activities are provided in Note 2(b). Grants included in Total Assets held Income from Continuing Expenses from Continuing Operating Result from Income from (Current & Operations Operations Continuing Operations Continuing Non-current) Functions/Activities Operations Original Original Original Budget Actual Actual Budget Actual Actual Budget Actual Actual Actual Actual Actual Actual 2008 2008 2007 2008 2008 2007 2008 2008 2007 2008 2007 2008 2007 Governance - - - 187 197 172 (187) (197) (172) (4) - - - Administration 20 93 69 3,478 4,719 3,917 (3,458) (4,626) (3,848) 3 4 13,110 6,588 Public Order & Safety 543 401 205 537 609 520 6 (208) (315) 256 112 1,922 1,688 Health 46 72 67 296 366 352 (250) (294) (285) 55 50 319 197 Community Services & Education - - - - 9 10 - (9) (10) - - 628 152 Housing & Community Amenities 2,950 2,616 2,499 3,563 3,059 2,839 (613) (443) (340) 306 76 7,509 9,477 Water Supplies 3,635 3,324 3,290 3,005 2,815 2,576 630 509 714 73 63 43,571 21,179 Sewerage Services 2,355 2,453 1,752 1,989 862 701 366 1,591 1,051 41 42 24,698 10,811 Recreation & Culture 373 535 372 2,602 2,779 2,582 (2,229) (2,244) (2,210) 185 61 28,458 25,572 Fuel & Energy ------Mining, Manufacturing & Construction - 183 145 31 344 409 (31) (161) (264) - - 459 604 Transport & Communication 4,493 3,952 8,670 7,857 5,449 5,650 (3,364) (1,497) 3,020 807 1,382 86,349 85,826 Economic Affairs 1,278 1,097 1,730 1,492 1,275 2,094 (214) (178) (364) 37 2 6,035 3,903
Total Functions & Activities 15,693 14,726 18,799 25,037 22,483 21,822 (9,344) (7,757) (3,023) 1,759 1,792 213,058 165,997
Share of gains/(losses) in Associates &
Joint Ventures (using the Equity Method) ------2008 Report Financial General Purpose Income 1 7,396 9,247 5,538 - - - 7,396 9,247 5,538 3,334 3,171 - - Operating Result from Continuing Operations page 21 23,089 23,973 24,337 25,037 22,483 21,822 ( 1,948) 1,490 2,515 5,093 4,963 213,058 165,997
1. Includes: Rates & Annual Charges (incl. Ex-Gratia), Non-Capital General Purpose Grants & Unrestricted Interest & Investment Income. Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 2(b). Components of Functions / Activities
Details relating to the Council's functions / activities as reported in Note 2(a) are as follows:
GOVERNANCE Costs relating to the Council’s role as a component of democratic government, including elections, members fees and expenses, subscriptions to local authority associations, meetings of council and policy making committees, area representation and public disclosure and compliance, together with related administration costs.
ADMINISTRATION Costs not otherwise attributed to other functions / activities.
PUBLIC ORDER & SAFETY Fire protection, animal control, enforcement of local government regulations, emergency services, other.
HEALTH Administration and inspection, food control, insect/vermin control, noxious plants, health centres, other.
COMMUNITY SERVICES & EDUCATION Administration, youth services, other family and children, aged and disabled, migrant services, Aboriginal services, other community services, education.
HOUSING & COMMUNITY AMENITIES Housing, town planning, domestic waste management services, other waste management services, street cleaning, other sanitation and garbage, urban stormwater drainage, environmental protection, public cemeteries, public conveniences, other community amenities.
WATER SUPPLIES SEWERAGE SERVICES
RECREATION & CULTURE Public libraries, art galleries, community centres, public halls, other cultural services, swimming pools, sporting grounds, parks and gardens , other sport and recreation.
MINING, MANUFACTURING & CONSTRUCTION Building control, quarries and pits, other.
TRANSPORT & COMMUNICATION Urban roads, sealed rural roads, unsealed rural roads, bridges, footpaths, aerodromes, parking areas, bus shelters and services, water transport, RTA works, street lighting, other.
ECONOMIC AFFAIRS Camping areas, caravan parks, tourism and area promotion, industrial development promotion, saleyards & markets, real estate development, other business undertakings.
page 22 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 3. Income from Continuing Operations
Actual Actual $ '000 Notes 2008 2007
(a). Rates & Annual Charges
Ordinary Rates Residential 1,714 1,658 Farmland 2,178 2,096 Business 856 794 Total Ordinary Rates 4,748 4,548
Annual Charges (pursuant to s.496 & s.501) Domestic Waste Management Services 1,613 1,562 Water Supply Services 1,515 1,318 Sewerage Services 1,892 1,275 Total Annual Charges 5,020 4,155
TOTAL RATES & ANNUAL CHARGES 9,768 8,703
Council has used 2004 year valuations provided by the NSW Valuer General in calculating its rates.
(b). User Charges & Fees
Specific User Charges (per s.502 - Specific "actual use" charges) Water Supply Services 1,754 1,866 Sewerage Services 456 439 Waste Management Services (non-domestic) 189 275 Total User Charges 2,399 2,580
Other User Charges & Fees
(i) Fees & Charges - Statutory & Regulatory Functions (per s608, 610A & 611) Planning & Building Regulation 222 331 Private Works - Section 67 210 732 Total Fees & Charges - Statutory/Regulatory 432 1,063
(ii) Fees & Charges - Other (incl. General User Charges (per s.610C)) Aerodrome 14 21 Caravan Park 306 268 Cemeteries 151 172 RTA Charges (State Roads not controlled by Council) 3,167 3,999 Saleyards 278 299 Swimming Centre 128 172 Other 199 60 Total Fees & Charges - Other 4,243 4,991
TOTAL USER CHARGES & FEES 7,074 8,634
page 23 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 3. Income from Continuing Operations (continued)
Actual Actual $ '000 Notes 2008 2007
(c). Interest & Investment Revenue (incl. losses)
Interest on Overdue Rates & Annual Charges 89 72 Interest earned on Investments (interest & coupon payment income) 900 676 Amortisation of Premiums & Discounts - Interest Free (& Interest Reduced) Loans provided 18 17 TOTAL INTEREST & INVESTMENT REVENUE 1,007 765
Interest Revenue is attributable to: Unrestricted Investments/Financial Assets: Overdue Rates & Annual Charges 89 72 General Council Cash & Investments 859 562 Restricted Investments/Funds - External: Development Contributions - Section 94 20 32 - Section 64 28 32 Water Fund Operations 11 39 Sewerage Fund Operations - 28 Restricted Investments/Funds - Internal: Internally Restricted Assets - - Total Interest & Investment Revenue Recognised 1,007 765
(d). Other Revenues
Rental Income - Other Council Properties 132 118 Fines 94 78 Recycling Income (non domestic) 140 135 Sales - General 132 314 Other 264 217 TOTAL OTHER REVENUE 762 862
page 24 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 3. Income from Continuing Operations (continued)
2008 2007 2008 2007 $ '000 Operating Operating Capital Capital
(e). Grants
General Purpose (Untied) Financial Assistance 3,231 3,068 - - Pensioners' Rates Subsidies - General Component 103 103 - - Total General Purpose 3,334 3,171 - -
Specific Purpose Pensioners' Rates Subsidies: - Water 58 63 - - - Sewerage 41 42 - - - Domestic Waste Management 61 62 - - Bushfire & Emergency Services - - 251 112 Public Halls - - 35 - Street Lighting 52 56 - - Transport (Roads to Recovery) - - 751 1,327 Gross Pollution Traps - - 188 - Soil Conservation Works - - 41 - Skate Park - - 79 - Caravan Park - Water Tanks - - 24 - Standpipe - - 15 - Other 162 128 1 2 Total Specific Purpose 374 351 1,385 1,441 Total Grants 3,708 3,522 1,385 1,441
Grant Revenue is attributable to: - Commonwealth Funding 3,231 3,097 1,134 1,329 - State Funding 477 425 251 112 3 ,708 3,708 3,522 1,385 1,441
page 25 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 3. Income from Continuing Operations (continued)
2008 2007 2008 2007 $ '000 Operating Operating Capital Capital
(f). Contributions
Developer Contributions: (s93 & s94 - EP&A Act, s64 of the NSW LG Act): S 94 - Contributions towards amenities/services - - 184 95 S 94A - Fixed Development Consent Levies - - 43 - S 64 - Water Supply Contributions - - - 4 S 64 - Sewerage Service Contributions - - - 3 Capital Contributions - Rural Roads - - - 80 Capital Contributions - Street Trees - - 4 - Total Developer Contributions 17 - - 231 182
Other Contributions: Skate Park Community Contribution - - 34 - Taxi Rank Lighting - - 4 - Other - - - 66 Total Other Contributions - - 38 66 Total Contributions - - 269 248
TOTAL GRANTS & CONTRIBUTIONS 3,708 3,522 1,654 1,689
page 26 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 3. Income from Continuing Operations (continued)
Actual Actual $ '000 2008 2007
(g). Restrictions relating to Grants and Contributions
Certain grants & contributions are obtained by Council on condition that they be spent in a specified manner:
Unexpended at the Close of the Previous Reporting Period 1,882 1,738 add: Grants and contributions recognised in the current period which have not been spent: 349 1,208 less: Grants an contributions recognised in a previous reporting period which have been spent in the current reporting period: (400) (1,064)
Net Increase (Decrease) in Restricted Assets during the Current Reporting Period (51) 144
Unexpended at the Close of this Reporting Period and held as Restricted Assets 1,831 1,882
Comprising: - Specific Purpose Unexpended Grants 1,096 1,224 - Developer Contributions 735 658 1,831 1,831 1,882
page 27 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 4. Expenses from Continuing Operations
Actual Actual $ '000 Notes 2008 2007
(a) Employee Benefits & On-Costs
Salaries and Wages 7,450 7,268 Travelling 127 102 Employee Leave Entitlements (ELE) 1,189 806 Superannuation - Defined Contribution Plans 523 521 Superannuation - Defined Benefit Plans 135 134 Workers' Compensation Insurance 481 52 Fringe Benefit Tax (FBT) - 8 Training Costs (other than Salaries & Wages) 129 130 Total Employee Costs 10,034 9,021 less: Capitalised Costs (809) (671) TOTAL EMPLOYEE COSTS EXPENSED 9,225 8,350
Number of "Equivalent Full Time" Employees at year end 157 153
(b) Borrowing Costs
(i) Interest Bearing Liability Costs Interest on Loans 589 496 Total Interest Bearing Liability Costs 589 496 less: Capitalised Costs - - Total Interest Bearing Liability Costs Expensed 589 496
(ii) Other Borrowing Costs Discount adjustments relating to movements in Provisions (other than ELE) - Remediation Liabilities 21 12 11 Total Other Borrowing Costs 12 11 TOTAL BORROWING COSTS EXPENSED 601 507
page 28 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 4. Expenses from Continuing Operations (continued)
Actual Actual $ '000 Notes 2008 2007
(c) Materials & Contracts
Raw Materials & Consumables 3,209 3,494 Contractor & Consultancy Costs 2,804 2,964 Auditors Remuneration - Council's Auditor: i. Audit Services 26 28 Legal Expenses - Planning & Development 114 227 Legal Expenses - Other 32 30 Operating Lease Rentals - Minimum Lease Payments 1 166 119 Total Materials & Contracts 6,351 6,862 less: Capitalised Costs - - TOTAL MATERIALS & CONTRACTS 6,351 6,862
1. Operating Leases are attributable to: - Computers 166 119 166 119
Depreciation/Amortisation Impairment Costs Actual Actual Actual Actual $ '000 2008 2007 2008 2007
(d) Depreciation, Amortisation & Impairment
Plant and Equipment 1,070 1,104 - - Office Equipment 26 26 - - Furniture & Fittings 41 41 - - Buildings - Specialised 501 151 - - Infrastructure: - Roads, Bridges & Footpaths 1,122 1,104 - - - Stormwater Drainage 551 544 - - - Water Supply Network 814 870 - - - Sewerage Network 229 290 - - Other Assets - Other 255 393 - - Asset Reinstatement Costs 9 & 22 5 5 - - Total Depreciation & Impairment Costs 4,614 4,528 - - less: Capitalised Costs (498) (407) - - TOTAL DEPRECIATION & IMPAIRMENT COSTS EXPENSED 4,116 4,121 - -
page 29 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 4. Expenses from Continuing Operations (continued)
Actual Actual $ '000 Notes 2008 2007
(e) Other Expenses
Other Expenses for the year include the following:
Advertising 102 99 Contributions to Other Levels of Government 687 613 Councillor Expenses - Mayoral Fee 19 18 Councillor Expenses - Councillors Fees 101 99 Councillors Expenses (incl. Mayor) - Other (excluding fees above) 53 51 Electricity & Heating 497 515 Insurance 253 233 Street Lighting 246 213 Telephone & Communications 199 141 Total Other Expenses 2,157 1,982 less: Capitalised Costs - - TOTAL OTHER EXPENSES 2,157 1,982
Note 5. Gains or Losses on Disposal of Assets
Actual Actual $ '000 Notes 2008 2007
Property (excl. Investment Property) Proceeds from Disposal 22 - less: Carrying Amount of Property Assets Sold (45) - Net Gain/(Loss) on Disposal (23) -
Plant & Equipment Proceeds from Disposal 164 536 less: Carrying Amount of P&E Assets Sold (174) (374) Net Gain/(Loss) on Disposal (10) 162
NET GAIN/(LOSS) ON DISPOSAL OF ASSETS (33) 162
page 30 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 6a. - Cash Assets and Note 6b. - Investment Securities
2008 2008 2007 2007 Actual Actual Actual Actual $ '000 Current Non Current Current Non Current
Cash & Cash Equivalents (Note 6a) Cash on Hand and at Bank 959 - 1,590 - Cash-Equivalent Assets1 - Short Term Deposits 12,750 - 10,000 - Total Cash & Cash Equivalents 13,709 - 11,590 -
Investment Securities (Note 6b) Nil Total Investment Securities - - - - TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS 13,709 - 11,590 -
1 Those Investments where time to maturity (from date of purchase) is < 3 mths.
Cash, Cash Equivalents & Investments were classified at year end in accordance with AASB 139 as follows:
Cash & Cash Equivalents a. "At Fair Value through the Profit & Loss" 13,709 - 11,590 -
Investments Nil Investments - - - -
page 31 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 6c. Restricted Cash, Cash Equivalents & Investments
2008 2008 2007 2007 Actual Actual Actual Actual $ '000 Current Non Current Current Non Current
Total Cash, Cash Equivalents and Investment Securities 13,709 - 11,590 - attributable to: External Restrictions (refer below) 8,740 - 8,418 - Internal Restrictions (refer below) 4,530 - 3,002 - Unrestricted 439 - 170 - 13 ,709 13,709 - 11,590 -
2008 Opening Transfers to Transfers from Closing $ '000 Balance Restrictions Restrictions Balance
Details of Restrictions
External Restrictions - Included in Liabilities Specific Purpose Unexpended Loans-General (A) 344 662 (344) 662 Specific Purpose Unexpended Loans-Water (A) - 582 - 582 External Restrictions - Included in Liabilities 344 1,244 (344) 1,244
External Restrictions - Other Developer Contributions - General (D) 658 (102) (198) 358 Developer Contributions - Water Fund (D) - 278 - 278 Developer Contributions - Sewer Fund (D) - 99 - 99 Specific Purpose Unexpended Grants (F) 1,224 74 (202) 1,096 Water Supplies (G) 1,823 (53) 1,770 Sewerage Services (G) 3,927 (433) 3,494 Domestic Waste Management (G) 58 20 - 78 Capital Contributions 384 28 (89) 323 External Restrictions - Other 8,074 397 (975) 7,496 Total External Restrictions 8,418 1,641 (1,319) 8,740
page 32 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 6c. Restricted Cash, Cash Equivalents & Investments (continued)
2008 Opening Transfers to Transfers from Closing $ '000 Balance Restrictions Restrictions Balance
Internal Restrictions Plant & Vehicle Replacement 448 809 - 1,257 Employees Leave Entitlement 683 150 (52) 781 Carry Over Works 244 167 (244) 167 Office Equipment 5 - (5) - Sinking Funds 185 - (185) - Tree Maintenance 6 - (6) - Caravan Park 74 56 (38) 92 Saleyards 85 7 (12) 80 Land Development 478 - (264) 214 Election 19 10 - 29 Aerodrome 80 10 (80) 10 Waste 109 299 - 408 RTA Works 835 - 835 RTA Warranty 176 - 176 Risk Management 59 - 59 POW Maintenance 18 - 18 Bad Debts 51 - (1) 50 Workers Compensation 188 - (143) 45 Main St Imrpovements 281 - (43) 238 Environmental Projects 37 - - 37 Fire Mitigation 4 2 - 6 Gravel Rehabilitation 25 61 (58) 28 Total Internal Restrictions 3,002 2,659 (1,131) 4,530
TOTAL RESTRICTIONS 11,420 4,300 (2,450) 13,270
A Loan moneys which must be applied for the purposes for which the loans were raised. B Advances by the Roads and Traffic Authority for works on the State's classified roads. C Self Insurance liability resulting from reported claims or incurred claims not yet reported. D Development contributions which are not yet expended for the provision of services and amenities in accordance with contributions plans (refer Note 17). E RTA Contributions which are not yet expended for the provision of services and amenities in accordance with those contributions. F Grants which are not yet expended for the purposes for which the grants were obtained. (refer Note 1) G Water, Sewerage, Domestic Waste Management (DWM) & other Special Rates/Levies/Charges are externally restricted assets and must be applied for the purposes for which they were raised.
page 33 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 7. Receivables
2008 2007 $ '000 Current Non Current Current Non Current
Purpose Rates & Annual Charges 1,012 - 819 - Interest & Extra Charges 66 - 50 - User Charges & Fees 1,638 - 1,647 - Accrued Revenues - Other Income Accruals 131 - 939 - Government Grants & Subsidies 18 - 1 - Deferred Debtors 56 74 56 106 Total 2,921 74 3,512 106 less: Provision for Impairment Rates & Annual Charges (13) - (13) - Total Provision for Impairment - Receivables (13) - (13) -
TOTAL NET RECEIVABLES 2,908 74 3,499 106
Externally Restricted Receivables Water Supply - Rates & Availability Charges 184 - 201 - - Other 1,142 - 1,090 - Sewerage Services - Rates & Availability Charges 306 - 198 - Domestic Waste Management - - 204 - Total External Restrictions 1,632 - 1,693 - Unrestricted Receivables 1,276 74 1,806 106 TOTAL NET RECEIVABLES 2,908 74 3,499 106
Notes on Debtors above: (i) Rates & Annual Charges Outstanding are secured against the property.
(ii) Doubtful Rates Debtors are provided for where the value of the property is less than the debt outstanding. An allowance for other doubtful debts is made when there is objective evidence that a receivable is impaired.
(iii) Interest is charged on overdue rates & charges at 10.00% (2007 9.00%). Generally all other receivables are non interest bearing.
(iv) Please refer to Note 15 for issues concerning Credit Risk and Fair Value disclosures.
page 34 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 8. Inventories & Other Assets
2008 2007 $ '000 Current Non Current Current Non Current
Inventories Real Estate for resale (refer below) 195 - 195 - Stores & Materials 975 - 795 - Trading Stock - - 163 - Total Inventories 1,170 - 1,153 -
Other Assets Shares in Unlisted Companies - StateCover 95 - - 77 Total Other Assets 95 - - 77
TOTAL INVENTORIES & OTHER ASSETS 1,265 - 1,153 77
Details for Real Estate Development Residential 195 - 195 - Total Real Estate for Resale 195 - 195 - (Valued at the lower of cost and net realisable value)
Represented by: Acquisition Costs 195 - 165 - Development Costs - - 30 - Total Costs 195 - 195 - Total Real Estate for Resale 195 - 195 -
Movements: Real Estate assets at beginning of the year 195 - 71 - - Purchases and other costs - - 124 - Total Real Estate for Resale 195 - 195 -
(i) Externally Restricted Assets
Water Stores & Materials 4 - 4 - Total Water 4 - 4 -
Total Externally Restricted Assets 4 - 4 - Total Internally Restricted Assets - - - - Total Unrestricted Assets 1,261 - 1,149 77 TOTAL INVENTORIES & OTHER ASSETS 1,265 - 1,153 77
page 35 Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 9a. Infrastructure, Property, Plant & Equipment
Asset Movements during the Reporting Period as at 30/6/2007 as at 30/6/2008 Revaluation Asset WDV-Asset Depreciation Adjustments Increments At At Accumulated Carrying Additions Disposals Expense & Transfers to Equity At At Accumulated Carrying (ARR) $ '000 Cost Fair Value Deprec. Value Cost Fair Value Dep'n Value Plant & Equipment 17,034 - 11,267 5,767 378 (174) (1,087) (142) - - 16,778 12,036 4,742 Office Equipment 506 - 395 111 2 - (26) - - 507 420 87 Furniture & Fittings 714 - 336 378 - - (41) - - 714 377 337 Plant & Equipment (under Finance Lease) ------Land: - Operational 3,567 - 3,567 11 (9) - (16) 3,922 - 7,475 - 7,475 - Community 20,311 - - 20,311 - - - - - 20,311 - - 20,311 - Land under Roads ------Land Improvements - non depreciable ------Land Improvements - depreciable ------Buildings - Non Specialised ------Buildings - Specialised 12,577 - 4,894 7,683 275 (36) (165) 1,361 6,776 - 23,474 7,580 15,894 Other Structures ------Infrastructure: - Roads, Bridges, Footpaths 79,554 - 11,579 67,975 1,688 - (1,122) - - 81,241 - 12,700 68,541 - Bulk Earthworks (non-depreciable) 11,701 - - 11,701 401 - - - - 12,102 - - 12,102 - Stormwater Drainage 7,661 - 5,402 2,259 414 - (551) - - 8,075 - 5,953 2,122 - Water Supply Network 38,809 - 22,378 16,431 1,520 - (896) (342) 21,029 - 89,064 51,322 37,742 - Sewerage Network 9,790 - 4,453 5,337 1,257 - (308) (157) 12,226 - 32,219 13,864 18,355 Other Assets: - Heritage Collections ------Library Books ------Other 12,009 - 4,115 7,894 464 - (413) (704) - 11,769 - 4,528 7,241 Reinstatement, Rehabilitation & Restoration Assets (refer Note 21): Financial Report 2008 - Quarry Asset 174 - 16 158 - - (5) - - 174 - 21 153 TOTAL INFRASTRUCTURE, PROPERTY, PLANT & EQUIP. 214,407 - 64,835 149,572 6,410 ( 219) (4,614) - 43,953 133,672 170,231 108,801 195,102 page 36 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 9b. Infrastructure, Property, Plant & Equipment that is Externally Restricted
$ '000 Actual Actual 2008 2007 Class of Asset At At A/Dep & Carrying At At A/Dep & Carrying Cost Fair Value Impairm't Value Cost Fair Value Impairm't Value Water Supply Plant & Equipment - 532 369 163 644 - 434 210 Office Equipment 3 - 2 1 20 - 19 1 Land - Operational Land - 1,079 - 1,079 730 - - 730 Buildings - 1,376 782 594 27 - 3 24 Infrastructure - 89,062 51,240 37,822 - 38,808 9,071 29,737 Total Water Supply 3 92,049 52,393 39,659 1,421 38,808 9,527 30,702
Sewerage Services Plant & Equipment - 53 43 10 149 - 131 18 Land - Operational Land - 1,849 - 1,849 1,216 - - 1,216 Buildings - 966 659 307 - - - - Infrastructure - 32,219 13,785 18,434 9,789 - 3,231 6,558 Total Sewerage Services - 35,087 14,487 20,600 11,154 - 3,362 7,792
Domestic Waste Management Plant & Equipment - 1,601 1,025 576 1,699 - 1,016 683 Land - Operational Land - 540 - 540 - 240 - 240 Buildings - 623 125 498 - - - - Other Assets 1,729 - 752 977 1,796 - 439 1,357 Total DWM 1,729 2,764 1,902 2,591 3,495 240 1,455 2,280
TOTAL RESTRICTED I,PP&E 1,732 129,900 68,782 62,850 16,070 39,048 14,344 40,774
Note 9c. Infrastructure, Property, Plant & Equipment Gains/(Losses) arising from the Impairment of Assets
Council did not impair any I,PP&E during the year nor has there been any prior period impairments.
page 37 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 10a. Payables, Borrowings & Provisions
2008 2007 $ '000 Notes Current Non Current Current Non Current
Payables Goods & Services - Operating 1,254 - 1,270 - Accrued Expenses; - Other Expenditure Accruals 394 - 322 - Security Bonds, Deposits & Retentions 343 8 219 8 Total Payables 1,991 8 1,811 8
Borrowings Loans - Secured 1 520 8,994 464 7,985 Total Borrowings 520 8,994 464 7,985
Provisions Employee Benefits; Annual Leave 841 - 708 - Long Service Leave 1,644 130 1,419 127 Sub Total - Aggregate Employee Benefits 2,485 130 2,127 127 Asset Remediation/Restoration (Future Works) 21 - 218 - 206 Total Provisions 2,485 348 2,127 333
Total Payables, Borrowings & Provisions 4,996 9,350 4,402 8,326
(i) Liabilities relating to Restricted Assets 2008 2007 Current Non Current Current Non Current Externally Restricted Assets Domestic Waste Management 41 208 120 255 Water 205 3,732 198 2,516 Sewer 124 773 234 860 Liabilities relating to externally restricted assets 370 4,713 552 3,631
Total Liabilities relating to restricted assets 370 4,713 552 3,631
1. Loans are secured over the General Rating Income of Council Disclosures on Liability Interest Rate Risk Exposures, Fair Value Disclosures & Security can be found in Note 15.
page 38 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 10a. Payables, Borrowings & Provisions (continued)
$ '000
(ii) Current Liabilities not anticipated to be settled within the next 12 months
The following Liabilities, even though classified as current, are not expected 2008 2007 to be settled in the next 12 months.
Provisions - Employees Benefits 2,241 1,571 2,241 2,241 1,571
Note 10b. Description of and movements in Provisions
2007 2008 Opening Remeasurement Unused Additional Decrease due to Closing Balance Class of Provision Balance as at effects due to amounts Provisions Payments as at 30/6/08 1/7/07 Discounting reversed
Annual Leave 708 649 (516) - - 841 Long Service Leave 1,546 315 (87) - - 1,774 Asset Remediation 206 12 - - - 218 TOTAL 2,460 976 (603) - - 2,833
a. Employees Leave Entitlements & On-Costs represents those benefits accrued and payable and an estimate of those that will become payable in the future as a result of past service. b. Asset Remediation, Reinstatement & Restoration Provisions represent the Present Value estimate of future costs Council will incur in order to remove, restore & remediate assets &/or activities as a result of past operations.
page 39 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 11. Cash Flow Statement - Additional Information
Actual Actual $ '000 Notes 2008 2007
(a) Reconciliation of Cash Assets Total Cash & Cash Equivalent Assets 6a 13,709 11,590 Less Bank Overdraft 10 - - BALANCES as per the CASH FLOW STATEMENT 13,709 11,590
(b) Reconciliation of Net Operating Result to Cash provided from Operating Activities
Net Operating Result from Income Statement 1,490 2,515 Adjust for non cash items: Depreciation & Amortisation 4,116 4,528 Amortisation of Premiums, Discounts & Prior Period Fair Valuations - "Held to Maturity" Financial Assets - (16) - Interest on all fair value adjusted Interest Free Advances made by Council (18) - Unwinding of Discount Rates on Reinstatement Provisions 12 11 Net Losses/(Gains) on Disposal of Assets 33 (162) Non Cash Capital Grants and Contributions (245) (84)
+/- Movement in Operating Assets and Liabilities & Other Cash Items: Decrease/(Increase) in Receivables 591 (1,093) Decrease/(Increase) in Inventories (17) 218 Decrease/(Increase) in Other Current Assets (18) (17) Increase/(Decrease) in Payables (16) 122 Increase/(Decrease) in other accrued Expenses Payable 72 12 Increase/(Decrease) in Other Current Liabilities 124 (131) Increase/(Decrease) in Employee Leave Entitlements 361 (159) NET CASH PROVIDED FROM/(USED IN) OPERATING ACTIVITIES from CASH FLOW STATEMENT 6,485 5,744
page 40 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 11. Cash Flow Statement - Additional Information (continued)
Actual Actual $ '000 Notes 2008 2007
(c) Non-Cash Investing & Financing Activities
Bushfire Grants 245 84 Total Non-Cash Investing & Financing Activities 245 84
(d) Financing Arrangements
(i) Unrestricted access was available at balance date to the following lines of credit:
Bank Overdraft Facilities 1 900 900 Credit Cards / Purchase Cards 29 29 Total Financing Arrangements 929 929
(ii) Secured Loan Liabilities
Loans are secured by a mortgage over future years Rate Revenue only.
(e) Net Cash Flows Attributable to Discontinued Operations
Please refer to Note 24 for details of Cash Flows that relate to Discontinued Operations
page 41 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 12. Commitments for Expenditure
Actual Actual $ '000 Notes 2008 2007
(a) Capital Commitments (exclusive of GST) Capital expenditure committed for at the reporting date but not recognised in the financial statements as liabilities:
Property, Plant & Equipment Buildings 1,430 - Total Commitments 1,430 -
These expenditures are payable as follows: Within the next year 1,430 - Later than one year and not later than 5 years - - Later than 5 years - - Total Payable 1,430 -
Sources for Funding of Capital Commitments: Loan Funding - (Not yet drawn) 1,430 - Total Sources of Funding 1,430 -
(b) Other Expenditure Commitments (exclusive of GST)
Other Non Capital expenditure committed for at the reporting date but not recognised in the financial statements as liabilities:
Cleaning Services 23 39 Ordinance Services 538 677 Other 36 216 Total Commitments 597 932
These expenditures are payable as follows: Within the next year 210 295 Later than one year and not later than 5 years 387 606 Later than 5 years - 31 Total Payable 597 932
page 42 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 12. Commitments for Expenditure (continued)
Actual Actual $ '000 Notes 2008 2007
(c) Finance Lease Commitments
Nil
(d) Operating Lease Commitments (Non Cancellable)
a. Commitments under Non Cancellable Operating Leases at the Reporting date, but not recognised as Liabilities are payable:
Within the next year 166 121 Later than one year and not later than 5 years 332 50 Later than 5 years - - Total Non Cancellable Operating Lease Commitments 498 171
b. Non Cancellable Operating Leases include the following assets: Computer Equipment
Conditions relating to Operating Leases:
- All Operating Lease Agreement are secured only against the Leased Asset.
- No Lease Agreements impose any financial restrictions on Council regarding future debt etc.
(f) Remuneration Commitments
Commitments for the payment of salaries & other remuneration under long-term employment contracts in existence at reporting date but not recognised as liabilities are payable:
Within the next year 592 557 Later than one year and not later than 5 years 742 1,245 Later than 5 years - - Total Payable 1,334 1,802
page 43 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 13. Statement of Performance Measurement
Amounts Indicator Prior Periods $ '000 2008 2008 2007 2006
1. Unrestricted Current Ratio Current Assets less all External Restrictions (1) 7,506 3.15 : 1 2.69 2.71 Current Liabilities less Specific Purpose Liabilities (2,3) 2,385
2. Debt Service Ratio Debt Service Cost 1,065 4.85% 4.00% 5.66% Revenue from Continuing Operations 21,945 excluding Capital Items & Specific Purpose Grants/Contributions
3. Rates & Annual Charges Coverage Ratio Rates & Annual Charges 9,768 40.75% 36.00% 38.41% Revenue from Continuing Operations 23,973
4. Rates, Annual Charges, Interest & Extra Charges Outstanding Percentage Rates, Annual & Extra Charges Outstanding 1,065 9.94% 8.91% 9.15% Rates, Annual & Extra Charges Collectible 10,713
5. Building & Infrastructure Renewals Ratio Asset Renewals (4) 5,214 162.08% 112.00% n/a Depreciation, Amortisation & Impairment 3,217 (Building & Infrastructure Assets)
Notes
(1) Refer Notes 6-8 inclusive. Also excludes any Real Estate & Land for resale not expected to be sold in the next 12 months
(2) Refer to Note 10(a).
(3) Refer to Note 10(c) - excludes all ELE not expected to be paid in the next 12 months.
(4) Asset Renewals represents Capital Expenditure on the replacement, refurbishment or upgrade to an existing Asset/s.
page 44 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 14. Investment Properties
$ '000
Council has not classified any Land or Buildings as "Investment Properties"
Note 15. Financial Risk Management
Risk Management
Council's activities expose it to a variety of financial risks including (i) price risk, (ii) credit risk, (iii) liquidity risk and (iv) interest rate risk.
The Council's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Council.
Council does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk.
Financial risk management is carried out by Council's Finance Section under policies approved by the Council.
A comparison by category of the carrying amounts and fair values of Council's Financial Assets & Financial Liabilities recognised in the financial statements is presented below.
Carrying Value Fair Value 2008 2007 2008 2007 Financial Assets Cash and Cash Equivalents 13,709 11,590 13,709 11,590 Investments - Nil Receivables 2,982 3,605 2,982 3,605 Other Financial Assets 95 77 95 77 Total Financial Assets 16,786 15,272 16,786 15,272
Financial Liabilities Payables 1,999 1,819 1,999 1,819 Loans / Advances 9,514 8,449 9,514 8,449 Total Financial Liabilities 11,513 10,268 11,513 10,268
Fair Value is determined as follows: - Cash & Cash Equivalents, Receivables, Payables - are estimated to be the carrying value which approximates mkt value. - Borrowings & Held to Maturity Investments -are based upon estimated future cash flows discounted by the current market interest rates applicable to assets & liabilities with similar risk profiles, unless quoted market prices are available. - Financial Assets classified (i) "at fair value through profit & loss" or (ii) Available for Sale - are based upon quoted market prices at the reporting date or independent valuation.
page 45 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 15. Financial Risk Management (continued)
$ '000
(a) Cash & Cash Equivalents, Financial assets "at fair value through the profit & Loss", "Available-for-sale" financial assets & "Held-to-maturity" Investments
Council's objective is to maximise its return on cash & investments whilst maintaining an adequate level of liquidity and preserving capital.
Council has an Investment Policy which complies with the Local Government Act & Ministers Investment Order. This Policy is regularly reviewed by Council and it's staff and an Investment Report is tables before Council on a monthly basis setting out the portfolio breakup and its performance.
The major risk associated with Investments is price risk - the risk that the capital value of Investments may fluctuate due to changes in market prices, whether there changes are caused by factors specific to individual financial instruments or their issuers or are caused by factors affecting similar instruments traded in a market.
Cash & Investments are also subject to interest rate risk - the risk that movements in interest rates could affect returns and income.
A further risk associated with Cash & Investments is credit risk - the risk that the counterparty (to an investment) will not complete their obligations particular to a financial instrument, resulting in a financial loss to Council - be it of a capital or income nature.
Council manages these risks (amongst other measures) by diversifying its portfolio and only purchasing investments with high credit ratings or capital guarantees.
The following represents a summary of the sensitivity of Council's Income Statement and Accumulated Surplus (during the reporting period) due to a change in either the price of a financial asset or the interest rates applicable.
It is assumed that the change in interest rates would have been constant throughout the reporting period.
Increase of Values/Rates Decrease of Values/Rates 2008 Profit Equity Profit Equity Impact of a 10% movement in Market Values - - - - Impact of a 1% movement in Interest Rates 131 - 105 -
2007 Impact of a 10% movement in Market Values - - - - Impact of a 1% movement in Interest Rates 77 - 101 -
page 46 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 15. Financial Risk Management (continued)
$ '000
(b) Receivables
Council's major receivables comprise (i) Rates & Annual charges and (ii) User Charges & Fees.
The major risk associated with these receivables is credit risk - the risk that debts due and payable to Council may not be repaid in full.
Council manages this risk by monitoring outstanding debt and employing stringent debt recovery procedures.
Credit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the land relating to the debts. - that ie, the land can be sold to recover the debt. Council is also able to charge interest on overdue rates & annual charges at higher than market rates which further encourages the payment of debt.
The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for acceptable collection performance.
Council makes suitable provision for doubtful receivables as required and carries out credit checks on most non-rate debtors.
There are no material receivables that have been subjected to a re-negotiation of repayment terms.
A profile of Council's receivables credit risk at balance date follows:
2008 2008 2007 2007 Rates & Rates & Annual Other Annual Other (i) Aging of Receivables Charges Receivables Charges Receivables Current (not yet overdue) 1,012 1,983 819 2,799 Past due - - - - 1 ,012 1,012 1,983 819 2,799
(ii) Movement in Provision for Impairment 2008 2007 of Receivables Balance at the beginning of the year 13 13 Balance at the end of the year 13 13
page 47 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 15. Financial Risk Management (continued)
$ '000
(c) Payables & Borrowings
Payables & Borrowings are both subject to liquidity risk - the risk that insufficient funds may be on hand to meet payment obligations as and when they fall due.
Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer.
As well, payment terms can (in extenuating circumstances) be extended ad overdraft facilities can be drawn down.
The contractual undiscounted cash outflows (ie. principal and interest) of Council's Payables & Borrowings are set out in the Liquidity Table below:
$ '000 Subject Total Actual to no payable in: Cash Carrying maturity ≤ 1 Year 1-2 Yrs 2-3 Yrs 3-4 Yrs 4-5 Yrs > 5 Yrs Outflows Values
2008 Trade/Other Payables 351 1,696 - - - - - 2,047 1,999 Loans & Advances - 520 6,527 690 567 604 606 9,514 9,514 Total Financial Liabilities 351 2,216 6,527 690 567 604 606 11,561 11,513
2007 Trade/Other Payables 227 1,592 - - - - - 1,819 1,819 Loans & Advances - 464 494 662 536 282 6,011 8,449 8,449 Total Financial Liabilities 227 2,056 494 662 536 282 6,011 10,268 10,268
Borrowings are also subject to interest rate risk - the risk that movements in interest rates could adversely affect funding costs & debt servicing requirements. Council manages this risk through the diversification of borrowing types, maturities & interest rate structures.
The following interest rates were applicable 2008 2007 to Council's Borrowings at balance date: Carrying Average Carrying Average Value Interest Rate Value Interest Rate Trade/Other Payables 1,999 0.0% 1,819 0.0% Loans & Advances - Fixed Interest Rate 9,514 6.7% 8,449 6.6% 11 ,513 11,513 10,268
page 48 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 16. Material Budget Variations
$ '000
Council's Original Financial Budget for 07/08 was incorporated as part of its Management Plan and was adopted by the Council on 25 June 2007.
While the Income Statement included in this General Purpose Financial Report must disclose the Original Budget adopted by Council, the Local Government Act permits Council to review its Financial Budget on a Quarterly Basis, so that it is able to manage the various movements in actuals versus budget that invariably occur throughout the year.
This Note sets out the details of MATERIAL VARIATIONS between Council's Original Budget and its Actual results for the year as per the Income Statement - even though such variations may have been adjusted for during each Quarterly Budget Review.
Material Variations represent those variances that amount to 10% or more of the original budgeted figure.
Note that for Variations: F = Favourable Budget Variation, U = Unfavourable Budget Variation
2008 2008 2008 $ '000 Budget Actual Variance*
REVENUES
Interest & Investment Revenue 549 1,007 458 83% F Interest income was greater than the amount budgeted due to higher interest rates on invested funds.
Capital Grants & Contributions 1,247 1,654 407 33% F In many instances, the actual amount of grant funds received depends on decisions made by State and Federal Governments after Council's original budget is adopted. Notable grants received in addition to those budgeted include $188,000 - Gross Pollution Trap installation, $ 41,000 - Soil Conservation Works, $ 79,000 Skate Park and $ 24,000 for Water Tanks to service Caravan Park Amenities.
EXPENSES
Borrowing Costs 1,468 601 867 59% F Interest expense is lower than budget because loans for the Sewer Treatment Plant $ 12,000,000 and Civic Centre $ 1,050,000 were not drawn down. In addition, the loan for West Cowra Amenities $ 160,000 was drawn on June 30.
Materials & Contracts 8,474 6,351 2,123 25% F Council's budget is based on a "normal" mix of self-constructed and contract works. The process of calling and accepting tenders during the year can result in substantial changes to thismix, resulting in significant budget variations in this item.
page 49 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 17. Statement of Developer Contributions
$ '000
Under Section 94 & Section 94A of the Environmental Planning and Assessment Act 1979, a Council may require (i) the payment of a monetary contribution or dedication of land or (ii) a % levy on the value of development, in relation to development works that are subject to a development consent issued by Council.
These developer contributions (under S94) or developer levies (under S94A) must be spent specifically for the purpose they were levied and any interest applicable to unspent funds must be attributed to the funds and also spent in accordance with the purpose levied.
S94F funds are also required to be spent on the public purposes nominated within each individual Planning Agreement.
The following tables detail the receipt, interest and use of the above contributions & levies and the value of all remaining funds which are "restricted" in use by their nature and must be spent for the specific purposes raised.
SUMMARY OF CONTRIBUTIONS & LEVIES Projections Received Interest Exp. Internal Held as Exp Over or PURPOSE Opening during Year earned during Borrowing Restricted Future still (under) BalanceCash Non Cash in Yr Yr (to)/from Asset income outstanding Funding Drainage 27 22 - 3 - - 52 - - 52 Roads 176 55 - 10 (101) - 140 - - 140 Traffic Facilities ------Parking 65 2 - 3 - - 70 - - 70 Open Space 17 4 - 2 - - 23 - - 23 Community Facilities 52 19 - 2 (49) - 24 - - 24 Other 5 1 - - - - 6 - - 6 S94 Contributions - 342 342 103 - 20 (150) - 315 - - 315 under a Plan S94A Levies - - - 43 - - - - 43 - - 43 under a Plan Total S94 Revenue 342 342 146 - 20 (150) - 358 - - 358 Under Plans
S94 not under Plans ------S93F Planning Agreements ------
S64 Contributions 316 81 - 28 (48) - 377 - - 377 Total Contributions 658 227 - 48 (198) - 735 - - 735
page 50 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 17. Statement of Developer Contributions (continued)
$ '000
S94 CONTRIBUTIONS - UNDER A PLAN
CONTRIBUTION PLAN - COWRA SHIRE COUNCIL Projections Received Interest Exp. Internal Held as Exp Over or PURPOSE Opening during Year earned during Borrowing Restricted Future still (under) Balance Cash Non Cash in Yr Yr (to)/from Asset income outstanding Funding Drainage 27 22 - 3 - - 52 - - 52 Roads 176 54 - 10 (99) - 141 - - 141 Parking 65 2 - 3 - - 70 - - 70 Open Space 17 4 - 2 - - 23 - - 23 Community Facilities 52 18 - 2 (49) - 23 - - 23 Other 5 1 - - - - 6 - - 6 Total 342 101 - 20 (148) - 315 - - 315
S94A LEVIES - UNDER A PLAN
CONTRIBUTION PLAN - COWRA SHIRE COUNCIL Projections Received Interest Exp. Internal Held as Exp Over or PURPOSE Opening during Year earned during Borrowing Restricted Future still (under) Balance Cash Non Cash in Yr Yr (to)/from Asset income outstanding Funding Section 94 A - 43 - - - - 43 - - 43 Total - 43 - - - - 43 - - 43
page 51 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 18. Contingencies & Other Assets/Liabilities Not Recognised
$ '000
The following assets and liabilities do not qualify for (ii) StateCover Limited (continued) recognition in the Balance Sheet, but their knowledge & disclosure is considered relevant to the users of These future equity contributions would be required Council's Financial Report. to maintain the company’s minimum level of Net Assets in accordance with its Licence Requirements.
LIABILITIES NOT RECOGNISED: (iii) Other Guarantees
1. Guarantees Council has provided no other Guarantees other than those listed above. (i) Statewide Limited 2. Other Liabilities Council is a member of Statewide Mutual, a mutual pool scheme providing liability insurance to Local (i). Third Party Claims Government. Membership includes the potential to share in either the net assets or liabilities of the The Council is involved from time to time in various fund depending on its past performance. Council’s claims incidental to the ordinary course of business share of the Net Assets or Liabilities reflects Councils including claims for damages relating to its services. contributions to the pool and the result of insurance claims within each of the Fund Years. Council believes that it is appropriately covered for all claims through its Insurance Coverage and The future realisation and finalisation of claims does not expect any material liabilities to eventuate. incurred but not reported to 30/6 this year may result in future liabilities or benefits as a result of past (ii) S94 Plans events that Council will be required to fund or share in respectively. Council levies Section 94/94A Contributions upon various development across the Council area through (ii) StateCover Limited the required Contributions Plans.
Council is a member of StateCover Mutual Limited As part of these Plans, Council has received funds and holds a partly paid share in the entity. for which it will be required to expend the monies in accordance with those Plans. StateCover is a company providing workers compensation insurance cover to the NSW Local As well, these Plans indicate proposed future Government Industry and specifically Council. expenditure to be undertaken by Council, which will be funded by making levies and receipting funds in Council has a contingent liability to contribute further future years. equity in the event of the erosion of the Company's capital base as a result of the company's past These future expenses do not yet qualify as liabilities performance and/or claims experience or as a as of the Reporting Date, but represent Councils of any increased prudential requirements of APRA. intention to spend funds in the manner and timing set out in those Plans.
page 52 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 18. Contingencies & Other Assets/Liabilities Not Recognised (continued)
$ '000
ASSETS NOT RECOGNISED: (ii) Defined Benefit Superannuation Contribution Plans (continued) (i) Infringement Notices/Fines The Schemes most recent full actuarial review Fines & Penalty Income, the result of Council issuing indicated that the Net Assets of the Scheme were Infringement Notices is followed up and collected by more than sufficient to meet the accrued benefits of the Infringement Processing Bureau. the Schemes defined benefit member category.
Councils Revenue Recognition policy for such Council has not recorded any asset in these income is to account for it as revenue on receipt. Financial Reports to represent any future economic benefit relating to the Scheme's Financial Position, Accordingly, at Year End, there is a potential asset nor has it recorded any movements in the Schemes due to Council representing issued but updated Financial Position in these Accounts. Infringement Notices. Accordingly, contributions made to the defined Due to the limited information available on the status, benefit scheme are recognised as an expense when value and duration of outstanding Notices, Council is they become payable - similar to accounting for a unable to determine the value of outstanding income. defined contributions plan.
(ii) Defined Benefit Superannuation (iii) Land Under Roads Contribution Plans As permitted under AASB 1045 and in accordance Council participates in an employer sponsored with DLG recommendations, Council has not brought Defined Benefit superannuation Scheme, and makes to account in these Reports the value of Land Under contributions as determined by the Superannuations Roads. Trustees. This is due to the divergence of opinion as to what The Local Government Superannuation Scheme value should be ascribed to such assets. however, has advised that it is unable to provide Council with an accurate estimate of its share of the At present, the transitional period for deferral of Defined Benefit Schemes assets and liabilities in recognition ends on 1 July, 2008. accordance with AASB 119.
Note 19. Controlled Entities, Associated Entities & Interests in Joint Ventures
Council has no interest in any Controlled Entities, Associated Entities or Joint Ventures.
page 53 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 20. Equity - Retained Earnings and Revaluation Reserves
Actual Actual $ '000 Notes 2008 2007 a. Retained Earnings
Movements in Retained Earnings were as follows: Balance at beginning of Year (from previous years audited accounts) 171,385 168,870 a. Correction of Prior Period Errors (18,116) (18,116) b. Changes in Accounting Policies (Prior Period Effects) - - c. Current Year Income & Expenses Recognised direct to Equity excluding direct to Reserves transactions - - d. Net Operating Result for the Year 1,490 2,515 e. Distributions to/(Contributions from) Minority Interests - - f. Transfers between Equity - - Balance at End of the Reporting Period 154,759 153,269 b. Reserves
(i) Reserves are represented by:
- Infrastructure, Property, Plant & Equipment Reserve 43,953 - Total 43,953 -
(ii). Reconciliation of movements in Reserves:
Infrastructure, Property, Plant & Equipment Reserve - Opening Balance - - - Revaluations for the year 9(a) 43,953 - - Balance at End of Year 43,953 -
TOTAL VALUE OF RESERVES 43,953 -
(iii). Nature & Purpose of Reserves
Infrastructure, Property, Plant & Equipment Revaluation Reserve - The Infrastructure, Property, Plant & Equipment Revaluation Reserve is used to record increments/decrements of Non Current Asset values due to their revaluation.
page 54 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008
Note 20. Equity - Retained Earnings and Revaluation Reserves (continued)
Actual Actual $ '000 Notes 2008 2007 c. Correction of Error/s relating to a Previous Reporting Period
As part of Council's transition to measuring all it's I,PP&E at Fair Values, Council this year reviewed and brought to account Fair Values for its Buildings, Water and Sewerage Infrastructure.
As part of that evaluation & measurement process, the remaining useful life of each asset has been reassessed to actual.
This reassessment has resulted in a material difference as to where some assets actually sit in relation to their asset life cycle relative to what the value of accumulated depreciation in Council's Financial Reports had previously indicated.
Council does not have sufficient and reliable information that will allow the restatement of information prior to 30/6/07 (the closing date for the comparative figures in this report).
As a result, Council has adjusted the accumulated depreciation for these asset classes as at 30/6/07 to reflect the correct value of accumulated depreciation;
Accumulated Depreciation Restatement - Buildings (3,589) - Accumulated Depreciation Restatement - Water Infrastructure (13,306) - Accumulated Depreciation Restatement - Sewerage Infrastructure (1,221) -
This adjustment resulted in net increase / (decrease) in Council's Accumulated Surplus as at 30/6/07.
In accordance with AASB 108 - Accounting Policies, Changes in Accounting Estimates and Errors, the above Prior Period Errors have been recognised retrospectively.
These amounted to the following Equity Adjustments:
- Adjustments to Opening Equity - 1/7/06 - - (relating to adjustments for the 30/6/06 reporting year end and prior periods) - Adjustments to Closing Equity - 30/6/07 (18,116) - (relating to adjustments for the 30/6/07 year end) Total Prior Period Adjustments - Prior Period Errors (18,116) - d. Voluntary Changes in Accounting Policies
Council made no voluntary changes in any accounting policies during the year.
page 55 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 21. Reinstatement, Rehabilitation & Restoration Liabilities
$ '000
Council has legal/public obligations to make restore, rehabilitate and reinstate the following assets/operations;
Estimated year of NPV of Provision Asset/Operation restoration 2008 2007
Quarries 2044 218 206 Balance at End of the Reporting Period 10 218 206
Under AASB 116 - Property, Plant & Equipment, where the use of an asset results in the obligation to dismantle or remove the asset and restore the site on which the asset stands, an estimate of such costs is required to be included in the cost of the asset.
An equivalent liability must be recognised under AASB 137 - Provisions, Contingent Liabilities and Contingent Assets.
The provision has been calculated by determining the present value of the future expenditures expected to be incurred. The discount rate used is the risk free borrowing rate applicable to Council.
Reconciliation of movement in Provision for year:
Balance at beginning of year 206 194 Amortisation of discount (expensed to borrowing costs) 12 12 Total - Reinstatement, rehabilitation and restoration provision 218 206
Note 22. Non Current Assets/Liabilities classified as "Held for Sale"
Council did not classify any Non Current Assets or Disposal Groups as "Held for Sale".
page 56 Financial Report 2008
Cowra Shire Council
Notes to the Financial Statements for the financial year ended 30 June 2008 Note 23. Events occurring after Balance Sheet Date
$ '000
Events that occur after the reporting date of 30 June 2008, up to and including the date when the financial report is "authorised for issue" have been taken into account in preparing this financial report.
Council has adopted the date of receipt of the Auditors' Report as the appropriate "authorised for issue" date relating to this General Purpose Financial Report.
Accordingly, the "authorised for issue" date is 06/11/08.
Events that occur after the Reporting Date represent one of two types:
(i) Events that have provided evidence of conditions that existed at the Reporting Date
These financial reports (and the figures therein) incorporate all "adjusting events" that provided evidence of conditions that existed at 30 June 2008.
(ii) Events that have provided evidence of conditions that arose after the Reporting Date
These financial reports (and figures therein) do not incorporate any "non adjusting events" that have occurred after 30 June 2008 and which are only indicative of conditions that arose after 30 June 2008.
Council is unaware of any material or significant "non adjusting events" that should be disclosed.
Note 24. Discontinued Operations
Council has not classified any of its Operations as "Discontinued".
Note 25. Intangible Assets
Intangible Assets represent identifiable non-monetary asset without physical substance.
Council is unaware of any control over Intangible Assets that warrant their recognition in the Financial Reports, including either internally generated and developed assets or purchased assets.
page 57 Financial Report 2008
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Financial Report 2008
(d)(d)(d) Cash Flow Statement
The Statement of Cash Flows reports a net increase in cash assets held of $2,119,000 (2007 increase - $702,000) as follows:
2008 2007 MoMoMovementMovement $’000 $’000 $’000
Cash flow provided by / (used in)
Operating activities 6,485 5,744 741
Investing activities (5,431) (6,035) 604
Financing activities 1,065 993 72
Net increase / (decrease) in cash held 2,119 702 1,417
Cash flows from operatingoperating activities
The cashflows provided by operating activities has increased against the prior financial year. All material movements have been explained in the income statement above.
Cash flows from investing activities
The major cash inflows and outflows from investing activities related to the sale and acquisition of infrastructure, property, plant and equipment.
Examples of major asset additions include: • Roads, bridges and footpaths works valued at $1,688,000 • Water mains replacement • Sewer treatment works
Cash flows from financing activities
The net cash inflows and outflows from financing activities was $1,065,000 (2007 - $993,000), and comprises $1,541,000 of new borrowings drawn down for emergency water supply, Mulyan Oval and West Cowra recreation ground amenities. Repayments of loan principal totaling $476,000 were also made during the year.
(e)(e)(e) Comparison of Actual and Budgeted Performance
Council’s surplus from ordinary activities after capital amounts of $1,490,000 was $3,438,000 more than Council’s original estimates.
The nature of this report does not lend itself to detailed analysis of individual budget variations. Note 16 of Council’s financial statements addresses the contributing factors to this variation in detail.
page 65
Financial Report 2008
page 66 Cowra Shire Council SPECIAL PURPOSE FINANCIAL REPORTS for the year ended 30 June 2008
“A leading, innovative and creative community, proud of our place in history, offering opportunity with the best of country living” SPFR 2008
Cowra Shire Council
Special Purpose Financial Reports for the financial year ended 30 June 2008
Contents Page
1. Statement by Councillors & Management 2
2. Special Purpose Financial Reports:
- Income Statement of Water Supply Business Activity 3 - Income Statement of Sewerage Business Activity 4 - Income Statement of Other Business Activities n/a
- Balance Sheet of Water Supply Business Activity 5 - Balance Sheet of Sewerage Business Activity 6 - Balance Sheet of Other Business Activities n/a
3. Notes to the Special Purpose Financial Reports 7
4. Auditor's Report 16
Background
(i) These Special Purpose Financial Reports have been prepared for the use by both Council and the Department of Local Government in fulfilling their requirements under National Competition Policy.
(ii) The principle of competitive neutrality is based on the concept of a "level playing field" between persons/entities competing in a market place, particularly between private and public sector competitors.
Essentially, the principle is that government businesses, whether Commonwealth, State or Local, should operate without net competitive advantages over other businesses as a result of their public ownership.
(iii) For Council, the principle of competitive neutrality & public reporting applies only to declared business activities.
These include (a) those activities classified by the Australian Bureau of Statistics as business activities being water supply, sewerage services, abattoirs, gas production and reticulation and (b) those activities with a turnover of over $2 million that Council has formally declared as a Business Activity (defined as Category 1 activities).
(iv) In preparing these financial reports for Council's self classified Category 1 businesses and ABS defined activities, councils must (a) adopt a corporatisation model and (b) apply full cost attribution including tax equivalent regime payments & debt guarantee fees (where the business benefits from councils borrowing position by comparison with commercial rates).
page 1 SPFR 2008
page 2 SPFR 2008
Cowra Shire Council
Income Statement of Council's Water Supply Business Activity for the financial year ended 30 June 2008
Actual Actual Actual $ '000 2008 2007 2006
Income from continuing operations Access charges 1,515 1,204 1,802 User charges 1,833 1,958 1,271 Fees - 831 57 Interest 19 39 35 Grants and contributions provided for non capital purposes 737 63 62 Profit from the sale of assets - - - Other income 46 - - Total income from continuing operations 4,150 4,095 3,227
Expenses from continuing operations Employee benefits and on-costs 1,697 1,426 1,618 Borrowing costs 217 - - Materials and contracts 1,179 1,195 1,057 Depreciation and impairment 949 922 884 Water purchase charges 232 114 139 Loss on sale of assets - - - Calculated taxation equivalents 27 - - Debt guarantee fee (if applicable) 3 55 11 Other expenses - 232 191 Total expenses from continuing operations 4,304 3,944 3,900 Surplus (deficit) from Continuing Operations before capital amounts (154) 151 (673)
Grants and contributions provided for capital purposes 56 4 51 Surplus (deficit) from Continuing Operations after capital amounts (98) 155 (622)
Surplus (deficit) from Discontinued Operations - - - Surplus (deficit) from ALL Operations before tax (98) 155 (622) less: Corporate Taxation Equivalent (30%) [based on result before capital] - (45) -
SURPLUS (DEFICIT) AFTER TAX (98) 110 (622) plus Opening Retained Profits 31,371 31,161 31,783 plus/less: Prior Period Adjustments (relating to prior period errors - dep) (13,362) - - plus Adjustments for amounts unpaid: - Taxation equivalent payments 27 - - - Debt guarantee fees 3 55 - - Corporate taxation equivalent - 45 - less: - Tax Equivalent Dividend paid - - - - Surplus dividend paid - - - Closing Retained Profits 17,941 31,371 31,161
Return on Capital % 0.2% 0.5% 0.0% Subsidy from Council 2,495 - -
Calculation of dividend payable: Surplus (deficit) after tax (98) 110 (622) less: Capital grants and contributions (excluding developer contributions) (15) - - Surplus for dividend calculation purposes - 110 - Potential Dividend calculated from surplus - 55 -
page 3 SPFR 2008
Cowra Shire Council
Income Statement of Council's Sewerage Business Activity for the financial year ended 30 June 2008
Actual Actual Actual $ '000 2008 2007 2006
Income from continuing operations Access charges 2,348 1,638 1,411 User charges - - - Liquid Trade Waste Charges - - - Fees - - - Interest 20 28 30 Grants and contributions provided for non capital purposes 41 42 43 Profit from the sale of assets - - - Other income 123 141 21 Total income from continuing operations 2,532 1,849 1,505
Expenses from continuing operations Employee benefits and on-costs 668 466 406 Borrowing costs 56 46 84 Materials and contracts 464 390 265 Depreciation and impairment 316 306 293 Loss on sale of assets - - - Calculated taxation equivalents 24 - - Debt guarantee fee (if applicable) 1 15 15 Other expenses - - - Total expenses from continuing operations 1,529 1,223 1,063 Surplus (deficit) from Continuing Operations before capital amounts 1,003 626 442
Grants and contributions provided for capital purposes 66 16 66 Surplus (deficit) from Continuing Operations after capital amounts 1,069 642 508
Surplus (deficit) from discontinued operations - - - Surplus (deficit) from ALL Operations before tax 1,069 642 508 less: Corporate Taxation Equivalent (30%) [based on result before capital] (301) (188) (133)
SURPLUS (DEFICIT) AFTER TAX 768 454 375 plus Opening Retained Profits 10,839 10,197 9,674 plus/less: Prior Period Adjustments (relating to prior period errors - dep) (1,201) - - adjustments for amounts unpaid: - Taxation equivalent payments 24 - - - Debt guarantee fees 1 - 15 - Corporate taxation equivalent 301 188 133 less: - Tax Equivalent Dividend paid - - - - Surplus dividend paid - - - Closing Retained Profits 10,732 10,839 10,197
Return on Capital % 5.1% 8.6% 7.4% Subsidy from Council 270 - -
Calculation of dividend payable: Surplus (deficit) after tax 768 454 375 less: Capital grants and contributions (excluding developer contributions) (26) - - Surplus for dividend calculation purposes 742 454 375 Potential Dividend calculated from surplus 371 227 188
page 4 SPFR 2008
Cowra Shire Council
Balance Sheet of Council's Water Supply Business Activity as at 30 June 2008
Actual Actual $ '000 2008 2007
ASSETS Current Assets Cash and cash equivalents 2,630 2,088 Investments - - Receivables 1,326 1,291 Inventories 5 4 Other - - Non-current assets classified as held for sale - - Total Current Assets 3,961 3,383
Non-Current Assets Investments - - Receivables - - Inventories - - Infrastructure, property, plant and equipment 39,659 30,702 Investments accounted for using equity method - - Investment property - - Other - - Total non-Current Assets 39,659 30,702 TOTAL ASSETS 43,620 34,085
LIABILITIES Current Liabilities Payables 79 53 Borrowings 71 77 Provisions 74 68 Total Current Liabilities 224 198
Non-Current Liabilities Payables - - Borrowings 3,580 2,375 Provisions 133 141 Total Non-Current Liabilities 3,713 2,516 TOTAL LIABILITIES 3,937 2,714 NET ASSETS 39,683 31,371
EQUITY Retained earnings 17,941 31,371 Revaluation reserves 21,742 - Council equity interest 39,683 31,371 Minority equity interest - - TOTAL EQUITY 39,683 31,371
page 5 SPFR 2008
Cowra Shire Council
Balance Sheet of Council's Sewerage Business Activity as at 30 June 2008
Actual Actual $ '000 2008 2007
ASSETS Current Assets Cash and cash equivalents 3,792 3,943 Investments - - Receivables 306 198 Inventories - - Other - - Non-current assets classified as held for sale - - Total Current Assets 4,098 4,141
Non-Current Assets Investments - - Receivables - - Inventories - - Infrastructure, property, plant and equipment 20,600 7,792 Investments accounted for using equity method - - Investment property - - Other - - Total non-Current Assets 20,600 7,792 TOTAL ASSETS 24,698 11,933
LIABILITIES Current Liabilities Payables 8 114 Borrowings 94 98 Provisions 44 22 Total Current Liabilities 146 234
Non-Current Liabilities Payables - - Borrowings 728 822 Provisions 23 38 Total Non-Current Liabilities 751 860 TOTAL LIABILITIES 897 1,094 NET ASSETS 23,801 10,839
EQUITY Retained earnings 10,732 10,839 Revaluation reserves 13,069 - Council equity interest 23,801 10,839 Minority equity interest - - TOTAL EQUITY 23,801 10,839
page 6 SPFR 2008
Cowra Shire Council
Special Purpose Financial Reports for the financial year ended 30 June 2008
Contents of the Notes accompanying the Financial Statements
Note Details Page
1 Summary of Significant Accounting Policies 8
2 Water Supply Business Best Practice Management disclosure requirements 11
3 Sewerage Business Best Practice Management disclosure requirements 13
page 7
SPFR 2008
Cowra Shire Council
Notes to the Special Purpose Financial Reports for the financial year ended 30 June 2008
Note 1. Significant Accounting Policies
These financial statements are Special Purpose disclosures are reflected in Council’s pricing and/or Financial Reports (SPFR’s) prepared for use by the financial reporting systems and include taxation Council, the Department of Local Government and the equivalents; council subsidies; return on investments Department of Water & Energy. (rate of return); and dividends paid.
For the purposes of these statements, the council’s activities (listed herein) are based upon them not Declared Business Activities being reporting entities. In accordance with Pricing & Costing for Council This special purpose financial report, unless otherwise Businesses - A Guide to Competitive Neutrality, stated, has been prepared in accordance with; council has declared that the following are to be considered as business activities: applicable Australian Accounting Standards, Category 1 other authoritative pronouncements of the Australian Accounting Standards Board, (where gross operating turnover is over $2 million)
Urgent Issues Group Consensus Views, a. Cowra Shire Council Water Supply Comprising the operations and net assets of the Local Government Act and Regulations, Council’s water supply activities servicing the town of Cowra, surrounding villages & rural properties. the Local Government Code of Accounting
Practice and Financial Reporting, and
the Local Government Asset Accounting Manual. Category 2
(where gross operating turnover is less than $2 million) The statements are also prepared on an accruals basis. They are based on historic costs and do not a. Cowra Shire Sewerage Service take into account changing money values or, except Comprising the operations and net assets of where specifically stated, current values of non- Council’s sewerage reticulation & treatment current assets. activities servicing the town of Cowra.
Certain taxes and other costs, appropriately described, have been imputed for the purposes of the Monetary Amounts National Competition Policy. Amounts shown in the financial statements are in Australian currency and rounded to the nearest one National Competition Policy thousand dollars, with the exception of some figures disclosed in Note 2 (Water Supply Best Practice Council has adopted the principle of ‘competitive Management Disclosures) and Note 3 (Sewerage neutrality’ to its business activities as part of the Best Practice Management Disclosures). national competition policy which is being applied throughout Australia at all levels of government. As required by the Department of Water & Energy, some amounts shown in Notes 2 and Note 3 are The framework for its application is set out in the June shown in whole dollars. 1996 Government Policy statement on the “Application of National Competition Policy to Local Government”. The “Pricing & Costing for Council (i) Taxation Equivalent Charges Businesses A Guide to Competitive Neutrality” issued by the Department of Local Government in July 1997 Council is liable to pay various taxes and financial has also been adopted. duties. Where this is the case, they are disclosed as a cost of operations (General Purpose Financial Report) The pricing & costing guidelines outline the process just like all other costs. for identifying and allocating costs to activities and provide a standard of disclosure requirements. These
page 8
SPFR 2008
Cowra Shire Council
Notes to the Special Purpose Financial Reports for the financial year ended 30 June 2008
Note 1. Significant Accounting Policies (continued)
However, where council does not pay some taxes Accordingly, the return on capital invested is set at a which are generally paid by private sector businesses, pre-tax level (gain/(loss) from ordinary activities before such as income tax, these equivalent tax payments capital amounts) as would be applied by a private have been applied to all council nominated business sector competitor – that is, it should include a activities and are reflected in the SPFR. provision equivalent to the corporate income tax rate, currently 30%. For the purposes of disclosing comparative information relevant to the private sector equivalent Income Tax is only applied where a positive the following taxation equivalents have been applied gain/(loss) from ordinary activities before capital to all council nominated business activities (this does amounts has been achieved. not include council’s non-business activities): Since the taxation equivalent is notional - that is, it is payable to the “Council” as the owner of business Notional Rate Applied % operations, it represents an internal payment and has no effect on the operations of the council. Accordingly, Corporate Income Tax Rate – 30% there is no need for disclosure of internal charges in the GPFR. Land Tax – 1.6% + $100 on combined land values above $359,000 The rate applied of 30% is the equivalent company tax rate prevalent as at balance date. No adjustments Payroll Tax – 6% on Salaries and Wages in excess of have been made for variations that have occurred $600,000 during the year.
In accordance with the guidelines for Best Practice Management of Water Supply and Sewerage, a Local Government Rates & Charges payment for the amount calculated as the annual tax equivalent charges (excluding income tax) must be A calculation of the equivalent rates and charges for paid from Water Supply and Sewerage Business all Category 1 businesses have been applied to all activities. assets owned or exclusively used by the business activity. The payment of taxation equivalent charges, referred in the Best Practice Management of Water Supply and Sewerage Guides to as a “Dividend for Taxation Loan & Debt Guarantee Fees equivalent”, may be applied for any purpose allowed under the Local Government Act, 1993. The debt guarantee fee is designed to ensure that council business activities face “true” commercial Achievement of substantial compliance against the borrowing costs in line with private sector competitors. guidelines for Best Practice Management of Water In order to calculate a debt guarantee fee, council has Supply and Sewerage is not a prerequisite for the determined what the differential borrowing rate would payment of the tax equivalent charges, however the have been between the commercial rate and the payment must not exceed $3 per assessment. council’s borrowing rate for its business activities.
Income Tax (ii) Subsidies
An income tax equivalent has been applied on the Government policy requires that subsidies provided to profits of the business. customers and the funding of those subsidies must be explicitly disclosed. Whilst income tax is not a specific cost for the purpose of pricing a good or service, it needs to be taken into Subsidies occur where council provides services on a account of in terms of assessing the rate of return less than cost recovery basis. This option is exercised required on capital invested. on a range of services in order for council to meet its community service obligations.
page 9
SPFR 2008
Cowra Shire Council
Notes to the Special Purpose Financial Reports for the financial year ended 30 June 2008
Note 1. Significant Accounting Policies (continued)
Accordingly, Subsidies disclosed (in relation to (iv) Dividends National Competition Policy) represents the difference between revenue generated from ‘rate of return’ Council is not required to pay dividends to either itself pricing and revenue generated from prices set by the as owner of a range of businesses or to any external council in any given financial year. entities.
The overall effect of subsidies is contained within the Local Government Water Supply and Sewerage Income Statement of Business Activities. Businesses are permitted to pay an annual dividend from its water supply or sewerage business surplus.
(iii) Return on Investments (Rate of Return) The dividend, calculated and approved in accordance with the Best Practice Management Guidelines, must The Policy statement requires that councils with not exceed 50% of this surplus in any one year, or the Category 1 businesses “would be expected to number of water supply or sewerage assessments at generate a return on capital funds employed that is 30 June 2008 multiplied by $30 (less the payment for comparable to rates of return for private businesses tax equivalent charges, not exceeding $3 per operating in a similar field”. assessment).
Such funds are subsequently available for meeting In accordance with the guidelines for Best Practice commitments or financing future investment Management of Water Supply and Sewerage, a strategies. Dividend Payment form, Statement of Compliance, Unqualified Independent Financial Audit Report and As a minimum, business activities should generate a Compliance Audit Report are required to be submitted return equal to the Commonwealth 10 year bond rate to the Department of Water & Energy prior to making which is 6.45% at 30/6/08. the dividend and only after the Department has approved its payment. The actual rate of return achieved by each business activity is disclosed at the foot of each respective Income Statement.
page 10
SPFR 2008
Cowra Shire Council
Notes to the Special Purpose Financial Reports for the financial year ended 30 June 2008 Note 2. Water Supply Business Best Practice Management disclosure requirements
Dollars Amounts shown below are in WHOLE DOLLARS (unless otherwise indicated) 2008
1. Calculation and Payment of Tax-Equivalents [All Local Government Local Water Utilities must pay this dividend for tax-equivalents]
(i) Calculated Tax Equivalents 30,000
(ii) No of assessments multiplied by $3/assessment 16,545
(iii) Amounts payable for tax-equivalents [lesser of (i) and (ii)] 16,545
(iv) Amounts actually paid for Tax Equivalents 27
2. Dividend from Surplus (i) 50% of Surplus before Dividends - [Calculated in accordance with Best Practice Management for Water Supply and Sewerage Guidelines]
(ii) No. of assessments multiplied by $30/assessment, less tax equivalent 148,905 charges/assessment
(iii) Cumulative surplus before Dividends for the 3 years to 30 June 2008, less the cumulative dividends paid for the 2 years to 30 June 2007 110,000
2008 Surplus - 2007 Surplus 110,000 2006 Surplus - 2007 Dividend - 2006 Dividend -
(iv) Maximum Dividend from Surplus [least of (i), (ii) and (iii) above] -
(v) Dividend paid from Surplus [refer below for required pre-dividend payment Criteria] -
3. Required outcomes for 7 Criteria [To be eligible for the payment of a "Dividend from Surplus", ALL the Criteria below need a "YES"]
(i) Completion of Strategic Business Plan (including Financial Plan) NO
(ii) Full Cost Recovery, without significant cross subsidies YES [Refer Item 2(a) in Table 1 on page 22 of the Best Practice Guidelines]
- Complying charges [Item 2(b) in Table 1] YES - DSP with Commercial Developer Charges [Item 2(e) in Table 1] YES - If Dual Water Supplies, Complying Charges [Item 2(g) in Table 1] YES
(iii) Sound Water Conservation and Demand Management implemented YES
(iv) Sound Drought Management implemented YES
(v) Complete Performance Reporting Form (by 15 September each year) YES
(vi) Integrated Water Cycle Management Evaluation NO
(vii) Complete and implement Integrated Water Cycle Management Strategy NO
page 11 SPFR 2008
Cowra Shire Council
Notes to the Special Purpose Financial Reports for the financial year ended 30 June 2008 Note 2. Water Supply Business Best Practice Management disclosure requirements (continued)
Dollars Amounts shown below are in WHOLE DOLLARS (unless otherwise indicated) 2008
National Water Initiative (NWI) Financial Performance Indicators
NWI F1 Total Revenue (Water) $'000 4,170 Total Revenue (w13) - Grants for the Acquisition of Assets (w11a) - Interest Income (w9)
NWI F4 Revenue from Residential Usage Charges (Water) % 45.15% Income from Residential Usage Charges (w6b) x 100 divided by the sum of [Income from Residential Usage Charges (w6a) + Income from Residential Access Charges (w6b)]
NWI F9 Written Down Replacement Cost of Fixed Assets (Water) $'000 37,823 Written down current cost of system assets (w47)
NWI F11 Operating Cost (OMA) (Water) $'000 2,919 Management Expenses (w1) + Operational & Maintenance Expenses (w2)
NWI F14 Capital Expenditure (Water) $'000 1,525 Acquisition of fixed assets (w16)
NWI F17 Economic Real Rate of Return (Water) % 0.76% [Total Income (w13) - Interest Income (w9) - Grants for acquisition of assets (w11a) - Total Cost (NWI F11) - Current Cost Depreciation (w3)] x 100 divided by [Written Down Current Cost of System Assets (w47) + Plant & Equipment (w33b)]
NWI F26 Capital Works Grants (Water) $'000 15 Grants for the Acquisition of Assets (w11a)
Notes: 1. References to w (eg. w12) refer to item numbers within Special Schedules No. 3 & 4 of Council's Annual Financial Reporting.
2. The NWI Performance Indicators are based upon the National Performance Framework Handbook for Urban Performance Reporting Indicators & Definitions.
page 12 SPFR 2008
Cowra Shire Council
Notes to the Special Purpose Financial Reports for the financial year ended 30 June 2008 Note 3. Sewerage Business Best Practice Management disclosure requirements
Dollars Amounts shown below are in WHOLE DOLLARS (unless otherwise indicated) 2008
1. Calculation and Payment of Tax-Equivalents [All Local Government Local Water Utilities must pay this dividend for tax-equivalents]
(i) Calculated Tax Equivalents 25,000
(ii) No of assessments multiplied by $3/assessment 11,196
(iii) Amounts payable for Tax Equivalents [lesser of (i) and (ii)] 11,196
(iv) Amounts actually paid for Tax Equivalents 24
2. Dividend from Surplus
(i) 50% of Surplus before Dividends 371,050 [Calculated in accordance with Best Practice Management for Water Supply and Sewerage Guidelines]
(ii) No. of assessments x ($30 less tax equivalent charges per assessment) 100,764
(iii) Cumulative surplus before dividends for the 3 years to 30 June 2008, less the cumulative dividends paid for the 2 years to 30 June 2007 1,571,700
2008 Surplus 742,100 2007 Surplus 454,200 2006 Surplus 375,400 2007 Dividend - 2006 Dividend -
(iv) Maximum dividend from surplus [least of (i), (ii) and (iii) above] 100,764
(v) Dividend actually paid from surplus [refer below for required pre-dividend payment Criteria] -
3. Required outcomes for 5 Criteria [To be eligible for the payment of a "Dividend from Surplus", ALL the Criteria below need a "YES"]
(i) Completion of Strategic Business Plan (including Financial Plan) NO
(ii) Pricing with full cost-recovery, without significant cross subsidies YES [Refer Item 2(a) in Table 1 on page 22 of the Best Practice Guidelines]
Complying charges(a) Residential [Item 2(c) in Table 1] YES (b) Non Residential [Item 2(c) in Table 1] YES (c) Trade Waste [Item 2(d) in Table 1] YES DSP with Commercial Developer Charges [Item 2(e) in Table 1] NO Liquid Trade Waste Approvals & Policy [Item 2(f) in Table 1] NO
(iii) Complete Performance Reporting Form (by 15 September each year) YES
(iv) Integrated Water Cycle Management Evaluation NO
(v) Complete and implement Integrated Water Cycle Management Strategy NO
page 13 SPFR 2008
Cowra Shire Council
Notes to the Special Purpose Financial Reports for the financial year ended 30 June 2008 Note 3. Sewerage Business Best Practice Management disclosure requirements (continued)
Dollars Amounts shown below are in WHOLE DOLLARS (unless otherwise indicated) 2008
National Water Initiative (NWI) Financial Performance Indicators
NWI F2 Total Revenue (Sewerage) $'000 2,523 Total Income (s14) - Grants for Acquisition of Assets (s12a) - Interest Income (s10)
NWI F10 Written Down Replacement Cost of Fixed Assets (Sewerage) $'000 18,433 Written down current cost of system assets (s48)
NWI F12 Operating Cost (Sewerage) $'000 1,057 Management Expenses (s1) + Operational & Maintenance Expenses (s2)
NWI F15 Capital Expenditure (Sewerage) $'000 1,257 Acquisition of Fixed Assets (s17)
NWI F18 Economic Real Rate of Return (Sewerage) % 5.58% [Total Income (s14) - Interest Income (s10) - Grants for acquisiiton of Assets (s12a) - Operating cost (NWI F12) - Current cost depreciation (s3)] x 100 divided by [Written down current cost (ie. WDCC) of System Assets (s48) + Plant & Equipment (s34b)]
NWI F27 Capital Works Grants (Sewerage) $'000 - Grants for the Acquisition of Assets (12a)
National Water Initiative (NWI) Financial Performance Indicators Water & Sewer (combined)
NWI F3 Total Income (Water & Sewerage) $'000 6,693 Total Income (w13 + s14) + Gain/Loss on disposal of assets (w14 + s15) minus Grants for acquisiiton of assets (w11a + s12a) - Interest Income (w9 + s10)
NWI F8 Revenue from Community Service Obligations (Water & Sewerage) % 1.48% Community Service Obligations (NWI F25) x 100 divided by Total Income (NWI F3)
NWI F13 Operating Cost (OMA) (Water & Sewerage) $'000 3,976 Operating Cost (Water & Sewerage) (NWI F11 + NWI F12)
NWI F16 Capital Expenditure (Water & Sewerage) $'000 2,782 Acquisition of Fixed Assets (w16 + s17)
NWI F19 Economic Real Rate of Return (Water & Sewerage) % 2.41% [Total Income (w13 + s14) - Interest Income (w9 + s10) - Grants for acquisition of assets (w11a + s12a) - Operating Cost (NWI F11 + NWI F12) - Current cost depreciation (w3 + s3)] x 100 divided by [Written down replacement cost of fixed assets (NWI F9 + NWI F10) + Plant & equipment (w33b + s34b)]
NWI F20 Dividend (Water & Sewerage) $'000 - Dividend paid from surplus (2(v) of Note 2 + 2(v) of Note 3)
NWI F21 Dividend Payour Ratio (Water & Sewerage) $'000 - Dividend (NWI F20) x 100 divided by Net Profit after tax (NWI F24)
page 14 SPFR 2008
Cowra Shire Council
Notes to the Special Purpose Financial Reports for the financial year ended 30 June 2008 Note 3. Sewerage Business Best Practice Management disclosure requirements (continued)
Dollars Amounts shown below are in WHOLE DOLLARS (unless otherwise indicated) 2008
National Water Initiative (NWI) Financial Performance Indicators Water & Sewer (combined)
NWI F22 Net Debt to Equity (Water & Sewerage) % -3.07% Overdraft (w36 + s37) + Borrowings (w38 + s39) - Cash & Investments (w30 + s31) x 100 divided by [Total Assets (w35 + s36) - Total Liabilities (w40 + s41)]
NWI F23 Interest Cover (Water & Sewerage) 5 Earnings before Interest & Tax (EBIT) divided by Net Interest
Earnings before Interest & Tax (EBIT): 1,265 Operating Result (w15a + s16a) + Interest expense (w4a + s4a) - Interest Income (w9 + s10) - Gain/Loss on disposal of assets (w14 + s15)
Net Interest: 254 Interest Expense (w4a + s4a) - Interest Income (w9 + s10)
NWI F24 Net Profit After Tax (Water & Sewerage) $'000 960 Surplus before dividends (w15a + s16a) - Tax equivalents paid (Note 2-1(iv) + Note 3-1(iv))
NWI F25 Community Service Obligations (Water & Sewerage) $'000 99 Grants for Pensioner Rebates (w11b + s12b)
Notes: 1. References to w (eg. s12) refer to item numbers within Special Schedules No. 5 & 6 of Council's Annual Financial Reporting.
2. The NWI Performance Indicators are based upon the National Performance Framework Handbook for Urban Performance Reporting Indicators & Definitions.
page 15 page 16 page 17 Cowra Shire Council SPECIAL SCHEDULES for the year ended 30 June 2008
“A leading, innovative and creative community, proud of our place in history, offering opportunity with the best of country living” Special Schedules 2008
Cowra Shire Council
Special Schedules for the financial year ended 30 June 2008
Contents Page
Special Schedules1
- Special Schedule No. 1 Net Cost of Services 2
- Special Schedule No. 2(a) Statement of Long Term debt (all purposes) 5 - Special Schedule No. 2(b) Statement of Internal Loans (Sect. 410(3) LGA 1993) 6
- Special Schedule No. 3 Water Supply - Income Statement 7 - Special Schedule No. 4 Water Supply - Balance Sheet 11
- Special Schedule No. 5 Sewerage Service - Income Statement 12 - Special Schedule No. 6 Sewerage Service - Balance Sheet 16
- Notes to Special Schedules No. 3 & 5 17
- Special Schedule No. 7 Condition of Public Works 18
- Special Schedule No. 8 Financial Projections 21
1 Special Purpose Schedules are not audited.
Background
(i) These Special Schedules have been designed to meet the requirements of special purpose users such as;
i the NSW Grants Commission i the Australian Bureau of Statistics (ABS), i the Department of Energy, Utilities & Sustainability (DEUS), and i the Department of Local Government (DLG).
(ii) The financial data is collected for various uses including;
i the allocation of Financial Assistance Grants, i the incorporation of Local Government financial figures in national statistics, i the monitoring of loan approvals, i the allocation of borrowing rights, and i the monitoring of specific service financial activities.
page 1 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 1 - Net Cost of Services for the financial year ended 30 June 2008
$'000 Expenses from Income from Net Cost of continuing operations continuing operations Services Function or Activity Non Capital Capital Group Expenses Group Totals Net Cost Group Totals Revenues Revenues Totals
Governance 197 197 - - - (197) (197)
Administration Corporate Support 3,961 93 - (3,868) Engineering and Works 758 - - (758) Other Support Services - 4,719 - - 93 - (4,626)
Public Order and Safety Contributions to Fire Service Levy 25 - - (25) Fire Protection – Other 398 38 252 (108) Animal Control 171 111 - (60) Beach Control - - - - Enforcement of Local Govt Regs - - - - Emergency Services 15 - - (15) Other - 609 - - 401 - (208)
Health Administration and Inspection 145 12 - (133) Immunisations - - - - Food Control - - - - Insect/Vermin Control - - - - Noxious Plants 221 60 - (161) Health Centres - - - - Other - 366 - - 72 - (294)
Community Services and Education Administration - - - - Family Day Care - - - - Child Care - - - - Youth Services - - - - Other Families and Children - - - -
Aged and Disabled - - - - Migrant Services - - - - Aboriginal Services - - - - Other Community Services 9 - - (9)
Education - 9 - - - - (9)
page 2 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 1 - Net Cost of Services (continued) for the financial year ended 30 June 2008
$'000 Expenses from Income from Net Cost of continuing operations continuing operations Services Function or Activity Non Capital Capital Group Expenses Group Totals Net Cost Group Totals Revenues Revenues Totals
Housing and Community Amenities Housing - - - - Town Planning 447 172 378 103 Domestic Waste Management 1,670 1,753 - 83 Other Waste Management 13 162 - 149 Street Cleaning - - - - Other Sanitation and Garbage - - - - Drainage 578 - - (578) Stormwater Management - - - - Environmental Protection - - - - Public Cemeteries 189 151 - (38) Public Conveniences 77 - - (77) Other Community Amenities 85 3,059 - - 2,616 (85) (443)
Water Supplies 2,815 2,815 3,268 56 3,324 509 509
Sewerage Services 862 862 2,413 40 2,453 1,591 1,591
Recreation and Culture Public Libraries 260 53 - (207) Museums - 6 - 6 Art Galleries 175 53 - (122) Community Centres - - - - Public Halls 88 17 35 (36) Other Cultural Services - 28 - 28
Swimming Pools 359 128 - (231) Sporting Grounds - - - - Parks and Gardens 1,755 95 - (1,660) Other Sport and Recreation 142 2,779 7 113 535 (22) (2,244)
Fuel and Energy Gas Supplies ------
Mining, Manufacturing and Construction Building Control 305 121 - (184) Abattoirs - - - - Quarries and Pits 39 62 - 23 Other - 344 - - 183 - (161)
page 3 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 1 - Net Cost of Services (continued) for the financial year ended 30 June 2008
$'000 Expenses from Income from Net Cost of continuing operations continuing operations Services Function or Activity Non Capital Capital Group Expenses Group Totals Net Cost Group Totals Revenues Revenues Totals
Transport and Communication Urban Roads (UR) - Local 1,254 - - (1,254) Urban Roads - Regional - - - - Sealed Rural Roads (SRR) - Local 522 14 756 248 Sealed Rural Roads - Regional - - - - Unsealed Rural Roads (URR) - Local 320 - - (320) Unsealed Rural Roads - Regional - - - - Bridges on UR - Local - - - - Bridges on UR - Regional - - - - Bridges on SRR - Local 5 - - (5) Bridges on SRR - Regional - - - - Bridges on URR - Local - - - - Bridges on URR - Regional - - - - Footpaths - - - - Aerodromes 111 15 - (96) Parking Areas - - - - Bus Shelters and Services - - - - Water Transport - - - - RTA Works (State) 3,237 3,167 - (70) Street Lighting - - - - Other - 5,449 - - 3,952 - (1,497)
Economic Affairs Camping Areas - - - - Caravan Parks 180 307 24 151 Tourism and Area Promotion 224 - - (224) Industrial Development Promotion 180 18 - (162) Saleyards and Markets 195 278 - 83 Real Estate Development 19 - - (19) Commercial Nurseries 225 132 - (93) Other Business Undertakings 252 1,275 338 - 1,097 86 (178)
Totals – Functions 22,483 13,072 1,654 14,726 (7,757)
General Purpose Revenues(1) 9,247 9,247 9,247 9,247
Share of interests - joint ventures & associates using the equity method ------
NET OPERATING RESULT FOR YEAR 22,483 22,319 1,654 23,973 1,490 1,490 Notes: (1) Includes: Rates & Annual Charges (incl. Ex Gratia), Non Capital General Purpose Grants & Interest on Investments (excl. Restricted Assets)
page 4 Cowra Shire Council
Special Schedule No. 2(a) - Statement of Long Term Debt (all purpose) for the financial year ended 30 June 2008
$'000 Principal outstanding New Debt redemption Principal outstanding Loans at beginning of the year during the year Transfers Interest at the end of the year raised to Sinking applicable Non From Sinking Non Current Total during the Funds for Year Current Total Classification of Debt Current year Revenue Funds Current
Loans (by Source) Commonwealth Government ------Treasury Corporation ------Other State Government ------Public Subscription ------Financial Institutions 464 7,985 8,449 1,541 476 - - 589 520 8,994 9,514 Other ------Total Loans 464 7,985 8,449 1,541 476 - - 589 520 8,994 9,514
Other Long Term Debt Ratepayers Advances ------Government Advances ------Finance Leases ------Deferred Payments ------Total Long Term Debt ------Special Schedules 2008 Schedules Special Total Debt 464 7,985 8,449 1,541 476 - - 589 520 8,994 9,514
Notes: Excludes (i) Internal Loans & (ii) Principal Inflows/Outflows relating to Loan Re-Financing.
page 5 This Schedule is prepared using the Face Value of debt obligations, rather than Fair Value (as per the GPFR's). Cowra Shire Council
Special Schedule No. 2(b) - Statement of Internal Loans [Section 410(3) LGA 1993] for the financial year ended 30 June 2008
$'000
Summary of Internal Loans
Total repaid during the year Principal Outstanding Borrower (by purpose) Amount originally raised (Principal & Interest) at end of year
General Water Sewer Domestic Waste Management 580 109 393 Gas Other
Totals 580 109 393
Note: The summary of Internal Loans (above) represents the total of Council's Internal Loans categorised according to the borrower.
Details of Individual Internal Loans
Date of Amount Total repaid Principal Borrower Lender Minister'sDate Raised Term Dates of Rate of Originally during year Outstanding (by purpose) (by purpose) Approval (years) Maturity Interest raised (Princ. & Int.) at end of year
Waste Fund General Fund 31/12/97 31/12/97 20 31/12/17 8% 500 51 332 2008 Schedules Special Waste Fund General Fund 30/06/00 30/06/00 20 30/06/20 8% 80 8 61
Totals 580 59 393 page 6 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 3 - Water Supply Income Statement Includes ALL INTERNAL TRANSACTIONS, ie. prepared on a Gross Basis. for the financial year ended 30 June 2008
Actuals Actuals $'000 2008 2007
AExpenses and Income Expenses
1. Management expenses a. Administration 1,407 1,457 b. Engineering and Supervision 24 12
2. Operation and Maintenance - Dams & Weirs a. Operation expenses - - b. Maintenance expenses - -
- Mains c. Operation expenses - - d. Maintenance expenses 543 463
- Reservoirs e. Operation expenses 28 - f. Maintenance expenses 14 58
- Pumping Stations g. Operation expenses (excluding energy costs) 96 39 h. Energy costs 188 215 i. Maintenance expenses - -
- Treatment j. Operation expenses (excluding energy costs) 194 169 k. Chemical costs 148 171 l. Maintenance expenses 45 37
- Other m. Operation expenses - - n. Maintenance expenses - - o. Purchase of water 232 114
3. Depreciation a. System assets 949 922 b. Plant and equipment - -
4. Miscellaneous expenses a. Interest expenses 217 - b. Revaluation Decrements - - c. Other expenses 187 232 d. Tax Equivalents Dividends (actually paid) - -
5. Total expenses 4,272 3,889
page 7 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 3 - Water Supply Income Statement (continued) Includes ALL INTERNAL TRANSACTIONS, ie. prepared on a Gross Basis. for the financial year ended 30 June 2008
Actuals Actuals $'000 2008 2007
Income
6. Residential charges a. Access (including rates) 1,228 963 b. User charges 1,011 1,271
7. Non-residential charges a. Access (including rates) 287 241 b. User charges 821 687
8. Extra charges - -
9. Interest income 19 39
10. Other income 724 831
11. Grants a. Grants for acquisition of assets 15 - b. Grants for pensioner rebates 58 63 c. Other grants - -
12. Contributions a. Developer charges 41 4 b. Developer provided assets - - c. Other contributions - -
13. Total income 4,204 4,099
14. Gain or loss on disposal of assets - -
15. Operating Result (68) 210
15a. Operating Result (less grants for acquisition of assets) (83) 210
page 8 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 3 - Water Supply Income Statement (continued) Includes ALL INTERNAL TRANSACTIONS, ie. prepared on a Gross Basis. for the financial year ended 30 June 2008
Actuals Actuals $'000 2008 2007
BCapital transactions Non-operating expenditures
16. Acquisition of Fixed Assets a. Subsidised scheme - - b. Other new system assets 1,520 1,596 c. Renewals - - d. Plant and equipment 5 73
17. Repayment of debt a. Loans 63 43 b. Advances - - c. Finance leases - -
18. Transfer to sinking fund - -
19. Totals 1,588 1,712
Non-operating funds employed
20. Proceeds from disposal of assets - -
21. Borrowing utilised a. Loans - - b. Advances - - c. Finance leases - -
22. Transfer from sinking fund - -
23. Totals - -
C Rates and charges
24. Number of assessments a. Residential (occupied) 5,017 5,003 b. Residential (unoccupied) - - c. Non-residential (occupied) 498 493 d. Non-residential (unoccupied) - -
25. Number of ETs for which developer charges were received ET 2 ET
26. Total amount (actual dollars) of pensioner rebates $ 105,000 $ 114,000
page 9 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 3 - Water Supply Cross Subsidies for the financial year ended 30 June 2008
$'000 Yes No Amount
D Best practice annual charges and developer charges*
27. Annual charges a. Does Council have best-practice water supply annual charges YES and usage charges*?
If Yes, go to 28a. If No, please report if council has removed land value from access charges (ie rates)?
NB. Such charges for both residential customers and non-residential customers comply with section 3.2 of Water Supply, Sewerage and Trade Waste Pricing Guidelines, Department of Water & Energy, December, '2002. Such charges do not involved significant cross subsidies.
b. Cross-subsidy from residential customers using less than allowance (page 25 of Guidelines)
c. Cross-subsidy to non-residential customers (page 24 of Guidelines)
d. Cross-subsidy to large connections in unmetered supplies (page 26 of Guidelines)
28. Developer charges a. Has council completed a water supply Development Servicing** YES Plan?
b. Total cross-subsidy in water supply developer charges for 2007/08 (page 47 of Guidelines)
** In accordance with page 9 of Developer Charges Guidelines for Water Supply, Sewerage and Stormwater, Department of Water and Energy, Dec 2002.
29. Disclosure of cross-subsidies Total of cross-subsidies (27b +27c + 27d + 28b) -
* Councils which have not yet implemented best practice water supply pricing should disclose cross-subsidies in items 27b, 27c and 27d above.
However, disclosure of cross-subsidies is not required where a Council has implemented best practice pricing and is phasing in such pricing over a period of 3 years.
page 10 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 4 - Water Supply Balance Sheet Includes INTERNAL TRANSACTIONS, ie. prepared on a Gross Basis. as at 30 June 2008
Actuals Actuals Actuals $'000 Current Non Current Total
ASSETS 30. Cash and investments a. Developer charges 278 - 278 b. Special purpose grants - - - c. Accrued leave - - - d. Unexpened loans 582 - 582 e. Sinking fund - - - f. Other 1,771 - 1,771
31. Receivables a. Specific purpose grants - - - b. Rates and charges 184 - 184 c. Other 1,142 - 1,142
32. Inventories 4 - 4
33. Property, plant and equipment a. System assets - 37,823 37,823 b. Plant and equipment - 1,836 1,836
34. Other assets - - -
35. Total assets 3,961 39,659 43,620
LIABILITIES 36. Bank overdraft - - - 37. Creditors 79 - 79 38. Borrowings a. Loans 71 3,580 3,651 b. Advances - - - c. Finance leases - - -
39. Provisions a. Tax equivalents - - - b. Dividend - - - c. Other 55 152 207
40. Total liabilities 205 3,732 3,937
41. NET ASSETS COMMITTED 3,756 35,927 39,683 EQUITY 42. Accumulated surplus 17,941 43 Asset revaluation reserve 21,742
44. TOTAL EQUITY 39,683
Note to system assets: 45. Current replacement cost of system assets 89,064 46. Accumulated current cost depreciation of system assets (51,241) 47. Written down current cost of system assets 37,823
page 11 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 5 - Sewerage Income Statement Includes ALL INTERNAL TRANSACTIONS, ie. prepared on a Gross Basis. for the financial year ended 30 June 2008
Actuals Actuals $'000 2008 2007
AExpenses and Income Expenses
1. Management expenses a. Administration 567 473 b. Engineering and Supervision 3 12
2. Operation and Maintenance - Mains a. Operation expenses - - b. Maintenance expenses 204 188
- Pumping Stations c. Operation expenses (excluding energy costs) 28 27 d. Energy costs 14 16 e. Maintenance expenses 104 21
- Treatment f. Operation expenses (excl. chemical, energy, effluent & biosolids management costs) 87 85 g. Chemical costs - - h. Energy costs 25 18 i. Effluent Management - - j. Biosolids Management - - k. Maintenance expenses 25 16
- Other l. Operation expenses - - m. Maintenance expenses - -
3. Depreciation a. System assets 308 290 b. Plant and equipment 8 16
4. Miscellaneous expenses a. Interest expenses 56 46 b. Revaluation Decrements - - c. Other expenses - - d. Tax Equivalents Dividends (actually paid) - 15
5. Total expenses 1,429 1,223
page 12 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 5 - Sewerage Income Statement (continued) Includes ALL INTERNAL TRANSACTIONS, ie. prepared on a Gross Basis. for the financial year ended 30 June 2008
Actuals Actuals $'000 2008 2007
Income
6. Residential charges (including rates) 1,817 1,199
7. Non-residential charges a. Access (including rates) 456 439 b. User charges - -
8. Trade Waste Charges a. Annual Fees - - b. User charges - - c. Excess mass charges & re-inspection fees - -
9. Extra charges 20 12
10. Interest income - 16
11. Other income 149 141
12. Grants a. Grants for acquisition of assets - - b. Grants for pensioner rebates 41 42 c. Other grants - -
13. Contributions a. Developer charges 40 10 b. Developer provided assets - 6 c. Other contributions - -
14. Total income 2,523 1,865
15. Gain or loss on disposal of assets - -
16. Operating Result 1,094 642
16a. Operating Result (less grants for acquisition of assets) 1,094 642
page 13 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 5 - Sewerage Income Statement (continued) Includes ALL INTERNAL TRANSACTIONS, ie. prepared on a Gross Basis. for the financial year ended 30 June 2008
Actuals Actuals $'000 2008 2007
BCapital transactions Non-operating expenditures
17. Acquisition of Fixed Assets a. Subsidised scheme - - b. Other new system assets 1,257 1,012 c. Renewals - - d. Plant and equipment - -
18. Repayment of debt a. Loans 89 - b. Advances - - c. Finance leases - -
19. Transfer to sinking fund - -
20. Totals 1,346 1,012
Non-operating funds employed
21. Proceeds from disposal of assets - -
22. Borrowing utilised a. Loans - - b. Advances - - c. Finance leases - -
23. Transfer from sinking fund - -
24. Totals - -
C Rates and charges
25. Number of assessments a. Residential (occupied) 3,275 3,270 b. Residential (unoccupied) - - c. Non-residential (occupied) 457 455 d. Non-residential (unoccupied) - -
26. Number of ETs for which developer charges were received ET 2 ET
27. Total amount (actual dollars) of pensioner rebates $ 75,000 $ 76,000
page 14 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 5 - Sewerage Cross Subsidies for the financial year ended 30 June 2008
$'000 Yes No Amount
D Best practice annual charges and developer charges*
28. Annual charges a. Does Council have best-practice sewerage annual charges, NO usage charges and trade waste fees & charges*?
If Yes, go to 29a. If No, please report if council has removed land value from access YES charges (ie rates)?
NB. Such charges for both residential customers and non-residential customers comply with section 4.2 & 4.3 of the Water Supply, Sewerage and Trade Waste Pricing Guidelines, Department of Water and Energy, December, 2002. Such charges do not involve significant cross subsidies.
b. Cross-subsidy to non-residential customers (page 45 of Guidelines)
c. Cross-subsidy to trade waste discharges (page 46 of Guidelines)
29. Developer charges a. Has council completed a sewerage Development Servicing** YES Plan?
b. Total cross-subsidy in sewerage developer charges for 2007/08 (page 47 of Guidelines)
** In accordance with page 9 of Developer Charges Guidelines for Water Supply, Sewerage and Stormwater, Department of Water & Energy , Dec 2002.
30. Disclosure of cross-subsidies Total of cross-subsidies (28b + 28c + 29b) -
* Councils which have not yet implemented best practice sewer pricing & liquid waste prising should disclose cross-subsidies in items 28b and 28c above.
However, disclosure of cross-subsidies is not required where a Council has implemented best practice sewerage and liquid waste pricing and is phasing in such pricing over a period of 3 years.
page 15 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 6 - Sewerage Balance Sheet Includes INTERNAL TRANSACTIONS, ie. prepared on a Gross Basis. as at 30 June 2008
Actuals Actuals Actuals $'000 Current Non Current Total
ASSETS 31. Cash and investments a. Developer charges 99 - 99 b. Special purpose grants - - - c. Accrued leave - - - d. Unexpened loans - - - e. Sinking fund - - - f. Other 3,694 - 3,694
32. Receivables a. Specific purpose grants - - - b. Rates and charges 306 - 306 c. Other - - -
33. Inventories - - -
34. Property, plant and equipment a. System assets - 18,433 18,433 b. Plant and equipment - 2,166 2,166
35. Other assets - - -
36. Total Assets 4,099 20,599 24,698
LIABILITIES 37. Bank overdraft - - - 38. Creditors 8 - 8 39. Borrowings a. Loans 94 728 822 b. Advances - - - c. Finance leases - - -
40. Provisions a. Tax equivalents - - - b. Dividend - - - c. Other 22 45 67
41. Total Liabilities 124 773 897
42. NET ASSETS COMMITTED 3,975 19,826 23,801 EQUITY 42. Accumulated surplus 10,732 44. Asset revaluation reserve 13,069
45. TOTAL EQUITY 23,801
Note to system assets: 46. Current replacement cost of system assets 32,219 47. Accumulated current cost depreciation of system assets (13,786) 48. Written down current cost of system assets 18,433
page 16 Special Schedules 2008
Cowra Shire Council
Notes to Special Schedule No.'s 3 & 5 for the financial year ended 30 June 2008
Administration (1) Engineering and supervision (1) (item 1a of Special Schedules 3 and 5) comprises the following: (item 1b of Special Schedules 3 and 5) comprises the following:
• Administration staff: • Engineering staff: − Salaries and allowance − Salaries and allowance − Travelling expenses − Travelling expenses − Accrual of leave entitlements − Accrual of leave entitlements − Employment overheads. − Employment overheads.
• Meter reading. • Other technical and supervision staff: − Salaries and allowance • Bad and doubtful debts. − Travelling expenses − Accrual of leave entitlements • Other administrative/corporate support services. − Employment overheads.
Operational expenses (item 2 of Special Schedules 3 and 5) comprise the day to day operational expenses excluding maintenance expenses.
Maintenance expenses (item 2 of Special Schedules 3 and 5) comprise the day to day repair and maintenance expenses. (Refer to Section 5 of the Local Government Asset Accounting Manual regarding capitalisation principles and the distinction between capital and maintenance expenditure).
Other expenses (item 4b of Special Schedules 3 and 5) include all expenses not recorded elsewhere.
(2) Residential charges (items 6a, 6b and item 6 of Special Schedules 3 and 5 respectively) include all income from residential charges. Item 6 of Schedule 3 should be separated into 6a Access Charges (including rates if applicable) and 6b User Charges.
(2) Non-residential charges (items 7a, 7b of Special Schedules 3 and 5) include all income from non-residential charges separated into 7a Access Charges (including rates if applicable) and 7b User Charges.
Trade waste charges (item 8 of Special Schedule 5) include all income from trade waste charges separated into 8a Annual Fees, 8b Usage Charges and 8c Excess Mass Charges and Re-inspection Fees.
Other income (items 10 and 11 of Special Schedules 3 and 5 respectively) include all income not recorded elsewhere.
Other contributions (items 12c and 13c of Special Schedules 3 and 5 respectively) include capital contributions for water supply or sewerage services received by Council under Section 565 of the Local Government Act.
Notes: (1) Administration and engineering costs for the development of capital works projects should be reported as part of the capital cost of the project and not as part of the recurrent expenditure (ie. in item 16 for water supply and item 17 for sewerage, and not in items 1a and 1b).
(2) To enable accurate reporting of residential revenue from usage charges, it is essential for councils to accurately separate their residential (item 6) charges and non-residential (item 7) charges.
page 17 Cowra Shire Council
Special Schedule No. 7 - Condition of Public Works as at 30 June 2008
$'000 Estimated Dep'n. Dep'n. Accumulated cost to Rate Expense Depreciation Carrying bring up to a Required(2) Current(3) (%) ($) & Amount Asset satisfactory Annual Annual Cost Valuation Impairment (WDV) Condition# condition M'ntce M'ntce ASSET CLASS Asset Category standard (1) per Note 1 per Note 4 <<<<<<<<<<<< per Note 9 >>>>>>>>>>>> <<<<<<<< per Section 428(2d) >>>>>>>> Buildings Council Offices 33 - 3,538 283 3,255 2 - - - Council Works Depot - - - - - 3 - - - Council Houses - - - - - 3 - - - Library 19 - 1,944 544 1,400 2 - - - Art Gallery - - - - - 2 - - - Amenities/Toilets - - - - - 4 - - - sub total 52 - 5,482 827 4,655 - - -
Public Roads Sealed Roads 1,108 92,680 - 12,589 80,091 2 1,167 1,919 1,919 Unsealed Roads - - - - - 3 1,000 596 596 Sealed Roads Structure - - - - - 2 - - - Bridges - - - - - 3 800 46 46 Footpaths - - - - - 2 65 - - Kerb and Gutter - - - - - 2 43 - - Road Furniture - - - - - 2 74 - - sub total 1,108 92,680 - 12,589 80,091 3,149 2,561 2,561 Special Schedules 2008 Schedules Special page 18 Cowra Shire Council
Special Schedule No. 7 - Condition of Public Works (continued) as at 30 June 2008
$'000 Estimated Dep'n. Dep'n. Accumulated cost to Rate Expense Depreciation Carrying bring up to a Required(2) Current(3) (%) ($) & Amount Asset satisfactory Annual Annual Cost Valuation Impairment (WDV) Condition# condition Maintenance Maintenance ASSET CLASS Asset Category standard (1) per Note 1 per Note 4 <<<<<<<<<<<< per Note 9 >>>>>>>>>>>> <<<<<<<< per Section 428(2d) >>>>>>>> Water Water Supply Network 897 - 89,064 51,322 37,742 - - - Treatment Plants - - - - - 3 - - - Water Connections - - - - - 2 250 - - Bores - - - - - 2 - - - Reservoirs - - - - - 2 50 110 110 Hydrants - - - - - 2 200 116 116 Stop Valves - - - - - 2 200 - - Pipeline - - - - - 2 300 150 150 Pump Station - - - - - 3 550 150 150 sub total 897 - 89,064 51,322 37,742 1,550 526 526
Sewerage Sewerage Supply Network 308 - 32,219 13,864 18,355 - - - Pump Stations - - - - - 2 350 - - Pipeline - - - - - 3 1,000 1,000 1,000 Manholes - - - - - 3 1,000 - - Air Vent Stacks - - - - - 4 500 - - Treatment Works - - - - - 5 14,000 14,000 14,000 Sewerage Connection - - - - - 3 500 - - 2008 Schedules Special sub total 308 - 32,219 13,864 18,355 17,350 15,000 15,000 page 19 Cowra Shire Council
Special Schedule No. 7 - Condition of Public Works (continued) as at 30 June 2008
$'000 Estimated Dep'n. Dep'n. Accumulated cost to Rate ExpenseDepreciation Carrying bring up to a Required(2) Current(3) (%) ($) &Amount Asset satisfactory Annual Annual Cost Valuation Impairment (WDV) Condition# condition Maintenance Maintenance ASSET CLASS Asset Category standard (1) per Note 1 per Note 4 <<<<<<<<<<<< per Note 9 >>>>>>>>>>>> <<<<<<<< per Section 428(2d) >>>>>>>> Drainage Works Drainage Network 551 8,075 - 5,954 2,121 3 - - - Retarding Basins - - - - - 1 - - - Outfalls - - - - - 1 - - - Stormwater Conduits - - - - - 3 - - - Inlet and Junction Pits - - - - - 2 - - - Head Walls - - - - - 3 - - - sub total 551 8,075 - 5,954 2,121 - - -
TOTAL - ALL ASSETS 2,916 100,755 126,765 84,556 142,964 22,049 18,087 18,087
Notes: (1). Satisfactory refers to estimated cost to bring the asset to a satisfactory condition as deemed by Council. It does not include any planned enhancements to the existing asset. (2). Required Annual Maintenance is what should be spent to maintain assets in a satisfactory standard. (3). Current Annual Maintenance is what has been spent in the current year to maintain assets.
# Asset Condition "Key" - as per NSW Local Government Asset Accounting Manual:
1 Near Perfect - Ranges from New or Good 4 Requires Major Reconstruction - Ranges from Poor to Critical Special Schedules 2008 Schedules Special
2 Superficial Deterioration - Ranges from Generally Good to Fair 5 Asset Unserviceable - Critical, Beyond Repair
3 Deterioration Evident - Ranges from Fair to Marginal page 20 Special Schedules 2008
Cowra Shire Council
Special Schedule No. 8 - Financial Projections as at 30 June 2008
Actual(1) Forecast Forecast Forecast(3) Forecast(3) $ million 07/08 08/09 09/10 10/11 11/12
(i) RECURRENT BUDGET Income from continuing operations 24.0 33.0 33.0 34.0 35.0 Expenses from continuing operations 22.5 30.0 30.0 31.0 32.0
Operating Result from Continuing Operations 1.5 3.0 3.0 3.0 3.0
(ii) CAPITAL BUDGET New Capital Works (2) 2.0 1.0 1.0 1.0 - Replacement/Refurbishment of Existing Assets 3.0 15.0 1.0 1.0 1.0 Total Capital Budget 5.0 16.0 2.0 2.0 1.0
Funded by: – Loans 1.0 10.0 - - - – Asset sales - - - - - – Reserves 2.0 1.0 1.0 1.0 - – Grants/Contributions 1.0 5.0 1.0 1.0 1.0 – Recurrent revenue 1.0 - - - - – Other - - - - - 5.0 16.0 2.0 2.0 1.0
Notes: (1) From 07/08 Income Statement. (2) New Capital Works are major non-recurrent projects, eg new Leisure Centre, new Library, new Swimming pool etc. (3) If Council has only adopted 3 years of projections then only show 3 years.
page 21