CIRCULAR HEAD COUNCIL
ANNUAL REPORT
2010/2011
Adopted by the Council 17 November 2011
Circular Head Council Annual Report 2010/2011
TABLE OF CONTENTS
HISTORY AND PROFILE ...... 5 VISION AND MISSION STATEMENTS...... 6 COUNCIL ’S VISION FOR OUR COMMUNITY ...... 6 COUNCIL ’S MISSION ...... 6 INVITATION FOR SUBMISSIONS ...... 6 HIGHLIGHTS OF THE YEAR ...... 7 MAYOR’S MESSAGE ...... 11 MAYOR AND COUNCILLORS ...... 12 GENERAL MANAGER’S MESSAGE ...... 14 FAST FACTS – CIRCULAR HEAD...... 15 FINANCIAL INDICATORS COMPARISONS...... 16 KEY ACTIVITIES STATISTICS ...... 17 ORGANISATION & MANAGEMENT STRUCTURE ...... 18 RESOURCE SHARING ...... 19 RESOURCE SHARING ...... 19 CAPITAL WORKS AND SPECIAL PROJECTS SUMMARY...... 22 ADVOCACY & GOVERNANCE...... 25 ADVOCACY ...... 25 COUNCIL ...... 25 COUNCILLORS ’ ATTENDANCE AT MEETINGS 2010/2011...... 25 MAYOR , DEPUTY MAYOR AND COUNCILLOR ALLOWANCES AND EXPENSES ...... 26 CRADLE COAST AUTHORITY SUMMARY REPORT - 2010/2011...... 26 CRADLE MOUNTAIN WATER SUMMARY REPORT - 2010/2011...... 27 BUSINESS PERFORMANCE ...... 29 ADMINISTRATION SERVICES ...... 29 RISK MANAGEMENT ...... 29 EMERGENCY MANAGEMENT ...... 29 HUMAN RESOURCES ...... 30 ANNUAL REMUNERATION FOR SENIOR STAFF ...... 32 PUBLIC INTEREST DISCLOSURE STATEMENT ...... 32 OMBUDSMAN ’S INVESTIGATIONS ...... 33 CONTRACTS FOR THE SUPPLY OR PROVISION OF GOODS OR SERVICES ...... 33 BUSINESS STRATEGY...... 35 BUSINESS STRATEGY UNIT ...... 35 COMMUNITY ...... 38 COMMUNITY SERVICES ...... 38 SPORT AND RECREATION ...... 44 GRANTS AND BENEFITS ...... 44 DEVELOPMENT...... 47 DEVELOPMENT SERVICES ...... 47
Circular Head Council Annual Report 2010/2011
Page 2 ANIMAL CONTROL ...... 47 BUILDING CONTROL ...... 47 CEMETERIES ...... 48 LAND USE PLANNING ...... 48 PUBLIC AND ENVIRONMENTAL HEALTH ...... 48 PUBLIC BUILDING SAFETY ...... 49 ECONOMIC DEVELOPMENT...... 50 ECONOMIC DEVELOPMENT ...... 50 ENGINEERING...... 51 ENGINEERING SERVICES ...... 51 WORKS PLUS ...... 51 DRAINAGE ...... 52 PARKS & RESERVES ...... 52 SOLID WASTE MANAGEMENT ...... 52 TRANSPORT ...... 53 FINANCE...... 55 FINANCIAL SERVICES ...... 55 FINANCIAL MANAGEMENT ...... 55 THE YEAR AHEAD...... 57 FINANCIAL STATEMENT & AUDITORS REPORT ...... 58 COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2011...... 60 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011 ...... 61 STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2011...... 62 STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2011...... 64 NOTES TO FINANCIAL STATEMENTS...... 65 INTRODUCTION...... 65 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES...... 65 2. FUNCTIONS/ACTIVITIES OF THE COUNCIL ...... 78 3. GRANTS ...... 82 4. OTHER INCOME...... 84 5. (LOSS)/GAIN ON DISPOSAL OF ASSETS...... 84 6. EMPLOYEE COSTS...... 84 7. MATERIALS AND CONTRACTS...... 84 8. DEPRECIATION AND AMORTISATION...... 85 9. FINANCE COSTS...... 85 10. OTHER EXPENSES...... 86 11. CASH AND CASH EQUIVALENTS...... 86 12. FINANCIAL ASSETS...... 86 13. RECEIVABLES ...... 87 14. INVENTORIES ...... 87 15. OTHER CURRENT ASSETS...... 87 16. LAND ...... 88 17. LAND UNDER ROADS...... 88 18. BUILDINGS...... 88 19. TRANSPORT INFRASTRUCTURE ...... 89 20. STORMWATER AND DRAINAGE...... 89 21. SOLID WASTE MANAGEMENT...... 89 22. PARKS RESERVES AND RECREATION FACILITIES...... 90 23. PLANT AND EQUIPMENT ...... 90 24. FURNITURE ...... 91 25. COMPUTERS...... 91 26. WORKS IN PROGRESS ...... 91 27. PAYABLES...... 91 28. PROVISIONS...... 92 29. FINANCIAL LIABILITIES ...... 92 30. SUPERANNUATION ...... 93 31. COMMITMENTS FOR EXPENDITURE...... 94 32. SPECIAL COMMITTEES...... 96
Circular Head Council Annual Report 2010/2011
Page 3 33. RELATED PARTY DISCLOSURE ...... 97 34. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES...... 97 35. CREDIT STANDBY ARRANGEMENTS...... 98 36. FINANCIAL INSTRUMENTS ...... 98 37. SIGNIFICANT BUSINESS ACTIVITIES ...... 108 38. AUDITORS’ REMUNERATION ...... 108 39. INVESTMENT IN WATER CORPORATION ...... 108 40. CONTINGENT LIABILITIES ...... 109 41. RESERVES ...... 110
Circular Head Council Annual Report 2010/2011
Page 4 HISTORY AND PROFILE
The Circular Head Council, incorporated in 1908, serves the rural community of Circular Head in far North West Tasmania. At 4,917km 2 Circular Head is one of the largest municipal land areas in the State and has one of the longest coastlines.
Circular Head gained its name from the unusual land formation commonly known as “the Nut” , at Stanley, the solidified lava lake of a long extinct volcano. This land formation was sighted by Bass & Flinders on their historic circumnavigation of the State in 1798, and named by them the “Circular Head” . The Nut rises 152 metres above sea level and is estimated to be 13 million years old.
Key industry sectors include dairy and prime beef production, commercial fishing and aquaculture, forestry and timber production, tourism, manufacturing, vegetable processing and iron ore pelletising. The municipality also has its share of successful niche-market enterprises. Circular Head businesses export to more than 20 countries, predominantly in the Asia-Pacific region.
The Nut and the town of Stanley, nestled at its base, are two of the foremost tourist attractions in the North West area. The Nut is depicted on Council’s logo, with the colours of green to represent the lush green forests and highly productive farm areas with blue representing the waterways and the sea.
Circular Head offers both sea-change and tree- change lifestyles. Beautiful scenery and nature- based activities complement the active community. The Circular Head lifestyle provides residents with a diverse range of sporting and cultural activities, good schools, a medical centre staffed by full-time general practitioners and a hospital.
Many people choose to live in Circular Head for the lifestyle. New residents quickly find they become part of the close knit community. The population comprises a growing number of residents from overseas, thus helping to enrich the area’s cultures still further.
Circular Head Council Annual Report 2010/2011
Page 5 VISION AND MISSION STATEMENTS
Council’s Vision for Our Community
Circular Head will be an iconic community valued for the balance between a progressive economy, unique environment and vibrant lifestyle, providing and caring for all.
Council’s Mission
Our Mission is to lead the Circular Head community in enhancing our iconic lifestyle through the provision of quality services with partnership creation and strategic use of resources.
The values or behaviours that Council will embrace to support our Mission and guide us in achieving our Vision are :
• Empathy and respect for all our people : by ensuring internal and external stakeholders are regarded for their input. • Cohesion and teamwork : by being committed to an inclusive and productive work environment and adopting a collaborative approach in all things we do. • Accountable and transparent : by being open in all that we do and delivering on outcomes. • Accessible and communicative : by ensuring open, clear and user friendly lines of communication. • Responsive management : by being outcome focused and proactive in the provision of timely and appropriate services. • Managing for value : by innovation and strategic thinking and using all of Council’s resources wisely.
Invitation for Submissions
Members of the community are invited to make submissions on the Annual Report for discussion at the Annual General Meeting, which is to occur on Thursday 17 November 2011 at 6:00pm at the Circular Head Council Chambers. Any person wishing to make a submission should deliver it to the General Manager by 5:00pm on Thursday 10 November 2011, for inclusion on the agenda for the meeting.
Circular Head Council Annual Report 2010/2011
Page 6 HIGHLIGHTS OF THE YEAR
Balance your life…encouraging health and well-being in the community
The Circular Head Council launched a holistic approach to caring for the community, through the implementation of a health and well-being program on 23 February, 2011 at the Community and Recreation Centre, Grant Street Smithton. Under the balance ‘brand’ this will reflect the coordination of services and programs which promote wellness in the community. balance will promote and build on existing activities already undertaken by Council as well as introducing new initiatives such as ‘ Lose Kilos for the Community’.
Community & Recreation Centre Hall of Fame
The Circular Head Recreation Centre Stage 2, Hall of Fame was officially opened by the Federal Member of Braddon, Sid Sidebottom on the 6 October 2010. Images of what the future displays and fit out of the hall may be in the future were presented during the official opening.
Cradle Coast Regional Land Use Strategy
Circular Head Council participated in the development of the Draft Cradle Coast Regional Land Use Strategy. The strategy plans for land use in the Cradle Coast region and aims to enable Councils of the region to improve consistency across the region. During the public consultation period, Circular Head Council wrote to all property owners and also hosted an on line forum. These initiatives helped to provide all residents of Circular Head the opportunity to have input into this process.
Circular Head Council Annual Report 2010/2011
Page 7 Lose Kilos for the Community
“Lose Kilos for the Community” program was developed to address the alarming statistics that 61% of Circular Head residents are overweight or obese and 21% are inactive. The program attracted 330 participants with a combined weight loss of over 500kgs. Council committed to reward the contribution from the participants by installing exercise equipment along the East Duck River Foreshore Pathway. Photo Courtesy of “The Chronicle”
Montagu Road – Old Line Road to Cuba Road
Council undertook major pavement reconstruction and drainge works to a section of Montagu Road. The newly constructed section of Montagu Road is a rejuvenation of this busy pathway from the Bass Highway to the dairy farming areas in the North West.
National Local Government Award for Youth Engagement
Circular Head Council welcomed the announcement that the Council had been judged a category winner in the Youth engagement (small Council) category for the process undertaken to develop the Seven Up Youth Centre in Smithton. Minister for Regional Australia, Regional Development and Local Government, Simon Crean, announced the category winners of the 2011 National Awards for Local Government in May, 2011. Photo Courtesy of “The Chronicle”
Robert Street upgrade – Massey Street to Emmett Street
Council undertook pavement reconstruction works as well as new kerb and channel, footpath and stormwater works. A key component of the works was a roundabout constructed at the intersection with Emmett Street to improve safety. The newly upgraded street is a continuation of the rejuvenation of the residential areas of Smithton.
Circular Head Council Annual Report 2010/2011
Page 8
Senior Citizens Centre car park upgrade
Previously the senior citizens carpark had been subject to heavy ground water inflows and large areas of pavement failures. Council constructed new subsoil drainage and a completely new pavement and seal. Additional works included new line marking of parking bays.
Smith Street public toilets
In another project designed to enhance the amenity for users of the Smithton CBD a state of the art public toilet facility was constructed in Smith Street. The new toilet facility is a continuation of the rejuvenation of the Smithton CBD and is another shining example of a quality outcome through hard work and use of local contractors for construction.
Stanley Town Hall Upgrade
On 12 June 2011 the Deputy Premier of Tasmania the Hon. Brian Green officially opened the Renovation Project to celebrate the 100 year centenary of the Stanley Town Hall. A large crowd gathered for the open day where a past committee member spoke of the early renovations to the Hall. The renovations were funded by a State Government Grant of $410,000 and a further $58,000 by Council. Over 80% of the funding was spent locally.
West Esplanade Playground construction
The West Esplanade playground was constructed by Works Plus during this financial year. The resulting facility is a stunning mix of built play structures and use of plantings and softfall covered boulders and mulch to give an imaginative playground environment for children of varying ages.
Circular Head Council Annual Report 2010/2011
Page 9
White Hills Transfer Station upgrade
A major upgrade to the Waste Transfer Station at White Hills was undertaken. Boom gates at the entry point and a rationalisation of services now mean that the site operator can easily direct customers to the appropriate area for disposal.
Circular Head Council Annual Report 2010/2011
Page 10 MAYOR’S MESSAGE
Last year I observed that it was my belief that Circular Head is a diverse and resilient community and that by working together we could successfully respond to changing circumstances.
Twelve months later and we continue to find ourselves a player in matters both within and beyond our municipal boundaries. We have met federal and state politicians to argue our position on matters such as the national heritage listing of the Tarkine and the ongoing structural changes in the forestry industry.
We have advocated and lobbied in the best interests of the community. Sometimes these efforts are reported in the media; just as many times our efforts are effective without grabbing a headline. My view is we should focus on the outcome, rather than short term attention.
The recent announcement of the Milk Processing Factory to be built in Smithton is a case in point. Councillors, and Senior Council Officers, were aware of this idea for the last couple of years and wherever possible assisted in its pursuit.
Our commitment concluded with a financial contribution to support the finalisation of necessary studies earlier this year. We did this without fanfare, in the belief that the proposition stacked up and our investment would reap significant long term benefits for the Circular Head community.
A community, however, should not be defined by economics. The social fabric is a composite of many elements. The following pages reflect the many projects, activities and services the Council is involved in to support the Circular Head community.
In conclusion, it would be remiss to not acknowledge the support of my fellow Councillors and the dedication of Council Officers, under the direction of our General Manager, Greg Winton.
Daryl Quilliam MAYOR
Circular Head Council Annual Report 2010/2011
Page 11 MAYOR AND COUNCILLORS
Circular Head Council has nine Councillors, elected by the community each for a term of four years. Half of the Council is elected every two years, to allow for continuity of Council business. The Mayor and Deputy Mayor are elected by the community. Council elections will be held in October 2011 and will include popular election of the Mayor and Deputy Mayor.
Mayor Daryl Quilliam JP , is married to Bev and works as an agricultural field representative. Daryl has been a member of Council for a total of 25 years and holding the position of Mayor since 2007. Daryl is currently the Council representative on the Cradle Coast Authority Representatives Committee, Cradle Mountain Water, Local Government of Tasmania, Circular Head Education and Training Consultative Committee, Hunter Island Advisory Group, Stanley Port Advisory Group, Circular Head Emergency Planning Committee, Historic Advisory Committee, the Tasmania/Australia Day Awards Working Party, the Community Events (Australia Day) Committee, Recreation Advisory Committee and Arthur Pieman Conservation Area Off Road Vehicle Consultative. His current term as Mayor expires in 2011 and position of Councillor in 2013.
Deputy Mayor Trevor Spinks is married to Marian and is semi-retired. He was elected as a Councillor in 2007 and has held the position of Deputy Mayor since 2009. Trevor is a current Council representative of the Health and Welfare Reference Group, Rural Clinical School Community Advisory Board, Local Government of Tasmania, the Tasmania/Australia Day Awards Working Party, the Smithton Wharf Redevelopment Reference Group and is chairman of the Circular Head Boat Ramps Advisory Committee and a member of the Emmerton Park Board. Trevor’s terms as Deputy Mayor and Councillor expire in 2011.
Councillor TJ (Timothy) Berechree is married to Laura and operates a motor mechanic business. TJ was elected to Council in 2005. He is a Council representative on the Tasmania/Australia Day Awards Working Party and Circular Head Community Recreation Centre Management Committee. TJ’s current term as Councillor expires in 2011.
Councillor Heather Grey is married to Drew and works part time in Smithton. Heather was elected as a Councillor in 2007. She is a Council representative on the Western Area Management Committee, the Circular Head Boat Ramps Advisory Committee and the Circular Head Tourism Association. Heather’s current term as a Councillor expires in 2011.
Circular Head Council Annual Report 2010/2011
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Councillor Rodney Hardy is married to Julie and is retired. Rodney was elected to Council in 2009. He is a Council representative for the Northern Area Management Committee (formerly Stanley Recreation Ground) and Stanley Port Advisory Group and is also a member of the Smithton RSL and Ex-Services Club and Smithton Club. Rodney’s current term as Councillor expires in 2013.
Councillor Jeanie Murrell is married to Joe and is involved in a family business. Jeanie was elected to Council in 2005 and held the position of Deputy Mayor for the period 2007-2009. Jeanie is a Council representative on the Circular Head Heritage Centre Committee, Health and Welfare Reference Group, the Circular Head Rural Health Services, Service Providers Access Network (SPAN), Community Events (Australia Day) Committee, the Tasmania/Australia Day Awards Working Party and the Smithton Wharf Redevelopment Reference Group. She is also a board member of the Wyndarra Centre, Emmerton Park Incorporated and is a Soroptimist member. Jeanie’s current term as Councillor expires in 2013.
Councillor John Oldaker is married to Beth and operates a dairy farm at Togari. John was elected to Council in 1999. John is a Council representative on the Cradle Coast Authority Representatives Committee, the Circular Head War Memorial Swimming Pool Redevelopment Reference Group, the Central Outdoor Area Management Committee and the Recreation Advisory Committee. He is also the Chairperson of the Circular Head Emergency Planning Committee, a representative on the Circular Head Senior Citizens Centre Committee and President of the Smithton RSL Sub-Branch. John’s current term as Councillor expires in 2011.
Councillor Graham Wells is married to Maxine and is a tourist operator in Stanley. Graham was elected to Council in 2000. Graham is a Council representative on the Stanley Town Hall Committee and the Stanley Port Advisory Group. He also is a member of the Board of Management for Highfield Historic Site and the Secretary of the Stanley Chamber of Commerce. Graham’s current term as Councillor expires in 2011.
Councillor David Woodward is married to Heather and works in a rural supply retail outlet. David was elected to Council in 2007. David is Council representative on the Southern Area Management Committee (formerly the Trowutta Recreation Ground Committee), the Circular Head Road Safety Committee, the Smithton High School Council, the Circular Head War Memorial Swimming Pool Redevelopment Reference Group, the Smithton Primary School Council and the Circular Head Weeds Strategy Group. David’s current term as Councillor expires in 2013.
Circular Head Council Annual Report 2010/2011
Page 13 GENERAL MANAGER’S MESSAGE
Almost ten years ago I recall walking up Smith Street, making an oath to myself that if I was successful at my job interview that the footpath I was walking would be replaced and the nearby public toilets renewed to make this place more attractive to visitors.
This year represents the tenth occasion I have penned a message for the CH Council Annual Report.
The recent “Meet the Candidates” evening attracted a gathering of some 150 persons. I recall the idea of the forum some years ago, suggesting that the Council organise the evening, but invite a community group to host the event. It was extremely pleasing to see the manner in which the idea has developed, with so many people being interested in hearing the aspirations of candidates.
Similarly, it was pleasing to receive a National Award for the Youth Centre. Again, an idea of some years ago that finally matured into the Seven Up centre.
The refurbishment of the Stanley Town Hall, stage two of the Community Recreation Centre (Hall of Fame), extensions to the walking tracks in Smithton and Stanley, the West Esplanade Playground, streetscape improvements and major upgrades to arterial rural roads are further examples of projects that I am proud to have had a hand in.
Being able to reflect upon the physical projects of the last decade provides many examples of improvements that the Council can point to that have made Circular Head a more attractive community. Similarly, we have supported social activities that contribute to a more liveable community.
What has made it most satisfying for me is being part of the development of an organisational culture focussed upon delivering best value, always with an eye to the long term ramifications. The Council has invested to make a community that its citizens can be even more proud of into the future.
Last year I launched the Balance your life program. It is a fantastic program designed to remind us all that overall wellness should be paramount, for individuals, for a community and indeed for a society.
My thanks to Councillors for their continued confidence and to Council Officers for their continued support to allow the Balance your life concept to be delivered at an organisational level.
Greg Winton GENERAL MANAGER
Circular Head Council Annual Report 2010/2011
Page 14 FAST FACTS – CIRCULAR HEAD
8107* Population Municipal area (2006 Census)
2010/2011 2009/2010 2008/2009
Area (km) Municipal area 4917 4917 4917
Smithton 11.18 11.18 11.18
Stanley 1.87 1.87 1.87
Road length (km) Municipal area 768 767 768.1
Sealed 291 289 290
Unsealed 477 478 478
Bridges maintained Municipal area 122 123* 101
Timber 54 54* 30
Other 68 69* 71
Footpath length (km) Municipal area 28.5 27.0 32.55
Sewer (km) Municipal area N/A** N/A** 48.4
Stormwater maintained (km) Municipal area 28.15 27 27.06
Kerb and channelling (km) Municipal area 57.1 56.8 56.3
Water reticulation (km) Municipal area N/A** N/A** 53.80 Sewerage Treatment Municipal area N/A** N/A** 3.5 throughput (ML/day) Total properties Municipal area 5,039 4,995 4,958
Rateable properties Municipal area 4,784 4,770 4723
Valuation Assessed annual value 70,915,750 69,227,992 68,339,254
Capital value 1,620,405,500 1,586,708,500 1,570,881,500
* During the 2009/2010 financial year Council participated in the Institute of Public Works Engineers Australia’s NAMS Plus program to assist in the production of asset management. One of the critical tasks in developing the asset management plans was the review of all of Council’s asset data, as such records have been updated to reflect the true number of assets described as bridges for which Council has maintenance and replacement responsibility.
** All Water and Sewerage assets and services were transferred to the Tasmanian Water and Sewerage Corporation as at 01.07.2009
Circular Head Council Annual Report 2010/2011
Page 15 FINANCIAL INDICATORS COMPARISONS
2010/2011 2009/2010 2008/2009 2007/2008 2006/2007
Rate revenue 6,254,040 5,933,407 7,545,644 7,312,983 6,990,907
Total revenue 12,730,969 13,799,959 16,705,778 14,230,045 14,360,691
Total operating expenditure 11,751,648 11,680,077 14,001,276 12,606,468 12,000,333
3,916,729 Capital 4,167,678 5,061,632 5,221,269 4,214,489
Proceeds on sale of assets 28,394 (43,931) (58,791) (73,099) (190,802)
Depreciation and 2,534,751 2,418,816 3,007,974 2,711,318 2,505,989 amortisation
2,195,197 Borrowings 495,167 588,928 712,929 830,633
93,981 Debt reduction 93,761 124,004 117,704 179,862
Debt reduction as a proportion of total 0.80% 0.80% 0.89% 0.93% 1.50% operating expenditure
2010/2011 2009/2010 2008/2009 2007/2008 Indicator Current Assets Current ratio 5.26:1 4.90:1 3.68:1 3.591:1 Current Liabilities Rates Rate coverage ratio 49.12% 43.05% 45.17% 51.39% Total Revenue Outstanding Rates Outstanding rate debtors 4.74% 2.84% 1.09% 1.19% Total Rates Total Expenditure Expenditure per capita $1,185 $1,442 $1,727 $1,555 Population
Grants Grant coverage ratio 23.15% 35.56% 27.61% 18.63% Total Revenue
User Charges User charges coverage 13.76% 13.82% 21.07% 21.39% Total Revenue
Circular Head Council Annual Report 2010/2011
Page 16 KEY ACTIVITIES STATISTICS
2010/2011 2009/2010 2008/2009 2007/2008 2006/2007
Tonnes of waste deposited at Port Latta Landfill site 14,403 14,189 14,354 15,351.56 21,907.5
Tonnes of waste collected – urban 1,440 1,364 1,511 1,567 1,397.5
Tonnes of waste collected – rural 929 947 909 874 961
Waste coupons redeemed 19,130 17,120 16,567 17,650 18,112
Recycling crate collections * N/A N/A 9,360 8,875 9,959
Recycling urban bin collection * 23,529 22,115 N/A N/A N/A
Smithton domestic water consumed– kl ** N/A N/A 408,880 595,464 599,702
Stanley domestic water consumed – kl ** N/A N/A 72,194 110,949 110,274
Industrial water consumed – kl *** N/A N/A 993,157 940,185 874,055
Road grading – km 284 273 278 260 280
Road patching – tonnes 603 602 609 902 602
Building permits issued 165 136 159 139 171
Planning permits issued 105 158 167 154 112
Dogs registered 741 739 715 736 843
Dogs impounded 73 40 57 36 42
Burials at Council cemeteries 50 74 51 45 41
Special Plumbing permits issued 38 19 26 69 43
Food premises inspections carried out 142 57 79 158 36
Dairies inspected 6 104 169 23 18
Section 337 certificates issued 173 202 311 308 292
Section 132 certificates issued 230 297 460 620 441
Staff training (numbers attending) 206 310 248 222 297 Councillor training (numbers attending) 7 10 15 43 26
Incoming Calls via Reception 13,366 12,497 - - -
Documents Registered in Data Works 25,781 24,372 29,148 23,381 -
Customer Service System (CSS) events lodged 507 441 - - -
Patrons at pool 16860 15,495 14,831 15,279 18417
* Council changed from recycling crates to recycling bins collection in August 2009 ** All Water and Sewerage assets and services were transferred to the Tasmanian Water and Sewerage Corporation as at 01.07.2009
Circular Head Council Annual Report 2010/2011
Page 17 ORGANISATION & MANAGEMENT STRUCTURE
CIRCULAR HEAD COMMUNITY
COUNCIL
GENERAL MANAGER
Mr Greg Winton
• Governance • Advocacy • Strategic Planning and Reporting
BUSINESS BUSINESS DEVELOPMENT ENGINEERING FINANCE WORKS PLUS PERFORMANCE STRATEGY SERVICES SERVICES
Mr Tony Smart Ms Mary-Ann Mr Matthew Saward Mr Matt Greskie Mrs Rachel Mr Brian Blake Assistant General Edwards Executive Manager Executive Manager Mallinson Manager Works Plus Manager Executive Manager Development Engineering Executive Manager Business Strategy Services Services Financial Services • Administration • Strategic • Land Use • Physical • Rates • Maintenance & • Human Planning Planning Infrastructure • Accounts Construction of – Resources • Project Planning • Development • Transport Payable/ • Drainage • Risk & Management Control • Drainage Receivable • Rural Road Management • Economic • Public & • Solid Waste • Information Infrastructure and Insurance Development Environmental Management Technology • Urban • Records Health • Parks & • Budget Infrastructure Management • Building Control Reserves Preparation • Parks & • Customer • Animal Control • Engineering • Payroll Reserves Services • Weed Services • Council • Cemeteries • Community Management Properties • Recreation Services • Cemeteries grounds • Recreation & • Waste Collection Leisure • Landfill Operations
Ms Mary-Ann Edwards commenced employment with Circular Head Council in November 2010 to replace Mr Doug Doherty who resigned in October 2010 as the Executive Manager of Business Strategy.
Circular Head Council Annual Report 2010/2011
Page 18 RESOURCE SHARING
Resource Sharing
The Waratah-Wynyard Council and the Circular Head Council agreed to enter into a Resource Sharing Agreement for a two year period from December 2008. The initiative was born from a desire to make each Council stronger and better. With a national skills shortage, ever expanding demands and continual pressure to limit rate increases, it was considered that such an initiative could give each Council an edge in dealing with these issues.
One of the strengths of smaller Councils is the versatility and flexibility of staff and genuine desire to use resources for the best outcome. Although in local government sharing ideas has long been part of the strength of the sector, it has also often been ad hoc and generally only with known colleagues and always couched with the need to protect corporate knowledge. The Resource Sharing Agreement has provided an opportunity to access a greater knowledge base, create an open door environment for staff to talk, share and work collaboratively. What this has done is build our people, providing an opportunity for staff to be part of a larger field of expertise.
Smaller Councils are notorious for creating positions which cover a range of responsibilities; the size of the workforce doesn’t change the diversity of the requirements and responsibilities in local government. Resource sharing has enabled specialisation of some roles, creating a dedicated position to cover a function rather than filling up a position with a bit of this and that. This is facilitating the development of staff to strengthen and build the overall skills base.
Another consequence of working collaboratively has been the development of shared systems; this has come from a broader review of what we do, greater input into making things better and support with implementation. Resource sharing has reduced thinking in isolation about solutions and inspired innovation and the aspiration to do better.
Resource sharing in itself is not an outcome, but a continuing process. The approach taken has been to re-focus financial resources to maintain service levels to acceptable standards, acknowledging statutory responsibilities and to plan for the future, enabling progress to be made in addressing business risks.
A report was considered by the Council in May 2010 identifying the progress of efforts associated with this approach. The Council has agreed to extend the arrangement until 30 November 2013.
As at June 2011, the following roles were subject to a shared arrangement:
General Manager Assets Coordinator Executive Manager Business Strategy Executive Manager Engineering Services Executive Manager Financial Services Human Resources Coordinator Manager of Engineering & Projects Occupational Health & Safety Officer Risk Management Coordinator Strategic Facilities Designer Strategy Facilitator Technical Officer - Assets
An independent review of the impacts of Resource Sharing on Staff and Councillors has been commissioned. The review will be presented to each Council by the end of the calendar year.
Circular Head Council Annual Report 2010/2011
Page 19
For the 2011/2012 year, the following roles are also envisaged to be subject to a shared arrangement:-
Assets Co-Coordinator Communications Officer Information Technology Strategy Development Officer Technical Officer – Assets Weeds Officer
Actions proposed for the term of the Agreement, dependent on the availability of resources include:-
Operational Operational Action Implementation Area Time Frame Strategic Planning Undertake review of Strategic Plans to identify opportunities to 2010/2011 combine efforts for advocacy and action on strategic aims. Project Delivery Engineering department to deliver infrastructure projects across 2010/2011 both municipalities. Tourism Examine opportunities for enhanced synergies to service visitor 2011/2012 needs. Planning Approvals Participate jointly in the Regional Planning Process. 2010/2011 Building/plumbing Establish a working party to exploit synergies in the issuing of 2011/2012 permits permits. Environmental Pursue shared arrangements for Weed Management. 2010/2011 Management Present arrangements and recommendations for improved NRM 2010/2011 related activities, particularly in relation to grant funding. Review and implement an Environmental Management Plan for 2012/2013 both Councils’ public assets. Animal Control Form a joint working party to explore the “best” value method for 2012/2013 the provision of animal control services to both municipalities. Asset Management Develop and implement asset management plans for all major 2010/2011 and Development capital classes for both municipalities. Sharing of Identify opportunities to better utilise available equipment. 2011/2012 specialised equipment and software Develop program for improved plant utilisation across both 2011/2012 municipalities. (Program to be presented to Councils for approval) Communication and Undertake Communications Audit, implement Communication 2011/2012 Consultation Strategy. Introduce and refine Interplan reporting program to inform progress 2010/2011 of Council activities. Form a working party to refine web page relevance and further 2010/2011 develop social media communication opportunities. Public Health Reconsider opportunities for specialised role(s). 2011/2012 Regulatory Reconsider opportunities for specialised role. 2011/2012 Compliance Youth Services Examine additional joint or regional approaches to support youth 2011/2012 service activities. Professional Present professional development opportunities based upon 2010/2011 development identification of Councillor needs. Introduce “Employer of Choice” provisions. 2011/2012 Undertake Staff “Training Needs Analysis” against position 2011/2012 descriptions for both Councils. Undertake career path review for all staff. 2011/2012
Circular Head Council Annual Report 2010/2011
Page 20 Occupational Health Implement Contractor Induction System. 2010/2011 and Safety Implement Employee induction system. 2010/2011 Implement skills and license matrix for mandatory training. 2010/2011 Legal Services Tender for a joint panel of suppliers of Legal advice and Counsel. 2011/2012 IT Services Form a joint IT services review committee to consider a strategic 2012/2013 action plan for IT common platform and Standard Operating Environments (SOE). Policy Development Establish a combined document quality management system. 2011/2012 Establish an internal audit committee to make recommendations for 2010/2011 harmonisation policies between Councils where appropriate. Risk Management Revise Risk Management Committee roles. 2010/2011 Employ resource shared officer for Risk Management. 2010/2011 Embed Risk Management principles for all projects and capital 2011/2012 works. Payroll Implement interchangeable payroll staff to provide leave cover and 2012/2013 support between Councils. Procurement Initiate procurement solutions to both Councils which demonstrate 2010/2011 effective and efficient gains. Long Term Financial Prepare and implement 4 year forward estimates and 10 year 2010/2011 Planning indicative long term financial plans.
Circular Head Council Annual Report 2010/2011
Page 21 CAPITAL WORKS AND SPECIAL PROJECTS SUMMARY
LEGEND: Complete In Progress Not Started Ongoing
Development % Complete Presentation of a major planning scheme review report (Regional Planning Scheme) 60% Stanley Heritage Guidelines (for planning scheme) 100% Natural Resource Management Weed Projects 100% Broom Control Project 100% Street/Rural addressing audit of anomalies 25% Circular Head Lawn Cemetery master plan 100% Weed Management Strategy for roadsides 90% Building consultancy for community buildings 5%
Dog Control Act changes (microchip gun) 100%
Community % Complete Temporary youth venue 100% CHETCC Contribution 100% Road safety initiatives 100% Stanley Town Hall upgrade (grant funding) 100% Stanley Town Hall centenary celebrations 100% Stanley Town Hall (extra's) 100% Community Recreation Centre - Stage 2 Hall of Fame 100% Wharf Road small boat jetty Stanley 35% Pump and pipe connections (water tank) Redpa Recreation Ground 100% Development of Smithton Skate Park - stage 2 20% Stanley tennis court surface upgrade 100% Community Recreation Centre - public toilets 100%
Administration % Complete Fleet replacement 100%
Finance % Complete DataWorks software upgrade 0%
Circular Head Council Annual Report 2010/2011
Page 22 Consultancy for DataWorks/Reg Apps document integration 0% Adobe Photoshop 100% Data storage for network 100% Replacement servers 100% Replacement laptop 100%
Engineering % Complete Underground Lighting - Funding and Design Stanley 100% Car park reinstatement Senior Citizens, design and construction 100% Trethewie's Lookout Stanley - upgrade viewing platform 100% Parking and school crossing Grant/Bugg street design 100% Bridge engineering inspections and hydrology reports 100% Detailed plan costs and infrastructure construction for Nelson Street subdivision 55% White Hills Transfer Station master plan (inc. construction) 100% New Waste Cell at Port Latta 25% Crossovers to rural farms/businesses in Circular Head area 10% Building Maintenance Fund 100% Faheys Lane/Amos Road junction (black spot funding) 100% Robert Street upgrade 100% Montagu Road from airport to Cuba Road 100% Sealing western end of Murray Street 100% Bridge replacements 80% Road reseals 100% Dry stone wall, Church Street, Stanley 100% Tree removal Dovecote intersection 100% Melaleuca Drive - kerb and channel 100% Park Road, design and geotech 100% Piping of drain - Stanley town boundary - Dovecote Road 100% Rifle Range Road design and geotech 100% Replacement culvert Birthday Creek Trowutta Road 100% Bridge Replacement 100% Stanley Recreation Trail signage implementation 100% West Esplanade foreshore park - playground 95% King Park Masterplan (ongoing) 100% Stanley recreation trails (ongoing) 100% New public toilets - Stanley (located near Anglican Church) 100% New public toilet at Green Point, Marrawah 50% Tier Hill Scenic Lookout design development 100% Smithton Recreation Trails - staged implementation of Master Plan 100%
Circular Head Council Annual Report 2010/2011
Page 23 Massey Street to lookout Smithton, tree removal & lookout improvement 100% West Esplanade playground design development 100% Additional disabled amenities - Montagu recreational camping area 100% Tatlows Beach remedial works (construction and design) 85% Design development of terrace and gardens at West Esplanade, Smithton 100% Marine Park Stanley (Grant Funding) 100% Tatlows Beach, Stanley (Grant Funding) 100% West Esplanade Foreshore Upgrade (Grant Funding) 95% King Street carpark toilets demolition 100% Smithton public toilet upgrade 100% Smithton Wharf Disability Access 100% Asset Management Consultancy (includes NAMS Plus). Preparation of revised Asset 60% Management Plans and indicative forward capital works program. Loftus upgrades and training 100% Stormwater review 1% Replace grader 100% Replace 2 x 1 tonne trucks 100% Replace 2 x supervisor's utility vehicles 100% Replace Works Plus fleet vehicle Completed 100%
Advocacy & Governance % Complete Interplan reporting enhancements 0% Projects from Strategic Plan 75% Office refurbishment 25%
Business Strategy % Complete Redevelopment of Smithton wharf 1%
Economic Development % Complete Circular Head Tourism Association contribution 100% Tourism infrastructure - signage 100% Stanley Marina - expression of interest 100% Circular Head Progress Group contribution 100% Signage various - including Sisters Hills 100% Economic Development Consultancy 0%
Circular Head Council Annual Report 2010/2011
Page 24 ADVOCACY & GOVERNANCE
Advocacy
The Council will continue to advocate on behalf of the community on regional, state and national issues.
Endeavours to advocate for positive outcomes for the people of the municipality continue to be an integral part of the business of the Council. This is achieved through means including face to face discussions with State and Federal politicians and government agencies, providing input into proposed legislative changes, lobbying and participation as a member of the Local Government Association of Tasmania and a member of the Cradle Coast Authority.
The Council has actively participated to achieve influence in topics including:- • McCains Taskforce; • Future directions for the area described as the Tarkine; • Water management and irrigation development; • Trade Training Centre; • Hellyer Beach erosion.
Council
The Council comprises the Mayor and 8 Councillors. The role of the Council is focussed on policy formulation, including adopting the Budget, Strategic and Annual Plans and determining approval guidelines. This also involves the monitoring of management systems and conducting community consultation.
Councillors’ Attendance at Meetings 2010/2011
Special Meetings Workshops Meetings Mayor Daryl Quilliam 13 2 24 Deputy Mayor Trevor Spinks 10 1 16 Cr TJ Berechree 7 0 16 Cr Heather Grey 13 2 23 Cr Rodney Hardy 12 2 19 Cr Jeanie Murrell 10 1 20 Cr John Oldaker 10 2 21 Cr Graham Wells 13 2 21 Cr David Woodward 10 2 20
Meetings, including Annual General Meeting - total held for year = 13 Special Meetings were meetings requested and required to consider specific items. Workshops – total held for year = 24
Circular Head Council Annual Report 2010/2011
Page 25
Mayor, Deputy Mayor and Councillor Allowances and Expenses
In accordance with section 72(1)(cb) of the Local Government Act 1993 , the total allowances and expenses paid to the Mayor, Deputy Mayor and Councillors were:
2010/2011 Mayor Allowances and Expenses $36,035.28 Deputy Mayor Allowances and Expenses $20,964.58 Councillor Allowances and Expenses $80,519.36 Total Allowances and Expenses paid to Mayor, Deputy $137,519.22 Mayor & Councillors
Cradle Coast Authority Summary Report - 2010/2011
In accordance with Sections 72 (1) (ca) of the Local Government Act 1993, Council is to include within its Annual Report a statement of the activities and performance of the Council in relation to any activity undertaken pursuant to Section 21 of the Local Government Act 1993 . As such we provide a summary of the Cradle Coast Authority operations for 2009/2010: -
“The Authority’s tenth birthday was celebrated at a small gathering of current and former directors, representatives and friends after the 2010 AGM in November. Talk at the event reflected how the Authority’s role and composition have changed over the years in response to the region’s needs. The 2010-2011 reporting year was no exception, with new projects, new people and new challenges for the Authority and its region. A master plan was completed for a coastal walking and cycleway between Wynyard and Latrobe, the region’s first Regional Land Use Framework was produced and the Cradle Coast Healthy Communities Initiative started exploring local government’s role in health promotion. The Authority was part of a consortium that received federal funding to trial electronic health records in our region, Cradle Coast NRM released its new 5-year strategy for the region, Zeehan’s Gaiety Theatre was reborn and the tourism potential of Mount Roland was investigated. These and other activities were overseen by a new Board line-up, with Maree Gleeson, John Perkins and Rod Stendrup replacing directors John Howard, Sam Samec and Lynn Ferencz, whose terms ended in August. Management also went through major changes with the sad departure of long-serving Executive Officer, Karen Hampton, and Business Manager, Tina Murphy, in the first half of the year. They were replaced by Luke Sayer and Mark Summers, respectively. Kylie Bowers joined our administration team, Bev Hayhurst came aboard to lead Healthy Communities and Mark Wisniewski and Karina Rose took up new positions in Cradle Coast NRM. Health and land use planning have been growth activities for the Authority this year, and reforms currently underway in both areas point to a greater role for regional coordination in the future. The State Budget hit NRM Committees in all regions hard, and Cradle Coast NRM is working on a range of business strategies to manage the impacts of administration budget cuts over the
Circular Head Council Annual Report 2010/2011
Page 26 next two years. Tourism was also targeted in the budget, but the new leadership of Tourism Tasmania has signalled bigger roles for regional bodies in the future. Apart from these changes to existing activities, the year ahead will be dominated by the roll-out and management of structural change in the region’s forest industry, and the extent to which intergovernmental agreements and economic development programs address its flow-on effects. The Authority has been actively researching the new industry opportunities that may emerge from this period of change, and will play whatever role its region needs to secure them for the future.”
The 2010/2011 Cradle Coast Authority Annual Report can be accessed from www.cradlecoast.com.
Cradle Mountain Water Summary Report - 2010/2011
In accordance with Sections 72 (1) (ca) of the Local Government Act 1993, Council is to include within its Annual Report a statement of the activities and performance of the Council in relation to any activity undertaken pursuant to Section 21 of the Local Government Act 1993 . As such we provide a summary of the Cradle Mountain Water operations for 2009/2010: -
“Cradle Mountain Water’s second year of operation has seen the corporation overcome some initial obstacles from year one, as well as make significant inroads in delivering improved water and sewerage services throughout the region. The implementation of our new Customer Information and Billing System is a major step forward to improving our billing performance and providing customers with regular usage data. Significant steps were made in relation to providing quality water services to our customers. The Queenstown Water Treatment Plant was officially opened in April 2011 and is now providing clean drinking water to parts of the township, with the remainder of the town due to be online by summer of 2011. The Forth Paloona Project, designed to supply parts of outlining Devonport with treated water from the Forth Treatment Plant, was also substantially progressed. Cradle Mountain Water also lifted one of the two permanent boil water alerts in place, at the township of Linda. Wastewater compliance continues to be a challenge for the corporation, however progress is being made and a Wastewater Management Plan has been developed and submitted to the Environmental Protection Agency. The safety of our employees and contractors continued to be an important focus during the past twelve months. The Board and Executive Management Team are committed to ensuring safe work practices for all employees and contractors and as such the ‘No Harm’ message and measures to address safety issues remains a priority. A total of $16.9 million was invested in capital works in 2010/11, with the major projects being the Cradle Valley Wastewater Treatment Plant, Queenstown Water Treatment Plant, Forth- Paloona Pipeline Project, North Caroline Street Sewerage Pump Station and the Water Metering Project. Cradle Mountain Water welcomed the Treasurer’s State Budget announcement to amend the Interim Price order to allow pricing transition to commence from 1 July 2011. This decision has allowed the process of tariff restructure to commence from 2011/12 with the ultimate aim being a common set of water and sewerage tariffs for the regions. This year also saw the introduction of a new Chairman, Miles Hampton, who replaced the inaugural Chair, Geoff Willis. The Corporation also farewelled Casey van Eysden, who was Executive Manager Assets, Planning & Delivery. Casey retired after almost 20 years with the
Circular Head Council Annual Report 2010/2011
Page 27 former bulk water authority Cradle Coast Water and Cradle Mountain Water. I thank both Geoff and Casey for their considerable contribution to the establishment of Cradle Mountain Water. Cradle Mountain Water was established to address the water and wastewater quality issues that are faced by communities throughout the region, and I believe that in 2010/11 we have started to make significant progress, particularly in water services. There is still a long road ahead, however we have a dedicated team of employees, who are working hard each day to ensure that this outcome is achieved. Andrew Kneebone CEO – Cradle Mountain Water”
The 2010/2011 Cradle Mountain Water Annual Report can be accessed from www.cmwater.com.au.
Progress on Major Projects in Advocacy & Governance:
% Complete
Organisational carbon footprint determination and reduction targets set 100% Publish and report efforts to reduce the organisations carbon footprint 100% Advocate for an increase in windfarm generation capacity in the municipality 50% Review current communication efforts and implementation of proposed 75% enhancements Action all resolutions of Council 2010/2011 100%
Present professional development opportunities based upon identification of 65% Councillor needs Adoption of new Partnership Agreement with the State Government 50% Investigate, develop and implement resource sharing initiatives 75%
LEGEND: Complete In Progress Not Started
Circular Head Council Annual Report 2010/2011
Page 28 BUSINESS PERFORMANCE
Administration Services
Provide quality administrative services and support to all Council departments and external stakeholders including, but not limited to, customer service, risk management, human resources, policy and procedures protocols, governance support with Council elections and legislative compliance.
A review of Council’s Delegations Register was completed and adopted by Council in November 2010.
Risk Management
Council’s resource-shared Risk Management Coordinator has continually reviewed business activities during the financial year to identify and minimise potential losses.
An updated Risk Register was also noted by Council in April 2011, following a Risk Management Review.
Occupational Health and Safety The employment of a resource-shared Occupational Health and Safety Officer in February 2011 has assisted in the commencement of implementing recommendations from the Occupational Safety audit and overall review of Council-related health and safety issues.
Incidents /Accidents During the 2010/2011 year there were 2 recorded workplace injuries, resulting in time loss totalling 43 hours.
Emergency Management
State Emergency Service Council continues to support the local State Emergency Services Unit based in Smithton. The unit comprises a membership of 20 volunteers, specialising in all facets of emergency and road crash rescue.
Council is represented at the North West Regional Emergency Management Committee that represents the Cradle Coast region.
Emergency Management Planning Council’s emergency management planning is in accordance with the Tasmanian Emergency Management Act.
Final sign off by the State Emergency Management Controller of the revised Circular Head Emergency Management Plan 2010-2012 was completed in May 2011. The associated documents completed included the Standard Emergency Management Operating Procedure and the Specialist Emergency Management Resource Contact List.
Circular Head Council Annual Report 2010/2011
Page 29 Submission for the Natural Disaster Resilience Program Funding has been submitted via State Emergency Services for contribution toward the undertaking an Emergency Management Risk Assessment Plan. The objective is to identify current or future levels of exposure to risk or possible risk in the Circular Head area. If successful the final report/assessment will form part of our Emergency Management Plan and may assist Council in future land use planning and associated risk.
Human Resources
Council employs a total workforce of 56 full time equivalent people (including casuals, pool and immunisation nursing staff), 23 of whom are based at Works Plus.
The year has progressed with resource sharing officers between Circular Head and the Waratah-Wynyard Councils, providing for interchangeable staff within departments of Management, Business Strategy, Human Resources, Risk Management, Finance and Engineering.
Full Time Equivalent (FTE) by Department Department Number FTE Male Female of Staff Business Performance Unit 12 9.27 2 10 Financial Services 6 6 2 4 Community Services 3 3 3 Engineering Services 6 5.4 6 Development Services 6 5.42 3 3 Works Plus 23 22.43 21 2 Pool 9 1.55 1 8 Immunisation Nurses 3 0.15 3 Business Strategy Unit 3 3 1 2
Total 71 56.22 36 35
Average Age by Department Business Performance Unit 46 Financial Services 40 Community Services 40 Engineering Services 46 Development Services 32.5 Works Plus 44 Pool 35 Immunisation Nurses 42 Business Strategy Unit 52
Average Age overall 42
Circular Head Council Annual Report 2010/2011
Page 30 Staff Tenure in excess of 10 years Department Number FTE Male Female of Staff Business Performance Unit 2 2 1 1 Business Strategy Financial Services Community Services Engineering Services Development Services 1 1 1 Works Plus 10 9.43 8 2 Pool Immunisation Nurses Business Strategy Unit
Total 13 12.43 10 3
Staff Tenure in excess of 20 years Business Performance Unit 2 2 1 1 Business Strategy Financial Services Community Services Engineering Services Development Services 1 1 1 Works Plus 5 5 5 Pool Immunisation Nurses Business Strategy Unit
Total 8 8 7 1
Resource Shared Positions Staff Waratah- Circular Head Male Female Wynyard
General Manager 0.5 0.5 1 Executive Manager 0.5 0.5 1 Engineering Services Human Resources Supervisor 0.5 0.5 1 Executive Manager Financial 0.2 0.8 1 Services Manager of Engineering & 0.5 0.5 1 Projects Risk Management Coordinator 0.5 0.5 1 Health & Safety Officer 0.5 0.5 1 Executive Manager Business 0.5 0.5 1 Strategy Strategy Facilitator 0.5 0.5 1 Strategy Development Officer 0.5 0.5 1
Total 4.7 5.3 6 4
Circular Head Council Annual Report 2010/2011
Page 31
Training/Development Council is also continuing to further develop skills of staff. Specific industry training has also been undertaken by individuals to assist them in performing their roles including first aid, warden training and general fire safety training, payroll and taxation training, work in confined spaces, bronze medallions, permit authority workshops, lifeguard training, return to work co- ordinators, disposal of records, playground safety training, mental health 1st aid, traffic control, work safely in construction and pruning, pests and diseases training.
The following certificates have been completed by staff undertaking tertiary training – Certificate III in Timber Manufactured Products (chainsaw), Diploma of Management, Certificate IV in Local Government (Planning), Executive Certificate in Event Management, Graduate Certificate in Business, Certificate IV in Occupational Health and Safety.
Staff Turnover The turnover rate of Council staff was 16% compared to 15.49% in 2009/2010, 11.48% in 2008/2009, 19% in 2007/2008, 7.3% in 2006/2007, and 10.9% in 2005/2006.
Annual Remuneration for Senior Staff
In accordance with Sections 72 (1) (cd), 72 (4) and 72 (5) of the Local Government Act 1993 Council is to include within its Annual Report a statement relating to the total annual remuneration paid to employees of the Council who hold positions designated by it as being senior positions. Total annual remuneration includes the salary paid, contributions to superannuation, value of the use of any motor vehicle and any other allowances or benefits paid.
Annual Remuneration No. of Employees
80,000 – 100,000 5
100,000 – 120,000 2 160,000 – 180,000 Nil
Public Interest Disclosure Statement
Under Section 86 of the Public Interest Disclosures Act 2002 Circular Head Council did not receive, nor has it been required to deal with, any Public Interest Disclosures for the 2010/2011 year.
A copy of the Circular Head Council Public Interest Disclosure Guidelines is available for viewing at Council Offices during the normal business hours or copies are available to download from Council’s web site www.circularhead.tas.gov.au.
Circular Head Council Annual Report 2010/2011
Page 32
Ombudsman’s Investigations
The Office of the Ombudsman conducted two investigations with Council for the period of this report, resulting in the Ombudsman’s office being satisfied with Council’s actions and resolving the matters in Council’s favour.
Contracts for the Supply or Provision of Goods or Services
Pursuant to Section 23 (5) of the Local Government (General) Regulations 2005, Council is required to report with the Annual Report contracts for the supply or provision of goods and services exceeding $100,000.
Successful Description of Period of Value of Tender/ Contractor Contract Contract Contract
William Adams Supply and 01.08.2010 - $257,000 PO Box 105 Delivery of Grader 18.08.2010 SOMERSET TAS 7322 Bishop Constructions Smith Street Public 06.09.2010 – $207,000 PO Box 841 Toilets Construction 20.06.2011 SMITHTON TAS 7330 Venarchie Contracting Sprayed 02.09.2010 – $346,036.01 PO Box 395 Bituminous 29.04.2010 MOWBRAY TAS 7248 Surfacing
Circular Head Council Annual Report 2010/2011
Page 33
Progress on Major Projects in Business Performance :
% Complete Review and adoption of the Emergency Management and Community 100% Recovery Plans Review of Fleet Management practices 50% Present annual risk report to Council 100% Complete review of Risk Register and develop system to maintain and 100% update identified risks Ongoing review of Risk Register 100% Completion of Occupational Health and Safety audit 100% Implementation of Occupational Health and Safety In Progress audit 60% recommendations Investigate the introduction of an internal Audit Committee to test Councils' 10% works procedures Review and upgrade annual staff evaluation and development program 100% documentation and standards to meet the needs of the organisation Revision of recruitment and induction practices 80% Introduce Employer of Choice provisions 50% Complete the relocation of archived documents to new secure facility in 100% accordance with records management standards Review and update all General Manager Directives including distribution and 100% education for all staff members Review and update whole of organisation procedures including development 100% of an organisational procedures Adoption by Council of a revised and updated Delegations Register. 100% Development of contract management control system. 100% Investigate potential to implement electronic document templates in the 40% electronic records management system Completion and adoption of new Policy, Guidelines and Information 50% Brochure for Street Stalls, Use of Public Reserves and Event Management Continue to develop Council's website to provide on-line information and 5% services, including online forms Revision of tender procedures and supporting documentation 50% Review of Emergency Management Committee structure 100%
Continue to develop Customer Service System through Loftus HMS 100% Undertake staff training needs analysis and develop training plan 15% Emergency Management – Investigate resource sharing possibilities for 100% co-ordination LEGEND: Complete In Progress Not Started
Circular Head Council Annual Report 2010/2011
Page 34 BUSINESS STRATEGY
Business Strategy Unit
Circular Head and Waratah-Wynyard Council’s have together formed a Business Strategy Unit (BSU) that is tasked with the primary objective of progressing outcomes of each of the Councils’ Five Year Strategic Plans. The Unit also identifies opportunities that may present themselves, that further the Strategic intent of Council or allow Council to think outside the square and initiate a ‘new way of doing things’ for the community. Where budgets allow, projects may progress to full development or, if the project is particularly large, to ‘shovel ready’ stage. This means that, for larger community projects, all design, consultation, documentation and the issue of Permits is to be undertaken by the BSU so that funding can then be sought for the development of the project.
The BSU also acts as an advocate for regional economic development.
2010-2011 was considered to be a ‘set up’ year, where work priorities were to be internal and procedural matters were to be determined. The BSU structure and internal business systems were established, projects were identified and prioritised and pre-project planning was undertaken. Draft concepts and ideas were proposed, key stakeholders identified and projects costed, ready for presentation to Council’s 2011-2012 budget deliberations and the formation of the 2011-2012 Action Plan.
Primary activities undertaken are summarised below:
• Determined the Business Strategy Unit structure and skill set required; • Represented Circular Head Council in matters relating to regional economic development, social inclusion, sustainable communities and other forums. This includes involvement in the Department of Economic Development’s development of a State Economic Development Plan, active representation on the Tasmanian Committee of Regional Development Australia, participation in strategy development by the North West Rural Strategy Group and participation in a study by Innovative Regions Australia (Federal Government) ‘Mapping the Connections - Supply Chain of the Dairy Industry - Farm Gate to Factory; • Established and delivered an Action Plan for 2010-2011. Key Actions included:- • Establishment of Business Strategy Unit Business Systems; • undertook a ‘Gap Analysis’ of Councils Strategic Plan 2009-2014; • interviewed Circular Head elected members to determine and prioritise key projects for consideration in Circular Head 2011-2012 budget submissions; • reviewed existing Strategies and Master Plans and integrated appropriate recommendations into 2011-2012 budget submission and proposed works program; • as a consequence of the above (gap analysis, strategy analysis and interviews), developing budget submissions for consideration by Council during 2011-2012 budget deliberations; and • developed a Business Strategy Unit Action Plan for 2011-2012. Smith Street Public Toilets
Circular Head Council Annual Report 2010/2011
Page 35
The Business Strategy Unit is also resourced to develop collaborative networks with community groups, other local professionals, State & Federal agencies; to be aware of external funding opportunities and to determine where such funding is appropriate to project delivery.
Major projects undertaken with BSU involvement include:
• Redevelopment of the Stanley Town Hall; • New Smith Street toilet facilities; • Landscaping of West Park Foreshore Reserve; • Community Recreation Centre Hall of Fame – advice on memorabilia display structures; • Ongoing design advice to internal and external clients; • Examining and reporting on a proposed walking trial to the Shell Pits. West Esplanade Foreshore Reserve
2011-2012 Priorities
Council have asked the Business Strategy Unit to pursue the following over the 2011-2012 period:
• Smithton Leisure and Recreation Development Plan; • Progress design and documentation for a new indoor swimming pool facility; • Flora and Fauna Study of the Harcus River Road; • Smithton wharf redevelopment • Stanley entry signage; and • Tier Hill Master Plan.
Tier Hill Lookout Smithton Wharf
Circular Head War Memorial Swimming Pool
Circular Head Council Annual Report 2010/2011
Page 36
Name Change for the Business Strategy Unit
From October 2011 the Business Strategy Unit was renamed the Strategic Projects Office. The name change communicates more succinctly the work the Office does in identifying, managing and executing strategic projects that fall outside the general day to day business of Council. The repositioning is considered to be ‘self explanatory’ and will assist in fostering a clearer understanding of the focus of this strategic section of Council.
Progress on Major Projects in Business Strategy Unit :
% Complete Review of Strategic Plan gap analysis for Circular Head Council and develop 100% works program Establish business systems for engagement of external clients 100% Embed Project Management principles for the delivery of major projects 100% Establish systems of work for internal tasking 100% Review of existing strategies and master plans for Circular Head Council and 100% integrate into works program LEGEND: Complete In Progress Not Started
Circular Head Council Annual Report 2010/2011
Page 37 COMMUNITY
Community Services
Council’s focus for Community Services continues to incorporate a number of projects that will increase community partnerships and provide a range of benefits to the community.
Council will continue to support service providers and community members to develop partnerships to assist with growth in education and training, youth initiatives, road safety programs, community events, mentoring, leisure and recreation.
Activities included: • SPAN (Service Providers Access Network) • National Youth Week • Youth Advisory Group (Circular Head Youth Leaders) • Youth Leadership Programs with Smithton High School and Circular Head Christian School • North West Action for Youth • Community Road Safety Partnership Program • North West Community Recovery Committee • Circular Head Community Recovery Project • Christmas Parade • Christmas Wishing Tree • Lighting of the Christmas Event • Clean Up Australia Day • Australia Day Celebrations • Circular Head Education and Training Consultative Committee • Circular Head Community and Recreation Centre • Circular Head Combined Community Group • Circular Head Arts • Circular Head Show • Circular Head Community Garden • Circular Head Little Athletics Association • International Women’s Day • Seniors Week • Smithton Primary School – Co-Pilots Mentoring Program • Circular Head Garden Club • Circular Head Liquor Accord
Youth
Seven Up Youth Centre A joint submission with Rural Health, Council and Smithton Christian Fellowship was successful in obtaining funding for a coordinator for the Seven Up Youth Centre from the Department of Premier and Cabinet through its Community Capacity Building Grants.
The establishment of the Youth Centre was the result of direct consultation with the young people of Circular Head, secondary schools, church leadership teams and youth service
Circular Head Council Annual Report 2010/2011
Page 38 providers. The Youth Centre operates five (5) days per week from 3 – 5pm with an average daily attendance of twenty young people. Activities held at the Centre include cooking, art and craft, music and dance.
Other Youth Activities Council’s Youth Officer regularly liaised with the student leadership teams at Circular Head Christian School and Smithton High School. Financial support was provided for leadership activities for both secondary schools and Soroptimist International for Circular Head’s annual Careers Day.
Other youth activities organised and/or supported by Council include:
• Future is in your Cup Tas Laser Skirmish Outings Coffee Training • Bus Trip to Burnie Cinemas (Photo Courtesy of • Cradle Coast Outrigger Canoe Club; students from Circular “Circular Head Chronicle”) Head Christian School and Smithton High School attended. • Circular Head Christian School Drama students attended the ‘Circus Trick Tease’ at the Burnie Art & Function Centre. • Council and Red Herring Coast Rider Surf Academy held surfing lessons at Green Point Beach, Marrawah in February 2011. • Mini Movers Boot Camps
National Youth Week Circular Head’s National Youth Week’s ‘Own It Youth Fest’ was held on the 3 April 2011 at West Esplanade. A crowd of approximately 500 young people and families were entertained with live music from Australian Idol Casey Barnes and Idle Fret. Break Dancers performed and other activities included the Vertigo Rock wall, Sumo Suits and a Bucking Bull. Service Providers provided health awareness information throughout the event.
The National Youth Week Regional event ‘Own it Y-Expo’ was held on the 8 April 2011 at the Devonport Recreation Centre. Around 900 students from schools along the North West Coast took the opportunity to attend this very successful event.
Circular Head Youth Leaders (CHYL) Circular Head Youth Leaders (CHYL) is the youth advisory group for the Circular Head Council. CHYL meets regularly to advise Council on youth issues and concerns and develop activities and projects for young people in Circular Head. Some of the activities undertaken included:
• Rock Night Show • Australia Day • National Youth Week • Future is in Your Cup Coffee Stall • Winter Woollies Campaign • YNOT Youth Conference • Out in the Cold ‘Community and Winter Woolies Business Leaders sleeping rough for a night’ Out in the Cold Sleep Out
Circular Head Council Annual Report 2010/2011
Page 39
Community Road Safety Partnerships (CRSP) Program The Circular Head Road Safety Partnerships (CHCRSP) Committee continues to be proactive in providing education and promotional strategies to address road safety issues within Circular Head.
Following the launch of the Mayor Daryl Quilliam “Look out for your Mates” Challenge in 2010 addressing the alarming statistics in Circular Head by supporting each other to prevent another road fatality, the campaign has shown that the community is more aware of road safety issues and the reduction in the severity of road crashes within the municipality has reduced. The “Look out for your Mates” challenge will continue to be the main focus of the CHCRSP Committee.
The Designated Driver Program (DES) was rebranded and launched on 19 th April 2011 at the Rocky Cape Tavern in conjunction with the newly formed Circular Head Liquor Accord Committee. Drink cards have been designed to provide DES participants with four (4) free soft drinks whilst attending participating licensed venues. The Circular Head Liquor Accord and the CHCRSP are working in partnership to encourage safe practises when consuming alcohol.
CHCRSP again assisted the Smithton Rotary Club RYDA Program which educates Grade Ten students on road safety issues. The Circular Head Christian and Smithton High Schools were involved.
CHCRSP continues to promote road safety messages at the community events.
Circular Head Liquor Accord The Circular Head Liquor Accord (CHLA) was officially launched on 16 th November 2010. The Circular Head Accord was the third agreement established in Tasmania between Industry, Government and the Community. The Accord was initiated by local licensees wanting to develop a collaborative approach to alcohol related issues in the local community to improve public safety and behaviour.
The CHLA is working closely with the Circular Head Community Road Safety Partnership Program supporting the Designated Driver Program and the “Look out for your Mates” campaign by promoting responsible alcohol consumption.
Breathalyser Units are also being utilised in licensed venues to assist patrons with addressing drink driving issues.
Mayors Education Fund A $5,000 Bursary is awarded each year to an applicant who is able to demonstrate that they would find it difficult to access further education without the funding support. It is preferable that the course is relevant to the district. There were two recipients of the Mayors Education Fund for 2011. The recipients were Jesse Gray and Jocelyn Harrisson. Jesse will be undertaking a 3 year Bachelor of Arts at the University of Tasmania in Launceston. Following this Jesse will undertake a Masters of Teaching in order to achieve his aim of becoming a secondary school teacher of English and Philosophy. This year Jocelyn is undertaking two Diplomas, one in Community Services and another in Counselling. Jocelyn’s long term goal is to study a Bachelor of Social Work at University.
Circular Head Council Annual Report 2010/2011
Page 40
Australia Day Awards and Celebrations Australia Day Award 2011 recipients were: Citizen of the Year – Christopher (Bomber) Wells Young Citizen of the Year – Griffin Blizzard Community Event of the Year – Australia Day Event “Twilight on the Duck” Festival 2010
The annual Twilight on the Duck Australia Day festival on the West Esplanade foreshore was a great success with approximately 3,500 people attending. Greenham Tasmania was the major sponsor for the event in 2011. Highlights included the introduction of a Cocktail Party held on the eve of the event, Graze the Region food and wine, the duck themed foot race, cycling challenge and fishing competition. Activities, displays, competitions and quality musical entertainment entertained the patrons and the signature Duck Race on the river was a popular drawcard. The event culminated with a spectacular fireworks display.
An overview of the “Twilight on the Duck” festival was presented by Council staff at the National Australia Day Conference held in Melbourne in June 2011. The event was chosen to represent Tasmania as part of the National presentations.
Circular Head Education and Training Consultative Committee (CHETCC) The CHETCC is a committee of Council whose aim it is to promote and celebrate the value of lifelong learning in the community and address other issues relating to education and training within the community, such as but not limited to poor post year 10 retention rates and identified skills shortages. The Committee recently obtained funding from Skills Tasmania, as part of the joint Australian & Tasmanian Government's "North West and Northern Tasmania Innovation and Investment Fund" (NWNTIIF), to employ a part-time Project Officer.
The Project Officer will work to establish and promote programs and initiatives that will encourage training and retraining opportunities in Circular Head, with a primary focus on retrenched workers and those affected by recent industry restructures. The CHETCC Project Officer will also develop strategies to promote the newly established Circular Head Trade Training Centre.
Seniors Week Seniors Week is celebrated annually in Tasmania during the first week of October. During Seniors Week 2010 Circular Head Council partnered with the Smithton Online Access Centre and the two secondary schools to offer the Tech Buddies program. Tech Buddies is a free program in which senior members of the community worked one-on-one with secondary school students to gain a basic grasp of modern technology. Participants learn at their own pace, skills of their choice, ranging from mobile phones to sending an email or uploading a photo onto a computer. Sessions were held each Wednesday at the Smithton Online Access Centre.
The allocation of a Community Capacity Building grant from the Department of Premier and Cabinet allowed the extension of Tech Buddies to incorporate modern electronic gaming as an alternative activity. Council used the funding to purchase a Nintendo Wii, which was utilised at the Smithton Senior Citizens’ Centre as part of the regular Friday exercise sessions held at the Centre. These sessions proved to be very successful and were enjoyed by the young people and their senior ‘students’ alike.
Mayor Daryl Quilliam hosted the annual Mayor’s Afternoon Tea, at the Circular Head
Circular Head Council Annual Report 2010/2011
Page 41 Community and Recreation Centre on Friday, 8 October. Council partnered with the Circular Head branch of Soroptimist International for this event, which was attended by approximately 80 people. Student leaders from Circular Head Christian School and Smithton High School gave a brief presentation of school activities and achievements.
Christmas Parade The 2010 Christmas Parade was a raving success with 30 parade float entries showcasing everything from the Wiggles to the Time Out Ginger Bread House. The winning float this year was the International Friendship Group. Pre-entertainment this year drew the crowd in early to be entertained by professional break dancers, face painting, air brush tattooing, reptile rescue show and local street buskers and street artist. Having the Burnie City Brass Band and the Burnie Highland Pipe Band a part of this year’s parade was a great highlight which added to the atmosphere and spirit of Christmas.
Balance your life… Health and Well-being Initiative The Circular Head Council has developed a holistic approach to caring for the community, through the implementation of a health and well-being program. The program, named balance your life was launched on Wednesday 23 February, 2011 at the Community and Recreation Centre, Grant Street Smithton.
Under the balance ‘brand’ Council will facilitate the coordination of services and programs which promote wellness in the community. balance will build on existing activities already undertaken by Council as well as introducing new initiatives such as ‘ Lose kilos for the Community’. It fits perfectly with the federally funded ‘Healthy Communities Initiative’, which was introduced in Councils across the Cradle Coast Region in 2010.
“balance your life” is not just about instigating physical activity. It builds on existing recreational infrastructure and facilities provided by the Council and programs with young people, seniors, our multicultural community and people with disabilities that will also sit under the balance banner.
Emergency management and road safety initiatives, such as the Mayor’s ‘ Look out for your Mates’ campaign, contribute to safe communities, while community events and festivals such as the Australia Day and National Youth Week celebrations and the annual Christmas Parades help to develop a sense of community connectedness. Inclusive communities are more likely to attract and retain skilled workers; therefore initiatives such as balance your life have a potential economic development role.
The initiative recognises the changing role of Local Government Circular Head Council has identified among these emerging new roles and functions, the need to further support and encourage an active, vibrant and inclusive community.
Healthy Communities Initiative The Circular Head Council in partnership with the Cradle Coast Authority and the other eight (8) North West Councils received funding to implement the Healthy Communities Initiative (HCI) across the Cradle Coast Region. The HCI is funded by the Australian Government Department of Health and Ageing through Council of Australian Governments (COAG).
Circular Head Council Annual Report 2010/2011
Page 42 The aim of the initiative is to improve the wellness of residents by way of reducing and preventing the incidence of overweight and obesity-related chronic disease. It was revealed that poor nutrition, smoking and risky alcohol consumption in the Cradle Coast region is up to 10% higher than the Tasmanian statistics.
The Circular Head Healthy Communities Initiative developed a ten week healthy lifestyle program covering all aspects of wellbeing from good nutrition to time management and physical activity. Partnerships were formed with job service agencies, training organisations and health and fitness providers to deliver the programs. The first program commenced in November 2010 and the second session commenced in February 2011. A total of sixteen participants completed the two programs.
Cradle Coast Authority has received Federal funding for the next two years to continue the Healthy Communities Initiative across the region.
Lose Kilos for the Community “Lose Kilos for the Community” was the ‘flagship’ program for the Circular Head Council’s launch of Balance your life – Circular Head encouraging health and well being in the community; an innovative way to address health issues in our community.
The twelve week program challenged the community to lose weight through being more active and adopting healthier eating habits.
The Circular Head Council would match the kilos lost by the community with a financial contribution to install exercise equipment along the newly developed walking tracks in Smithton. The program offered free physical activities; weigh in sessions combined with information discussions highlighting changing lifestyles to assist participants to become healthier and more active.
The program offered participants a motivational ‘kick-start’ to a healthier, more active lifestyle in a supportive environment.
A calendar of events, fitness journal and diary and membership card was developed to support the participants.
The inclusive program was open to all members of the community and existing infrastructure within Smithton was utilised to promote physical activity. Partnerships were formed with the fitness industry, health service providers and media to provide education, information and support for participants.
The project was embraced by the Circular Head community, attracting 330 adult participants with a combined weight loss over 500kgs. This figure equates to over 5% of an adult population of around 5700, demonstrating excellence in community engagement.
Circular Head Council Annual Report 2010/2011
Page 43 Sport and Recreation
This area promotes physical activity, maintenance of recreation facilities, support for sporting and recreation clubs/groups and is responsible for assisting the Area Management Committees of Council.
The Area Management Committees of Council are responsible for the management of the facilities, with funding derived from Council’s operational budget, grants and income from users.
Circular Head War Memorial Swimming Pool The opportunity to learn to swim and enjoy an aquatic facility is recognised as an important recreational activity. Council operates and maintains the district's indoor heated swimming pool. Pool safety is paramount requiring employment of qualified lifeguards to supervise all pool users. Annual training for lifeguards is undertaken.
Circular Head Council supported an extension to the pool opening hours for a trial period over the winter months from May to August 2011 to promote the importance of physical activity for the community.
Walking Tracks Walking tracks infrastructure continued to be a major focus of the Recreation area which included extending the Tatlow Beach Walk in Stanley. A Memorandum of Understanding was formed with the Stanley Golf Club Inc. as a section of the walk is on private property.
West Esplanade Smithton West Esplanade upgrades have included installing drainage, sealing of the perimeter path and native planting of a mound has been completed.
An imaginative playground environment has been constructed to provide a central facility for children of varying ages. Funding for the project was provided through Council and the Federal Government.
King Park Stanley Improvements to King Park have included installing an irrigation system and upgrading the surrounds to the wavy rock wall with timber decking.
Grants and Benefits
In accordance with section 77 of the Local Government Act 1993 , the following grants and benefits have been made by Council during the year.
All of these grants were made available by Council to community organisations to help fund their operations and special projects during the year. Council determines its allocations during its budget deliberations and calls for applications in March and October each year. Allocations made to individual groups in previous years have been detailed in the appropriate year’s Annual Report .
Circular Head Council Annual Report 2010/2011
Page 44
2010/2011 2009/2010 2008/2009 2007/2008 2006/2007 Total Allocation 193,225.91 190,415 $157,315 $149,970 $176,774
Community Grants Community Grants $ $ Round One Round One Smithton Rescue Service 2,500 Smithton Turf Inc. 3,000 Togari Community Centre 2,750 Smithton Circular Head Lions Club 2,000 Cluster of Circular Head Schools 515 Emmerton Park Inc. 2,080 Circular Head Umpires Association 1,000 Redpa Football/Marrawah Cricket 3,200 Circular Head Walking Club 1,000
Community Grants Community Grants $ $ Round Two Round Two Circular Head Motorcross 2,000 Irishtown Football Club 5,000 Stanley Discovery Museum 1,813 Circular Head Youth Leaders 3,743 Forest Sports Centre 5,000 Circular Head Children’s Services 1,135 Lialeeta Crescent Park 4,000 Forest Stanley Football Club 3,000 Smithton Auskick 2,000 Forest Stanley Cricket 3,000
Benefits $ Benefits $
Emu Bay Rotary Club – Special 100 Rotary Club of Somerset – 100 Needs Children Special Needs Children Smithton High School - Award 100 Wyndarra – Christmas Hampers 300 Circular Head Community Garden 57.91 Immune Deficiencies Foundation 100
Other Contributions $ Other Contributions $ Circular Head Tourism Association 107,890 Circular Head Progress Group 25,000 Circular Head Education and 10,842 Training Consultative Committee
Council provided inkind support to community organisations, projects and events through the provision of equipment, use of Council facilities and printing and administrative support. Inkind support was provided to the following community organisations: • Circular Head Arts • Rural Health Tasmania • Soroptimist International of Circular Head
Circular Head Council Annual Report 2010/2011
Page 45 • Smithton Lions Club • Circular Head Agricultural Society • Wyndarra Centre Inc • Returned Services League • Stanley Town Hall • State Emergency Service • Circular Head Education and Training Consultative Committee • Circular Head Progress Group • Circular Head Rural Youth • Circular Head Football Association • Circular Head Indoor Bowls • Circular Head Heritage Centre • Circular Head Child Care Centre • Circular Head Garden Club • Mowbray Swamp Drainage Trust • Circular Head Aboriginal Corporation • Smithton Police • Montagu Hall • Mawbanna Hall • Forest Stanley Football Club • Emmerton Park Inc.
Progress on Major Projects in Community:
% Complete Community Grants Round 1 100% Community Grants Round 2 100% Investigate sources of funding for proposed pool redevelopment 60% Mayor's Education Fund sponsorship 100% Continued support for Youth programs and activities 100% Review Area Management committee structures 50% Establishment of a Recreation Advisory Committee 100% Liaison with local organisations to support community events and special 100% interest groups Participation in Australia Day activities 100% Identify sources of funding available for recreation and special interest 100% groups and disseminate LEGEND: Complete In Progress Not Started
Circular Head Council Annual Report 2010/2011
Page 46 DEVELOPMENT
Development Services
Development Services is responsible for professional and technical management and support for various organisational functions, including:
• Land Use Planning • Weed Management • Building Control • Public and Environmental Health • Animal Control • Cemeteries
Animal Control
Council provides ongoing services in relation to the control and registration of dogs. With changes to dog control legislation, Council continues to provide education to dog owners on changing requirements for dog ownership.
Council also respond to reports of livestock and other animals unattended on roads.
Council did a general mail out to all registered dog owners, advising of the changes to the State Dog Control Act requiring dogs to be microchipped and offering discounted registration fees for dogs microchipped prior 1 June 2011. A brochure encouraging people to clean up after their dog whilst in public areas was also distributed.
Building Control
In accordance with the requirements of the Building Regulations 2004 , Building Code of Australia and the Building Act 2000 , Council undertakes various roles to ensure a safe and effective built environment.
Specific responsibilities of building control may include issuing of Permit Authority Certificates, provision of general building services advice to ensure the required standards in relation to building, plumbing and drainage are maintained. Council is also responsible for processing all building applications, in accordance with the statutory time limits prescribed under the Building Regulations 2004.
During the reporting period, Council undertook a largely educative approach to enforcement activities. Much work continues in promoting the requirements of the Building Act 2000 and the necessity to obtain permits for building works.
During the reporting period 165 building permits were recorded. This figure is up by 30 from 2009/10. This number is an increase by 18% over the average number of approvals for the 3 years prior.
Circular Head Council Annual Report 2010/2011
Page 47 Cemeteries
Council maintains five cemetery sites in the Municipality. Cemetery records and plot allocation is administered through the Development Services Department. Maintenance of the facilities is undertaken by Council’s Works Plus unit.
Land Use Planning
Planning involves a wide range of duties in relation to the Resource Management and Planning Systems in Tasmania. Council is focussed on sustainable development principles and the maintenance and enhancement of land use planning and control.
The role of planning is both strategic and regulatory, and aims to ensure compliance with legislative requirements in relation to land use planning, development applications and enforcement. Council aims to undertake its role in a cost-effective manner, while ensuring standards of service are maintained.
During this reporting period, much of Council’s energies and attention have been focussed on the planning reform process to implement new common format planning schemes. During 2010/11 participation in the Cradle Coast Regional Planning Initiative to work towards regionally consistent planning schemes was a key factor. An amendment was also made to planning schemes to expand the number of activities that are exempt from the requirements for a planning permit.
During the reporting period there were recorded 144 planning assessments with 105 permits issued and 39 proposals assessed as exempt or permitted without a permit. This number is down from the average over the past 4 years, being a reduction in permits processed by 34% over the averages for the preceding 3 financial years.
In terms of developments approved, highlights included the development of two Trade Training Centres at local high schools and the approval of a revised stage 2 of the Tier Hill Subdivision for 47 residential lots.
Public and Environmental Health
Council’s Public and Environmental Health unit plays a key role in the provision of a range of public and environmental health services to the community.
The Public Health Act 1997 outlines requirements relating to public health, including provisions for disease control, regulation of at risk premises, powers over unhealthy premises and monitoring of both drinking and recreational water quality.
The Act is supported by a variety of guidelines and referenced standards that Council must enforce. The role Council plays in public health matters has increased under the requirements of the Act, especially in relation to registration of premises, water supplies and immunisation. Council is proactive in its endeavours to promote and conduct immunisation clinics, in conjunction with local health professionals. Council’s main immunisation focus is on school immunisation clinics. During the reporting period immunisation was offered to grade 7 & 10 students. The Human Papilloma Virus (cervical cancer) immunisation program for female students has now reached a stage where it is routinely offered to female students in grade 7.
Circular Head Council Annual Report 2010/2011
Page 48 Council is also responsible for ensuring public health is protected by registering and assessing food businesses and responding to complaints of defective food. Providing information on food safety standards is also an important aspect of food safety.
Environmental Health covers a range of environmental management issues from pollution to development proposals. Council will continue to work with stakeholders in the dairy industry to promote responsible management of dairy effluent.
Public Building Safety
To ensure that an appropriate standard of facilities is maintained, Council will be providing a regular inspection of all Council owned buildings. Requirements of the Building Regulations 2004, Building Code of Australia, Disability Discrimination Act and the Public Health Act 1997 will be considered and where necessary implemented.
During the reporting period Council’s Environmental Health Officer was actively working with community based building operators to review the requirements of the Place of Assembly Guidelines. Council will be looking to provide some assistance to these community facilities in 2011/12 in relation to building maintenance schedules.
Progress on Major Projects in Development:
% Complete
Finalise and adopt the Smithton Central District Urban Design Framework 100% Participation in Regional Planning Review 80% Maintenance of the assessment program for environmentally relevant 100% activities (including Level 1 activities) Continue to maximise external funding for weed and Natural Resource 100% Management projects in Circular Head Update website to facilitate public reporting of noxious weed infestation 0% Review present arrangements and present recommendations for improved 100% Natural Resource management Monitoring of recreational water quality 100% Maintenance of the annual assessment program for premises covered by the 100% Public Health and Food Acts School immunisation program for grade 7 and grade 10 students in 100% accordance with current immunisation schedule Delta Dog Safe school education program 100% Establishment of compliance regime for the provision In Progress of annual 60% maintenance statement enforcement under Section120 (2) Building Act 2000, Regulation 47 Actively monitor animal control contract, including reporting and statistics 100% Active follow up by Animal Control Officer of unregistered dogs and 100% promotion of new dog control requirements Review of Dog Management Policy 80% Align processes and procedures in relation to Development Services 100% between Circular Head Council and Waratah-Wynyard Council to further enhance resource sharing opportunities LEGEND: Complete In Progress Not Started
Circular Head Council Annual Report 2010/2011
Page 49 ECONOMIC DEVELOPMENT
Economic Development
Circular Head is well placed to take advantage of significant economic development opportunities. Council has formed the view that the Circular Head municipal area has excellent prospects for developing and expanding value adding of the rich resources in the area.
The Council will continue to develop a working relationship with existing and potential industry in the creation and pursuit of economic development opportunities. Council continued to financially support the Circular Head Tourism Association and the Cradle Coast Authority and provided establishment funding for the establishment of the Circular Head Progress Group.
A Business Strategy Unit was established prior to this financial year. The Business Strategy Unit (BSU) is a functional department serving both the Circular Head and Waratah-Wynyard Councils designed to further the strategic interests of both municipalities. The Officers of the BSU will be in a position to concentrate on the preparation of projects to a level of maturity that demonstrates need and are "Shovel Ready", enabling more rapid deployment once funding has been secured.
Circular Head Council Annual Report 2010/2011
Page 50 ENGINEERING
Engineering Services
Engineering Services is responsible for professional and technical management and support for various organisational functions, including:
• Customer Service • Project management • Management of Civil Design consultants • Development application assessment in terms of infrastructure requirements • Asset Management • Physical Infrastructure renewal and replacement • Contract Management • Solid Waste Management
Civil works designs are completed each year for various capital projects and operational issues by internal Engineering Services staff and external consultants. The Engineering Services team receives customer enquiries on a range of issues, such as the condition of a road or connection to Council’s stormwater network and these enquiries come from a range of different stakeholders from internal staff and ratepayers to Councillors and other government departments.
One of the most important functions provided by the Engineering Services team is that of Asset Management. In broad terms asset management is a way for Council Officers to maintain a proactive and holistic approach to customer requests using asset management systems and procedures, to better inform decisions by Councillors to protect the long-term needs of ratepayers and the community in general.
Asset management plans are being developed for all classes of Council’s infrastructure assets and these initial plans will form the baseline for future versions and improvements/enhancements. Trees removed from intersection of Main Road & Dovecote Road, Stanley
Works Plus
Operating as a separate Business Unit, Works Plus is Council's dedicated and skilled works team, responsible for construction and maintenance of all Council’s built infrastructure. Performing many activities relating to the maintenance of Council's physical assets, Works Plus also perform routine inspections on a regular basis and any defects are programmed for repair. Additionally, customer requests related to built infrastructure lodged with Council by phone,
Circular Head Council Annual Report 2010/2011
Page 51 email or over the customer services counter are logged and tracked for completion status.
For Works Plus’ construction and maintenance activities unit prices are determined by benchmarking or other competitive processes. Works Plus also has the capability to offer a private works service for civil construction activities such as subdivision works and driveways.
Drainage
This activity provides for the management, collection and control of stormwater run off within the drainage districts of Smithton and Stanley.
Drainage of stormwater is typically by underground piped systems which collect runoff from kerb and channel, properties, public reserves and roadways. There are also open drain systems that involve natural flow paths and minor creek systems.
Rivers within the Circular Head Municipality are dealt with by the State Government, under the Department of Primary Industries, Parks, Water and Environment.
Continuing work is being undertaken by Engineering Services and Works Plus for planning of future construction programs, to meet the needs of the community in the short to medium and long term.
Parks & Reserves
This activity provides for the management, maintenance and enhancement of a wide range of parks, gardens, cemeteries and reserves within the municipality.
The amenities provided and maintained by Council include a camping ground at Montagu, parks and gardens in Stanley and Smithton, walkways in Stanley and Smithton, as well as recreational facilities at Dip Falls, Marrawah and Brickmakers Beach.
Council also maintains five cemetery sites in the Municipality. Cemetery records and plot allocation is administered through the Development Services Dangerous Trees being removed from Anzac Park Department. Maintenance of the facilities is (beside “The Grunter”) coordinated by the Department Manager and is contracted out to Works Plus, Council’s civil construction arm.
Solid Waste Management
Kerbside garbage (wheelie bin) collection services are provided to residential properties in the urban centres in Stanley and Smithton on a weekly basis, whilst fortnightly collections are provided to the wider rural area.
Circular Head Council Annual Report 2010/2011
Page 52
Kerbside recycling collection is provided to the urban centres of Smithton and Stanley fortnightly. The White Hills Transfer Station on Bass Highway, Smithton is open 7 days a week 10am to 4pm all year around (although closed on Christmas Day, Boxing Day, New Years Day, Good Friday & Anzac Day) and has provision for depositing recyclables at no out of pocket cost to the customer.
The community may also dispose of general waste and domestic recyclables at the White Hills Waste Transfer Station. All waste is then transported to the Port Latta Landfill Site, which also receives waste from other statewide sources.
The Port Latta Landfill site is one of Councils major facilities operating under strict environmental controls administered by the Environmental Protection Authority.
Transport
The Circular Head municipality is serviced by approximately 767 km of road network made up of 289 km of sealed roads and 478 km of unsealed gravel roads.
In addition, 123 bridges and culverts serve the community, of which 54 are of timber construction, there is 27 km of footpath, 40 km of kerb and channel as well as other items such as guardrail, roundabouts, street seating and traffic islands.
Given the high level of primary and secondary production in this municipality across a wide range of Faheys Lane/Amos Road junction industries, an efficient transport network plays a crucial improvements role. Council's road network carries a relatively high proportion of heavy vehicles (average 17%), placing increased demands on road and maintenance programs.
Annual bitumen resealing programs (for the sealed roads) and gravel resheeting programs (for the unsealed gravel roads) are conducted to ensure longevity of the road surface and periodic reconstruction of roads occurs when they have reached the end of their life and require renewal.
Annual maintenance and reconstruction works are undertaken on a contractual basis by Council's in-house business unit Works Plus and by private contractors.
Circular Head Council Annual Report 2010/2011
Page 53
Progress on Major Projects in Engineering:
% Complete
Port Latta maintained and operated to contract and licence/EPN requirements 100% White Hills Transfer Station maintained and operated to contract conditions 100% Monitor Works Plus operations 100% Progress the development of an Asset Management Plan for all Council owned 15% buildings relating to public safety Issues Strategic Plan development for Port Latta Landfill Site 90% Prepare a common “Work in Road Reservation” permit system for Circular Head 100% Council and Waratah-Wynyard Council Review Circular Head Council and Waratah-Wynyard Council Engineering 100% Planning conditions, and prepare a common improved suite of conditions Review Circular Head Council and Waratah-Wynyard Council systems for 75% ensuring assets donated to Council (typically by subdivision construction) are to an acceptable standard and prepare an improved common systems Implement improved Geographic Information System(GIS) tools and functions 100% Prepare a common road resealing tender for Circular Head Council and 100% Waratah-Wynyard Council Initiate procurement solutions to both Councils which demonstrate effectiveness 100% or efficiency gains LEGEND: Complete In Progress Not Started
Circular Head Council Annual Report 2010/2011
Page 54 FINANCE
Financial Services
Financial Services includes the provision of accounting and financial management services to the organisation, collection of rates and other revenue, payment of accounts, compliance with applicable Australian Accounting Standards, payroll, information technology and property management.
Financial Management
The Statement of Financial Performance recorded a surplus of $917,784 compared to a surplus of $2,382,632 for last year.
Variations from the budget in the income area included increases in interest revenue of $190,000, a reduction in other income of $450,000 which is predominately made up of sale of Council properties which remained unsold in the financial year (ie Nelson St industrial subdivision).
Employee costs came in under budget by $350,000. This was predominately in relation to 2-3 positions and their associated oncosts that were not filled during the year. These positions have since been filled.
Actual expenditure for materials and contracts exceeded the yearly budget by approximately $330,000. The bulk of this difference is attributable to the operational costs of capital works (items budgeted under capital, but not able to be capitalised because of their nature such as guide posts, line marking and signage).
Cash and cash reserves remained at a positive level. Cash moved from $6,923,626 in 2009/10 to $8,951,287 in 2010/11. The large increase in cash held was the drawdown of a $1.8mil loan for a new waste cell at the Port Latta landfill site. These funds remain unspent as at 30 June 2011.
Council’s investments recorded a book profit of some $271,200 for the year. During the year, Council’s $500,000 investment matured and these cash funds were received by the Council in December 2010. Council still has one remaining investments of $2,000,000 that Council still receives quarterly interest on.
Existing borrowings decreased by $99,970 over the period.
Council recorded a net increase on its investment in Cradle Mountain Water of approximately $30,000 for the year. Council’s current investment equates to approximately $22 million in the regional body.
Council’s share in the newly formed Water Corporation is 6.8% (as per the draft treasurer’s report). As Council is unable to exert significant influence over the operations of Cradle Mountain Water, the change in the fair value of the investment is recorded in the Statement of Comprehensive Income (ie as income or expense).
Circular Head Council Annual Report 2010/2011
Page 55
Progress on Major Projects in Finance:
% Complete
Rationalisation of assets considered surplus to Council requirements 100% Conduct a financial risk analysis 100% Present long term financial plan integrating asset management plans 5% Develop a revenue policy and incorporate into financial management 5% strategy Investigate preparation of common leases for Council properties 50% LEGEND: Complete In Progress Not Started
Circular Head Council Annual Report 2010/2011
Page 56 THE YEAR AHEAD
• General Rate increase of 4.0%
• Redevelopment of the Smithton Wharf
• Upgrade of the Togari Road network
• Reconstruction of Massey Street (from Robert Street to lookout)
• Reconstruct Grey Street
• Upgrade Rifle Range Road
• Planning and redesign of Circular Head War Memorial Swimming Pool
• Various plant purchases
• Repair damaged access at Godfrey’s Beach Stanley
• Various improvements at the Port Latta landfill site
• $131,000 for extension to the Circular Head Lawn Cemetery
• $150,000 to seal Greenpoint Road and carpark, Marrawah
• $25,000 for improvements to the Forest road network
• $25,000 for geotechnical survey and design of Beattie’s Hill
Circular Head Council Annual Report 2010/2011
Page 57 FINANCIAL STATEMENT & AUDITORS REPORT
Circular Head Council Annual Report 2010/2011
Page 58
Circular Head Council Annual Report 2010/2011
Page 59 FINANCIAL STATEMENTS
Comprehensive Income Statement for the Year Ended 30 June 2011
Actual Budget Actual 2011 2011 2010 Note $ $ $
Income Rates 6,219,165 6,109,953 5,933,407 Interest 589,848 400,000 545,174 Grants 3 2,680,557 2,510,145 2,885,332 User charges 1,752,055 1,662,864 1,904,139 Other income 4 1,071,262 1,522,729 496,835 Gain on disposal of assets 5 28,394 - - Total income 12,341,281 12,205,691 11,764,887
Expenses Employee costs 6 3,958,225 4,310,963 3,417,639 Materials and contracts 7 3,608,747 3,269,549 3,603,897 Depreciation and amortisation 8 2,579,343 2,518,479 2,418,816 Finance costs 9 32,698 97,089 34,083 Other expenses 10 2,041,886 2,715,200 2,161,711 Loss on disposal of assets 5 - - 43,931 Total expenses 12,220,899 12,911,280 11,680,077
Surplus (deficit) before: 120,382 (705,589) 84,810
Recognition of assets 179,268 - 149,000
Reversal of impairment on investment 271,200 - 133,750
Capital grants 3 346,864 2,037,358 2,015,072
Surplus (deficit) before: 917,714 1,331,769 2,382,632
Other comprehensive income
Financial Assets available for sale reserve Fair value initial adjustment on available for sale assets 39 (64,931) - (1,965,651) Fair value adjustment on available for sale assets 39 103,428 - - Asset Revaluations 27,704,953 - -
Comprehensive Result 28,661,164 1,331,769 416,981
Circular Head Council Annual Report 2010/2011
Page 60
Statement of Financial Position as at 30 June 2011
Actual Actual 2011 2010 Note $ $ Current Assets Cash and cash equivalents 11 8,951,287 6,923,626 Financial assets 12 281,200 510,000 Receivables 13 633,382 563,408 Inventories 14 181,946 133,433 Other 15 66,491 83,983 Total Current Assets 10,114,306 8,214,450
Non Current Assets Land 16 7,453,260 7,004,673 Land under roads 17 1,448 - Buildings 18 10,596,939 8,876,570 Transport infrastructure 19 88,845,266 62,894,737 Stormwater and drainage 20 2,797,591 2,885,698 Solid waste management 21 777,315 829,326 Parks, reserves and recreation facilities 22 1,512,755 1,514,565 Plant and equipment 23 2,138,736 2,044,423 Furniture 24 35,931 44,426 Computers 25 123,127 220,394 Works in progress 26 795,752 - Investment Cradle Mountain Water 39 22,191,052 22,152,555 Other - 22,772 Total Non Current Assets 137,269,172 108,490,139
TOTAL ASSETS 147,383,478 116,704,589
Current Liabilities Payables 27 1,199,994 990,387 Provisions 28 652,932 586,179 Financial liabilities 29 361,223 99,970 Total Current Liabilities 2,214,149 1,676,536
Non Current Liabilities Provisions 28 141,596 100,261 Financial liabilities 29 1,833,974 395,197 Total Non Current Liabilities 1,975,570 495,458
TOTAL LIABILITIES 4,189,719 2,171,994
NET ASSETS 143,193,759 114,532,595
Equity Accumulated surplus 89,213,579 88,447,012 Reserves 41 53,980,180 26,085,583 TOTAL EQUITY 143,193,759 114,532,595
Circular Head Council Annual Report 2010/2011
Page 61 Statement of Changes in Equity for Year Ended 30 June 2011
Fair Value Total Accumulated Surplus Asset Revaluation Reserve Reserve Other Reserves 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 $ $ $ $ $ $ $ $ $ $ Balance at beginning of the financial year 114,532,595 114,115,614 88,447,012 75,140,563 26,085,583 38,975,051 - -
Surplus before comprehensive income 917,714 2,382,632 917,714 2,382,632 - - - -
Financial assets available for sale reserve ─ Fair Value initial adjustment on Final Treasurer's Allocation Order (64,931) (64,931) ─ Fair Value adjustment on Available for Sale Assets 103,428 (1,965,651) (1,965,651) 103,428
Transfers to (from) accumulated surplus* - - (86,216) 12,889,468 - (12,889,468) 86,216 -
Net asset revaluation increment/(decrement) in relation to assets disposed ------
Net asset revaluation increment/(decrement) 27,704,953 - - - 27,704,953 - - -
Balance at end of the year 143,193,759 114,532,595 89,213,579 88,447,012 53,790,536 26,085,583 103,428 - 86,216 -
Circular Head Council Annual Report 2010/2011
Page 62
* The 2010 transfers to accumulated surplus represent the elimination of reserves associated with assets transferred to Cradle Mountain Water
143,193,759 114,532,595 89,213,579 88,447,012 53,790,536 26,085,583 103,428 - 86,216 -
------
Circular Head Council Annual Report 2010/2011
Page 63
Statement of Cash Flows for Year Ended 30 June 2011
2011 2010 Note $ $ Cash flows from operating activities
Cash Used Employee costs (3,837,360) (3,383,286) Materials and contracts (inclusive of GST) (4,231,729) (3,592,577) Interest paid (28,308) (34,296) Other supplier payments (Inclusive of GST) (1,984,532) (3,078,046) (10,081,929) (10,088,205) Cash Received Rate revenue 6,126,066 5,847,401 Other including reimbursements and user charges (Inclusive of GST) 2,466,269 2,294,122 Grants 2,680,557 2,885,332 GST recovered from tax authority 564,266 641,819 Interest 589,850 521,036 12,427,008 12,189,710
Net Cash provided by operating activities 34 2,345,079 2,101,505
Cash flows from investing activities
Cash Used Payments for property, plant and equipment (Inclusive of GST) (3,703,857) (4,126,879) (3,703,857) (4,126,879) Cash Received Proceeds from sale of property, plant and equipment 319,371 891,512 Capital grants 346,864 2,015,072 Returns Cradle Mountain Water or associates 520,174 327,812 Proceeds from investment maturity 500,000 - 1,686,409 3,234,396
Net cash provided by (used in) investing activities (2,017,448) (892,483)
Cash flows from financing activities
Cash Used Proceeds from borrowing 1,800,000 Repayment of borrowings (99,970) (93,761) 1,700,030 (93,761)
Net cash provided by (used in) financing activities 1,700,030 (93,761)
Net Increase (decrease) in cash and cash equivalents 2,027,661 1,115,261 Cash and cash equivalents at beginning of the financial year 6,923,626 5,808,365 Cash and cash equivalents at end of the financial year 11 8,951,287 6,923,626
8,951,287
Circular Head Council Annual Report 2010/2011
Page 64 NOTES TO FINANCIAL STATEMENTS
INTRODUCTION
(a) The Circular Head Council (Council) was established on 27 August 1907 and is a body corporate with perpetual succession and a common seal.
The Council’s Administration Centre is located at 33 Goldie St, Smithton.
(b) The functions of the Council include:
• to provide for the health, safety and welfare of the community; • represent and promote the interests of the community; • to provide for the peace, order and good government of the municipal area.
This financial report is a general purpose financial report that consists of a Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and notes accompanying these financial statements. The general purpose financial report complies with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board (AASB), and the Local Government Act 1993 (LGA1993) (as amended).
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) BASIS OF PREPARATION
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Local Government Act 1993.
Australian Accounting Standards include International Financial Reporting Standards (IFRSs). Some IFRSs contain requirements specific to not-for-profit entities that are inconsistent with IFRS requirements.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.
Circular Head Council Annual Report 2010/2011
Page 65 The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
In the application of Australian Accounting Standards, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of Australian Accounting Standards that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.
Council has made no assumptions concerning the future that may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. Judgements made by Council that have significant effects on the Financial Report are disclosed in the relevant notes as follows:
Fair Value of Property Plant & Equipment Assumptions and judgements are utilised in determining the fair value of Council’s property, plant and equipment including useful lives and depreciation rates. These assumptions are discussed in note 1 (d).
Defined benefit superannuation fund obligations Actuarial assumptions are utilised in the determination of Council’s defined benefit superannuation fund obligations. These assumptions are discussed in note 30.
Employee entitlements Assumptions are utilised in the determination of Council’s employee entitlement provisions. These assumptions are discussed in note 1 (e).
(B) STATEMENT OF COMPLIANCE
This general purpose financial report of the Circular Head Council has been prepared in accordance with Australian Accounting Standards, including Australian Interpretations and the Local Government Act 1993 (as amended).
The following Australian Accounting Standards have been issued or amended and are applicable to the Council but are not yet effective. They have not been adopted in preparation of the financial statements at reporting date.
Circular Head Council Annual Report 2010/2011
Page 66 Standard / Summary Applicable Impact on Interpretation for annual Local reporting Government periods financial beginning or statements ending on AASB 9: Financial These standards are applicable Applicable for These changes Instruments, AASB retrospectively and amend the annual are expected to 2009–11 and AASB classification and measurement of reporting provide some 2010-7: Amendments financial assets. Council has not periods simplification to Australian yet determined the potential commencing in the Accounting Standards impact on the financial on or after accounting for arising from AASB 9 statements. Specific changes 1 January and disclosure [AASB 1, 3, 4, 5, 7, include: 2013. of financial 101, 102, 108, 112, * simplifying the classifications instruments. 118, 121, 127, 128, of financial assets into those 131, 132, 136, 139, carried at amortised cost and 1023 & 1038 and those carried at fair value; Interpretations 10 & removing the tainting rules 12] associated with held-to-maturity assets; * simplifying the requirements for embedded derivatives; removing the requirements to separate and fair value embedded derivatives for financial assets carried at amortised cost; * allowing an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument; and * reclassifying financial assets where there is a change in an entity's business model as they are initially classified based on: a. the objective of the entity's business model for managing the financial assets; and b. the characteristics of the contractual cash flows.
Circular Head Council Annual Report 2010/2011
Page 67 Standard / Summary Applicable Impact on Interpretation for annual Local reporting Government periods financial beginning or statements ending on AASB 124: Related This standard removes the Applicable for Although this Party Disclosures requirement for government annual standard does related entities to disclose details reporting not strictly of all transactions with the periods apply to Local government and other government commencing Government it related entities and clarifies the on or after is often used definition of a related party to 1 January as guidance, as remove inconsistencies and 2011. such there will simplify the structure of the be greater standard. clarity on the disclosure of inter government transactions. AASB 2009–12: This standard makes a number of Applicable for These Amendments to editorial amendments to a range annual amendments Australian of Australian Accounting reporting are not Accounting Standards Standards and Interpretations, periods expected to [AASBs 5, 8, 108, including amendments to reflect commencing impact 110, 112, 119, 133, changes made to the text of on or after Council 137, 139, 1023 & International Financial Reporting 1 January 1031 and Standards by the IASB. The 2011. Interpretations 2, 4, standard also amends AASB 8 to 16, 1039 & 1052] require entities to exercise judgment in assessing whether a government and entities known to be under the control of that government are considered a single customer for the purposes of certain operating segment disclosures. AASB 2009–14: This standard amends Applicable for These Amendments to Interpretation 14 to address annual amendments Australian unintended consequences that can reporting are not Interpretation — arise from the previous accounting periods expected to Prepayments of a requirements when an entity commencing impact Minimum Funding prepays future contributions into a on or after Council. Requirement [AASB defined benefit pension plan. 1 January Interpretation 14] 2011.
Circular Head Council Annual Report 2010/2011
Page 68
Standard / Summary Applicable Impact on Interpretation for annual Local reporting Government periods financial beginning or statements ending on AASB 2010-5: This Standard introduces a Applicable for These Amendments to number of terminology changes annual amendments Australian as well as minor presentation reporting are not Accounting Standards changes to the Notes to the periods expected to [AASB 1, 3, 4, 5, Financial Report. There is no commencing impact 101, 107, 112, 118, financial impact resulting from on or after Council. 119, 121, 132, 133, the application of this revised 1 July 2010. 134, 137, 139, 140, Standard. 1023 & 1038 and Interpretations 112, 115, 127, 132 & 1042] (October 2010). AASB 2010-6: This Standard makes Applicable for These Amendments to amendments to Australian annual amendments Australian Accounting Standards, reporting are not Accounting Standards introducing additional periods expected to – Disclosures on presentation and disclosure commencing impact Transfers of Financial requirements for Financial on or after Council. Assets [AASB 1 & Assets. 1 July 2010. AASB 7].
AASB 1053: This Standard establishes a Applicable for These Application of Tiers differential financial reporting annual amendments of Australian framework consisting of two tiers reporting are not Accounting Standards of reporting requirements for periods expected to preparing general purpose commencing impact financial statements. This on or after Council. Standard is not expected to 1 January impact Council. However, it may 2013. affect disclosures if reduced disclosure requirements apply. AASB 1054: This Standard sets out the Applicable for This standard Australian Additional specific disclosures for entities annual is not expected Disclosures that have adopted Australian reporting to have a Accounting Standards that are periods financial additional to the requirements commencing impact. under International Reporting on or after Standards, including disclosures 1 Jan 2011. relating to the nature of the financial report, audit fees and the reconciliation of net operating cash flows to net result.
Circular Head Council Annual Report 2010/2011
Page 69 (C) LOCAL GOVERNMENT REPORTING ENTITY
All funds through which Council as a general purpose reporting entity controls resources to carry out its functions have been included in the financial statements of the Council.
In the process of reporting for the Council as a single unit, all transactions and balances between Council and Special Committees (e.g. loans and transfers) have been eliminated. The recording of transactions and balances for internal borrowing has also been eliminated. The financial reports of the Council incorporate only those items over which the Council has control.
Trust Funds
The Council receives monies as an agent for the State Government. As Council performs only a custodial role in respect of these monies and because the monies cannot be used for Council purposes, they are excluded from the financial statements.
Amounts received as tender deposit and retention amounts controlled by Council are included in the amount disclosed as “payables” within Current Liabilities.
(D) ASSETS
i) Acquisition of Assets The cost method of accounting is used for the initial recording of all acquisitions of assets. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Cost is to be determined as the fair value of the asset given as consideration plus costs incidental to the acquisition (e.g. architects fees, engineering design fees, administration charges and all other costs incurred) in getting the asset ready for use. Non-monetary assets received in the form of grants, donations or at nominal consideration are recognised as assets and revenues at their fair value at the date of receipt. (Fair value meaning: the amount for which an asset could be exchanged, between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arms length transaction). Non-Current Asset Constructed by Council The cost of non-current assets constructed by the Council includes the cost of all materials used in the construction, direct labour on the project and an appropriate proportion of variable and fixed overheads. The cost of materials includes consulting and engineering fees. Asset values are net of the Goods and Services Tax component.
ii) Classification and Valuation of Non-Current Assets Land and Buildings and Transport Infrastructure are measured at Fair Value. All other asset values are measured at cost. Where assets are recorded at valuation, the valuation has been performed by Council officers with the exception of land and buildings which have been valued by the Tasmanian Valuer-General. Circular Head Council Annual Report 2010/2011
Page 70 Infrastructure assets at valuation are at written down replacement cost. Replacement cost is the current cost of a new asset that could provide the same service as an existing asset. Accumulated depreciation or amortisation recognises the amount of the replacement cost that is pro-rata to the proportion of the asset’s useful life that has expired.
iii) Revaluation Policy Where assets are revalued, the revaluation increments are credited directly to the asset revaluation reserve. Net revaluation decrements will be debited to any previous revaluation increments for that class of assets, with any deficiency being recognised as an expense. Assets are revalued with such frequency as to ensure the carrying value does not differ materially from fair value at reporting date. The Council has adopted the following valuation bases for its non current assets:
Land Fair Value Buildings Fair Value Transport Infrastructure Fair Value Stormwater and drainage Cost Solid Waste Management Cost Parks, Reserves and Rec Facilities Cost Plant and Equipment Cost Furniture and Computers Cost
iv) Depreciation of Non-Current Assets All non-current assets, which have a limited useful life, are systematically depreciated over the useful life in a manner that reflects the consumption of the service potential of those assets. Land generally is not a depreciable asset. Non-current assets are those which provide a benefit to Council extending beyond twelve (12) months. Depreciation is recognised as per the schedule below. Rates of depreciation reflect the consumption of the service potential of these assets.
The current schedule of rates for depreciation is:
Classification Useful Life Buildings 30 - 100 years Plant and Equipment 3 - 17 years Transport Infrastructure 14 - 80 years Stormwater and Drainage 50 - 100 years Parks, Reserves and Recreational Facilities 10 - 80 years Furniture and Computers 3 - 25 years Solid Waste Management 25 - 60 years
Council has determined as policy that it will not depreciate unsealed roads, as these roads are maintained to a standard that the asset neither deteriorates nor improves and the value of the asset remains constant. Earthworks carried out during road construction are considered to be a sunk cost and are therefore expensed in the year in which they are incurred. Council believes that the effect will be immaterial, as depreciation based on Circular Head Council Annual Report 2010/2011
Page 71 the useful asset life would be offset by the capitalisation of maintenance road works. Fleet, being motor vehicles and light commercials, are included in the Plant and Equipment asset category.
v) Maintenance vs. Capitalisation Officers of the Council will determine at the occurrence of an event whether to capitalise/expense expenditure. The following formula is provided as a guide “...maintenance, repair costs and minor renewals are charged as expenses as incurred unless their total value exceeds 10% of the written down current value and increases the economic life by more than 10%, or the net realisable value by more than five (5) thousand dollars”.
Roads Reseals Capitalised Road Shouldering Expensed Reconstruction/Construction Capitalised Gravel Resheeting Expensed Tar Patching Expensed Road Drainage (Open) Expensed Road Drainage (Piped) Capitalised Signage Expensed Line Marking Expensed Road Verge Works Expensed Traffic Management Capitalised Site Survey Capitalised Clearing of trees Expensed Disposal of materials Expensed Moving of services (ie Water/Phone) Expensed Fencing Expensed Landscaping Expensed
vi) Threshold for Recognising a New Asset The following limits apply in recognising the acquisition of new assets. When group values have been determined the threshold applies to the group not individual assets within that group.
Land Nil Roads As per 1(d)(iv) Plant/Machinery $1,000 Bridges $5,000 Furniture & Fittings $1,000 Buildings $5,000 Office Equipment $1,000 Recreation Facilities $1,000 Community Amenities $1,000 Parks and Gardens $1,000 Stormwater/Drainage $3,000 Playground Equipment $2,000
Where a number of immaterial assets are considered to have like type or function, the threshold will apply to the group in total.
vii) Land Under Roads Council has elected not to recognise land under roads prior to 1 July 2008 as an asset in accordance with AASB 1051 Land Under Roads. Land under Circular Head Council Annual Report 2010/2011
Page 72 roads identified post 1 July 2008 are brought to account using the fair value basis. The fair value calculation applies the average value of all rateable land within the municipality to the area of land identified.
viii) Impairment of assets At each reporting date, Council reviews the carrying value of its assets to determine whether there is any indication that these assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the comprehensive income statement, unless the asset is carried at the revalued amount in which case, the impairment loss is recognised directly against the revaluation reserve in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset. For non-cash generating assets of Council such as roads, drains, public buildings and the like, value in use is represented by the deprival value of the asset approximated by its written down replacement cost.
(E) EMPLOYEE ENTITLEMENTS
i) Wages and Salaries, rostered days off and banked hours Liabilities for wages and salaries, rostered days off and banked hours are measured as the amount unpaid at balance date and include appropriate oncosts (superannuation). Council employed a total of 56 full time equivalent staff members at the end of the financial year (2010 – 51.5).
ii) Superannuation The superannuation expense within a reporting period is the amount of the statutory contribution the Council makes to the Quadrant Superannuation Scheme (The Scheme), which provides benefits to employees. It also includes amounts paid by Council to other superannuation funds . Details of those arrangements are set out in Note 30.
iii) Annual Leave A liability for Annual Leave is accrued on a pro rata basis in respect of services provided by employees up to the reporting date and is measured at the amount expected to be paid, including appropriate on-costs (superannuation), when the accrued obligation is settled. Amounts expected to be settled beyond 12 months have not been inflated and discounted to their present value in accordance with AASB 119 “Employee Benefits” as the impact has been assessed as immaterial.
iv) Long Service Leave Long service leave entitlements payable are assessed at balance date having regard to expected employee remuneration rates on settlement, employment related oncosts and other factors including accumulated years of employment, on settlement and experience of employee departure per year of service.
Circular Head Council Annual Report 2010/2011
Page 73 Long service leave expected to be paid within 12 months is measured at nominal value based on the amount expected to be paid when settled. Long service leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows. Long service leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows.
v) Sick Leave No accrual is made for sick leave as Council experience indicates that, on average, sick leave taken in each reporting period is less than the entitlement accruing in that period and this experience is expected to recur in future reporting periods. Council does not make payment for untaken sick leave. The present values of employee entitlements not expected to be settled within twelve months of balance date have been calculated using the following weighted averages:
Assumed rate of increase in wage and salary rates 4.00% 4.00% Discount rate 5.00% 5.00% Settlement term (years) 10 10 Number of FTE employees at year end 56 51.50
(F) ALLOCATION BETWEEN CURRENT AND NON-CURRENT
In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being Council’s operational cycle. In the case of liabilities where Council does not have the unconditional right to defer settlement beyond 12 months, such as long service leave, the liability is classified as current even if not expected to be settled within the next 12 months.
(G) ACCOUNTING FOR INVESTMENTS
(i) Investments in water corporations Investments in water corporations are valued at fair value at balance date. Fair value was determined by using its ownership percentage against the water corporations' net asset value at balance date. Any unrealised gains and loses on holdings at balance date are recognised in the Statement of Comprehensive Income.
(ii) Investments Investments, other than investments in associates, are measured at cost.
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(H) CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash on hand, deposits at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.
(I) OTHER FINANCIAL ASSETS
Council classifies its Other Financial Assets into the following categories:
• Financial assets at fair value through profit or loss; • Loans and receivables, and • Available for sale financial assets.
The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at each reporting date.
(J) RATES, GRANTS, DONATIONS AND OTHER CONTRIBUTIONS
Rates, grants, donations and other contributions are recognised as revenues when Council obtains control over the assets comprising the contributions.
Control over assets acquired from rates is obtained at the commencement of the rating period or where earlier, upon receipt of the rates.
Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a grant has been secured and are valued at their fair value at the date of transfer.
Income is recognised when Council obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to Council and the amount of the contribution can be measured reliably.
Where grants or contributions recognised as revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at balance date, the unused grant or contribution is disclosed in Note 3. This note also discloses the amount of unused grant or contribution from prior years that was expended on Council’s operations during the current year.
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(K) RECONCILIATION OF CASH
For the purpose of the Statement of Cash Flows, Council considers cash to include cash on hand and in banks (including Special Committee accounts).
Cash at the end of the reporting period as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position.
(L) INVENTORIES
The valuation of inventories has been assigned to the quantities on hand using the lower of cost or net replacement method of valuation for inventory stock.
(M) ACCRUALS / PREPAYMENTS
Accruals and prepayments are recognised in accordance with relevant accounting standards with materiality a major factor in determining their applicability.
(N) LEASES
Operating leases Lease payments for operating leases are required by the Australian Accounting Standard to be recognised on a straight line basis, rather than expensed in the years in which they are incurred.
(O) FINANCIAL LIABILITIES
Financial Liabilities loans are carried in the Statement of Financial Position at their principal amount. Interest expense is accrued at the contracted rate and included in "Creditors".
The debenture loans of Council are secured by trust deed. In accordance with section 80 of the Local Government Act 1993 (as amended ) the borrowing capacity of Council is limited to:
• Except with the approval of the Minister, a council may not borrow additional money for any purpose if the annual payments required to service the total borrowings would exceed 30% of its revenue of the preceding financial year. • Grants made to a council for specific purposes are to be excluded in calculating 30% of revenue of the council.
Circular Head Council Annual Report 2010/2011
Page 76 The current annual capital repayments of loans by Council equate to 2.91% of the revenue of the preceding financial year. Total instalments including interest equates to 3.97% of revenue from the previous year (2009/10, 0.77%).
(P) TAXATION
Council is exempt from all forms of taxation except Fringe Benefits Tax, Payroll Tax and the Goods and Services Tax.
Goods and Services Tax (GST) Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i) where the amount of GST incurred is non recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii) for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.
Cash flows are included in the Statement of Cash Flows on a gross basis. The GST components of cash flows arising from investing and financing activities, which are recovered from or paid to the ATO, are classified as operating cash flows.
(Q) SIGNIFICANT BUSINESS ACTIVITIES
Under section 84(2)(da) of the Local Government Act 1993, Council is required to report operating, capital and competitive neutrality costs in respect of each significant business activity undertaken by it.
Council has determined, based upon materiality, that Transport Infrastructure and Drainage Disposal as defined in Note 2(c) are considered Council's significant business activities.
(R) BUDGET INFORMATION The estimated revenue and expense amounts in Note 2. Functions/Activities of the Council and the Comprehensive Income Statement represent the original budget figures and are not audited.
(S) ROUNDING Unless otherwise stated, amounts in the financial report have been rounded to the nearest dollar.
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2. FUNCTIONS/ACTIVITIES OF THE COUNCIL
(a) Expenses, revenue and assets have been attributed to the following functions/activities, descriptions of which are set out in note 2(c)
Parks, 2010/11 Actual Transport Solid Waste Drainage Reserves Social & Civic Community Advocacy Other - Not Total Infrastructure Management & rec Community Governance Development Attributable facilities
Expenses 4,212,092 1,101,877 296,975 1,138,168 1,588,426 405,470 229,245 190,615 3,058,031 12,220,899 % 34.47% 9.02% 2.43% 9.31% 13.00% 3.32% 1.88% 1.56% 25.02% 100.00% Revenue
Grants $ 1,578,307 - - 347,445 - - 3,744 - 751,061 2,680,557
Other $ 243,854 1,376,491 - 157,083 316,046 - 13,743 - 8,350,839 10,458,056
Total 1,822,161 1,376,491 - 504,528 316,046 - 17,487 - 9,101,900 13,138,613 % 13.87% 10.48% 0.00% 3.84% 2.41% 0.00% 0.13% 0.00% 69.28% 100.00%
Net Result $ (2,389,931) 274,614 (296,975) (633,640) (1,272,380) (405,470) (211,758) (190,615) 6,043,869 917,714
Assets (note 2(b)) $ 88,909,490 1,047,558 2,797,591 12,733,960 899,669 - 927,096 - 40,068,114 147,383,478 Budget 2010/11
Expenses $ 4,557,876 1,232,559 295,052 1,157,491 1,289,252 607,136 400,117 214,155 3,157,642 12,911,280 % 35.30% 9.55% 2.29% 8.96% 9.99% 4.70% 3.10% 1.66% 24.46% 100.00% Revenue
Grants $ 1,883,146 - - - - - 30,000 - 596,999 2,510,145
Other $ 150,000 1,326,473 - 113,780 252,000 42,295 - - 7,810,998 9,695,546
Total 2,033,146 1,326,473 - 113,780 252,000 42,295 30,000 - 8,407,997 12,205,691 % 16.66% 10.87% 0.00% 0.93% 2.06% 0.35% 0.25% 0.00% 68.89% 100.00%
Net Result $ (2,524,730) 93,914 (295,052) (1,043,711) (1,037,252) (564,841) (370,117) (214,155) 5,250,355 (705,589)
- 78 -
2009/10 Actual
Expenses 4,429,865 1,048,178 311,869 1,098,153 1,057,992 602,336 202,661 183,689 2,745,334 11,680,077 % 37.93% 8.97% 2.67% 9.40% 9.06% 5.16% 1.74% 1.57% 23.50% 100.00% Revenue
Grants $ 2,734,720 - - 577,000 - - 28,550 - (454,938) 2,885,332
Other $ 195,886 1,297,221 - 124,378 332,378 171,199 - - 9,056,315 11,177,377
Total 2,930,606 1,297,221 - 701,378 332,378 171,199 28,550 - 8,601,377 14,062,709 % 20.84% 9.22% 0.00% 4.99% 2.36% 1.22% 0.20% 0.00% 61.16% 100.00%
Net Result $ (1,499,259) 249,043 (311,869) (396,775) (725,614) (431,137) (174,111) (183,689) 5,856,043 2,382,632
Assets (note 2(b)) $ 62,894,737 1,043,409 2,885,698 10,847,980 772,271 - 824,904 - 37,435,590 116,704,589
2010/11 Note 2(b) assets
Land 1,448 163,250 3,121,750 463,050 115,500 3,589,710 7,454,708
Buildings 31,750 7,412,672 390,758 811,596 1,950,163 10,596,939
Roads 88,845,266 88,845,266 Solid Waste 777,315 777,315
Drainage 2,797,591 2,797,591
Parks & Reserves 1,512,755 1,512,755
Plant & Equipment 34,975 45,861 2,057,900 2,138,736
Furniture & Computers 159,058 159,058 Works in Progress 62,776 75,243 651,808 5,925 795,752 Other - -
Investment in Associate/Prop Val Fees 22,191,052 22,191,052
Current Assets 10,114,306 10,114,306
Total Assets 88,909,490 1,047,558 2,797,591 12,733,960 899,669 - 927,096 - 40,068,114 147,383,478
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2009/10
Note 2(b) assets
Land 163,208 2,907,000 441,000 110,000 3,383,465 7,004,673
Buildings 50,875 6,390,813 270,239 714,904 1,449,739 8,876,570
Roads 62,894,737 62,894,737 Solid Waste 829,326 829,326
Drainage 2,885,698 2,885,698
Parks & Reserves 1,514,565 1,514,565
Plant & Equipment 35,602 61,032 1,947,789 2,044,423
Furniture & Computers 264,820 264,820
Investment in Associate 22,175,327 22,175,327
Current Assets 8,214,450 8,214,450
62,894,737 1,043,409 2,885,698 10,847,980 772,271 - 824,904 - 37,435,590 116,704,589
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(b) Total assets shown in note 2(a) are reconciled with the amounts shown for assets in the Balance Sheet as follows:
2011 2010 $ $ Current Assets 10,114,306 8,214,450 Non-current Assets 137,269,172 108,490,139 147,383,478 116,704,589
(c) The activities relating the Council’s components reported on in Note 2(a) link directly to the Strategic and Operational Plans and are as follows:
TRANSPORT INFRASTRUCTURE Construction, maintenance and cleaning of roads, footpaths, drainage works, street lighting, bridges, parking facilities and traffic signs.
SOLID WASTE MANAGEMENT The provision of services associated with the collection and disposal of garbage to the residents of the Municipal Area.
DRAINAGE DISPOSAL The provision of stormwater/drainage services to the residents of Smithton and Stanley.
PARKS, RESERVES AND RECREATION FACILITIES The provision of recreational facilities including sports grounds, parks and reserves throughout the community.
SOCIAL AND COMMUNITY The delivery of development services to the community including the provision of health, building, planning, immunisations, swimming pool and animal control.
CIVIC GOVERNANCE The provision of elected representation and the executive support allowing for positive and clear leadership for the Circular Head community.
COMMUNITY DEVELOPMENT To encourage participation in the events and activities of the Circular Head area, the Council acts as a facilitator to help local community organisations gain access to other funding bodies.
ADVOCACY To allow Council the opportunity to continually raise the profile of the Circular Head Council and the district at State and National levels, including representation in local government regional, state and federal bodies.
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OTHER - NON ATTRIBUTABLE General Services and activities not identifiable with the foregoing functions.
3. GRANTS
2011 2010 $ $ Operating Grants 2,680,557 2,885,332 Capital Grants 346,864 2,015,072 TOTAL 3,027,421 4,900,404
Operating Grants Commonwealth Financial Assistance Grant 2,469,222 2,374,782 Department of Infrastructure Energy and Resources (Community Road Safety Partnership) Department of Infrastructure Energy and - 290,000 Resources (Stage 1 Stanley Underground Power Lines) Department of Infrastructure Energy and - 4,686 Resources (Black Spot) Mengha Road Department of Infrastructure Energy and - 210,000 Resources (Repair of Local Roads) Department of Infrastructure Energy and 87,010 - Resources (Black Spot) Faheys Lane Department of Economic Development 15,000 - Tourism and the Arts – Trails and Bikeways Program Department of Family and Community Services - 2,000 (Circular Head Heritage Centre – Volunteer travel expenses and computer consumables) Cradle Coast Authority (Regional Weed Control - 2,500 Project) Cradle Coast Authority (Natural Resources - 1,364 Grant) Department of Regional Australia, Regional 13,136 - Development and Local Government – Marine Park Stanley Upgrade Operating Grants Department of Regional Australia, Regional 10,000 - Development and Local Government – Tatlows Beach Walkway Stanley – Lamp Head Upgrade Australian Sport Foundation – Development of 56,445 - Sport in the community to enhance quality of life – Circular Head Hall of Fame Skills Tasmania – Circular Head Education and 15,000 - Training Consultative Committee
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Cradle Coast Authority -Asparagus Fern Control 2,000 -
Cradle Coast Authority – Broom Control Project 3,000 - Department of Premier and Cabinet – Own It 1,900 - Youth Fest Department of Economic Development Tourism 6,000 - and the Arts – Woven in Time Grant – CH Heritage Centre Tasmanian Community Fund – Stanley 1,844 - Discovery Museum
2,680,557 2,885,332
Capital Grants Commonwealth Road to Recovery Grant - 508,808 Department of Regional Australia, Regional 71,864 - Development and Local Government – West Esplanade Foreshore Park Upgrade Department of Infrastructure Energy and - 86,714 Resources (Black Spot) Grooms Road Department of Infrastructure Energy and - 220,000 Resources (Smithton Wharf and Marina Development Tasmanian Ports Corporation Pty Ltd – Transfer 100,000 - of Smithton Wharf and Marina Department of Infrastructure Transport Regional 175,000 575,000 Development and Local Government Better Regions (Circular Head Community Recreation Centre Project) Department of Infrastructure Transport - 103,000 Regional Development and Local Government (Playground West Esplanade Foreshore Park) Department of Primary Industry Parks, Water - 410,000 and Environment (Stanley Town Upgrade) Department of Economic Development Tourism - 28,550 and Arts Sport and Recreation (Stage 2 Smithton Park Upgrade) Department of Premier and Cabinet (Smith - 83,000 Street Upgrade) 346,864 2,015,072
At the end of 2010/11 the following conditional grants remained unspent: $100,000 for Smithton Wharf and Marina Development. A Financial Assistance Grant (unconditional) relating to 2011/12 totalling $633,230 ($256,493 Base, $376,737 Road) was received in advance in the 2010/11 financial year.
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4. OTHER INCOME
2011 2010 $ $ Dividend – Cradle Mountain Water 98,271 95,746 Tax Equivalent – Cradle Mountain Water 270,163 98,014 Guarantee fee – Cradle Mountain Water 151,740 134,052 Contributions 166,525 16,776 Road maintenance contribution 64,619 23,737 Other revenue 86,050 37,383 Resource Sharing 230,794 83,527 Subsidies 3,100 7,600 TOTAL 1,071,262 496,835
5. (LOSS)/GAIN ON DISPOSAL OF ASSETS
2011 2010 $ $ Proceeds from sales 319,371 891,512 Less carrying amounts of assets disposed (290,977) (935,443) TOTAL 28,394 (43,931)
6. EMPLOYEE COSTS
2011 2010 $ $ Wages, Salaries and Allowances 2,862,221 2,350,883 Superannuation Expenses 314,095 269,185 Leave expenses 508,567 520,443 Payroll Tax 237,398 233,796 Other Employee Expenses 159,881 129,260 Total Direct Employee Costs 4,082,162 3,503,567
Less Amounts Capitalised (123,937) (85,928) TOTAL 3,958,225 3,417,639
7. MATERIALS AND CONTRACTS
2011 2010 $ $ Contractors 2,050,540 2,106,663 Fuel 251,214 221,893 Maintenance 245,383 159,274 Materials 535,070 721,103 Other materials and contracts 526,540 394,964 TOTAL 3,608,747 3,603,897
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8. DEPRECIATION AND AMORTISATION
2011 2010 $ $ Depreciation Buildings 236,901 209,030 Transport Infrastructure 1,495,656 1,455,940 Stormwater and Drainage 94,243 93,790 Solid Waste Management 109,647 109,443 Parks, Reserves and Recreational Facilities 99,393 93,771 Plant and Equipment 361,826 324,016 Furniture 8,495 9,035 Computers 127,630 101,013 2,533,791 2,396,038 Amortisation Municipal Property Valuation 45,552 22,778
TOTAL 2,579,343 2,418,816
9. FINANCE COSTS
2011 2010 $ $ Loan Interest 32,698 34,083
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10. OTHER EXPENSES
2011 2010 $ $ Advertising 38,021 42,447 Audit Fees 28,760 32,603 Bank fees 17,979 17,915 Communication costs 13,703 9,563 Contributions, donations and grants 305,057 177,734 Consultancy fees 297,098 183,955 Councillors allowance 139,819 135,952 Electricity 191,911 178,914 Equipment rental 23,054 21,015 Insurance 133,006 157,943 Land Tax 58,922 76,879 Legal Expenses 23,278 39,983 Licences and permits 23,197 37,944 Memberships 105,108 98,236 Postage 10,626 11,597 Rates discounts 140,602 150,709 Water and sewerage rates 40,289 - Sampling 26,874 39,152 Supplementary valuation fees 6,864 19,811 Telephone 53,814 50,637 Other expenses 363,904 678,722 TOTAL 2,041,886 2,161,711
11. CASH AND CASH EQUIVALENTS
2011 2010 $ $ Short term deposits 6,753,206 6,127,353 Bonds 600 - Cash at bank 2,196,131 795,073 Petty Cash 1,350 1,200 TOTAL 8,951,287 6,923,626
12. FINANCIAL ASSETS
2011 2010 $ $ Collateralised Debt Obligations (CDO’s) 2,000,000 2,500,000 Less Allowance for Impairment Loss (1,718,800) (1,990,000) 281,200 510,000
These funds have been designated as financial assets held to maturity.
Net fair value
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During 2010/11 $500,000 was transferred to a Call Deposit Account. The remaining $2,000,000 has a current estimated fair market valuation of $ 281,200 as at 30 June 2011. The market valuation is independently determined by the issuer of the investment products and is a good faith estimate of the mid-market price for the investment.
13. RECEIVABLES
2011 2010 $ $ Rate Debtors 352,554 224,562 Less Allowance for Impairment Loss (90,853) (55,979) Sundry Debtors 371,436 392,152 Water Debtors 118 381 Other receivables 127 2,292 TOTAL 633,382 563,408
(i) Credit Risk The Council does not have any significant exposure to any individual customers or counterparty.
(ii) Net Fair Value The Council considers that the carrying amount of receivables carried at amortised cost approximate their net fair value.
14. INVENTORIES
2011 2010 $ $ Gravel 181,946 133,433
15. OTHER CURRENT ASSETS
2011 2010 $ $ Prepayments 28,576 25,408 Revenue Accrual 37,915 35,797 Municipal Property Valuation - 22,778 TOTAL 66,491 83,983
Net Fair Value The Council considers the carrying amount of the revenue accrual and the Municipal Property Valuation approximates the net fair value.
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16. LAND
2011 2010 $ $ Gross Carrying Amount Opening Balance at Fair Value 7,004,673 7,680,878 Additions 49,721 671,638 Revaluation Adjustment 418,866 0 Disposals (20,000) (1,347,843) TOTAL 7,453,260 7,004,673
Valuation of land was determined by the Office of the Valuer General. These assets were revalued on 30 June 2011.
17. LAND UNDER ROADS
2011 2010 $ $ Gross Carrying Amount Opening Balance at Fair Value 0 0 Additions 1,448 0 TOTAL 1,448 0
Valuation of land Under Roads was determined by using the land valuations supplied by the Office of the Valuer General as at 30 June 2011 (note 1 (d)vii).
18. BUILDINGS
2011 2010 $ $ Gross Carrying Amount Opening Balance at Fair Value 9,484,827 9,244,359 Additions 730,888 1,123,646 Revaluation Adjustment 452,624 0 Disposals (71,400) (883,178) Closing Balance 10,596,939 9,484,827 Accumulated Depreciation Opening Balance 608,257 438,982 Depreciation for the Year 236,901 209,030 Revaluation Adjustment (845,158) 0 Disposal 0 (39,755) Closing Balance 0 608,257 TOTAL 10,596,939 8,876,570
Valuation of buildings was determined by the Office of the Valuer General. These assets were revalued on 30 June 2011.
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19. TRANSPORT INFRASTRUCTURE
2011 2010 $ $ Gross Carrying Amount Opening Balance at Fair Value 108,335,431 106,596,676 Additions 1,429,167 1,603,459 Transfer 28,714 135,296 Revaluation Adjustment 41,631,615 0 Closing Balance 151,424,927 108,335,431 Accumulated Depreciation Opening Balance 45,440,694 43,975,734 Transfer 479 9,020 Depreciation for the Year 1,495,177 1,455,940 Revaluation Adjustment 15,643,311 0 Closing Balance 62,579,661 45,440,694 Closing Balance at Fair Value 88,845,266 62,894,737
The transport infrastructure class of asset was revalued on 30 June 2011 by Council’s Engineer. Transport infrastructure assets have been valued at written down replacement cost.
20. STORMWATER AND DRAINAGE
2011 2010 $ $ Gross Carrying Amount Opening Balance at Cost 5,803,005 5,882,395 Transfer (28,714) (135,296) Additions 34,850 55,906 Closing Balance 5,809,141 5,803,005 Accumulated Depreciation Opening Balance 2,917,307 2,832,537 Transfer (479) (9,020) Depreciation for the Year 94,722 93,790 Closing Balance 3,011,550 2,917,307 TOTAL 2,797,591 2,885,698
21. SOLID WASTE MANAGEMENT
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2011 2010 $ $ Gross Carrying Amount Opening Balance at Cost 1,443,697 1,420,456 Additions 57,636 23,241 Disposals (109,129) 0 Closing Balance 1,392,204 1,443,697 Accumulated Depreciation Opening Balance 614,371 504,928 Depreciation for the Year 109,647 109,443 Disposals (109,129) 0 Closing Balance 614,889 614,371 TOTAL 777,315 829,326
22. PARKS RESERVES AND RECREATION FACILITIES
2011 2010 $ $ Gross Carrying Amount Opening Balance at Cost 3,177,181 2,937,670 Additions 97,583 239,511 Disposals (269,605) 0 Closing Balance 3,005,159 3,177,181 Accumulated Depreciation Opening Balance 1,662,616 1,568,845 Depreciation for the Year 99,393 93,771 Disposals (269,605) 0 Closing Balance 1,492,404 1,662,616 TOTAL 1,512,755 1,514,565
23. PLANT AND EQUIPMENT
2011 2010 $ $ Gross Carrying Amount Opening Balance at Cost 3,928,861 3,916,691 Additions 655,717 667,642 Disposals (928,206) (655,472) Closing Balance 3,656,372 3,928,861 Accumulated Depreciation Opening Balance 1,884,438 1,877,943 Disposals (728,628) (317,521) Depreciation for the Year 361,826 324,016 Closing Balance 1,517,636 1,884,438 TOTAL 2,138,736 2,044,423
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24. FURNITURE
2011 2010 $ $ Gross Carrying Amount Opening Balance at Cost 378,083 378,083 Disposals (277,743) 0 Additions 0 0 Closing Balance 100,340 378,083 Accumulated Depreciation Opening Balance 333,657 324,622 Disposals (277,743) 0 Depreciation for the Year 8,495 9,035 Closing Balance 64,409 333,657 TOTAL 35,931 44,426
25. COMPUTERS
2011 2010 $ $ Gross Carrying Amount Opening Balance at Cost 953,374 894,387 Disposals (714,978) 0 Additions 30,364 58,986 Closing Balance 268,760 953,374 Accumulated Depreciation Opening Balance 732,980 631,966 Disposals (714,977) 0 Depreciation for the Year 127,630 101,013 Closing Balance 145,633 732,980 TOTAL 123,127 220,394
26. WORKS IN PROGRESS
2011 2010 $ $ Gross Carrying Amount Opening Balance at Cost 0 0 Additions 795,752 0 Transfers 0 0 TOTAL 795,752 0
27. PAYABLES
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2011 2010 $ $ Current Accrued Wages 47,451 34,675 Accrued Interest 5,631 1,241 Trade Creditors 1,146,912 954,471 TOTAL 1,199,994 990,387
(i) Significant Terms and Conditions Trade creditors are generally settled within specified trading terms or 30 days whichever is the earlier.
(ii) Net Fair Value The Council considers the carrying amount of trade and other creditors approximate their fair value.
28. PROVISIONS
2011 2010 $ $ Current Liability Annual leave 362,265 311,842 Long service leave 243,144 232,564 Rostered days off and banked hours 47,523 41,773 652,932 586,179 Non-Current Liability Long service leave 141,596 100,261 141,596 100,261
TOTAL 794,528 686,440
29. FINANCIAL LIABILITIES
2011 2010 $ $ Current Liabilities Loans 361,223 99,970 361,223 99,970
Non-Current Liabilities Loans 1,833,974 395,197 1,833,974 395,197
TOTAL 2,195,197 495,167
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Net Fair Value The approximate net fair value of Council’s loans was $2,629,263 (2009/10 $651,724) compared to the actual value of $2,195,197 (2009/10, $495,167).
30. SUPERANNUATION
The Council makes superannuation contributions for a number of its employees to the Quadrant Defined Benefits Fund, which is a sub fund of the Quadrant Superannuation Scheme. The Quadrant Defined Benefits Fund has been classified as a multi-employer sponsored plan. As the Fund’s assets and liabilities are pooled and are not allocated by employer, the Actuary is unable to allocate benefit liabilities, assets and costs between employers. As provided under paragraph 32(b) of AASB 119, Council does not use defined benefit accounting for these contributions.
At the present time Council contributes 9.5% of employees’ gross income to the Fund. Assets accumulate in the fund to meet member benefits as they accrue and if assets within the fund are insufficient to satisfy benefits payable, the Council is required to meet its share of the deficiency.
Bendzulla Actuarial Pty Ltd undertook the last actuarial review of the Fund at 30 June 2008. The review disclosed that at that time the net market value of assets available for funding member benefits was $84,786,241, the value of vested benefits was $77,075,401, the surplus was $7,707,840 and the value of total accrued benefits was $81,398,000. These amounts relate to all members of the fund at the date of valuation and no asset or liability is recorded in the Quadrant Superannuation Scheme’s financial statements for Council employees.
The financial assumptions used to calculate the Accrued Benefits for the Fund were:
Net Investment Return -17.0% p.a. for 2008/09 and 7.0% p.a. thereafter Salary Inflation 4.0% pa Price Inflation n/a
In the opinion of the Actuary, the Quadrant Defined Benefit Fund was adequately funded in that assets were sufficient to cover the vested benefits of all members at the review date and the actuarial value of accrued past service benefits.
At 30 June 2009, the net market value of assets available for funding member benefits had fallen to $58,450,000 largely due to the poor investment returns that were experienced during the 2009 financial year. The value of vested benefits at that date was $64,350,000 resulting in a shortfall of $5,900,000. When the Fund’s assets are below the vested benefits, superannuation law defines this as an “unsatisfactory financial position”. As a result of the Fund moving into an unsatisfactory financial position, the Quadrant Trustee prepared a plan to restore the financial position within a reasonable time frame. This plan noted the improved investment returns since 30 June 2009 and confirmed that the 9.5% contribution rate remained appropriate. - 93 -
At 30 June 2010 the Quadrant Defined Benefits Fund had returned to a “satisfactory financial position” with the net market value of assets available for funding member benefits of $57,230,000 being greater than the value of vested benefits of $56,180,000. The surplus at that date was $1,050,000. The Quadrant Trustee again reviewed the employer contribution rate and confirmed that the 9.5% contribution rate remained appropriate.
The next full triennial actuarial review of the Fund will have an effective date of 30 June 2011 and is expected to be completed late in 2011 or early in 2012.
Council also contributes to other accumulation schemes on behalf of a number of employees, however the Council has no ongoing responsibility to make good any deficiencies that may occur in those schemes.
During the year Council made the required superannuation contributions for all eligible employees to an appropriate complying superannuation fund as required by the Superannuation Guarantee (Administration) Act 1992.
During the reporting period the amount of contributions paid to defined benefits schemes was $10,424 (2009-10, $881) and the amount paid to accumulation schemes was $440,029 (2009-10, $396,711).
31. COMMITMENTS FOR EXPENDITURE
(a) Operating Lease Commitments Commitments under non-cancellable operating leases at the reporting date are payable as follows:-
2011 2010 $ $ Not later than one year 5,909 9,060 Later than one year and not later than two years 4,532 5,582 Later than two years and not later than five years 3,399 7,931 Later than five years - - TOTAL 13,840 22,573
(b) Capital Commitments
2011 2010 $ $ Not later than one year 304,349 788,829
(c) Finance Lease Commitments Council held no finance lease commitments as at 30 June 2011.
(d) Other Operating Commitments
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2011 2010 $ $ Not later than one year 301,840 315,221 Later than one year and not later than two years 164,508 148,575 Later than two years and not later than five years 53,304 61,058 Later than five years 1,200 1,200 TOTAL 520,852 526,054
No commitments for expenditure are recognised in the financial report as a liability.
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32. SPECIAL COMMITTEES
2011 2010 Funds Funds Committee Revenue Expenditure held by Revenue Expenditure held by Council Council $ $ $ $ $ $
Circular Head Heritage Centre 24,913 28,631 (594) 19,437 19,795 3,124
Marrawah/Redpa Special Committee 13,499 5,251 12,870 11,823 15,337 4,623
Stanley Town Hall 23,083 28,318 8,934 18,556 12,814 14,169
Smithton Rec Ground 10,777 7,458 35,475 9,268 7,353 32,156
Indoor Sports Centre 51,355 39,702 9,199 48,495 34,280 (2,454)
Stanley Caravan Park Committee - - 39,140 - - 39,140
Stanley Rec Ground 20,397 22,336 2,754 17,515 16,070 4,692
Trowutta Rec Ground 10,393 11,776 (612) 8,871 8,537 771 154,417 143,472 107,166 133,965 114,186 96,221
Funds held by the special committees during the year were transferred into Council’s bank account unless otherwise noted as “Cash held by Committee”. The “Funds held by Council” remain under the control of special committees subject to Council’s authorisation.
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33. RELATED PARTY DISCLOSURE
(a) Allowances and Reimbursements
2011 2010 $ $ Councillor Allowances and Reimbursements 139,819 135,952
(b) Register of interests Interest of Councillors notified to the General Manager in respect of any body or organisation with which the Council has major financial dealings with during the financial year ending 30 June 2011.
Councillor & Position Interest
Clr TJ Berechree No interest declared Clr Jeanie Murrell Taztec Computing Pty Ltd
Clr John Oldaker No interest declared Clr Daryl Quilliam, Mayor No interest declared Clr Graham Wells Member Circular Head Tourism Association Clr Heather Grey No interest declared Clr Trevor Spinks Emmerton Park Inc (Board Member) Circular Head Walking Club (Financial) Clr David Woodward No interest declared Clr Rodney Hardy No interest declared
34. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
2011 2010 $ $ Surplus (deficit) for the year 917,714 2,382,632
Depreciation and amortisation expense 2,579,343 2,418,816 Recognition of assets (179,268) (149,000) Doubtful debts 34,874 4,230 Net (gain) loss on disposal of plant & (28,394) 43,931 equipment 2,406,555 2,317,977
Non operating income Capital grants (346,864) (2,015,072) Dividend revenue (520,174) (327,812) (867,038) (2,342,884)
Change in assets and liabilities (Increase) Decrease in receivables (148,260) 130,727 (Increase) Decrease in other assets (10,386) (9,556)
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(Increase) Decrease in financial assets (271,200) (133,750) Increase (Decrease) in creditors 170,902 (252,029) Increase (Decrease) in other liabilities 38,703 0 Increase (Decrease) in provisions 108,089 8,388 (112,152) (256,220)
Net cash provided by (used in) Operating 2,345,079 2,101,505 Activities
35. CREDIT STANDBY ARRANGEMENTS
2011 2010 $ $ Bank overdraft limit 500,000 500,000
(c) Credit standby arrangements Credit facilities of $50,000 were available. The overdraft remained unused during the year.
36. FINANCIAL INSTRUMENTS
(d) Accounting Policy, terms and conditions
Recognised financial instruments Note Accounting policy Terms and conditions
Financial assets Cash and cash 11 Cash on hand, at bank and in cash The weighted average interest rate return on equivalents management accounts are valued at operating accounts at 30 June 2011 was face value. 4.50% (6.03% in 2009/2010). Interest is recognised as it accrues. The weighted average interest rate return on Investments are held to maximise term deposit investments at 30 June 2011 interest returns of surplus cash. was 5.61% (6.07% in 2009/2010). Receivables 13 An impairment loss is not recognised Unpaid rates represent a charge against the on rates receivable. rateable property that will be recovered when the property is next sold. A provision for impairment is General debtors are unsecured and arrears do recognised on other debtors when not attract interest. there is objective evidence that an impairment loss has occurred. Collectability of overdue accounts is assessed on an ongoing basis.
Financial liabilities Trade and other 27 Liabilities are recognised for amounts General Creditors are unsecured, not subject payables to be paid in the future for goods and to interest charges and are normally settled services provided to Council as at within 30 days of invoice receipt.
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Recognised financial instruments Note Accounting policy Terms and conditions balance date whether or not invoices have been received. Interest-bearing 29 Loans are carried at their principal Borrowings are secured by way of mortgages loans and amounts, which represent the present over the general rates of the Council. borrowings value of future cash flows associated with servicing the debt. Interest is accrued over the period it The weighted average interest rate on becomes due and recognised as part borrowings is 6.35% (6.08% in 2009/2010). of payables.
(e) Interest Rate Risk The exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:
2011 Floating Fixed interest maturing in: interest One year Over 1 to 5 More than 5 Non-interest rate or less years years bearing Total Financial assets Cash and cash equivalents 2,196,131 6,753,206 - - 1,950 8,951,287 Trade and other receivables - - - - 633,382 633,382 Other financial assets - - 281,200 - - 281,200 Accrued revenue - - - - 37,915 37,915 Investment in water corporation - - - - 22,191,052 22,191,052 Total financial assets 2,196,131 6,753,206 281,200 - 22,864,299 32,094,836 Weighted average interest rate 4.50% 5.61% 6.23%
Financial liabilities Trade and other payables - - - - 1,199,994 1,199,994 Interest-bearing loans and borrowings - 361,223 1,485,531 348,443 - 2,195,197 Total financial liabilities - 361,223 1,485,531 348,443 1,199,994 3,395,191 Weighted average interest rate 6.35% 6.34% 6.31%
Net financial assets (liabilities) 2,196,131 6,391,983 (1,204,331) (348,443) 21,664,305 28,699,645
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2010 Floating Fixed interest maturing in: interest One year Over 1 to 5 More than 5 Non-interest rate or less years years bearing Total Financial assets Cash and cash equivalents 795,073 6,127,353 - - 1,200 6,923,626 Trade and other receivables - - - - 563,408 563,408 Other financial assets - 380,000 - 130,000 - 510,000 Accrued revenue - - - - 35,798 35,798 Investment in water corporation - - - - 22,152,555 22,152,555 Total financial assets 795,073 6,507,353 - 130,000 22,752,961 30,185,387 Weighted average interest rate 4.0% 6.03% - 6.23%
Financial liabilities Trade and other payables - - - - 990,387 990,387 Interest-bearing loans and borrowings - 99,970 395,197 - - 495,167 Total financial liabilities - 99,970 395,197 - 990,387 1,485,554 Weighted average interest rate 6.08% 6.08%
Net financial assets (liabilities) 795,073 6,407,383 (395,197) 130,000 21,762,574 28,699,833
(f) Net Fair Values The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:
30 June 2011 30 June 2010
Carrying Carrying Financial Instruments amount Fair Value amount Fair Value
$ $ $ $ Financial assets Cash and cash equivalents Cash at bank and on hand 2,198,081 2,198,081 796,273 796,273 Investments 6,753,206 6,753,206 6,127,353 6,127,353 Receivables 633,382 633,382 563,408 563,408 Other financial assets 281,200 281,200 510,000 510,000
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30 June 2011 30 June 2010
Carrying Carrying Financial Instruments amount Fair Value amount Fair Value Accrued revenue 37,915 37,915 35,798 35,798
Investment in Water Corporation 22,191,052 22,191,052 22,152,555 22,152,555 32,094,836 32,094,836 30,185,387 30,185,387 Financial liabilities Payables 1,199,994 1,199,994 990,387 990,387 Financial Liabilities 2,195,197 2,629,263 495,167 651,724
3,395,191 3,829,257 1,485,554 1,642,111
Net financial assets 28,699,645 28,265,579 28,699,833 28,543,276
(g) Credit Risk The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is represented by the carrying amount of those assets as indicated in the Statement of Financial Position.
(h) Risks and Mitigation The risks associated with our main financial instruments and our policies for minimising these risks are detailed below.
Market Risk Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of changes in market prices. Council's exposures to market risk are primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to which we are exposed are discussed below. The primary market risk that the Council is exposed to is fluctuations in the fair value of its Collateralised Debt Obligations. Cash and cash equivalents are subject to floating interest rates. Any variations in future cash flows from interest rate movements are expected to have an immaterial effect on the Council’s revenue.
Interest Rate Risk Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that we use. Non derivative interest bearing assets are predominantly short term liquid assets. Our interest rate liability risk arises primarily from long term loans and borrowings at fixed rates which expose us to fair value interest rate risk. - 101 -
The interest rate exposure on our debt portfolio is managed by appropriate budgeting strategies and obtaining approval for borrowings from the Department of Treasury and Finance each year. The majority of the Council’s interest bearing liabilities are at fixed rates so there is no exposure to interest rate risk. Investment of surplus funds is made with approved financial institutions under the Local Government Act 1993. We manage interest rate risk by adopting an investment policy that ensures:
• Conformity with State and Federal regulations and standards, • Adequate safety, • Appropriate liquidity, • Monitoring of return on investment, • Staggering maturity dates to provide for interest rate variations, • Benchmarking of returns and comparisons with budget.
Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk.
Credit Risk Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause Council to make a financial loss. Council have exposure to credit risk on some financial assets included in our Statement of Financial Position. The carrying amount of financial assets recorded in the financial statements, net of any allowances for impairment losses, represents the Council’s maximum exposure to credit risk without taking account of any collateral or other security. Reference should be made to Notes 12 and 13 for the carrying amounts of the Council’s financial assets at reporting date. Council’s policy in relation to receivables is summarised below. Debtors of the Council are required to settle their accounts within specified terms including:
Rate Debtors Rates and charges are required to be paid in full by 30 September, but in order to receive a discount the rates and charges must be paid in full by 31 August. Ratepayers may apply to the council to pay rates and charges by instalments, subject to approved terms and conditions. Should amounts remain unpaid outside of approved payment options the Council will instigate collection proceedings.
Other Debtors (including loans and advances) Debtors are required to settle within one month from the current month. Should amounts remain unpaid outside of approved payment options the Council will instigate collection proceedings.
Other Financial Assets The credit risk of financial investments is managed in accordance with Council’s investment policy. This policy includes the condition that
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Council is to only enter into investments that have a Standard and Poors credit rating of AA- or greater. Credit risk arises from Council's financial assets, which comprise cash and cash equivalents, and trade and other receivables. Council's exposure to credit risk arises from potential default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is addressed in each applicable policy note. Council generally trades with recognised, creditworthy third parties and as such collateral is generally not requested, nor is it Council's policy to securitise its trade and other receivables. In addition, receivable balance is monitored on an ongoing basis with the result that Council's exposure to bad debts is not significant. Council may also be subject to credit risk for transactions which are not included in the Statement of Financial Position, such as when Council provides a guarantee for another party. Details of contingent liabilities are disclosed in Note 40.
Impairment Losses The following table provides an ageing of the Council’s trade and rate receivables at the reporting date:
30 June 2011 30 June 2010 Trade receivables Gross Impairment Gross Impairment
$ $ $ $ Not past due 303,557 - 330,585 - Past due 0-30 days 4,939 - 2,213 - Past due 31-60 days 863 - 3,048 - Past due 61-90 days 1,392 - - - More than 90 days 60,685 - 600 - Total trade receivables 371,436 - 336,446 - Water receivables 118 - 381 - Rates receivable 352,554 90,853 224,562 55,979 Other Receivable 127 - 57,998 -
Total receivables as 724,235 90,853 619,387 55,979 per balance sheet
A provision for impairment loss is recognised when there is objective evidence that an individual receivable is impaired. No allowance for impairment in respect of trade receivables has been recognised as at 30 June 2011. All rates receivable are in excess of 90 days. No allowance for an impairment loss is recognised against unpaid rates unless it is probable that the unpaid rates can not be recovered when the property is next sold.
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Where the Council has obtained financial or non-financial assets during the period by taking possession of collateral it holds as security or calling on other credit enhancements (eg guarantees) and such assets meet the recognition criteria in other Australian Accounting Standards, the Council must disclose:
• the nature and carrying amount of the assets obtained; and • when the assets are not readily convertible to cash, its policies for disposing of such assets or for using them in its operations.
Liquidity Risk Liquidity risk is the risk that the Council will not be able to meet its financial obligations as they fall due. The Council’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due. The debenture loans of Council are secured by trust deed and the total loan borrowings are limited to borrowings approved by Treasury. In accordance with section 80 of the Local Government Act 1993 (as amended) the borrowing capacity of the Council is limited as follows:
• Except with the approval of the Minister, a council may not borrow additional money for any purpose if the annual payments required to service the total borrowings would exceed 30% of its revenue of the preceding financial year; and • Grants made to a council for specific purposes are to be excluded in calculating 30% of the revenue of the council.
Maturity analysis for financial liabilities The following tables detail the undiscounted cash flows payable by the Council by remaining contractual maturity for its financial liabilities. It should be noted that as these are undiscounted and include estimated interest payments, totals may not reconcile to the carrying amounts presented in the Statement of Financial Position:
Total Less than More than contractual Carrying 1 year 1-5 years 5 years cash flows amount $ $ $ $ $ 30 June 2011 Payables 1,199,994 - - 1,199,994 1,199,994 Financial liabilities 361,223 1,485,531 348,443 2,195,197 2,195,197
Total 1,561,217 1,485,531 348,443 3,395,191 3,395,191
30 June 2010 - 104 -
Payables 990,387 - - 990,387 990,387 Financial liabilities 99,970 395,197 - 495,167 495,167
Total 1,090,357 395,197 1,485,554 1,485,554
The Council has not defaulted on or breached the conditions of any loans payable recognised at balance date.
(i) Sensitivity Disclosure Analysis The risks associated with our main financial instruments and our policies for minimising these risks are detailed below. The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date. The analysis assumes all other variables remain constant and was performed on the same basis for 2010. The table below discloses the impact on net operating result and equity for each category of financial instruments held by Council at year-end, if the above movements were to occur.
Interest rate risk Surplus or deficit Equity +1% (100 +1% (100 basis -0.5% (50 basis -0.5% (50 2011 points) basis points) points) basis points) $ $ $ $ $ Financial Assets Cash and cash equivalents 8,951,287 89,512 44,756 89,512 44,756 Trade and other receivables 633,382 - - - - Financial Liabilities Interest bearing loans and borrowings 2,195,197 (21,952) (10,976) (21,952) (10,976) Trade and other payables 1,199,994 - - - -
Interest rate risk Surplus or deficit Equity +1% (100 +1% (100 basis -0.5% (50 basis -0.5% (50 2010 points) basis points) points) basis points) $ $ $ $ $ Financial Assets Cash and cash equivalents 6,923,626 69,236 34,618 69,236 34,618
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Trade and other receivables 563,408 - - - - Financial Liabilities Interest bearing loans and borrowings 495,167 (4,952) (2,476) (4,952) (2,476) Trade and other payables 990,387 - - - -
The movements in profit are due to higher/lower interest costs from variable rate debt and cash balances.
(j) Fair Value Hierarchy The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows:
• Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities • Level 2 - inputs other than quoted prices included within level one that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices) • Level 3 - inputs for the asset or liability that are not based on observable market data
30 June 2011 Level 1 Level 2 Level 3 Total Financial assets at fair value through the comprehensive income statement 281,200 - - 281,200
Available for sale financial assets - - 22,191,052 22,191,052
TOTAL 281,200 - 22,191,052 22,472,252
30 June 2010 Level 1 Level 2 Level 3 Total Financial assets at fair value through the comprehensive income statement 510,000 - - 510,000
Available for sale financial assets - - 22,152,555 22,152,555
TOTAL 510,000 - 22,152,555 22,662,555
There were no transfers between Level 1 and 2 in the period.
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Reconciliation of Level 1 Fair Value Movements
2011 2010
$ $ Opening Balance 510,000 376,250 Gains (losses) recognised in other comprehensive income: Maturity of investment (500,000) - Reversal of impairment on investment 271,200 133,750 Closing Balance 281,200 510,000
Reconciliation of Level 3 Fair Value Movements
2011 2010
$ $ Opening Balance 22,152,555 - Investment on transfer of net assets - 24,118,206 Gains (losses) recognised in other comprehensive income: -Fair value initial adjustment on available for sale assets (64,931) (1,965,651) -Fair value adjustment on available for sale assets 103,428 - Closing Balance 22,191,052 22,152,555
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37. SIGNIFICANT BUSINESS ACTIVITIES
TRANSPORT STORMWATER & INFRASTRUCTURE DRAINAGE * $ $ 2011 2010 2011 2010 Revenue
Rates - - - - User Charges 173,555 150,000 - - Grants 1,578,307 2,289,808 - - Other 22,331 490,798 - -
Total Revenue 1,822,161 2,930,606 - -
Expenses
Direct Labour & Materials 2,131,058 2,613,750 153,802 21,930 Borrowing Costs - - - - Other 226,611 167,471 - 98,627
Indirect Engineering and Administration 146,374 192,704 143,173 97,522
Total Expenses 2,504,043 2,973,925 296,975 218,079
Capital Costs
Depreciation 1,495,655 1,455,940 94,243 93,790 Opportunity Cost of Capital 5,031,076 5,633,008 171,064 266,725
Total Capital Costs 6,526,731 7,088,948 265,307 360,515
Competitive Neutrality Costs - - - -
38. AUDITORS’ REMUNERATION
2011 2010 $ $ Audit fee external audit – Tasmanian Audit 27,360 32,030 Office Fees for other audit services 1,400 573
TOTAL 28,760 32,603
39. INVESTMENT IN WATER CORPORATION
In February of 2008 State and Local Government reached agreement to establish three Local Government owned, vertically integrated businesses providing bulk, distribution and retail water and sewerage services, and a common service provider subsidiary company. The Water and Sewerage Corporations Act 2008 (Corporations Act) was subsequently enacted and received Royal Assent on 13 June 2008.
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Full transfer of water and sewerage assets, liabilities and staff to the new corporations took place on 1 July 2009. From that date, responsibility for the provision of water and sewerage services moved from local councils to the three new regional water and sewerage corporations (trading as Cradle Mountain Water, Ben Lomond Water and Southern Water). A fourth company provides common services and support to the three regional corporations (trading as Onstream).
Council has classified this asset as an Available-for-Sale financial asset as defined in AAB 139 Financial Instruments: Recognition and Measurement and has followed AASB 132 Financial Instruments: Presentation and AASB 7 Financial Instruments: Disclosures to value and present the asset in the financial statements.
There is no active market for the investment and so it is valued at Council’s share of total equity as at each balance date. Changes in the fair value are recognised through the Comprehensive Income Statement each year.
Council’s ownership interest of 6.8% in Cradle Mountain Water is based on the Final Treasurer’s Allocation Order in 2011. Council does not have significant influence to allow it to use the equity method to account for this interest.
2011 2010
$ Opening balance 22,152,555 24,118,206 Fair Value initial adjustment on assets held for resale (64,931) (1,965,651) Fair Value adjustment on assets held for resale 103,428 0
Total investment in water corporation 22,191,052 22,152,555
40. CONTINGENT LIABILITIES
The Council had no contingent liabilities as at 30 June 2011 and 30 June 2010.
2011 2010 $ $ Contingent Liability 0 0
TOTAL 0 0
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41. RESERVES
2011 2010 $ $ Asset Revaluation Reserve: Balance at beginning of financial year 26,085,584 38,975,051 Revaluation adjustment: Land 418,866 - Buildings 1,297,782 - Transport infrastructure 25,988,304 - Transfers: Land - (354,537) Buildings - (646,581) Sewerage - (2,967,528) Cradle Coast Water (6,976,215) Water - (1,944,606) Balance at end of financial year 53,790,536 26,085,584
Closing balance Land 4,378,934 3,960,068 Buildings 2,255,447 957,665 Transport infrastructure 47,156,155 21,167,851 53,790,536 26,085,584
The asset revaluation reserve was established to capture the movements in asset valuations upon the periodic revaluation of Council's assets.
2011 2010 $ $
Financial Assets available for Sale Reserve Balance at the beginning of the financial year 0 0 Fair Value Adjustment 103,428 0 Balance at the end of the financial year 103,428 0
The available-for-sale financial asset reserve was established to capture the fair value movements in Council's Water Corporation investment.
Public Open Space Reserve Balance at beginning of financial year 0 0 Transfer from retained surplus for future 181,216 0 Expenditureexpenditure of funds on capital works (95,000) 0 Balance expended at inend the of period financial year 86,216 0
TOTAL 53,980,180 26,085,584
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The Public Open Space Contributions Policy states that all moneys taken as contributions under this policy will be held in a reserve and used for the provision of new or the improvement of existing public open spaces and beautification projects.
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CIRCULAR HEAD COUNCIL
Certification of the Financial Report
for the reporting period ended 30/06/2011
I Gregory Allan Winton certify that in my opinion:-
1. the financial report fairly represents:
(a) the financial position of the council; and
(b) the results of the council’s operations; and
(c) the cash flows of the council.
2. the financial report has been prepared in accordance with the requirements of the Local Government Act 1993 (as amended), Australian Accounting Standards, including Australian interpretations, and other mandatory professional reporting requirements.
Gregory Allan Winton GENERAL MANAGER
Dated at Smithton this 15th day of August 2011
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